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3627
A meeting of
the Federal Reserve Board was held in Washington
Wednesday, November 281 1934,
at 11:00 a. in.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Morgenthau, Chairman
Eccles, Governor
Thomas, Vice Governor
Hamlin
Miller
James
Szymczak
Mr.
Mr.
Mr.
Mr.
Morrill, Secretary
Bethea, Assistant Secretary
Carpenter, AEsIxtant Secretary
Smead, Chief of the Division of
Bank Operations
Mr. Coldenweiser, Director of the Division
of Research and Statistics
Mr. Tyatt, General Counsel
Mr. Vest, Assistant Counsel
lit the
Governor Eccles referred
to the question under consideration
meet'
.1.ri
- g on
November 241 19341 of the advisability of lowering
the Maximu
m
interest rate prescribed in the Board's Regulation Q on
time
and eavings
deposits to 2 1/2%; to memoranda which he had receiv
ed from
!kssrs.
Goldenweiser and Currie expressing agreem
ent with the proposed
l'ecilletion in
the maximum
rate; and to the telegrams received from the
Neral
reserve banks
the majority of which were favorable to the proposed
reduction. He
stated that he had discussed the matter
with the members
°t the
executive
committee of the Federal Open Market Committee and with
tr4
, t%el'e-herv of the
Treasury yesterday, and that, although they were all
-1117°r"le to the
proposed reduction, they felt that because of the proDosed
Government
financing operations in December which are to be announced
"Lit the
the nzIpci next few days, any action taken at the
present time to reduce
3tI
'
lled as
interest prescribed
in the Board's regulation might be conlack of
confidence on the part of the Treasury in its financing
3628
11
/
28/34
-2-
°Perations and as an
attempt to influence the market. He said that, in
view of
these circumstances, he desired to recommend to the Board that
action be
deferred on the proposed reduction until the latter part of
11ober with
the thought that favorable action will be taken then to
rieduce the
maximum rate making the new rate effective possibly as of the
first of
Febr
1 1935.
After discussion, upon motion by Mr.
Hamlin, the matter of the proposed reduction
was laid on the table, subject to the call of
the Governor.
Governor Eccles stated that he had not had an opportunity to dis%es
the
proposed reduction with the Chairman of the Federal Deposit In81111614" Corporation,
but that he did not think there would be any objection
pal't of
the Corporat!.on to a reduction in the rate of interest preaellbed
by it for insured nonmember
banks. Mr. Morgenthau said that he had
rict
discussed it but
was inclined to concur in the opinion expressed by
C14311110r
Eccle5.
4,
Reference was then made to the discussion at the
meeting on November
19&I,
with regard to
procedure in handling the business of the Federal
Iteserire 1)°ard, and Governor Eccles
stated that he desired to recommend to
tIletoard that
it
assign to the various members the supervision of various
Of the
Board as follows:
141%
Nrmczak:
(1) Industrial loan matters, (2)Payment by
member banks of interest on deposits,
and (3) Cell reports for condition.
Mt% Thomas:
(1) Clayton Act matters, (2) Matters arising
under section 32 of the Banking Act of
1935, and (3) Matters arising under the
Securities Exchange Act of 1934.
3629
11/28/34
Mr. James
Mr,
Mr.
(1) Salaries and Expenditures of the Federal
reserve banks, including investigation of
the costs of operations of the Federal reserve banks and recommendations relating
thereto.
Miller:
(1) Site for the Board's new building and the
design and construction of the building, and
(2) Organization and development of research
and statistical activities of the Federal Reserve System; monthly summary of business conditions; Federal Reserve Bulletin; and Annual
Report.
Hamlin:
(1) Applications for trust powers, (2) Capital
stock reductions, (3) Membership applications,
(4) Establishment of branches by State member
banks; mergers and consolidations, etc., of
State member banks, and (5) Voting per-lits.
The
Governor stated that his recommendation contemplated that
e°111it-CLiLdn vdth
supervision by the various members of the Board of
the
activities assigned to them, all matters of policy
or matters on
- there was question
or controversy would be referred to the Board
decision, and that periodic
reports would be made by the members
q rsgu4r
meetings of the Bo-rd with regard to progress made in the
l'sPective
activities coming under their supervision.
Upon motion by Mr. Szymczak, Governor
Eccles/ recommendation was approved unanimously,
and Messrs. Morrill and Wyatt were requested to
prepare the necessary amendment to the by-laws
Of the Federal Reserve Board.
