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152 A meeting of the Federal Reserve Board was held in Vaishington °11 llonday, rovember 20, 133, at 2:30 P. m. PRESENT: Mr. Mr. Mr. Mr. Er. Black, Governor Hamlin Killer James Szymczak Er. Merrill, Secretary Er. Carpenter, Assistant Secretary Mr. Bethea, Assistant Secretary Er. Martin, Assistant to the Governor Er. Wyatt, General Counsel Er. Paulger, Chief of the Division of Examinations Li. Leonard, Federal Reserve Examiner Er. Wingfield, Assistant Counsel Governor Black presented a draft of letter, prepa red in accord4Ilee with the action taken by the Board at its meeting on November 15, 1933, to the board of directors of the Union Trust Company of Baltimore, Lictrlarld 'advising of approval by the Board of the institution's application for membership in the Federal Reserve System and for stock in the pederal Reser ve Bank of Richmond, subject to the conditions set fl31'th in the letter. Governor Black referred to condition numbered 33 14lich stated that, prior to admission to membership, such bank shall is'slle and cell for not less than par value capital notes or debentures in e4141ri°11111; not less than „500,000, maturing in not less than twenty years, 411d beezinc interest at a rate of not more than 5% per annum , which notes or debentures, under the terms of the subscription therefor, shall be 11)°IsditIllte to the rights of depositors and other creditors, and, prior t° adMission of such bank to membership, the form of the capit al notes °I' debentures referred to shall be submitted to and approved by the Fed°r41 Reserve hoard. 153 11/20/33 -2- Governor Black stated that Mr. Brewster, President of the Union Trust Company, had called on him last Saturday, Eovember 18, 1933, and Presented a form of debenture proposed to be issued by the trust company in accordance with the condition of membership above referred to, but thieh provides that the debentures would have a maturity of seven instead twenty years, and that interest on the debentures would not be sub°Isclinated to the claims of depositors and other creditors, but would be Ofl the same basis as such claims. The reason given by Ir. Brewster for the shorter maturity of debentures, Governor Black said, vas that it vic)/Ild be difficult to sell them if the longer maturity vere retained. G"441riler Black also stated that the matter was taken up with the ind1vid1411 Ilezbers of the Board on Saturday, but that some of the members had spgpressed the opinion that the proposed form should be considered at a of the Board. During the ensuing discussion, the question was raised as to Itthether Thomas favored the issuance of the seven-year debentures, a41 d Szymczak stated that he had discussed the matter with Yr. Thomas h°1 '04'e he left Washington, and that he had e:goressed approval of the ilerter maturity. At the conclusion of the discussion, upon motion by Lir. Hamlin, the form of proposed debenture was approved, Messrs. James and Szymczak voting "no". The condition of membership numbered 33 was Emended to provide that, prior to admission to membership, the Union Trust Company shall issue and sell for not less than par value capital notes or debentures In an amount not less than 500,000, maturing in not less than seven years and bearing interest at a rate of not more than 5,; per annum, which notes or debentures, under the terms of the subscription therefor, shall be t.11 11/20/33 ••• Zpinio subordinate to the rights of depositors and other creditors, except as to interest on such debentures, and such debentures shall be in the form heretofore submitted to and approved by the Federal Reserve Board, of which a copy was attached to the letter as thus amended. The amended letter to the board of directors of the Union Trust Company, advising of approval of the company's application for membership in the Federal Reserve System was then approved. In connection with the above matter, there was presented the f°110wing draft of letter to the "City Certificates Corporation", BaltiIllore, Maryland. ."The Federal Reserve Board has had under consideration your ap.V-ication for a voting permit under authority of Section 5144 of hO Revised Statutes, as amended, entitling you to vote stock of the Union Trust Company of Liaryland owned or controlled by you and approves the application, effective if and when the Union Trust InPany of Maryland becomes a nerber of the Federal Reserve System through the issuance of stock in the Federal Reserve Bank of Rich111011d to that Trust Company and subject to the numbered conditions hereafter set forth: "1. Prior to the issue of the voting permit, not less than 97 Percent of the stock of the Union Trust Company of Maryland shall be exchanged for stock in the City Certificates Corporation and tiTnzferred to that corporation. ,26 Prior to the issue of the voting permit, City Certificates Corporation shall deliver to the Federal Reserve Agent at the Federal Reserve Bank of Richmond, an agreement in the form hereto attached marked Exhibit A, duly executed by it. ihe Federal Reserve Agent should be furnished with evidence satisf h(letorY to him that the transfer of stock referred to in (1) above eZs.been effected, lie should also be furnished with three certified ef a resolution of your Board of Directors specifically frc horizing the execution of the agreement referred to in (2) above three original counterparts of such agreement executed by the of"1%rs designated in such resolution. Ri Tihen the Federal Reserve Board has been advised by the Agent at vijilsimend that the conditions prescribed above have been complied to his satisfaction, and that the Union Trust Company of Maryland been admitted to membership in the Federal Reserve System, the Board will ford to you the voting permit applied for." ° Approved, together with a letter to the Federal reserve agent at Richmond requesting that he notify 155 11/20/33 -4the Board by telegram as soon as the conditions prescribed in the letter above referred to have been complied with to his satisfaction and stock in the Federal Reserve Bank of Richmond has been issued to the Union Trust Company of Maryland, and stating that the agreement to be executed by the City Certificates Corporation provides that among other things its management shall at all tires be satisfactory to the Bank Commissioner of the State of Maryland and to the Federal reserve agent, that the Board understands that the management of the corporation is to be the same as that of the reorganized Union Trust Company, and that in accordance with this understanding it is requested that the agent satisfy himself that any necessary changes in the management of the Corporation have been or will be made. Hamlin stated that Senator Glass had called him on the telephone this morning and had requested to be advised officially 11 the Board as to whether the Board was influenced by General John4°Ils Administrator of the National Recovery Administration, to omit frox he review of the month appearing in the November issue of the Ped.ev-, - 11-1- Reserve Bulletin the usual review of business and credit condition -1" Mr. Hamlin stated that he had informed Senator Glass that he .11d submit the request to the Board. In. connection with the above matter, Governor Black advised that he had received a suggestion that it mould be appreciated if the Federal Reserve Board would allow statements in the Federal Reserve 8411et* Into be reviewed by an interpreting economist from the Central 8tati 'e'acal Board before the Bulletin is published in order that conmight be fully presented; that ho had discussed this with Mr. Goide illveiser, Director of the Board's Livision of Research and Statistics. ezd that Lire k;oldenweiser had stated that, because of the unusual 156 11/2q/33 -5- and rapidly changing conditions, it was very difficult to prepare a satisfactory review of credit and business conditions, and it was for that reason that such a review was not included in the current issue of the Bulletin. Governor Black also said that he had advised 111r. Goldenweiser that, until otherwise instructed by the Board, he hould not depart from the practice now being followed in the prepar"i032 ard review of material for the Federal Reserve Bulletin. Governor Black then stated that, in connection with the reclUest of Senator Glass, he would suggest that he be advised that the Adz -2 iulstrator of the National Recovery Administration had made no 814, 'bgelltiOn to any member of the Board or its staff with regard to *I "should be published in the November Bulletin. The Secretary was requested to advise Senator Glass in accordance with Governor Black's suggestion. There was then presented a draft of letter to the Attorney General of the United States which had been prepared by Mr. Morrill a_ .'oordance with the statement made by him at the meeting of the 13°ard or October 12, 1933, and which had been initialed in the follow- r rm by all of the appointive members of the Board except Mr. Miller: _ "The Federal Reserve Board has directed me to transmit to Y°11 herewith copies of certain material as follows: ."Report submitted to the Secretary of the Treasury by National Bank Examiner Otis W. Beaton on February 25, 1933, entitled 'Confidential Report of Certain Bond Transactions or the Federal Reserve Bank of Chicago; Continental Illinois Bank and Trust Company, Chicago; laSalle National Bank, LaSalle, Illinois; First National Bank, Kenosha, Wisconsin, and Citizens State Bank, South Haven, Michigan', together 157 11/20/33 -6- "with forty-two folders containing exhibits referred to in Mr. Beaton's report. "Report dated February 28, 1933 (contained in loose leaf binder) made to the Chief of the Division of Examinations, Federal Reserve Board, Washington, D. C., by Mr. C. E. Cagle, an examiner of the division of examinations of the Federal Reserve Board, entitled 'Re: Investigation of Don A. Jones, former Assistant Deputy Governor in Charge of Fiscal Agency Division' relating to certain transactions in Government obligations handled in the fiscal agency department of the Federal Reserve Bank of Chicago, together with all the exhibits referred to in this report. "Supplemental report. by C. E. Cagle, examiner of the division of examinations of the Federal Reserve Board, in regard to certain transactions in Government obligations affecting the Citizens State Bank of South Haven, Michigan, together With the exhibits referred to therein. "Stenographic report of statements of C. R. McKay deputy governor of the Federal Reserve Bank of Chicago, March 30, 1933. "Memorandum from C. R. McKay to the Governor of the Federal Reserve Board, dated March 31, 1933. "Letter dated April 17, 1933, from James Simpson of Chicago to the Secretary of the Federal Reserve Board in regard to certain subscriptions by Mr. Simpson for new issues of Government obligations and the inclosure transmitted therewith. "Report dated April 27, 1933, to the Chairman of the board of directors of the Federal Reserve Bank of Chicago, by the Auditing Department of that bank, entitled 'Report of Analysis of Subscriptions to and Allotments of United States Treasury Rotes, United States Treasury Bonds, and United States Certificates of Indebtedness, offered during the years 1931 and 1932, and Details and Events Leading Up to the Resignation of D. A. Jones, former Assistant Deputy Governor in Charge of Fiscal Agency Operations'. "Report dated May 22, 1933, by A. F. Shafer of his investiPtiori of certain transactions affecting the First National 'dank of PQM' Paw, Michigan, made under the direction of the .Clief National Bank Examiner of the Seventh Federal Reserve !hstrict, at the request of the division of examinations of the Federal Reserve Board, together with the exhibits referred to therein. 