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643 A meeting of the Board of Governors of the Federal Reserve Systen was held in Washington on Wednesday, May 5, 1937, at 10:15 a. m. PRESENT: Mr. Mr. Mr. Mr. Mr. Mr. Eccles, Chairman Ransom, Vice Chairman Broderick Szymczak McKee Davis Mr. Mr. Mr. Mr. Morrill, Secretary Bethea, Assistant Secretary Carpenter, Assistant Secretary Clayton, Assistant to the Chairmen Consideration was given to each of the matters hereinafter referred to and the action stated with respect thereto was taken by the Board: The minutes of the meeting of the Board of Governors of the FedRe serve System held on May 4, 1937, were approved unanimously. Telegrams to Mr. Austin, Chairman of the Federal Reserve Bank Of ad elPhia, Mr. Stewart, Secretary of the Federal Reserve Bank of St. to 4 11's and Mr. Thomas, Chairman of the Federal Reserve Bank of Kansas Ci Stating that the Board approves the establishment without change b the respective banks today of the rates of discount and purchase in their e eting schedules. Approved unanimously. Letter to Mr. Walsh, Chairman of the Federal Reserve Bank of 411") r61--ng di 88 follows: to "Chairman Eccles has brought to the attention of the to " 4 Your letter of April 20 and its inclosures in regard 14 the retirement of Mr. H. Renfert from active participation 19,!he firm of Renfert, Helmbrecht & Company on June 30, 'f, and raising a question as to whether, in the circum- 644 5/5/37 -2- "stances, he should tender his resignation as a member of the board of directors of the Houston branch of your bank. "The Board feels that the fact that Mr. Renfert will 110 longer be actively engaged in the cotton business does 11.,1,°t in any way disqualify him from serving out his appoint' lent as a director of the Houston branch, and it will be ape, therefore, if you will assure Mr. Renfert of the 3,raciated, Boa desire that he continue his service on the branch .rectorate ,, 1 Approved unanimously. Letter to the board of directors of the "Lake Charles Bank and C(ImPanr, Lake Charles, Louisiana, stating that, subject to the e°nclitiOne of membership numbered 1 to 6 contained in the Board's Regulatint, and the following special conditions, the Board approves the aPPlication for membership in the Federal Reserve System and for the aPProPriate amount of stock in the r'ederal Reserve Bank of Atlanta: Such bank shall make adequate provision for depreciation in banking premises and furniture and fixtures. Prior to admission to membership, such bank, if it has not already done so, shall charge off or otherwise eliminate estimated losses of .22,624.02, as shown in the report of examination of such bank as of March 13, 1937, made by an examiner for the Federal Reserve Bank of Atlanta." Approved unanimously for transmission through the Federal Reserve Bank of Atlanta. ertil Letter to Mr. Dillistin, Assistant Vice President of the Fedese rve Bank of New York, reading as follows: treal "Reference is made to your letter of April 30, 1937, Cum, srrlitting the request of the 'Bank of New York and Trust uniTanr, New York, New York, for permission, as required er Section 24A of the Federal Reserve Act to increase its 645 5/5/37 v in banking premises in an amount not exceeding M0,000. "The Board has reviewed the information submitted and in View of your recommendation approves the additional investment in banking premises by the Bank of New York and Trust Company." "investment Approved unanimously. Letter to Mr. Gidney, Vice President of the Federal Reserve Bank Or New York, reading as follows: 2 "Reference is made to Mr. Lillistin's letter of April 6, 1937, transmitting with a fPvorable recomTriendation the , ' request of 'The Summit Trust Company', Summit, New Jersey, which further extension to July 1, 1938, of the time within it may comply with the following condition of member- 18. Not later than July 1, 1934, such bank shall dispose of any stock it holds in the Summit Title and Mortgage Guaranty Company and shall not thereafter hold any stock in such company, directly or indirectly, through any device whatever. The &Th.__ ,,w!flit Trust Company has also requested permission under t le Provisions of condition of membership numbered 19 to coniue to act until July 1, 1938, as trustee in connection the remaining mortgage participation bonds issued by : h e Summit Title and Mortgage Guaranty Company. The Board wif Previously granted three one year extensions of the time sh hin Which the bank might comply with condition of membernumbered 18, the last extension expiring on July 1, 193 co ,) end also within which the bank might be permitted to 021inue to act as trustee in connection with the bonds or fler obligations issued by the Mortgage company. mad "It has been noted that substantial progress has been Bride, in the liquidation of the business of the Summit Title lortgage