Lir
Hamlin raised the question whether, where a particular
"tivity is
assigned to one member of the Board, the other members will
be e Pected to
make as careful a check of the matters going over their
dezie
,e
regard to that activity as they have done in the past, or
3630
-4whether 4+
-Q is to be understood that they may rely entirely upon the
titiElS
of the responsible member of the Board without an independent
inves
tigation of the matter.
This point was discussed and it was agreed
that each member of the Board may accept the
initials of the responsible member or make such
review of the file in any particular case as he
may wish to make.
It was also understood that the member to
whom a particular activity is assigned for supervision will be free to call upon any or all of
the other members of the Board for advice or
counsel with regard to any matter, and that all
matters establishing policy or involving controversy will be submitted to the Board for decision.
that it
In c
onnection with the new procedure, Governor Eccles suggested
would be
desirable to hold a weekly meeting at a specified time
e4ch week,
it being
understood by all of the members of the Board that
t4ttme set
would be kept free on the members' programs. He said that
If thie,
suggestion were adopted reports could be made at the weekly meet14hY the
members of the Board with regard to the particular activities
44iglied to
them, and that special meetings could
be held whenever the
(1('Ilaion
required.
The matter was discussed briefly, and
it was understood
that the Governor would
determine the most satisfactory time for the
meeting and make a recommendation to the
Board.
ti t,
There 4ts presented a letter dated November 27, 1934, from Mr.
Wi1I 4
2
Wairman and Federal Reserve Agent at the Federal
'el3erve
bank of
Cleveland, reading as follows:
3631
11/28/34
-5"I present this as my resignation, effective at
once, from the several offices of Class C director, Chairman of the Board and Federal Reserve Agent to which you
have in the
past designated me at the Federal Reserve Bank
Of
Cleveland.
"This action on my part is accompanied by the deepest
regret, since it removes me from official and personal relations with members and officers of the Board who have in
everY instance been both indulgent and helpful toward me
n PY post. The warm kindness of each of then will never
be
forgotten.
"The reason for this step lies in my desire to enter
other Work
through an opportunity which must be availed
°I at once. May I again express my grateful acknowledgent to the
several members and officers of the Federal
1srve Board for their confidence in the past, and for
u ell' kindly
helpfulness to me in my office?"
r
4
Governor Eccles
Williams had
stated that he understood that
terdere.
a his r
esignation in order to accept the chairmanship of The
1114'4461 City Bank
of Cleveland, and that as it was necessary for him
te.a8/1 e his new
duties immediately he had not had an opportunity to
tak
the Inatter
11P with the Board previously.
to r2he Governor
was requested to address a letter
Williams stating that his letter had been presented to the
Board and that his resignation had been
6
:X:d
with deep regret, and expressing the Board's
to the appreciation of the service rendered by him
Federal Reserve Bank of Cleveland and the Federal
Reserve
System during the period of his membership
t
board of directors of the bank and particularlyontile
Ri
eth
ill :ell)
retr
.iod of his service as Chairman and Federal
Gover
nor Eccles
stated that the Governor, Deputy Chairman, and
As
Nve
sistant Federal
Reserve Agent at the Federal Reserve Bank of
land
are in
41..),aington„ and that, if agreeable to the Board, they
.k be
r „,
advise,,
u. that the
Deputy Chairman should act as Chairman, and
3632
11/28/34
-6-
tile Assistant Federal
Reserve Agent should act as Federal Reserve Agent
PeMing the
selection by the Board of a successor to Mr. Williams.
The members of the Board indicated
agreement with the Governor's suggestion.
The Governor
then stated that he hoped that within the course
01* the Ilex.,
two weeks he would be able to submit definite recommendatic'rls to the
Board with regard to the matter of policy and procedure in
e°1111ection
with the personnel at Federal reserve banks.
At this
point the Secretary of the Treasury left the meeting.
Mr s Szymczak stated that Mr. Albert M. Creighton, Chairman of
theInclustrial Advisory
Committee of the First Federal Reserve District)
811ggested that
another meeting of the chairmen of the Industrial
AdIri8017 Committees
be held, and that he had requested Mr. Creighton to
diaellss the
matter with some of the other chairmen. He said that as a
481at (3f
this
suggestion Mr. Creighton had addressed a letter to him
11114r date
of November
26, 1954, stating that he had conferred with the
°f the
Industrial Advisory Committees of the New York, Philadelphia,
Chicago d
istricts, all of whom felt that such a meeting would be help414
suggesting that the meeting be called for Tuesday, December 18
19 4.