'Report submitted June 19, 1933, by Robert K. Stuart, na!dional bank examiner, of an investigation of certain transactions in the First National Bank of Ripon, Wisconsin, in connt eetion with subscriptions for Government obligations, made the request of the division of examinations of the Federal Reserve Board, together with the exhibits attached thereto. 158 11/20/33 -7- "The information contained in the material transmitted herewith relates to irregularities found during the investigation of certain transactions involving subscriptions to new issues of United States Government obligations which were handled in the fiscal agency department of the Federal Reserve Bank of Chicano and in certain member banks of the Federal reserve system, and is submitted to you for the consideration of your department." Mr. Miller stated that he had not initialed the letter behe assumed that Mr. Woodin had some good reason fol- retaining ill his office the first draft, and that he would prefer not to have the matter disposed of until it could be ascertained whether Lr. Odj knew of any reason for not transmitting the letter to the Att°rfleY General. Mr. Morrill reviewed the circumstances surrounding the first (1111ft of letter to the Attorney General; referred to Mr. Wyatt's mem0 nd 111m of March 31, 1933, advising that, in his opinion, the matter mould be Hew, submitted to the Attorney General; and stated that 14r. Assistant Secretary of the Treasury, had taken the matter up With h tm, advising that the question had been referred to Mr. Hewes for h andling by the Secretary of the Treasury, and that Dlr. Hewes t hat a letter of the kind which had been drafted should be sub- 'flitted to the Department of Justice. Mr. Morrill also stated that he haa "dsedMr. Hewes that he would show him the new draft of letter to the Attorney General when prepared, but that it was felt that before doing so the letter should be approved by the Federal Reserve B0"d. After discussion, upon motion by Mr. Hamlin, the proposed letter was approved, Mr. Miller "not voting". _159 11/20/33 -8- Consideration was also given to a letter dated november 14, 1933, from Ur. Harrison, Governor of the Federal Reserve Bank of New reading as follows, copies of the letter having been furnished to 411 aPpointive members of the Board: "Referring to our letter of September 29, which I subsequently amplified orally at the request of your board, and your telegram of October 10, our directors again have considered the matter of pura8121C the property east of our present bank building, known as the ...untauk property, and again have cone to the conclusion that, if property still can be obtained on the terms previously negotiated, it will offer a most advantageous opportunity to acquire an 1,rea which eventually should be part of our holdings. The reasons 40r the purchase, which we earlier advanced, still are controlling in our opinion and, in addition, the increasing pos4bi1ity of fore*°811re by the mortgage holders suggests that action should be ;'94.'izen before the Property comes into stronger hands than those of its Present owners nna the cost of a foreclosure action, possibly, "4S been added to the present price. 1,Jc do not wish to enter into further negotiations regarding this .13roperty, however, until we are assured that we can conclude the :.,dransaction upon agreement as to our terms with the present owners. nIr directors wish to repeat, therefore, their earnest request that e Federal Reserve Board give its approval to the proposal for the Purchase 01 of the Montauk property, which was set forth in our letter September 29. If you do so approve, and if the property then is Purchased as contemplate d, it would be our purpose to have plans in for an extension of the present bank building, to cover the irvlY acquired land, and to obtain estimates of the cost of const e ruction of such an addition. 'v:e already have made a preliminary Ztloration of this question on the basis of the original plans for to. s area, and the indications are that, at today's prices, the al cost of building would be in the neighborhood of 0860,000. Before proceeding beyond the point of obtaining more accurate es1:Tes, l of course, we should again consult your board. f there is any further information concerning this proposal which you vJould like to have, we shall be glad to furnish it to you." V r r Upon motion by lix. Hamlin, the Secretary was requested to advise Governor Harrison that the Board has given further careful consideration to the request of the directors of the Federal Reserve Bank of New York and interposes no objection to the purchase by the bank of the so-called lontauk property at a cost Of not to exceed 0356,250 (with adjustments for taxes, interest, insurance, current operating expenses and rentals), Ylr. Janes voting "no". 160 11/20/33 -0- There was then presented a memorandum dated November 11, 1933, from Smead, Chief of the Division of hank Operations, suggesting certain chan;es to be incorporated in the balance sheet form 34 to be bY Federal reserve banks during 1934 in submitting daily reports 43sets and liabilities to the Board, the changes in the form relating to "e subscription which the Federal reserve banks are required to make to +1, -Ike stock of the Federal Deposit Insurance Corporation and to a number it '°' which have been in use since the passage of recent legislation. The proposed changes in the form were approved. In connection with the above matter there VMS also presented a Triemorandtun dated November 9, 1933, from 'Lir. Lorrill referring to the fact thet at the request of the Federal Reserve Banks of Cleveland and lanne401is the recent Governors' Conference discussed, but took no action 741th regard to, the possibility of obtaining a refund from the Treasury NPartment of the franchise taxes paid by Federal reserve banks for the last half of 1932; the Banking Act of 1933 having amended the first paral'a.Ph of section 7 of the Federal Reserve Act to eliminate therefrom, efrective as of July 1, 1932, the provision for the payment of franchise trl-lcsa to the United States by Federal reserve banks. The memorandum stated that franchise taxes were paid by the Federal Reserve Banks of Caev'eland, Chica7,0, and ranneapolis for the year 1932 in the total amount c) '2,011,418; that the Treasury Department had advised Mr. Snead, Chief °r the Di vi si on of Bank Operations, that refunds representing the fran- ta)ces Paid by the Federal reserve banks referred to for the last c'e 199 -- could be made by the Treasury Department only after an 161 11/20/33 -10- 4PPropriation by Congress; and that it is felt, therefore, that the Federal Reserve Board should decide whether it will ash the Treasury beto request an appropriation for the purpose of reimbursing the Federal reserve banks. ed eu " by 4 Matter Lir. 1:4)rrill stated that the matter had been dis- the merbers of the Board's staff and that it was felt that, as of policy, the question should not be raised with the Treasury 4Partment at this time. Mr. Wyatt stated that he understood that the l'eaeral Reserve Bank of Chicago had submitted a request to the Treasury 1DePartment for the refund of the tax paid by it. A discussion ensued vihich the opinion was expressed by some of the members of the 0O ITI that the Federal Reserve Board should support any request of the odera1 reserve banks involved for the refund of franchise taxes paid by them for the last half of At the conclusion of the discussion, Mr. Hiller moved that the opinion as expressed be adopted as the position of the Board in the matter. Carried. The Loard then considered and acted upon the follawing matters: Reply on riovember 16, 1933, approved by five members of the 'thz)ard, to a letter dated rovember 13 from Mr. Strater, Secretary- of the ?eaeral Reserim Bank. of Cleveland; the reply reading as follows: In accordance with the request contained in your letter of 14 b°1rember 13, 1933, the Federal Reserve Board approves for your rZ.Vc, effective November 10, 1933, a minimum authorized buying e ef one-half of one percent for purchases of bankers accep-waceG .11 Approved. the i?eu Letter dated 1:ovember 16, 1933, from Mr. Sproul, Secretary of eral Reserve Lank of ew York, and telegrams dated November 15, 162 11/20/33 -11- 1933, from Er. Curtiss, Chairman of the Federal Reserve Bank of Boston, a4a November 16, 1933, from la.. Newton, Chairman of the Federal Reserve 411k of San Francisco, all advising that, at meetings of the boards of directors on the dates stated, no changes were made in the bank's existing schedules of rates of discount and purchase. Without objection, noted with approval. Memorandum dated November 14, 1933, from Yr. Paulger, Chief of the Division of Exmninations, referring to the need for additional space &lithe Shoreham Building for the division, and recommending that the 1()tIrd eathorize him to negotiate for the rental of an additional 781 sIllare feet of space, more or less, on the sixth floor of the Shoreham 131111(11.4g, on the same basis as the lease covering the space now occupied °4 that floor mith the exception that the rental shall be at a rate not to ez eeed t2.50 per square foot; the recommendation having been approved tembers of the Board on November 18, 1933. Approved. 141, Paulger stated that, in accordance with the authority granted by the Board, he had discussed mith the owners of the Shoreham Building the question 1411.344 of the leasing by the Board of additional space in that and that Mr. Robert L. McKeever, Vice President of the Shore- 414 117estment Company, had advised that, in addition to the 781 feet "4Pace Under consideration, there is available on the sixth floor ap- Aro% tely 2,900 square feet of space which adjoins the space now under 4.egotiation mith the company, and most of which is occupied by the legal ttr,of McCawley and Shinn; that the legal firm is desirous of 163 11/20/33 N75-11g -12its offices to the twelfth floor of the building; that the 2,900 1311.11are feet of space, which is suited to meet the Board's needs, would be a vailable to the Board; and that Mr. McKeever would like to receive a definite ansmer from the Board as to its space requirements inasmuch 43 aflutter of inquiries are being received from other parties with re- g" t° available apace in the building. Er. Paulger also said that he lika 'advised lir. LcKeever that he was not in a position to make a recomla ion to the Board that it acquire additional space at this time as he(lid not know that the requirements of the Board would be, but that he 1144 requested Er. McKeever to hold the matter open for at least thirty to- 1/.4ich Er. McKeever had replied that he would like to have the 130erd reach a definite decision an the matter and that in the absence of (t decision by the Board in the near future the space would be rented to °ther parties. Mr. Paulger added that the matter was being brought to the attention of the Board at this time in view of its increasing need for N4toe, In, order that it may know what additional space is available ill the Shoreham Building. James stated that he felt that, in view of the growing reqUire,ments of the Board for space, it would be reasonable for the Board to Ilegotiate a lease with the owners of the Shoreham Building for the ehtire space referred to even though it is not immediately required. A discussion ensued, at the conclusion of which Jr. Morrill and Mr. Paulger were requested to consider the matter further and submit a report to the Board. 