Guaranty Company. According to the information atted, the total resources of the company amounted to me:°38,000 on April 1, 1937, as compared with ,4,1,440,000 on pcif 1, 1936, and Mr. Dillistin states that there is an apezreirt need for additional time within which to carry out °rderlY liquidation. mend: In view of the circumstances and Mr. Dillistin's recomwht :!'ion, the Board extends to July 1, 1938, the time within of, en The Summit Trust Company may comply with the provisions 'Membership condition numbered 18 and extends also to July O 646 5/5/37 -4- "1, 1938, the time within which The Summit Trust Company may continue to act as trustee in connection with the outstanding bonds or other obligations issued by the Summit Title and Mortgage Guaranty Company, with the understanding, of .ctourse, that the bank will continue to act as trustee for he Surmit Title and Mortgage Guaranty Company only in conneotion with obligations which had been issued by the comPanY prior to the time of the bank's admission to membership. a "It is requested that you advise the bank of the Board's etion in the matter." Approved unanimously. Letter to The Perth Amboy l'eadirlo• as Trust Company, Perth Amboy, New Jersey, follows: "Paragraph (1) of subsection (i) of section 12B of the Federal Reserve Act as amended reads in part as follows: * * * Whenever the board of directors (of the Federal Deposit Insurance Corporation) shall find that an insured bank or its directors or trustees have continued unsafe or unsound practices in conducting the business of such bank, or have knowingly or negligently Permitted any of its officers or agents to violate any Provision of any law or regulation to which the insured bank is subject, the board of directors shall first give to the Comptroller of the Currency in the . c, lase of a national bank or a District bank, to the auiii v "itY having supervision of the bank in the case of a State bank, or to the Board of Governors of the Federal Reserve System in the case of a State member bank, !statement with respect to such practices or violations the purpose of securing the correction thereof. Unless such correction shall be made within one hundred and twenty days or such shorter period of time "the Canntroller of the Currency, the State authority, or the Board of Governors of the Federal Reserve Sysas the case may be, shall require, the board of ' lreotors, if it shall determine to proceed further, s111111 give to the bank not less than thirty days' written notice of intention to terminate the status of the rellik es on insured bank, and shall fix a time and plece e hearing before the board of directors or before a Ireon designated by it to conduct such hearing, at Which evidence may be produced, and upon such evidence 647 5/5/37 -5- "the board of directors shall make written findings Which shall be conclusive. * * * (Statement in parenthesis supplied.) "Pursuant to the statutory provisions above quoted, the Federal Deposit Insurance Corporation has submitted to the ?card of Governors of the Federal Reserve System the followlng statement with respect to continued unsafe and unsound ectices by the Perth Amboy Trust Company for the purpose r securing a correction thereof, of which you will please take notice: 'In the opinion of the Board of Directors of the Federal Deposit Insurance Corporation, the above insured member bank has continued unsafe and unsound Practices in the conduct of its business, and the Board has so found. Therefore, at the direction of the Board of Directors of the Federal Deposit Insurance Corporation, and pursuant to paragraph (1), subsection (i) of Section 12B of the Federal Reserve Act, as amended, the following statement with respect to such practices is hereby submitted for the purpose of securing the correction thereof. 'Specifically, the continued unsafe and unsound Practices consist, among others, of the following: (1) The operation of the bank, although insolvent; (2) The carrying of losses in the bank's assets, and thereby failing to disclose a true statement of the bank's condition; (3) The maintenance of lax loaning, investment and collection policies; and (4) The failure of the board of directors to properly manage and to give proper attention to the affairs of said bank. Without limiting the generality of said findings, and in aUPport thereof, attention is called to the following: r (a) The excessive and unwarranted amount of assets classified as "Estimated Losses" by the examiners; (b) The excessive and unwarranted amount of past due loans; (c) The excessive and unwarranted amount of loans to officers, directors and employees, their interests and affiliates; (d) The excessive amount of substandard securities and non-income-producing loans and investments; (a) The frozen and extended condition of the loans and the low liquidity ratio; 648 5/5/37 -6"(f) The failure to support and maintain adequate and current credit information supporting loans; (g) The continuous borrowings of the bank in substantial amounts; (h) The low earnings of the bank; (1) The failure to provide a legally constituted board of directors, and the failure of a number of the directors to attend meetings of the board. 