The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
0 A Meeting of the Federal Reserve Board was held in the office of the ?eclerca Reserve Board on Thursday, May 28, 1931, at 11:45 a. m. PRESENT: Governor Meyer Mt. Hamlin Mr. Miller Mr. Tames Mr. Magee Mt. McClelland, Assistant Secretary. The Assistant Secretary presented various matters which were conby the Board and acted upon as follows: Memoranawm from Counsel dated May 18th, submitting draft of reply to letter dated March 27th from the Assistant Federal Reserve Agent at San 4411°1800 inquiring whether it is necessary for the Federal Reserve Agent to %141141/ aPParent violations of the provisions of the Clayton Anti-Trust Act ft4°1113Y reports of examinations of national banks; the proposed reply ad,111Thta that the Federal Reserve Board in each case checks the Comptroller's : 11°11 4Ellnet its own record, so that similar action by the Federal Reserve 18 not necessary, although he should follow up any apparent violation kicoir el'ed through sources other than reports of examinations of national banks; 15r°13°8ed, letter also stating that the Board desires the Federal Reserve 4‘esAt t- Check up, at least once each year, all private bankers and officers, rn °--, and employees of all banks in his district subject to the provisions -Le Clayton Act and advise the Board of any violations. Upon recommendation of the Law Committee, the proposed letter to the Assistant Federal Reserve Agent at San Francisco, and draft of a circular letter to all Federal Reserve Agents along the same lines, were approved and ordered transmitted. blem oranaium from Counsel dated May 19th, submitting draft of reply to *atter dated May 11th from the Auditor of the International Acceptance Bank .'11111m, Whether the recent ruling of the Board that it is necessary for a .420 5/28/31 9 raernber bank action to maintain reserves against liabilities arising from trans- whereby foreign currency is paid into an account maintained by the inernber bank with a foreifm correspondent the amount being repayable by the 41etr6er bank in foreign currency at a later date, is applicable to the Inter41t1°nal Acceptance Bank; the proposed reply advising that inasmuch as the institution under its agreement with the Board is not required to carry cash l'eaerves against deposits abroad, the ruling does not apply. Upon recommendation of the Law Committee, the proposed letter was zip-proved. Letter dated Lay lJth from. the Federal Reserve Agent at Cleveland stlitting and reconnending approval of a plan submitted by the PeoplesburCh Trust Company, Pittsburgh, Pennsylvania, for the elimination from lta Elasets of the stock held by it in the Second National Bank of Allegheny, aburCh and the First National Bank of Wilkinsburg, Pennsylvania; the Contermiatin,: the sale of the stock of the 2irst National Ban:: of filkill'"urr" for cash and of that of the Second National Bank of Allegheny, l'ittsburCh for cash and 3,000 shares of stock in the Tirst flational Bank at 13ittburCh., bringing the member bank's holdings in the latter institution III) to a total of 27,254 shares, and that the bank continue to carry 25 411411" in the Dank for International Settlements, acquired since its 4(11111aaion to membership, 1,543 shares in the Dormant Savings and Trust c)1111 Y, 1,499 of which were owned at the time of admission, and 31 shares te Irniot. Trust Company of Pittsburgh, which were also owned at the time Mallission. 111t414 C11 The pro)osed plan also pointed out that it is likely that reasohable time the Borough of Dormant will become a part of the l'ittsburgh, in which event the Dormont Savings and Trust Company ‘11411e. c onverted into a branch. el, 0 5/28/31 -3- After discussion, upon motion, it was voted to approve the Plan submitted by the Peoples-Pittsburgh Trust Company. Memorandum from Counsel dated May 19th, calling attention to the fact that it seems impossible to secure an effectual disposition by the Atlantic flQ Bank of Boston, Mass., of the stock held by it in the Atlantic Corp° r8ti°11, a state foreign banking corporat4 on operating under agreement with t e p ederal Reserve Board; Counsel recornending that the bank be requested to 110e 411 officer, accompanied by the bank's Counsel, come to Washington for the 1)411308 of discussing the matter with the Board. e After discussion, upon motion, the matter was referred to the Governor with power. Memorandum dated /jay 27th from the Secretary of the System Committee 011 g Reserves,reporting the findings of the Committee with regard to the ktter °r assessing progressive penalties for deficiencies in member bank Noer7 e8 'which was referred to the Committee at the meting on May 4th, and teo(31,1 eliding (a) that progressive penalty rates on continued deficiencies in 41%41, hallk reserves be discontinued, and (b) that this be accomplished by C4C$DOXIA144 171tlickt 11 between the Federal Reserve Board and the Federal Reserve banks 2TIonament to the Board's Regulations until the final report of the 441At ee 18 presented. After a discussion as to the advisability of sending the Committee's report to the various Federal Reserve banks, it VMS voted not to transmit the report but to bring the matter informally to the attention of any of the Governors who may come to Washington. The Assistant Secretary then stated that there are several matters ror,, —btu. minutes of the Governors' Conference, which were received and V2e/31 -4- distributed among the members of the Board yesterday, which will require LIIIIEltr c onsideration by the Board. Upon motion, the Assistant Secretary was instructed to bring these matters up for consideration at the meeting tomorrow. Memorandum dated May 25th from Hr. Magee, recommending the appointment °I'1111% " F PO Brown, Arbor, Nebraska, as a Glass C Director of the Federal Re4't1 /1/44k of Kansas City for the unexpired portion of the term ending ilaeernbel' 31, 1933. Upon motion by Mr. Magee, it was voted to appoint Mr. Brown as a Class C Director of the Federal Reserve Bank of Kansas City for the unexpired portion of the term named. 11 0 bitted, tiktea, OF STANDING COPYIas WaY 27th 28th h14Y 22nd 4tec l /14Y 22nd 22nd Recommending changes in stock at Federal Reserve Banks, as set forth in the Auxiliary Minute Book of this date. Recommendations approved. Recommending approval of the application of Mr. Toe L. Clift, for permission to serve at the sane time as officer of the Yakima First National Bank of Yakima, Wash., and as director of the First National Bank of Wapato, Wash. Approved. Recommending approval of the application of Mr. A. E. Larson, for permission to serve at the sane time as director and officer of the Yakima First National Bank of Yakima, Wash„ and as director of the First National Bank of Wapato, Wash. Approved. Recommending approval of ;the application of Mr. R. M. Hardy, for permission to serve at the sane time as director and Officer of the Yakima First National Bank of Yakima, Wash., and as director and officer of the First National Bank of Wapato, Wash. Approved. 11,_ejt`..1 Vas/31 -5- 4111PORTS OF STANDING COMMDMES: (Cont,d) 1)4teci'114Y 22nd Recommending approval of the application of Mr. George B. St. George, for permission to serve at the same tine as director of the First National Bank of the City of New York, New York City, as director of the Marine Midland Trust Company of New York, New York City, and as director of the Tuxedo National Bank of Tuxedo, New York. Approved. The meeting adjourned at 12:40 p. Assistant Secretary. 4''t prcjirec i : 4XXILIA,AY 111/X2L3 .(May 28, 1931.) chil Reports of Standing uommittee dated 1:ay 27th and 28th, recommending ta stock at Federal deserve Banks, approved as follows: lieation for 04IGINAL Stockt, 6 --4 ational Bank in Leridian, Leridian, Uiss, Wo Shares: 300 300 lication for SILL-LU;DER of Stooki No. 3. J21G National Ban, Woodlynne, N. J. (I48O1vent) 41ssistant Sec T.
@FedFRASER