1Zemoranchun dated November 13, 1933, from Mr, Goldenweiser, 164 11/20/33 -13Director of the Division of Research and Statistics, recommending the aPPointment of Mrs. Ruth V. Jones as a stenographer in the division, " 1 salary at the rate of j,560 per annum, effective December 1, 1933; the recommendation having been approved by five members of the Board on ember is, 1933. Approved. Lemorandum dated November 17, 1933, from Mr. Goldenmeiser, Director of the Division of Research and Statistics, recommending the teMPora -rY aPpointment until December 3, 1933, of Mrs. Margaret T. Howell "draf+ -aman in the division, with salary at the rate of 0135 per month, " 'etive as of the date upon which she enters upon the performance of her the 'les; the roc°, ndation having been approved by five members of _ Board on iovember 16, 1933. Approved. 'demorandum dated November 17, 1933, from Er. Paulger, Chief of the Divizion of LI Goahorn as a Examinations, requesting the appointment of ass Marion clerk in the division, mith salary at the rate of $1,440 13°1' effective as of the date upon which she enters upon the per- '''C)111A1100 oP her duties. Approved. liovett Ped.er Renewal bonds in the amounts of 25,000 and 75,000, executed on er 1 ' 1933, by Ir. F. L. Curtiss as Federal Reserve Agent at the al Reserve Bank of Boston. Approved. ' l eleCram dated November 18, 1933, to Mr. -Alliams, Federal Reserve 165 11/20/33 -14- Itezt at Cleveland, epproved by five members of the Board, replying to letters dated November 9 from Mr. Williams and November 14 from Mr. Iiletehers Assistant Federal Reserve Agent at Cleveland, requesting the 4PP0Intment of Er. Ray L. Poland as an examiner in the Federal reserve department of the bank, with salary at the rate of 03,000 per klialu The reply stated that the Board approves the appointment referred to With salary at the rate stated. Approved. Telegraphic reply on November 18, 1933, approved by five members of the Board, to a letter dated November 15 from Er. Hoxton, Federal Re114"e Agent at Richmond, requesting the appointment of Mr. Joseph L. &te - as an assistant examiner in the Federal reserve agent's department or the Federal Reserve Bank of Richmond, with salary at the rate of 42 ' 1°C) Per annum, and stating that Er. Suiter is indebted to certain bitalca in Rocky Mount, North Carolina. The reply stated that the Board apProve 6 the appointment referred to with salary at the rate stated, with the laiderstanding that Yr. Suitor will liquidate his indebtedness to banks 11()eicY licunt as promptly as possible. Approved. Telegrgm 4tett at letter dated November 18, 1933, to Mr. Stevens, Federal Reserve Chicagc, approved by five members of the Board, replying to a dated November 14 from Assistant Federal Reserve Agent Young with 1\lithe regard to the temporary appointment of Mr. H. C. Crays as an exkniter 411 the Federal reserve agent's department of the Federal Reserve taailcot Chicago, with salary at the rate of $4,500 per annum, effective 166 11/20/33 -15- SePtember h, 1933; the letter stating that Lr. Crays is indebted in the amount of 5,000 to the First-citizens Bank & Trust Company, Green- aatle, Indiara, a nonmember institution; that the indebtedness was inetIrred for the purpose of purchasin stock in the Citizens State Bank of lamsport, Indiana; and that Lr. Crays reports that he is negotiating ect thi time for the sale of the stock, which will liquidate at least of the debt, and that the balance will be arranged for on a 171°1-IthlY basis, The reply stated that the Board approves the temporary 413P0ittment referred to with salary at the rate stated, with the under.i:111141-11. that Lr. urays vil1 liquidate his indebtedness to the Greencastle b Wk as soon as feasible. Approved. T elegraphic reply on November 18, 1933, approved by five members the Reserve board, to a letter dated November 14 from Er. McClure, Federal Agent at Kansas City, requesting the approval of the appointrent J. L. McCarthy as an eY.aminer in the Federal reserve agent's de- 17)"lent of the Federal Reserve Bank of Kansas Cit. with salary at the l'Ate of per annum, and stating that Yr. McCarthy is indebted in the °I°1111t of ). 250 to tuo national banks in Kansas City, and that the inis being reduced by regular monthly reductions. The reply etated that the :::approves the appointment referred to with salary at the rtxte stated the understanding that Lr. McCarthy will continue theV. 'TY'atio reduction of his indebtedness to the banks in Kansas City. Approved. ilePlY on Lovember 17, 1933, approved by five members of the 167 11/20/33 -16- 4ard 'to a letter dated October 16 from Mr. ::alsh, Federal Reserve ,Ant at Dallas; the reply reading as follows: "Reference is made to your letter of October 16 in regard to the employment of a trust examiner at each Federal reserve bank and Particularly the qualifications of such an examiner and the scope of his duties. "AssuDing that the person who may be under consideration for selection as a trust examiner is familiar with the principles of ac!°untanoy and auditinr,, it is believed that in order to accomplish "le best results in trust examination work he should have the qualifications set out in your letter. Cf course, the number of men P°8sessin1; all these qualifications is somewhat limited, and in the cir cumstances it might be found necessary to forego the requirement Of broad experience gained as an executive in a trust department and to select an individual with sound legal training and broad experlenee in examining trust departments, or it might be necessary to select a man who has not had a great deal of experience in trust exwork. In such a case, however, it mould be essential to ”lect one who not only possesses the qualifications as to legal .Q"kground and experience in operation of a trust department, but !,'IGO evidences by training, experience and otherwise an aptitude for xaTnation work. c Tihe entire scope of the duties of a trust examiner, of course, annot be sharply defined, but it is the view of the Board that when exarnination is made of a State bank applying for membership in ti e Ystem -which has a trust department, there should be an exarinat:ori of that department by a qualified trust examiner, and that the olst department of every State member bank should be examined peritrleallY. As to national banks, the responsibility of examining the t,,1-1t departments lies, of course, primarily with the Comptroller of irl e Currency, but in some cases trust departments of national banks tj,' l equire special attention and it may be found mutually advane: ue°us to have your trust examiner cooperate with the national bank : 1111illor8. In addition, there may be cases of national banks applyor Permits to exercise trust powers in order that they may be to take over trust business previously handled by State institutr, ns s and in such instances you should arrange for examinations of 1111; st departments of the State institutions by your trust examiner, e. ” the necessary examinations have been made by other competent It'flIners whose reports are entirely satisfactory. .1341.61ce from the question of responsibility for making examinations "e first instance, the trust examiner should be charged mith the 411,Y of reviewing carefully the reports of examination of both State te,,Lational banks which have trust powers and of familiarizing himtr I , with the quality of management and methods of operation of such 1„ sl; -Portdepartments. He should also draft for your consideration such anu recommendations as should be made by you to the Federal 168 11/20/33 -17"Reserve Board in connection with trust natters. If, after these duties are performed efficiently, the trust examiner has any spare time, he should be able to render valuable assistance in other work of your office, particularly that relating to affiliates and the handling of applications for voting permits. On the whole, it would seen that a properly qualified trust examiner could be so useful in the Federal Reserve Agent's department in all of the more important Phases of examination work that his time would be occupied fully." Approved, together with a letter dated 1:ovember 17, 1933, to all other Federal reserve agents, inclosing a copy of the reply to Er. Walsh's letter. Reply on ilovember 17, 1933, approved by five members of the Bo4rA ' 3 to a letter dated November 1 from Yr. Peyton, Federal Reserve kent a. Minneapolis; the reply reading as follows: . "Receipt is acknowledged of your letter of 1-,ovember 1, 1533, adIasi/1E that your new trust examiner had reported for duty and was apAlt to start work in connection with the trust departments of State member banks. You state that it is your understanding that, !:ecerdi4,7, to the original plan, the trust examiners for the Federal t°serve banks are to cooperate with the national bank examiners in ' 13 1e examination of the trust departments of national banks, and that teic're approaching the Chief National Bank Examiner of your district ti01 racke definite plans for the coordination of the two forces in d _!.examination of such trust departments, you would like to have ''lnite instructions from the Board to proceed along that line. H4n this connection, the Board has written to another Federal ReServe Agent as follows: 'The entire scope of the duties of a trust examiner, of course, cannot be sharply defined, but it is the view of the Board that l'Alen an examination is made of a State bank applying for membersill") in the system which has a trust department, there should be an examination of that department by a qualified trust examiner, and that the trust department of every State member bank should be examined periodically. As to national banks, the responsibility of examining the trust departments lies, of course, primarily 711th the Comptroller of the Currency, but in some cases trust departments of national banks may require special attention and it illaY be found mutually advantageous to have your trust examiner coOperate with the national bank examiners. In addition, there may be cases of national banks applying for permits to exercise trust Powers in order that they may be able to take over trust business Previously handled by State institutions, and in such instances should arrange for examinations of the trust departments of -..41e State institutions by your trust examiner, unless the neces' 4rY examinations have been made by other competent examiners 74hese reports are entirely satisfactory .' You. 169 11/20/33 -18- "Ihe Board has noted your suggestion that it might be desirable to advise the Comptroller of the Currency as to the contemplated activities of the trust e:caminers for the reserve banks, and to request him to advise the Chief National Bank Examiner in your district of the proposed plans. 