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1 .3 A meeting of the Federal Reserve Board was held in the office of he Federal Reserve Board on Wednesday, November 18, 1931, at 11:35 a. in. PRESEFT: Governor reyer NT. Hamlin Mr. Miller Mr. Tames 14±. ragee 11r. Morrill, Secretary Mr. McClelland, Assistant Secretary. The minutes of the meetins of the Executive Committee of the Federal Reserve Board held on. November 9 were approved, and upon motion, the actions recorded therein were ratified. • The minutes of the meeting of the Federal Reserve Board held on .o vember 10 were approved. The fo1lowin7, matters of business were then considered and acted 111)°n by the Board: Telegram dated November 18 from the Chairman of the Federal Reserve 1144k of St. Louis, advising that the Board of Directors, at its meeting t°c14Y, made no change in the bank's existing schedule of rates of discount e'lla purchase. Without objection, noted with approval. Report of Committee on Salaries and Expenditures on a list subkittea by the Federal Reserve Bank of Atlanta of employees for whom the a. °r3 authorized leaves of absence with pay on account of illness --g the month of October, where the total of such absences since 3'41114117 1, 1931 has exceeded thirty days; the Board's Courmittee recommend4PProva1 of the salary payments involved. Approved. Letter dated November 13 from the Governor of the Federal Reserve ur .rew York requesting approval by the Board of a salary of '',;;4,000 11/18/31 -2- annum for Mr. Herbert H. Kimball who has been appointed Assistant Counsel or the bank, to become effective at the commencement of 1::r. Kimball's employnlellt; the Federal Reserve Board on. November 17 having approved informally the salary fixed by the directors for Mr. Kimball. Approved. Reply, approved by the Executive Committee, to memorandum dated Nclvember 7 from the Comartroller of the Currency recommending, upon certain ealditions, approval of the application of the First National Bank of 1411onva1e, Ohio, for Permission to reduce its capital stock from :::;100,000 to .f 50,000; the proposed reply stating that effective if and when (1) the el4nl of ‘,33,600 is Paid into the bank by certain of its directors and (2) the bank. ' liability on account of circulation outstanding is reduced to not /11°1.e than .,50 000, the Federal Reserve Board approves the application, 1113ject to the condition that no money be returned to stockholders but that the amount of the reduction in capital, together with approximately :;8,250 NM the surplus and undivided profits accounts of the bank, and :33,600 to be paid into the bank by certain of its directors and held in escrow pending he reduction, shall be used to elintinnte from the bank assets in the amount or .)66,860.09 and to establish surplus of ,20,000 and undivided profits of ;5,000. Upon motion, it was voted to approve the reduction, subject to the conditions set forth in the reply. Reply, approved informally by the Board on November 17, to a letter c41ted. November 10 from the Assistant Federal Reserve Agent at New York transin response to the Board's letter of October 1, further information it l'ea.rd to the recent absorption by the Peoples Bank and Trust Company of Pg8a aic, New Jersey, of the American Trust Company of Passaic, and calling 11/18/31 attention to the proposed merger in the near future by the Peoples Bank and Trust Company of the Lincoln National Bank and the City Trust Company, both of Passaic; the Board's reply stating that in view of all the circumstances, the Board prefers to postpone any action on the question of a possible violation of its conditions of membership by the Peoples Bank nnd Trust Company until after the next examination of the bank, which should be made as soon as practicable after consummation of the pending mergers, and requests that at the time of the examination a representative of the New Ydrk bank be present for the purpose of making such analyses of the assets acquired from the American Trust Company, the Lincoln National Bank and the CitY Trust Company, each separately, as will furnish the Board with definite information on the question whether the mergers in which the member bank has engaged involve a change in the character of its assets within the M eaning of its conditions of membership in the Federal Reserve System. Upon motion, the reply was approved. Reply to letters dated November 6 and 9 from the Assistant Federal Reserve Agents at New York transmitting further information with regard to the merger of the Utica Trust and Deposit Company, the Citizens Trust Company and the First Bank and Trust Company, all of Utica, New York, which was e ffective November 14, under the charter of the latter institution; the rePlY stating that in the absence of detailed information with reference to the assets of the constituent banks which will be eliminated and an alialYsis of the present value of the assets which will be retained by the olltinuing bank, the Board cannot properly undertake to pass on the nuestion whether the merger involves a change in the character of the assets of the ' 46 Bank and Trust Company, or in the scope of the functions exercised by wi-,„ It. 611in the meaning of the general condition of membership to which the 11/13/31 -4- Is subject, that the Board is, therefore, deferring final consideration °f the Question until after the next examination, that the member bank should be advised accordingly, and that fo11owin2; the next examination of the bank, 4 1'1111 report should be forwarded to the Board as to the condition of the 1)1111> and the nature of the changes, if any, in the general character of its essets or in the scope of the functions exercised by it, together with a l'ecoramendation of the action to be taken. Upon motion, the reply was approved. Reply, approved by the Executive Committee, to letter dated N°11etaber 4 from the !ssistant Federal Reserve Agent at Cleveland transmitting ilVormation with regard to the action taken on October 15, 1931 by the WoodCompany of Aliquippa, Pennsylvania, in absorbing the Aliquippa tonal Bank; the reply requesting certain additional data with regard to ruerger and stating that upon receipt of the information, consideration Will be given to the question whether the Board should