'For evidence supporting such unsafe and unsound Practices, reference is made to the following reports of this Corporation's examination of subject bank, namely: (a) Report of Examiner Frank A. Wanner, made as of February 17, 1937; (b) Report of Examiner E. I. Kemper, made as of February 13, 1936; (e) Report of Examiner E. I. Kemper, made as of November 19, 1935; ! it'd to the report of examination made by H. H. Wighton, Examiner for the Federal Reserve System, as of February 5 1 1935• 'Therefore, if the subject bank desires to continue it status as an insured bank, it will be necessary that the said continued unsafe and unsound practices be corrected. The Board of Directors request that all measures !ecessary to correct said unsafe and unsound practices be promptl_ 14 taken, including the following, viz: (1) Eliminate by charge-offs, or otherwise, all estimated losses as set out in the report made Upon the examination of the subject bank by Examiner Frank A. Wanner, as of the close of businoss on February 17, 1937, or show good and satisfactory reasons why such charge-offs should not be made; '(2) Restore the bank's capital on the basis of the Impairment shown in said report; and (3) Provide a board of directors as required by the bank's by-laws and strengthen the management of the bank to the satisfaction of the State Banking Department, the Board of Governors of the Federal Reserve System and this Corporation. 'In this connection, your attention is respectfully cal led to said paragraph (1) of subsection (i) which proIridee that "unless such correction shall be made within 649 5/5/37 "120 days or such shorter period of time as the * * * Board of Governors of the Federal Reserve System * * * shall require" the Board of Directors of this Corporation may proceed to terminate the status of the bank as an insured bank as therein provided. 'We shall appreciate being advised of the action, if any, taken by you to fix the time in which the bank maY make the necessary corrections, which time must not exceed 120 days; also, of any action taken by the subject bank to make such corrections.' pede "Pursuant to the -Provisions of section 12.6(i)(1) of the ral Reserve Act, you are hereby directed to effect coretthns of the unsafe and unsound practices enumerated in j l he s tatement of the Federal Deposit Insurance Corporation clu°ted above, and the Board of Governors of the Federal Reserve d System has fixed the oeriod ending Sept. 2, 1937, 120 ! 1Y8 frola the date of this letter, as the time within which Such c orrections shall be effected. You are reauested to adthe Federal Reserve Bank of New York on or before Sept. 937, as to the action which has been taken effecting cer'""na of the unsafe and unsound practices referred to. 1,e, "For your information, there is inclosed a copy of the 12 ' 17ral Reserve Act, and your attention is called to section (4x thereof andlp ma lricularly to the full text of subsection kll of secti 1 Approved unanimously together with a letter to The Raritan Trust Company of Perth Amboy, Perth Amboy, New Jersey, reading as follows: Feder"Tharagraph (1) of subsection (i) of section 12B of the al Reserve Act as amended reads in part as follows: * * * Whenever the board of directors (of the Federal Deposit Insurance Corporation) shall find that insured bank or its directors or trustees have conUnsafe or unsound practices in conducting the ilusineas of such bank, or have knowingly or negligently : 11Tlitted any of its officers or agents to violate any t'°vision of any law or regulation to which the insured .11k is subject, the board of directors shall first a 1're i to the Comptroller of the Currency in the case of li rlational bank or a District bank, to the authority b-ving supervision of the bank in the case of a State : 2 11k) or to the Board of Governors of the Federal Rerye SYstem in the case of a State member bank, a 6atement with respect to such practices or violations 4 650 5/5/37 -8"for the purpose of securing the correction thereof. Jnless such correction shall be made within one hundred and twenty days or such shorter period of time as the Comptroller of the Currency, the State authority, or Board of Governors of the Federal Reserve System as the case may be, shall require, the board of directors, if it shall determine to proceed further, shall give to the bank not less than thirty days' written notice of intention to terminate the status of the bank as an inred bank, and shall fix a time and place for a hear1! n e ebefore the board of directors