'he Comptroller of the Currency has been informed fully as to the plans for the employment of special trust exMiners at each Federal Reserve Bank." Approved. Reply on 1:ovember 17, 1933, approved by five members of the 130Eir,, to a letter dated November 9 from Mr. Case, Federal Reserve Agent 14117 York; the reply reading as follows: "The Federal Reserve Board has received your letter of November 1033, referring to indebtedness of officers and employees in your and to outside business affiliations of officers and diZ rectors ' the Federal Reserve Bank of New York. .L 'it is noted from the report submitted by Ir. Harold F. Chapin Ilat he is indebted in the amount of ç4,800, secured by a mortgage his home, to the Guardian National Bank of Commerce of Detroit, ' I lehir._;an. Inasmuch as the national bank is in receivership, it is scluned that steps will be taken to liquidate the indebtedness or ! 0 transfer it to some other institution, and it is suggested that, -1 ' the latter course is followed, Er. Chapin arrange if possible to have it , transferred to an institution which is not, member bank or %bsidiary or affiliate thereof. In connection with outside business affiliations of officers and ?ployees of your Lank, the Board on June 4, 1930, interposed no obction to Mr. Gidney serving as a member of the Board of Education Of Ridgewood, New Jersey. The Board's records do not indicate, howOr, that the service of Messrs. Gilbart and Dillistin as a member Of the Planning Commission of the Village of Garden City, Long Island, d as member and treasurer of the Passaic County Mosquito Exterminator Commission, respectively, has been referred to the Federal Re42117o Board for determination of the question whether the positions 143e Political or public offices within the meaning of the Board's viI°11Ation of December 23, 1915, and it will be apprecia ted if you it. 1 advise the Board fully with regard to the nature of the positions order that it may pass on the matter. zriil sri airi also noted that Messrs. Robert R. Apgar, Chief of the Adion Department, Raymond F. Cutler, Special Representative ciet! l_e Lank Relations Department, and i1lian A. Ernst, Coin Shipping o„lar4. in the Cash Department, are officers or directors of building witi oan associations. The Board feels that these affiliations are 2111 the scope of its letter of April 29, 1933, and that considerav*4 should be given by the employees involved to their termination Isl.°°n as possible, and it is requested that you advise of the actaken by them in this connoction. a ZL 170 11/20/33 -19- "Your letter further states that the employees of your bank are permitted to engage in outside business activities only with the approval of the Governor of the bank; that such applications are granted only when it is clear that the outside work will be done outside of business hours and will not prevent the employee from C-V1ng full time and attention to his work at the bank; and that Consideration is given also to the character of the outside busiI-loco concern and the nature of the work mhich the employee proposes t? do, and permission is not granted if there appears to be any ind?.eation or danger that the employee's connection with your bank . 1111ght be used or referred to in any may for the purpose of benefitthe outside concern. Accordingly, it appears that the outside .alsiness activities of the other employees listed in the statement Inclosed with your letter do not interfere in any may with their :: 1 '1ice to your bank or involve any financial or other relations ' 1oh might prove embarrassing to the Federal Reserve Bank of New York.I, Approved. Letters dated November 16, 1933, approved by five members of the 13°a ' rcl 'to the boards of directors of the following named State banking 11''3titut10ns, each letter stating that, subject to the conditions pre- elsil'ecl in the letter, the Board approves the institution's application l'cfl'Iliberzhip in the Federal Reserve System and for the number of shares ()tPederal reserve bank stock to which the institution will be entitled 1113°4 the basis of its capital and surplus as of the date upon which its rnerabe '3114 becomes effective: Applicant Bank 4 Federal_ Reserve Bank State Bank of Ontario", Ontario, Irew York. Bay City Bank & Trust Company", Bay City, Texas, New York Dallas Approved. Letters dated November 18, 1933, approved by five members of Boar', k,o the boards of directors of the following named State bankit t. ltutions, each letter statin that, subject to the conditions 171 11/20/33 Prescribed in the letter, the Board approves the institution's applicatio:a for member ship in the Federal Reserve System and for the number of 1141s°3 of Federal reserve bnillr stock to which the institution will be "titled upon the basis of its capital and surplus as of the date upon Itlich its membership becomes effective: Applicant Bank Federal Reserve Bank "Me Peoples Bank & Trust Company", u rn, Coshocton, Ohio. '-ne Planters Bank & Trust Company", Thomaston, Alabama. II Harlan County Bank", Alma, Nebraska. Cleveland Atlanta Kansas City Approved. Letter to the board of directors of the "Ear Harbor Banking and Ir11.7t „, C--vanT, Bar Harbor, Maine, statinr__; that, subject to the condiPrescribed in the letter, the Board approves the institution's ap1)lieat' lon for membership in the Federa Reserv System l e and for the number Of sh " 4 8 of stock of the Federal Reserve Bank of Boston to which the in- 4titut. 1011 Will be entitled upon the basis of its capital and surplus as Of the -ate upon which its membership becomes effective. Approved. Telegmm to Mr. Curtiss, Federal Reserve Agent at Boston, reading 0 ,',I,Deard hereby amends condition numbered twenty-one of its letter t' 0 n ovember 1, 1933, to Board of Directors of Merrill Trust Company, 1,411.r!ad as follows QUOIE The special Act of the Legislature under ntlen the new bank is to be incorporated shall be in form and subee o counsel for the Federal Reserve Bank of Boston to 11;; 8ubstant ially the same as a proposed act to incorporate The t4 rill Trust Company, Bangor llaine, , to which reference was made nera Phillips Ketchum to the Governor of the Federal ReYe Bank of Boston under date of October 20, 1933, and there shall furnished an opinion of the Supreme Court of the State of Maine, 172 11/20/33 -21- satisfactory to such counsel, in which it is held that such act is valid and not in contravention of the Constitution of the State of Lain° UNQUOTE On basis of information contained in Clark's letter dated November 18, 1933, and in inclosures therewi th, it would appear that action heretofore taken for purpose of placing Lierrill securities Corporation in formal liquidation constitutes substantial compliance with the part of condition numbered twenty-five, as set f°rth in Board's letter of I,ovember 1, 1933, which pertains to Lerrill Securities Corporation, and may be accepte d as satisfying requirements in respect thereto, subject to understanding that Lerrill Securities Corporation will be dissolved forthwith. In respect to Corporatlon, Board hereby waives the requirement set forth in condition numbered twenty-five that such corporation be placed ,tormally in liquidation or receivership prior to admission of The Lierri]I Trust Company to membership in the System, and in lieu thereof. the Board imposes the condition that Union Corpora tion enter into ! I.Creement similar to that required of Llaine Real Estate Title Company letter of November 8, 1933, to Board of Directors of L:er1 F113c = Company, in regard to liquidation of Liaine Real Estate °111PanY, and that The 1:.errill Trust Company undertake that the agreeby Union Corporation will be faithfully carried out and agree at, in all of its published statements of condition, it will show ?Parately its investment in stock of its subsidiary, Union Corpora'as investment in stock of affiliated company holding other real estate." Z Approved. Letter dated November 15, 1933, to the Federal reserve agents t111 Federal reserve banks, approve d by five 'ambers of the Board, 4(1(15- 11F, as follows: , "In reviewing applications for membership in the Federal Reserve teMO it has been noted that in many instances officer and s emo :ethyees of the applicant bank appear to be inadequately bonded, and 07 in some instances certain officers and employees are not covban by any bond. The Board feels that as a matter of conservative bctning Practice adequate surety bonds should be carried by all 01,"434 In certain letters to the Federal Reserve Agents advising ha aPProval of applications for membership, therefore, the Board 1)03 called attention to the lack, or apparent inadequacy, of the thilalds, and has suggested that the Federal Reserve Ac,ents request sia b°4rds of directors of the applicant banks to give careful conion to the advisability of having bonds in adequate amount 0,,,,:fided for all officers and employees having access to the banl:se securities, or records of account. ou are requested to give careful conside ration to the adequacy (3f the •c, onds carried by banks applying for membership, and to make T 1_73 11/20/33 -22- "appropriate recommendation to the directors of an applicant bank whenever it seems necessary. In the future, therefore, no comment of this nature will be made in the letters to the Federal Reserve Agents advising of approval of applications for membership. In this connection, it is assumed that the Federal Reserve Agents will give the same consideration to the adequacy of bonds carried by banks already admitted to membership and will make similar rec°1Mendation then deemed necessary." Approved. Letter dated November 15, 1933, to the Federal reserve agents 4t 811 'Federal reserve banks, approved by five members of the Board, ' ' 's4dirlE as follows: "In reviewing applications for menbership in the Federal Reserve 8rstera submitted to the Federal Reserve Board, it has been noted ' It1:1; in many instances the applicant bank pays interest on certain PUblic accounts. As you know, section 19 of the Federal Reserve ' let, as amended by the Banking Act of 1933, prohibits a member bank, , -, cePt as stated therein, from paying interest on deposits which : r6 Payable on demand. Accordingly, if the public accounts above .referred to are demand deposits and do not come within the excep101°11 to section 19, the payment of interest thereon by a State 411k after it becomes a member of the Federal Reserve System mould , e U1lawfu1. In certain letters to the Federal Reserve Agents advising of 7TProval of applications for membership, the Board has called at-cention to this situation and has requested the Agent to bring the y tter to the attention of the management of the applicant bank. 1.