defer a final cle cision on whether the transaction involves a change in the general ell racter of the assets of the Woodlawn Trust Company within the meaning the general condition under which it was admitted to membership in the ederal Reserve System, until after it has received a further report and l'eco traendation from the Federal Reserve Agent's office based upon the reof the next examination of the member bank. Upon motion, the reply was approved. Reply, approved by the Executive Committee, to letter dated 4Ventber 3 from the Federal Reserve Agent at San Francisco transmitting With a favorable recommendation, the application of the Pacific State Bank or 2outh Bend, Washington, for approval of its recent action, under 11/16/31 -5- 44thority granted by the Division of Banking of the State of jiashington, in establishing a trust department, a change in the scope of the functions Of the member bank within the meaning of the conditions under which it was adtaitted to membership in the Federal Reserve System; the reply stating that, on the basis of the information before it, the Board is not prepared t° Cive favorable consideration to the bank's application and has deferred 4cti°fl Pending receipt from the Federal Reserve agent of a further report, along the lines indicated, based, if necessary, on information developed thr°11ail participation by a Federal Reserve examiner in the next examination the member bank, and requesting that the member bank be advised that in tha ()Pinion of the Board it should not accept any new trust business until it has received the approval of the Board to the establishment of a trust clapartment. Upon motion, the reply was approved. Memorandum from Counsel dated liovember 7 suggesting, for reasons ate 'ted in the memorandum, that there be filed without action, a.letter ilhclar date of August 24, 1931, received from Mr. Georges St. Jean, one of the organizers of the Federal International Banking Corporation, with reto the security required for acceptances of corporations organized 1111der Section 25(a) of the Federal Reserve Act. After discussion, upon motion, it was voted to approve Counselts suggestion. Circular letter dated November 16 from la.. Thomas E. Campbell, %LeL irtlan of the District of Columbia Unemployment Committee, outlining the aka, adopted by the Committee for the solicitation of Government employees uneillployment relief and the local Coaaunity Chest, and requesting that the g oard cooperate through the appointment of a chairman to supervise the 4-141014'4 11/18/za o•0 _6- Wc)rk among the employees of the Board. After discussion, upon motion, it was voted to appoint Assistant Secretary Noell, who had charge of the activity for the Board last year, as chairman of the Board's conimittee. Reports of Standing Committee dated November 17 and 18, reconi,endinL; 413Droval of the following changes in stock at Federal Reserve banks: : 4 DZlications for SURRENDER of Stock: istrict No. 4. First rational Bank, Wauseon, Ohio. (Insolvent) Shares 54 54 4 10.:tet No. 5. -irst National Bank, Roxboro, N. C. (Insolvent) P1st National Bank, Chase City, Va. (Insolvent) '!14er8on National Bank, Alderson, W. Va. (Insolvent) st National Bank, Anawalt, W. Va. (Insolvent) -1rst National Bank, Richwood, W. Va. (Insolvent) 114 120 27 39 42 342 rict G• nouston National Bank, Dothan, Ala. (Insolvent) 180 180 i) p.trict . No. 7. pitizens National Bank, Kokomo, Ind. (Insolvent) 20Ples Trust & Savings Bank, Clinton, Iowa. (Insolvent) -,;itizens State Bank, Big Rapids, T:ich. (Insolvent) -ulrst National Bank, Traverse City, flich. (V.L.Suc. by Peoples First State Bank of Traverse city) National Bank, Paducah, Ky. (Tnaolvent) trioto.g 4k0ta National Bank, Yankton, S. Dak. (V.L.Abs. by First Dakota National Bank and Trust Company) tIst • lrst ii 11 10 National Bank, Hastings, Nebr. (Insolvent) ens Bank & Trust Co., Pocatello, Idaho. (Insolvent) Approved. Ft. 300 360 60 81 801 300 300 72 72 180 180 75 Total 75 2,004 _ 11/18/31 -7- Report of Standing Gamnittee dated November 12, reconthiending approval Or 41 application for fiduciary powers by the following bank.: District No. 2. The Auburn-Cayuga National Bank and Trust Company, Auburn, N. Y. (Confirmatory. Powers 1 to 9 inclusive. Consolidation of the National Bank of Auburn and the Cayuga County National Bank) Approved. Reports of the Law Committee dated November 12 and 18, recommending aPProval of the following Clayton Act applications: Moorhead C. Kennedy, for permission to serve at the same tlrae as director of the First National Bank of Philadelphia, Pa., and as director of the Valley National Bank of Chambersburg, Pa. Mr. Albert Kerr, for permission to serve at the sane time as director and officer of the Merchants Trust Company of Union City, h. T., and as director of the Hudson County National Bank of Jersey City, N. T. . Mr. William Werner, for permission to serve at the same time as. director of the Hudson County National Bank of Jersey City, Y. T., Ind as director of the Merchants Trust Company of Union City, N.T. " 1. 11r. Herman Beddiges, for permission to serve at the sane time as director of the Hudson County National Bank of jersey City, N. J., and as director of the Merchants Trust Company of Union City, N. X. Mr. Thomas H. Eckerson, for permission to serve at the same time as director of the Hudson County National Bank of Jersey City, Ns J.., as director and officer of the Bergen County National Bank Of Hackensack, N. T., and as director of the Merchants Trust ComPany of Union City, N. T. . Mr. Moritz Thomsen, for permission to serve at the same time as director of the Pacific National Bank of Seattle, Wash., and as director of the First National Bank of Kent, Washington. ra.. T. A. Davies, for permission to serve at the same time as director of the Pacific National Bank of Seattle, Wash., and as director of the First National Bank of Kent, Washington. ir 11/18/31 Li% P. :T. Cashman, for permission to serve at the same time as officer of the Exchange National Bank of TUlsa, Okla., as director Of the Citizens-irst National Bank of Pawhuska, Okla., and as director of the National Bank of Commerce of Wetumka, Okla. Approved. The meeting adjourned at 12:20 p. m. oi! 1 ff
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