or before a person nt ar by it to conduct such hearing, at which evibe produced, and upon such evidence the board of directors shall rake written findings which shall be co nclusive. * * *I (Statement in parenthesis supplied.) Feu "PUrsuant to the statutory provisions above quoted, the eral Deposit Insurance Corporation has submitted to the 3c1Ird of Governors of the Federal Reserve System the follow;flg statement with respect to continued unsafe and unsound 4: ict ces bY The Raritan Trust Company of Perth Amboy for ,A,4; Purpose of securing a correction thereof, of which you ' 11 Please take notice: 'In the opinion of the Board of Directors of the Federal Deposit Insurance Corporation, the above inured member bank has continued unsafe and unsound practices in the conduct of its business, and the Board a,Eis so found. Therefore, at the direction of the : 4 :°erd of Directors of the Federal Deposit Insurance (prPoration, and pursuant to paragraph (1), subsection Section 12B of the Federal Reserve Act, as emended, the following statement with respect to such Practices is hereby submitted for the purpose of sothe correction thereof. 'Specifically, the continued unsafe and unsound Practices consist, among others, of the following: (1) The operation of the bank, although insolvent; (2) The carrying of losses in the bank's assets, and thereby failing to disclose a true statement of the bank's condition; (3) The maintenance of lax loaning, investment and collection policies; and (4) The failure of the board of directors to properly manage and to give proper attention to the affairs of said bank. 141thout limiting the generality of said findings, and !*fl support thereof, attention is called to the followIng: 651 5/5/37 -9"(a) The excessive and unwarranted amount of assets classified as "Estimated Losses" by the examiners; (b) The excessive and unwarranted amount invested in substaddard securities, defaulted bonds and non-income-producing loans and investments; (c) The excessive and unwarranted amount of past due loans; (d) The frozen and extended condition of the loans and low liquidity ratio; (e) The failure to support and maintain adequate and current credit information supporting loans; (f) The large and continued borrowings of money by the bank; (g) The large amount of assets of the bank Pledged as collateral security to borrowings; (h) The continued operation of the bank at a loss; (i) The failure to collect interest on loans in cash, and the taking of notes in lieu thereof; and (i) The failure of a number of the members of the board of directors to regularly attend meetings of the board. '-bor evidence supporting such unsafe and unsound Practices, reference is made to the following reports of this Corporation's examination of subject bank, tamely: (a) Report of Examiner B. C. Burke, made as of February 17, 1937; (t) Report of Examiner E. W. Edwards, made as of February 13, 1936; (c) Report of Examiner E. V. Edwards, made as of November 19, 1935; ai-ad to the report of examination made by H. H. 1Nighton, , 12cariliher for the Federal Reserve System, as of February u$ 1935• 'Therefore, if the subject bank desires to continue its status as an insured bank, it will be necessary that th said continued unsafe and unsound practices be cornected- The Board of Directors request that all measures b:cessarY to correct said unsafe and unsound Practices Promptly taken, including the following, viz: 652 5/5/3? -10- Eliminate by charge-offs, or otherwise, all estimated losses as set out in the report made Upon the examination of the subject bank by Examiner B. C. Burke, as of the close of business on February 17, 1937, or show good and satisfactory reasons why such charge-offs Should not be made; (2) Restore the bank's capital on the basis of the Lmpairment shown in said report; and (3) Strengthen the management of the bank to the satisfaction of the State Banking Department, the Board of Governors of the Federal Reserve System and this Corporation. 'In this connection, your attention is respectful1Y called to said paragraph (1) of subsection (i) which Provides that "unless such correction shall be made )1,1lhin 120 days or such shorter period of time as the * * * Board of Governors of the Federal Reserve System * shall require" the Board of Directors of this rPoration may proceed to terminate the status of the enk as an insured bank as therein provided. 