°11 are requested to take similar action in all such cases arising , Your district. In the future, therefore, no comment of this re will be made in the letters to the Federal Reserve Agents adOf approval of applications for membership." Approved. Telegram dated November 15, 1933, to Mr. Stevens, Federal ReAc,ent at Chicago, approved by five members of the Board, referring t° the a pplication of "The State Savings Bank of Warren", Warren, 1.1ichiE1.113 for pe csion to withdraw innediately from membership in the Fedel'41 Reserve System. The telegram stated that the Board waives the 114/141 re quirement of six months' notice of intention to withdraw and 174 11/20/33 -23- thc't, accordingly, upon surrender of the Federal reserve bank stock is1-10c1 to the State Savings Dank, the Federal Reserve Bank of Chicago is ":110rized to cancel such stock and make a refund thereon. Approved. Letter dated November 16, 1933, to Lir. Case, Federal Reserve 4°1-1"t at New York, approved by five menbers of the Board, readinz as follows: , "Receipt is acknowledged of 1:r. Dillistin's letter of November ' 3! in vilich he reported that the receiver of the Broad Street Na1(, 12nal Bank, Red Bank, New Jersey, who was appointed on April 15, 3, has not made application for cancelation of the Federal reserve bank stock issued to that bank. It is noted that the reejlIrer has not made application because of a possible reorCanizaOfl of the bank, vhich is under consideration. In these circumstances and in view of 11r. Dillistin's recemllation, the Board will not at this time require the cancelation ti 'he Federal reserve bank stock issued to the Broad Street Ns.e ()nal Bank, Red Bank, New Jersey. However, if an application for iroelation of such stock is not received from the receiver within h re() months from date of this letter and the bank in the meantime rctz not been restored to solvency, it is requested that a further oportand recommendation be submitted to the Board." r Approved. Letter dated November 18, 1933, to Lir. O'(onnor, Comptroller of th0 currency, raeraorctria the approved by five memb rs of the Board, replying to his Of October 24 recomnendiqg approval by the Board of a reduc- in capital of "The Liddletown National Ban2, laddletown, Conlieetiellt, from 369,300 to )123,100. IPP1'()Itel3 the proposed The reply stated that the Board reduction under the plan submitted, subject to the )174itt°11s set forth in the reply. The reply stated also that it is °I3cerved that on the basis of the last report of examination of the bItlik, which was made as of August 29, 1933, the corrections to be p"..• t4 t 11/20/33 -24- erfected under the proposed plan of rehabilitation will not be sufficielit to eliminate all estimated losses and depreciation on securities or Provide for possible losses in doubtful assets, and that it is assumed that the Comptroller's office will require further corrections to be made 48 soon as it is feasible to do so. Approved. Letter dated November 16, 1933, to Lr. O'Connor, Comptroller of the Currency, approved by five members of the Board, reading as follows: ,e "Receipt is acknowledged of Deputy Comptroller Gouh's letter of 'ovember 13, 1933, with reference to a change in the proposed plan !I rec apitalization of 'The Jefferson County National Bank of Water'flatertoqn New York, which was approved by the Board November ' 2 1933. ur is understood that the revised plan does not involve any • atige in the amount of the reduction in common capital stock, but Cont emPlates an increase of , 100,000 in the amount of preferred • °?k to be sold, and will strengthen the institution accordingly. ls, therefore, not necessary for the Board to pass upon the re• th8( ! .1 d Plan, and this letter is to confirm :a.. Gough's assumption the Board's approval of the original plan will continue in ofas recards the revision." Approved. Relay on November 16, 1933, approved by five members of the 4111.cl, to a menorandum dated August 14 from O'Connor, Comptroller '40 Currency; the reply reading as follows: eference is made de to your memorandum of August 14, 1933, recomof a reduction in capital of 'The Colonial-American 1.°nal Bank of Roanoke', Virginia, from Ra,000,000 to t;500,000. 4314, It aPpears that the plan only proposes to reduce the capital and cer s s and out of the funds released by such reduction to eliminate the -1/1 assets, and does not propose to introduce any new funds into irapr,aPital structure. The accomplishment of such plan does not 00`'ve the fundamental condition of the bank, but does release auff!°°0 of stoekholders' liability, and since there would be left depolti:tjatelpital and surplus to provide a satisfactory ratio to question involved is whether or not the condition of 1-1147i.:cl 1 176 11/20/33 -25- the bank is such as to warrant the release of the 000,000 stockholders' liability, a considerable portion of which appears to be collectible, as evidenced by the large estimated net worth of a ntmlier of the directors and correspondingly large ownership of stock in the bank. "It is noted that under the plan it is proposed to eliminate aPProximately twice the amount of assets which more classified as doubtful and estimated losses by the National bank examiner, as ahown by the report of examination of July 5, 1933, but it is also noted that there will still be several features subject to material . riticism. These features include the unduly large investment in 04xking house, furniture and fixtures, other real estate, and State !nd City Investment Company bonds which represent another banking ,touse and are regarded as potential other real estate, the aggregate °f which will anount to approximately 146 per cent of the capital nd surplus after the proposed reduction; and the large borrowings _? the officers, directors, employees and their interests, a conderable portion of which is classified as slow, doubtful or loss. Board is in sympathy with the desire on the part of the directore. it° show more accurately the value of the assets of the bank, is -n view of the criticised features of the situation, the Board th Ilot prepared to approve the proposed reduction in capital under 6 Plan submitted." Z b Approved. Letter dated November 17, 1933, to IL.r. O'Connor, Comptroller of the Currency, approved by four members of the Board, replying to his iliela°rEindtun Of November 7 recommending approval by the Board of a reductioa of 25,000 in the common capital stock of "The First National Bank Of Centralia", Centralia, Yissouri. The reply stated that the Board ap". 1 the proposed reduction under the plan submitted, subject to the (:)11311tions sot forth in the reply. Approved. Letter dated November 17, 1933, to L. O'Connor, Comptroller of the etIrrency, approved by five merbers of the Board, replying to his nlor tic), 71(1111 of November 7 recomrending approval by the Board of a reduc- In the 0 -°11mon capital stock of "The Goodhue County National Bank of s'k tt , s-)'-clod lannesota, from $200,000 to $100,000. The reply 177 11/20/33 -26- 81:8;bsd that the Board approves the proposed reduction under the plan *bt4)d, subject to the conditions set forth in the reply. Approved. Letter dated November 16, 1933, to Er. O'Connor, Comptroller of the c urrency, approved by five members of the Board, replying to his lliellicandura of October 25 recommending approval by the Board of a reduction , ii;25,000 in the common capital stock of "The First National Bank Of Palls City", Falls City, Nebraska. The reply stated that the Board 84141°7643 the proposed reduction under the plan submitted, subject to the orlditions set forth in the reply. Approved. Letter dated November 18, 1933, to Er. O'Connor, Comptroller of the currency, approved by five members of the Board, replying to his lertoraild of October 24 recommending approval by the Board of a reduc- in. the cornmon capital stock of "The First National Bank of Omaha", 0rflaha, Nebraska, from ,;1,250,000 to 4250,000. The reply stated that the Qttrcl approves the propo ed reduction under the plan submitted, subject to the conditions set forth in the reply. The reply stated also that the 13°e•rd hao noted the Comptroller's comments nith respect to the inadequacy Of the plan of rehabilitati on and that it assumes that he van require rlzrther cor rection s to be made in the bank's condition as soon as it is re"ible to do so. Approved. Letter ciarren dated November 13, 1933, to L. O'Connor, Comptroller of eY' approved by five members of the Board, replying to his 178 11/20/33 -27- 11tellic3randum of October 24 recommending approval by the Board of a reductin, • -" in the common capital stock of "The Farmers National Bank of Salina", Salina, Kansas, to 3100,000. from ';200,000 ,. The reply stated that the 44rd aPProves the proposed reduction under the plan submitted, subject tO 6he conditions set forth in the reply. Approved. Letter dated November 17, 1933, to iir. O'Connor, Comptroller of the cu_ ' renoy, approved by four members of the Board, replying to his *51aorana --um ott November 6 recommending approval by the Board of a reductI011 Of We of g5,000 in the common capital stock of "The Liberty National Bank athOrfor di! :Teatherford, Oklahoma. The reply stated that the Board c'1313r°7es the pmposed reduction under the plan submitted, subject to the eorlditions set forth in the reply. Approved. Letter dated November 16, 1933, to Li.. O'Connor, Comptroller of the currency, mekorazd,„, of aPproved by five members of the Board, replying to his November 8 recommending approval by the Board of a reduc- ti°4 in the ---on capital stock of "The Texarkana National Bank', TexCLI'kE11143 Texas, from 500,000 to 250,000. The reply stated that the (341"(1 aPproves the proposed reduction under the plan submitted, subject t° the 10a5 set forth in the reply. Approved. he ellr Letter dated November 17, 1933, to 1.1r. O'Connor, Comptroller of 1%)ralir clencY' approved by four members of the Board, replying to his 1111 of November 3 recommending approval by the Board of a reduction 179 11/20/33 -28inthe comaon capital stock of the "First National Trust and Savings Ballic of Fullerton", Fullerton, California, from The 250,000 t U125,000. reply stated that the Board approves the proposed reduction under the Plan submitted, subject to the conditions set forth in the reply. Approved. Letter dated hovember 16, 1933, to the "United States Yational Corporation" ezd reading Portland, Oregon, approved by five members of the Board, as follows: "The lioard approves your application dated August 14, 1933, for a Voting permit under authority of Section 5144 of the Revised,Statutes, as amended, entitling you to vote the stock which you control of the following banks: United States National Bank of Salem, United States National Bank of Mchinnville, Tile First National Bank of St. Helens, Clark County National Bank of Vancouver, Salem, Oregon, I.:ciannville, Oregon, St. Aelons, Oregon, Vancouver, Washington. v. "Tho voting permit applied for is here inclosed, but the Board ( 11(3s to call to your attention the following facts. From the a;'2.a. submitted in your application the Board is not certain that you o7 violating Section 2 of an Act of Congress approved hay :214! 111.(9161: \44 Stat. 628), which provides that with certain exceptions applicable, no corporation 'engaged in the banking, loan, b°11,13ere t11.1 -lng and loan, brokerage, factora7,e, insurance, indemnity, or iAllSt business', shall use the words 'United States' as a portion of loo .corporate name. Inasmuch as your need for the voting permit is Ini leved to be urTent the Board mill not defer the issue of the perPending the determination of this question, but your attention : 1) ?ailed to the statutory prohibition so that if you are engaged in t:ness °I' a type specified in the statute, you will either cease el -- age in such business or will alter your corporate name to j the mords 'United States'. A copy of this letter is being sent 1.7,1 ,tt to the Federal Reserve Agent at San Francisco with specific ' 1-erence to this paragraph." Approved, together with a letter dated Lovember 16, 1933, to the Federal Reserve Agent at San Francisco in accordance therewith. Reply on November 16, 1:33, approved by five members of the 180 11/20/33 -29441 ' cl, to a letter dated October 12 from Li-. Peyton, Federal Reserve ' ent at Linneapolis; the reply reading as follows: "Receipt is acknowledged of your letter of October 12, 1933, asking two questions with respect to the application filed by Northwest Bancorporation for a voting permit under authority of Section 5144 of the Revised Statutes, as amended. Your letter indicates that the Lorthwest Bancorporation considers its application dated September 21, 1933, and heretofore filed with the Board, as an apPlieation for a temporary voting permit only and that it contemplates converting this application into an application for a permanent vet111F.; Permit. It appears to the Board's counsel that the application dated September 21, 1933, is an application for a permanent voting Permit, although deficient in certain respects, and that the applie i°n may be considered the basis for granting a full permit, prolylded the applicant files with the Board the additional data required L'oTItake it complete. h. You first ask whether the applicant need furnish, as part of Ex1,3-bits L and N, agreements on the part of certain 'affiliates' which "av :been 'divorced' from the applicant. A4 an illustration of the divorce of an 'affiliate' you cite, in the second paragraph of your letter, the case of the Whalan State 'ank, which, at the date of the application, is said to have been ff?-liated with the applicant by reason of the fact that a majority Of lts directors were members of the board of the Scanlan-Habberstad tank and Trust Company of Lanesboro, Minnesota, a 'non-member state 3: 411134 affiliated with the northwest Lancorporation'. You state that ilee September 22, 1933, one of the directors referred to has refrom the board of the „halan State Lank and that such bank is ti, c) longer an 'affiliate' of the applicant. You do not indicate that Scanlan-liabberstad Bank and Trust Company was a subsidiary of ta."8 aPplicant, but from other information in the Board's files, it Pears to have occupied that status on June 30, 1933. It is assumed at it continued to occupy that status at the time of the applica41°n and that the 'iihalan State Bank was at that time affiliated with 3upsidiary of the applicant as defined in the Board's Regulation 1,7 If such was the case at the date of the application and if the -3-an State Bank is no loner either a subsidiary of the applicant °I.:,affiliated with the applicant or with any of its subsidiaries, it -Y. not be necessary for the Lorthwest Bancorporation to submit cur' Exhibit L, an agreement, and under Exhibit N, a consent, exed by the .1-Ialan State Bank, but the additional data submitted as lication on file should state that the affiliation ,e:%rlonfintda.PP is not clear from the question submitted to you by the appli*ether it is asking to be relieved of the burden of obtaining the or‘ lt reement and consent referred to, not only from an affiliated ,Jarlzation 7,hich since the date of the application has been ' Lv°reede from the applicant in the manner illustrated, but also J hjs 181_ 11/20/33 H. in the case of an institution TLich is affiliated with the applicant only by what you term 'accidental affiliation'. As used the term appears to include an institution which, because of interlocking directorates or for some other reason, is 'deemed to be affiliated' with the applicant or with some subsidiary of the applicant within the meaning of Regulation P. It should be borne in mind that if such an institution is affiliated as defined in Regulation P with the applicant or any subsidiary of the applicant it must execute the agreement and consent required under Exhibits L and IT even though it may be said to be affiliated by accident only or to have ric)t inf); to do with the business of the applicant or its group. "Your second question relates to the possibility of eliminating duplicatior of the exhibits heretofore filed by the applicant. 12.11is would seem entirely proper since, as suggested above, the apPlioation filed is a deficient application for a permanent voting P7rait and since the missing data is furnished as a part of the apPJ-iation heretofore filed and in order to complete the same. ,It is important that none of the information submitted in conwith an application be compiled as of a date so remote from 1; 0 , date or dates as to wbich other information has been compiled the Board does not obtain a fair picture of the situation which is asked to consider. The statements heretofore submitted as II of the application are compiled as of August 31, 1933. 811 the cases of the application of the Northwest Bancorporation, the b°ard is of the opinion that if the information still to be furnished 19 y, the applicant is compiled as of a date not later than October 31, it may properly be submitted as an amendment of the applica:• on already filed, thus eliminating the necessity of duplicating Z! exhibits furnished. If such information is compiled as of a , 8fter October 31, 1933, it will be necessary for the applicant -La ce : nau statements under Exhibit II or to indicate changes A_ have been made in the statements in Exhibit H subsequent to L%st 31, 1933. e understand that the applicant is now assembling the addition• of rf°r]mtion necessary to complete its application. This should, ?urse, be filed with the Board as soon as possible. The Board's • cal ' - 1nrrne ss to consider the applic6ion already filed, if and when forj!pired data is submitted, is dependent upon the additional in' tho 10/1 being furnished so promptly that the Board may consider the "Plication within a reasonable time after the date as to which to d'e'ata originally furnished was compiled. It is not necessary now 84;nate the lenrth of time which, in view of an circumstances, may J then be said to be reasonable." Approved. TeleCraphie reply on November 17, 1933, approved by five members "the 13 °ard, to a telegram dated Lovember 14 from Yr. Newton, Federal I 11/20/33 -31- Reserve tent at San Francisco; the reply reading as follows: uRetel Lovamber 14. On facts heretofore submitted by attorneys for Atlas Corporation, hoard has ruled that Atlas Corporation and Pacific Eastern Corporation are holding company affiliates of American Trust Company within statutory definition and in order that American Company may vote its stock of American arust Company Atlas arid Pacific as well, as American Company must each obtain votirr; perInit. Applicants may incorporate by reference exhibits identical with those contained in another application previously or concurrent]y filed." Approved. Reply on Lovember 15, 1933, approved by five members of the , to a letter dated Uovember 2 from Honorable Thomas Hewes, Assistr Secretary of the Treasury, referring to the Board's letter of Septeraber 27, 1933, to the then Under Secretary of the Treasury concerning ee1-41111 inecmplete Federal reserve notes of the Federal Reserve Bank of kill4eaPolic, of the00 denomination, which had disappeared from the of aa-ravin and Printing and had been honored by the Federal Re- "I've ' l a/lks of ilew York and Minneapolis; Mr. Hewes' letter stating that te °111Y manner in which the Bureau of Engraving and Printing could satisit13 liability for the redemption of the notes would be to place an erit on the employees of the section from which the sheet of notes i41)Pecxed; that many of the employees can ill afford to pay such an as4e4nent and the Treasury Department is reluctant to impose such a penalty -X lit employees; that under the circumstances referred to in the letter it would a ppear that the presenting Federal reserve banks might Nerly be held responsible for the notes; but that the Department will Is°1Y 11.pon the Board's judgment in the matter, and if it is still felt tlictt the Bureau should be held responsible for the notes, the Treasury 183 11/20/33 -32- 4Partment will take steps to have the amount involved collected from €tloloyees in the manner outlined above, for the relief of the Federal rlie banks concerned. The reply read as follows: "Your letter of November 2, relating to incomplete Federal Reserve notes of the Federal Reserve Bank of ldnneapolis, of the ,100 denomination, with counterfeit seals and serial numbers, has been carefully considered by the Board. In view of the statements conLalned in your letter the Board will suggest to the Federal Reserve Elnks that in the circumstances they absorb the loss on these notes. TI.le Board feels, however, that any liability in connection with the 21reulation of incomplete notes should be assumed by the Treasury uePartment and hopes that the Treasury mill carry out the intention e xpressed in Assistant Secretary Dewey's letter of July 7, 1925, of :T151/1,s relief from Congress for incomplete Federal Reserve notes : 11ch get into circulation and are subsequently presented for reuemPtion.” Approved. Letter dated November 16, 1935, to the Federal reserve agents at R11 4ederal reserve banks, approved by five reLibers of the Board, inclos- a e°10Y of the following ruling by the Board relating to the payment °I lilt A 4_ "-s- by member banks on deposits of postal savings funds, and regle2tillg that each agent brim- the ruling to the attention of all member bojaka 111 his district which he may have reason to believe have an interest 4 4.1-1 e matter: "PAYLENT OF INTEREST ON DEPOSITS OF POSTAL SAVINGS FUNDS. Initt:The Federal Reserve Board has received a number of inquiries full" respect to the question whether deposits of postal savings 84,11 , subject to the provisions of the regulations of the Postal poa ll[;e System governing the deposit of such funds in banks, are devi.jts en rhich interest may be paid by member banks under the proof Section 19 of the Federal Reserve Act. t;ra order of the Postmaster General, dated August 30, 1933, parasyj 1 of Section 15 of the regulations of the Postal Savings em on this subject was amended so as to read as follows: funds deposited prior to July 1, 1933, in depository banks °r the l'ostal Savings System shall be treated as time deposits, 11/20/33 "to remain on deposit in such banks for one calendar month from July 1, 1033. All funds deposited after July 1, 1033, in such banks shall likewise be treated as time deposits, for the period including the calendar month next following the date of deposit. At the expiration of such periods and in the event that withdrawal is not made of the deposit at the end of such calendar periods by the Board of Trustees of the Postal Savings System, then such funds shall be considered as having been redeposited for the succeeding calendar month; and likewise redeposited for each and every calendar month thereafter until withdrawal is made. All Postal-savings funds held by any qualified depository bank in excess of the security value of its collateral shall be promptly disposed of in accordance with the provision of Section 17 of the Banking Regulations.' The Federal Reserve Board understands that, under the provisions of 41., regulations amended as above quoted, the withdrawal of postal . aaliangs funds from banks was authorized only on the first day of any calendar month and funds not withdrawn on such day were considered having been redeposited for another full calendar month; and also f.11t no such funds were authorized to be withdraw' except on the 11s8t day of any calendar month even though no interest was paid on 'uch deposits. It is the view of the Federal Reserve Board that de!"