'te shall appreciate being advised of the action, if ahY, taken by you to fix the time in which the bank IllaY make the necessary corrections, which time must not exceed 120 days; also, of any action taken by the subject bank to make such corrections.' pede "PUrsuant to the provisions of section 12B(i)(1) of the ral Reserve Act, you are hereby directed to effect corLIct1°11s of the unsafe and unsound practices enumerated in que st atement of the Federal Deposit Insurance Corporation se°ted above, and the Board of Governors of the Federal Restem has fixed the Period ending Sept. 2, 1937, 120 sun fl'om the date of this letter, as the time within which ad;" corrections shall be effected. You are requested to 6en ec the iederal Reserve Bank of New York on or before 21 1937, as to the action which has been taken effectto. e°rrections of the unsafe and unsound practices referred r Ved "Y°r Your information, there is inclosed a copy of the 1213-ral Reserve Act, and your attention is called to section : 01/11(1117 .!icIllarly to the full text of subsection (i) tolfle:reft In connection with the above matter the following letter to Mr. Harrison, Presiaent of the Federal Reserve Bank of New York, and a similar letter relating to The Raritan Trust Company of Perth Amboy, also were approved unanimously: 653 5/5/37 -11"Under the provisions of paragraph (1), subsection (i) of section 12B of the Federal Reserve Act, as amended, the Board of Directors of the_Federal Deposit Insurance CorPoration has found that the Perth Amboy Trust Company, Perth ArlboY, New Jersey, has continued unsafe and unsound practices in the conduct of its business, has so advised the Board of Governors of the Federal Reserve System, and has requested the Board of Governors to fix the time in which the bank !hall make the necessary corrections of such practices and to advise the Corporation of any action taken by the bank to effect such corrections. "There is inclosed a letter the Board has addressed to the Perth Amboy Trust Company, together with three copies ereof, advising of the findings of the Board of Directors the Federal Deposit Insurance Corporation and fixing Sept. 2, 1937, as the date not later than which the necessary _ orrections of the unsafe and unsound practices mentioned Shahl be effected, `cr)u are hereby authorized to have the inclosed letter, togeth with a copy of the Federal Reserve Act, personally Presented to the Perth Amboy Trust Company, Perth Amboy, New 7?1'seY, the person who does so to make an affidavit of service in the usual form in which such affidavits are made in of New Jersey. This affidavit and a copy of the letter j uter to which it is attached should be forwarded to the -ooard • "If for any reason it is not feasible to make such a :fs°11a1 P Presentation, you may have the inclosed letter, towith a copy of the Federal Reserve Act, forwarded by ' eglstered mail to the Perth Amboy Trust Company. If this 0. 1311; "edure is followed, the person who mails the letter should a receipt therefor and should request a return reliot showing that the letter was delivered to the bank. .en the receipt showing delivery of the letter has been ref ted, the person who -,ailed the letter should make an af61;'avit that he forwarded it by registered mail to the bank ard,received a receipt showing the delivery thereto. This fldavit and a copy of the letter to which it is attached, 1• gether with the receipt obtained at the time the letter Was mailed and the receipt showing the delivery, should be L'rwarded to the Board. yo , "One of the copies of the letter to the bank is for ' t 1" files and you are requested to forward the other copy Of the Commissioner of Banking and Insurance of the State New Jersey for his information." n g J Unanimous approval was also given to a letter to the Federal Deposit Insurance Corporation reading as follows, 654 5/5/37 -12together with a similar letter to the Federal Deposit Insurance Corporation relating to The Raritan Trust Company: "This refers to your letter of April 29, 1937, in which it is stated that the Board of Directors of the Federal Deri?,osit Insurance Corporation has found that the Perth Amboy ;erust Company, Perth Amboy, New Jersey, a State member bank, ts continued unsafe and unsound practices in the conduct of 8 business. Pursuant to paragraph (1) subsection (i) of !ection 12B of the Federal Reserve Act, as amended, your J:etter contains a statement with respect to such practices ror the purpose of securing a correction thereof. "The Board of Governors has fixed the period ending Sem'-' 1937, 120 days from the date of a letter addressed the bank serving notice regarding the required correc01,°ns, es the time within which the necessary corrections t unsafe and unsound practices in the conduct of its blel-lness recited in your letter may be effected. You will IQ_ informed as promptly as possible of any advice which the :nrd receives as to any action taken by the bank to effect ch corrections. Inclosed for your information are copies _the letters of this date to the Perth Amboy Trust Company to the President of the Federal Reserve Bank of New York al'ding the matter." r 4 Letter to "The Mountain National Bank of Clifton Forge", Clifton eq"ee 'lrginia, reading as follows: "The Board of Governors of the Federal Reserve System Elven consideration to your application for permission exercise fiduciary powers, and grants you authority to act, ex : 4 not in contravention of State or local law, as trustee, (3r, administrator, registrar of stocks and bonds, t';:ll'ien of estates, assignee, receiver, committee of esof lunatics, or in any other fiduciary capacity in wt ell State banks, trust companies or other corporations te eh come into competition with national banks are permit' ex to act under the laws of the State of Virginia, the of such rights to be subject to the provisions of the Go; ' clederal Reserve Act and the regulations of the Board of ernors of the Federal Reserve System. rid "This letter will be your authority to exercise the t1;leia17 powers granted by the Board pending the preparea formal certificate covering such authoriation, --Leh will he forwarded to you in due course." Approved unanimously. 655 5/5/37 -13Letter to Mr. Sargent, Vice President of the Federal Reserve Botik of San Francisco, reading as follows: "Reference is made to your letter of April 1, 1937 ref!arding the advisability of including in your digest of zlegUlation U questions regarding a problem which you state as follows: 'If a single loan is made for the purpose of purchasing both registered and unregistered stocks, is the whole loan subject to the regulation or only that Part which is used to purchase the registered stock?' "If the amount which a person wishes to borrow from a bank 4 J-si clearly divisable into a sum desired to purchase : ! 1.a.in carry registered stocks and a sum desired to purchase carry unregistered stocks, there would be no objection _o treating the transaction as two separate loans, one reto registered stocks and subject to Regulation U and 0a other relating to unregistered stocks and not subject .t_ 0 the regulation. If you feel that it would be desirable ,° cover this point in your digest you may wish to consider "40 inclusion of a question reading somewhat as follows:. A person wishes to borrow $2500 from a bank for the purpose of purchasing and carrying $1500 of registered stocks and 41000 of unregistered stocks. May the transaction be treated as two separate loans, a $1500 loan subject to the regulation and a $1000 loan not subject to regulation? Yes.' 'Wore difficulty might arise, however, in a situation Whereit is difficult to differentiate between the amounts desired1 for one purpose and the amounts desired for other brrP"es. Presumably it was a situation of this type that 01mPted the inquiry to which the Board's letter of April To 1937 (X-9862, Reg. U-13) related. Incidentally, it is to publish this ruling in the May Federal Reserve -etin. If you feel that it would be desirable to cover cl.r ling in your digest you may wish to consider the inus1°4 of a question reading somewhat as follows: q. A securities dealer wishes to obtain a loan from a bank. The proceeds of the loan would be kept available for acquiring registered or unregistered securities, such securities to be acquired only when a quick sale is in prospect and the securities are to be disposed of promptly. The securities purchased are often unregistered but some registered stocks are so ZT 656 5/5/37 -14- 'A . "purchased. The dealer does not treat certain transactions senaretely and obtain loans from time to time for Particular Purposes so as to present any cuestion as to whether certain loans might thus be excluded from the operation of the regulation. Should the loan in cuestion be considered to be a loan for the purpose of purchasing or carrying registered stocks?' Yes. One purpose of the loan is to purchase or carry registered stocks; and, while the loan may also have certain other purposes, it should be considered to be a loan for the purpose of Purchasing or carrying registered stocks. (Board, Bulletin, May 193'7).' Approved unanimously. Letter to 11/-. Sproul, First Vice President of the Federal Reserve Betrik °I* New York, reading as follows: "Receipt is acknowledged of your letter of April .70, 37, inclosing a copy of a letter dated April 20, 19?, whio„ " You have received from the Banco de Venezuela inquirng as to what charges your bank would make for holding 2.custody for that institution 82,382 English gold sovereigns :filch it is considering transferring from London to the united States. "The Board approves the action of your board of directors 4 -In voting to authorize the officers of your bank to adthe Banco de Venezuela that your bank is prepared to .1,'d in safekeeping for the Banco de Venezuela 82,382 English ; °4'd sovereigns (approximately :;;6.79,000) and that the charge : p r such custody would be one half per mule (1/20 of l) c annum, which is the customary charge you make for such in the case of foreign central banks which have no -counts with you. vet "The Board also approves your advising the Banco de beL "uele that if it desires to open an account with your and, if after the opening of such account has been aper; 7ed by the directors of your bank and the Board of GovIt does in fact maintain en account with you along 4:'st antially the same general lines and subject to subally the same terms and conditions as for other for:" t central banks having accounts with you, no charge would made for holding this gold in custody." i Approved unanimously. 