? 1 -t5 withdrmable only under these conditions may properly be clas'1fled, during the period in vhich the regulations in the form as 1933, were in effect, as time deposits on which ;Z:(14csIttly181%3(;) id in accordance with the provisions of the Board's ite Clation q. .1t is understood that the paragraph of the regulations of the .0 ° !tal Savings System above quoted was further amended by order of 4 " 8 Postmaster General lie. 4420, under date of October 24, 1933, so 8 to read as follows: 'In compliance with rulings of the Federal Reserve Board concerning time deposits, and to secure uniformity of procedure among all depository banks of the Postal Savings System, the ?alendar year is divided into specific periods of not less than thD,rty days each, with the beginning and termination dates of such periods shorn, as follows: Z1 From Jane 1 rob. 1 Lar. 3 Apr. 2 IdaY 2 June 1 To Jan. 31 Mar. 2 Apr. 1 Lay 1 May 31 June 30 I;o. of_days. 31 *30 or 31 30 30 30 30 From July 1 Aug. 1 Sept.1 Oct. 1 1:,ov. 1 Dec. 1 To July Aug. Sept. Oct. 1:cov. Dec. 31 31 30 31 30 31 Mo. of days 31 31 30 31 30 31 *30 or 31 days, according to whether or not year is Leap Year. 411 funds deposited prior to July 1, 1933, in depository banks of the Postal Savings System shall be treated as tiro deposits, 185 11/20/33 7A "'Ott"' remain on deposit in such banks for the specified period beginning July 1, 1933. All funds deposited after July 1, 1933, in such banks shall likewise be treated as time deposits from the date of the deposit to and including the date of termination of the specific period next following the period in which the deposit is made, unless such deposit shall have been made on the first day of a period - in other words, the initial time period for deposits made subsequent to July 1, 1933, will be the period from and including the date of the deposit to the expiration of the next succeeding specified period, unless such deposit shall have been made on the first day of a period in which case the initial time period will be the period from and including the date of the deposit to and including the date of termination of the period in which the deposit is made. At the expiration of such periods and in the event that withdrawal is not made of the deposit by the Board of Trustees of the Postal Savings System, then such funds shall be considered as having been redeposited for the succeeding specified period; and likewise redeposited for each and every specified period until withdrawal is made. In accordance with the foregoing, postal-savings funds on deposit In qualified banks, the fixed time period having expired, may be Withdrawn by the Board of Trustees of the Postal Savings System or relinquished voluntarily by depository banks only on the flret day of a succeeding specified period: Provided, that all Unsecured postal-savings funds held by any qualified bank to the credit of the Board of Trustees shall be subject to the proillsions of Section 17 of these regulations.' e„ It is the view of the Federal Reserve Board, after careful conof the regulations of the Postal Savings System as amended ctober 24, 1933, that deposits withdrawable only at the times and oter the conditions stated in the regulations as thus amended may : c classified as time deposits on which interest may be paid in acnol j lallce with the provisions of the Board's Regulation Q, except as in the last paragraph hereof. tel Ihe Federal Reserve Board advised all Federal reserve banks in a visegram dated J1.11113 21, 1933 (Trans. 10. 1826) that, since the pro° s regarding payment of interest on deposits are incorporated ze 'eotion 19 of the Federal Reserve 'let, definitions contained in te; t?on 11 of the Board's Regulation D should be considered in dere lu-ranC, what are time deposits pending the issuance of further 11411ati0n5 relating to the payment of interest on deposits and that ez!!ler tank ,s might continue to pay interest on time deposits in acIlaljnce with their usual practice or existinT, bona fide contracts to 1431 the hoard should issue regulations on the subject; and it is noted that, under the provisions of Section 13 of Regulation Act ' eposits of postal savings funds in banks under the terms of the er,„,°f June 25, 1910 as amended constitute time deposits. The Fed0117- Reserve Board's Regulation Q relating to the payment of interest de Posits was adopted and made effective on August 29, 1933; and, r 186 4/20/33 -35- as above stated, the regulations of the Postal Savings System, governing the deposits of postal savings funds in banks, were amended by order of the Postmaster General dated August 30, 1933, so that deposits subject to the conditions thereof were tine dePosits. In the circumstances, the Federal Reserve Board offers no objection to the payment by member banks of interest on postal ?"inSs funds accruing during the period from June 16, 1933, until August 30, 1033; except that no member bank, which during such period may have lawfully terminated its agreement mith the Postal lungs System to pay interest on deposits of postal savings funds Payable on demand, may pay interest on such deposits payable on demand which accrued after the effective date of the termination of Such agreement. s "It is to be observed that the regulations of the Postal Savings Ytem, as anended on October 24, 1933, contain the provision that ' 11 unsecured postal savings funds held by any qualified bank to 1:le credit of the Board of Trustees shall be subject to the provisl°ns of Section 17 of the regulations, which provides that an .r11°u Et 21t in a qualified bank in excess of the maximum balance authorzed for such bank shall at once be returned in accordance with the Ps!'ocedure prescribed therein to the Board of Trustees. A provision All.rillar in effect was included in the regulations as amended on 11111 11st 30, 1933. It would appear that an amount in excess of the trlmun balance authorized for any qualified bank is not subject to "nditions with respect to withdrawal to which other deposits Postal savings funds are subject under the amended regulations. 2.1?h excess amounts, therefore, do not conform to the requirements :1-th respect to time deposits and must be considered deposits payon demand upon which no interest may lawfully be paid by a er ber bank." Approved, together with a letter dated rovember 18, 1033, to honorable C. L. Ellenberger, Third Assistant Postmaster General, approved by five members of the Board, referring to his letter of September 12, 1033, and the Board's reply of September 21 with regard to the above subject, and inclosin, : for his information a copy of the hoard's ruling. Reply on i.ovember 16, 1933, approved by five members of the : ilezer a letter dated October 2 from Governor Eartin of the Federal bank of St. Louis; the reply reading as follows: Trus refers to your letter of October 2, 1933, inclosing a copy letter from Er. Charles R. Greal, Cashier of the First liationnk, Buffalo, Kentucky, and a copy of your reply. Peti 're • Creal calls attention to the fact that his bank is in contIon with three State banks which are paying 4 interest on Of 41 187 11/20/33 -36- "time deposits and asks whether a remedy cannot be provided in view of the competitive advantage which will be given to those banks after the effective date of the provisions of the Board's Regulation Q limiting the mount of interest which member banks may pay (3fl time deposits. Mr. Creal points out that these State banks will Probably wish to qualify for Federal Deposit Insurance and asks Whether the limitation on interest rates can be made applicable to them as a condition of membership in the Temporary Federal Deposit Insurance Fund. "Of course, as you know, many restrictive provisions of the FociStatutes which were designed to prevnt unsound or unwise practices by national banks and State member banks of the Federal Reserve System have been objected to on the ground that they placed those banks at a competitive disadvantage with nonmenber State banks. . In the present instance, however, it would appear that the proof the 'Code of Fair Competition for Bankers', approved ;ctober 3, 1933, will remedy the condition to which Mr. Creal refers. .DEragraph (2) of Article VIII of that Code (published in the Federal Iteserye Bulletin for October, 1933, beginning with page 610) provides: '(2) Interest.-- Subject to the rules and regulations of the Iedercl Reserve Board with respect to maximum rates of interest t° be paid on time and savings deposits and the method of calculation thereof, as prescribed in the Banking Act of 1933, all banks Within groups or districts hereinbefore referred to (except investment banking houses accepting deposits, which houses are subject to the Code of Fair Competition for Investment Bankers) shall maintain the same maximum rates of interest and the same rrlethod of calculation thereof upon deposits of like character, but this shall not be construed to require any bank to pay such Illaximum rates if it does not so desire. The Banking Act of 1933 (sec. 11-B) provides that no bank which is a member of the Federe.). Reserve .;.ystom may pay interest on demand deposits; the rules and regulations provided by clearing-house associations or ther groups shall contain a stipulation that no interest is to ue paid by any bank (except investment banking houses accepting jc?11°41its, which houses are subject to the Code of Fair Competilon for Investment Bankers) within such group, whether member or nonmember of the Federal Reserve System, on demand deposits, Plsovided that nothing in these rules and regulations shall be in contravention of the permissive provisions of section 11-B of the nking Act of 1933.' ihe Board is not in a position to advise you as to the policy a4. 