651 5/5/3? Letter to Mr. F. W. Simonds, Deputy Manager, American Bankers Ass,^. reading as follows: ."This refers to your letter of April 26 requesting "rungs and expense figures for State bank members of the Federal Reserve System for the calendar year 1936, by States cl by size of banks, corresponding to data heretofore made c vslable i to your Association covering the calendar year 1935, n "Last year we made available to your representative socalled 'total sheets' showing figures of earnings, expenses, 111c1 deposits of State bank members in each size group in each State. These figures li.ere made available with the understanding thEt they would be used only in combination ath n -°rresponding figures for insured nonmember banks, 711'ch you had arranwed to obtain froD the Federal Deposit surance Corporation, and with the further understanding „,"", if such combined data were published, figures would not be shown separately for any size group comprising less an three banks. The latter condition was laid down be,Tase in the case of some States there are only one or two State bank members in a given size group. th "The Board will be glad to make the desired data for Year 1936 available to your representative under the Se _ne conditions and with the understanding that, before any ' t7 1 the data furnished to you by the Board are published, Proposed published statement will be submitted to the ru for review. The total sheets are now available at office of Mr. F. L. Smead, Chief of the Board's Divi5 e°11 of Bank Operations, and it is suggested that your arrange directly with Mr. Smead for copying the "Le desired data from the total sheets above referred to." 1 j r Zr Approved unanimously. Letter to Mr. Louis S. Reed, lashington, D. C., reading as fol- "Jr. Clayton has brought to the attention of the Your letter of April 29 in regard to a meeting of the pi- Ldommittee for Group Medical Service for Federal Emb,c)eee. Mr. Clayton understands that the meeting is to vitueld on Friday, May 7, at 6:15 p. m., and that an into is extended to the Board to designate someone "tend the meeting. Accordingly, Mr. J. R. Van Fossen, Bo 658 5/5/37 -16"Assistant Chief of the Division of Bank Operations, will arrange to attend the meeting." Approved unanimously. Letter to the Presidents of all Federal reserve banks, reading as follows: "There is inclosed a copy of a self-explanatory letter dated April 20, 1937, from President Schaller, Chairma „ n. of the Leased Wire Committee of the Presidents' Conference, 11 ,"°mme nding the addition to the Federal Reserve Telegraph Code 0de of the code words shown on the list attached to the r for use by the Federal reserve banks as a means of yedueinc the number of words sent over the Federal Reserve Leased Wire System . "The Board of Governors has approved the addition of the list to the Federal Reserve Telegraph Code. The words ould be inserte d on Page 16 of the code book following he word 'ARWIPIT'." r Approved unanimously. Letter to Mr. Sargent, Vice President of the Federal Reserve r Sen Francisco, reading as follows: "Reference is made to your letter of March 23, 1937, rean1,44 the applicability of the Clayton Act to the ser7 0ic, , es of Mr. R. W. Kinney as a director of Central Bank te \Jakland, Oaklan d, California, and Crocker First National „Ilk of San Francisco, San Francisco, Califo rnia, in which 4n 1 call attention to certain changed conditions, and in; IIrs whether the Board wishes to reconsider again the rleestion whether the two cities are 'adjacent' within the ening of the statute. . "Although as pointed out in the Board's letter of 2/ 1936, the question was a very close one which ore 11.1 ard might reconsider at some future date on the basis zt cuanEed conditions, it does not appear that the circumco uces have as yet changed sufficiently to require a recillsi deration of the oositio n then taken. Of course, the Zeness of the question makes it difficult to predict changes in the situation may cause the Board to deterhat the cities should be considered to be adjace nt, de _ in the absence of such changes it would seem to be 6ir able as a practical matter to defer further recon- -17iderat dn of the Board's previous ruling in Until SOMe time before February 1, 1939, when relationships in a number of other cases will qUire review because of the provisions of the this case interlocking probably reClayton Act." Approved unanimously. Thereupon the meting adjourned.
@FedFRASER