3° the Federal Deposit Insurance Corporation will adopt with rebi':tc:d. to the payment of interest on deposits by its member banks, har, 'he portion of Li Creal's letter which relates to this matter `) been referred to that Corporation." Approved, together with a letter dated lovember 16, 1933, also approved by five members of the Board, to the Federal Deposit Insurance Corporation in accordance with the letter to Governor Martin. 1 - 88 11/20/33 -37- Reply on I:ovamber 16, 1933, approved by five members of the ;(341.01, to a letter dated September 22 from 1.:r. J. P. "Allis, President t The av) First National Bank, Guntersville, Alabama; the reply reading follows: .n eference is made to your letter of September 22, 1933, in Which you request that the maximum rate of interest which may be ad by a member bank on time deposits under the provis ions of the ,.'ederal Reserve Board's Regulation Q be not made effective as to You bank until January 1, 1934. Under the provisions of Section 19 of the Federal Reserve Act ! 1.8 amended by the Bankinr,; Act of 1933, the Federa l Reserve Board 18 sPecifically required to limit by regulation the rate of inter' 43t 'Nhich may be paid by member banks on time deposits. The Federal Reserve Board, pursuant to this provision of law, gave very careful consideration to the question what maximum rate of inter! 1st on time deposits should be fixed and when such maximum rate of Ilntereet should becono effective. Its Regulation Q was approved on 29, 1933, and fixed a maximum rate of interest of 3 percent j 13 r annum compounded semi-annually on time deposits to become effective,°n November 1, 1933. lember banks were thus given ample oppor,11iI;Y to adjust relationships with their customers with respect to re rate of interest which would lawfully be payable by them on time : t P°81ts after October 31. It would not be possible for the Board • Ilake an exception to the Provisions of the regulation in favor melqber banks and the Board regrets, therefore, it is 'Luable to comply with your request in this matter." Approved. Letter dated lovember 17, 1933, to Governor Geery of the Federal I've Bank. of Minneapolis, approved by five members of the Board, read- (1.8 follow " th, Iteference is made to :Jr. Dunlop's letter of October 17, 1933, iresEed to the Chief of the Board's Division of Bank Operations, til oeinr, the Question whether deposits of receiv ers of insolvent nabanks and deposits of conservators of national banks may be i-re,nalrd rla ed by a member bank in which such funds are deposited as deof :,.,deposits 'due to banks' within the meaning of Section III(b) re Board's Regulation D. 110 The Board has taken the position that a Federal reserve bank has 011 .,:thor 11 ity to receive deposits from a receiver of a national bank, Ine_'flo ground that Section 6 of the Federal Reserve Act requires a nber -ank, upon the appointment of a receiver, to surrender stock 189 11/20/33 "held by it in a Federal reserve bank and that, therefore, a national bunk for which a receiver has been appointed can no longer be considered a member bank within the meaning of Section 13 of the Federal Reserve Act, which authorizes a Federal reserve bard: to receive deposits from its member banks. If, upon its insolvency, a national bank can no longer be regarded as a member bank, lt may be argued that it cannot be considered a bank for any other urpose. Furthermore, the receiver of an insolvent national bank 'cads legal title to the assets of the bank as trustee for the benefit of the bank's creditors. Accordingly, upon his appointment, tl:le bank may be said to cease to exist as a going banking organizatlon, and to exist only for the purpose of winding up its affairs. On the other hand, a national bank in the hands of a conservator MaY continue to perform characteristic banking functions. Under ?ctical 206 of the Bank Conservation Act of Larch 9, 1933, as amended, lfe conservator may, under the direction of the Comptroller of the ; ?:•rency receive deposits and allow withdrawal of deposits on a Jearated basis. Lioreover, that act authorizes the Comptroller of the ,IlrrencY, in his discretion, to terminate the conservatorship and ' 4 1'm-it the bank to resume the transaction of its business under the Ill agement of its own officers. It is clear, therefore, that the apl-j.tment of a conservator contemplates not the cessation of banking lvitios, but the conservation and protection of the bank's assets, tde rnporarily. t ,7For the reasons above indicated, the Board is of the opinion ,241, while deposits made by a conservator of a national bank may to'42perly be considered deposits 'due to banks' within the meaning 131 Regulation D, deposits made by a receiver of an insolvent national 41k may not be so regarded." P t Approved. rettd,_ Letter to the Federal reserve agents at all Federal reserve banks follows: (;, "Reference is made to the Board's letter of October 26, 1933 7655), inclosing mimeographed copies of the Board's Regulation L crt the Board's Forms 94, 94a, and 94b, pertaining to the provic of Soctions 8 and 8A of the Clayton Antitrust Act, as amended. tiz Le revision of the Board's Forms 94d and 94e was made at that cince it seemed that those forms would be so little used as to il""e such revision unnecessary. However, the old forms do not call 1/.1t411the information which is now required in view of the enactof Section 8A and the revision of the Board's Regulation L; ! 111014, ince it now appears that Forms 94d and 94e may be used in a few instvnces, there are inclosed six mimeographed copies Of bi the :le hoard's revised Forms 94d and 94e, which have been approved J the Federal Reserve Board. 4 190 11A0/33 _39 "It is requested that you have these forms printed in the same manner as Forms 94, 94a, and 94b, referred to in the Board's letter of October 26, 1933." Approved. Reply on :ovember 16, 1933, approved by five members of the " 13 , to a telegram dated November 1 from Lr. Stevens, Federal Reserve ' exit at Chicago; the reply reading as follows: "Reference is made to your telegram of November 1, 1933, regarding the a pplicability of Section 8A of the Clayton Antitrust Act to a director of a national bank serving as an officer or director of a c orporation which is not a bank, banking association, or trust "r1PanY and which occasionally makes loans secured by its own stock or which occasionally makes loans secured by stock or bond collateral through the call loan market or otherwise. i 'Section SA applies to any corporation (other than a mutual savT2C bs-nk) 'which shall make loans secured by stock or bond collat-1, to any individual, association, partnership, or corporation "fler than its own subsidiaries'. The wording of the provision v41.°1-11d seem to leave no room for a construction which would make it ' llaPplicable to a corporation mahing loans secured by its own stock; and, for the same reason, the section is applicable to a corporation Trakill.0 loans throurh the call loan market or otherwise on stock or uond collateral. tiole ileleZat,he provisions of Section 8 of the Clayton Antitrust Act, Reserve Board is authorized, under certain circumstances, issue Permits covering services of the kinds referred to in Seciz°11s 8 and 8.A. However, the provision of Section 8 which author01," the Board to issue Permits refers only to banking institutions to ?ertain classes, and the Board is, accordingly, without authority nonTue permits involving relationships betWeen national banks and e inC organizations which COMB within the provisions of Secton a 11,_"Referenoo has been made to the possible broad effect of a stattZsforbiddin_ the directors of a national bank to serve as direccour of other corporations making such loans, but as you are of str1136 aware, the Federal Reserve Board is not at liberty to conof ,? a statute in a way which would conflict with the plain meaning words used by Con;;ress. should be noted, however, that Section 8A refers to any corZ:"t10/1 which 'shall make' loans of the kind described, and, in sectirtnection, your attention is directed to paragraph (3) of direc , 11 I V(b) of the Board's Regulation L dealing with interlocking Act. '"°ratoc and other relationships under the Clayton Antitrust tr4118,1he statute does not refer to the business which may have been Let "by a corporation in the past, but refers only to the 191 11/2v33 -40- "lousiness currently and presently transacted after the effective date of the section; and, therefore, the prohibitions of Section 81. are inapplicable to a director of a national bank who shall serve as a director, officer or employee of a corporation, or as a vember of a partnership, which in the past has made loans secured bY Stock or bond collateral, if such corporation or partnership shall make no loans of that character after January 1, 1934." Approved. There mere then presented the followinE; applications for orij.nal or additional stock, or for the surrender of stock, of Federal reserve ballizts A J-jeations for oaIGETAL Stock: Diatri,, 1 0. 1. lr‘st Bank of Fort Fairfield, Fort Pairfield,Lajne 4j013triet No. 7. T entral ITE: Cional Bank at Battlo Creek, achioan 1111 4:4:t etn Bank of Edgerton, Edgerton, lona]. le flat Bank of Savanna, Savanna, Illinois i°flal Bank of Washington, 7:hington, -Lowa Shares 36 36 600 36 36 36 Total 708 744 150 150 Ap -4J-cations 5. ADDITIONAL Stock: t DIstrict 4. for iOflIri-EZZIORal Bank, Bristol, Virginia ancrease in capital, preferred) strict 110. 9. 11Perior National Bank, Hancock, lachigan (Izerease in capital, ereforrod, partly °ffset -y , a lonaldecrease in surplus) t. Bank, Rhine ' 1ander Wisconsin crec.se in capital, preferred, partly °ff3et by decrease in surplus) 30 84 Total Stock: (°nal T Central Bank, Cherry Valley, N. Y. -114°1-vent) 36 114 264 1_92 11/20/33 0ations for SURRENDER of Stock; (Continued) National Bank, Lyons, New York (Contiued) (Voluntary by liquidation, Lyons National Bank) Lstrict No. 3. Plrst iTat1Ofl Bank, Port 1,.orris, 1.01,v Jersey p. (Insolvent) lrat National Bank, Somers Point, New Jersey (I nsolvent) No. liezdaton Count-Y. -National Bank, Cleves, Ohio F. (Insolvent) lrst National Bank, Cherry Tree, Pennsylvania (Insolvent) ti.wt 1\0. 3. Ircrb Bank, Grantsville, Laryland (I nsolvent) Shares 120 132 60 192 74 150 224 30 30 kctrict No, 7. llational Bank in p Braidwood, Illinois (Insolvent) 24 Etrzor s Nation Illinois ,Cambridge, Cambridge, Bank Ban, (In solvent) 90 *Ir” National Illinois Compton, Bank, , \Insolvent) 21 vExrziers liational Bank, Viola, Illinois (Ins 28 1 olvent)41'First National Bank and Trust Company, Fort 48.Yfle, Indiana 1,800 (Insolvent) `kl-aers Pirst a conservator)Indiana Castle, Ntional throughNOW Bank, (Bein • . llquidated 180 iktional Bank of Earshall Go., Plymouth, Indiana \J.nsol , vent) 'I .t 117 Lational Bank, ilawkeye, Iowa 13 'Thers liational Bank, Kingsley, Iowa 1:evir(Insolvent) 23 (1,4)1140n iat rional Bank, relv London, Iowa \44s .olvent) 26 Total Approved. 156 2,327 2,929 Thereupon the meeting adjourned.
@FedFRASER