)
Mr.
-Ymozak also presented a telegra dated Novembe 27, 1954,
r
m
l'1'°"ePU
Go
"t5r -Irernor Fleming of the Federal Reserve Bank of Cleveland retob
g that a joint meeting be held in St. Louis on Decembe 4, 1954,
r
e att„d„.1
by the
tiltirge
representative of each Federal reserve bank actively
r loans
to industry and a representative of the Industrial
3633
11/2
8/t4
-7Ildvisory C
ommittee who is actively engaged either as secretary or otherSe to
the
committee in procuring and preparing information for the use
of the
advisory committee.
As a
related matter, Mr. Svmczak presented a memorandum addressed
him to the
Board under date of November 28, 1934, referring to the reglies
received from eleven of
the Federal reserve banks to the Board's
telegram of July 14
1934, asking for suggestions with regard to the pay41't of
the
expenses of, or a per diem allowance to, the members of the
Liclustrial
Advisory Committees, and he recommended that the Board authorize the
Federal reserve
banks to reimburse members of the Industrial Ad1/18cITY
Committees for their expenses while engaged on
business of the
%zzittee as
follows:
BY
payment of actual expenses incurred or, if a member of
the
Committee SO elects -
BY
payment:
a. Where travel is unnecessary, of 45 per diem
to cover incidental expenses.
b. Where travel is necessary, of $10 per diem
to cover subsistence and incidental expenses
during the time the member is absent from his
home city, plus reimbursement for actual
transportation expenses such as railroad and
Pullman fare.
After
discussion of the three matters referred to by
"
ezak$ the following actions were taken:
The Secretary was requested to address a telegram
t0 the
chairmen of the Industrial Advisory Committees
(
e;
3.1 the
respective
Federal reserve districts stating that,
.. the
suggestion of several chairmen of the Industrial
ry
Committees, the Board is calling a conference
or the
committee chairmen in Washington for Tuesday,
3634
-8December 18, 1934, that a letter containing topics
suggested by the Board for consideration at the meeting will be forwarded as soon as possible,
and that it
will be appreciated if the chair
men will send to the
Board promptly any topics which the commi
ttees feel
should be considered at the meeting.
The following telegram to the Federal reserve
agents at all Federal reserve banks was appro
ved:
"One of the Federal Reserve banks has suggested
that a conference be called
at St. Louis, beginning
Tuesday, December 4, to discuss procedure in handling
aPplications for industrial
advances and commitments
from time of recei
pt to final action thereon, each
F
ti
e tzlilyZieme
geb
tai to be represented by person acbank
industrial advances and each
Industrial Advisory Committee by person actively engaged, either as Secretary
or otherwise, in procuring
and preparing
information for use of Committee. Conference would consider organizati
on set-up of both bank
and committee,
the character of information required to
Pass upon applications, the
sources of such information,
1nd the
expenses connected with handling the applications.
It has
been suggested that both representatives bring
With them
sufficient copies of all forms and, if possible,
written memoranda covering procedure,
for distribution to
all
conference members. Board feels that such a conference
would be
helpful and will appreciate advice as to whether
.
Y,(311 approve, and the name of representa
tive of your bank
of representative of Industrial Advis
ory Committee
who
will attend conference if called."
Mr. Szymc
to the Feder zak was requested to prepare a letter
al reserve agents at all Federal reserve
,
1)
,anks stating that the Board has appro
ved the reimTarsement of the members of the Indus
trial
Advisory
uo
mmittees as follows:
(1) A member engaged on busin
ess of the committee
in the city in which his place of business is
located may be reimbursed for actual expenses
incurred by him.
(2) A member engaged in the business of the
committee outside of the city in which his place
of business is located may be allowed a per
diem of '1.0 a day plus his actual transportation expenses, or, if he so elects, he may be
reimbursed for actual expenses incurred by him.
3635
11/28/34
In connection
with the latter action particular consideration
1113 given to section
15b(d) of the Federal Reserve Act, as amended, which
Pl'Qvides that
members of the Industrial Advisory Committees shall serve
without
compensation but
shall be entitled to receive their necessary
e)cperis
e8 while engaged
in the business of the committee or a per diem
allox
41tnee la lieu
thereof to be fixed by the Federal Reserve Board.
484ex Governor
Eccles stated that the Secretary of the Treasury recently
Pressed an
objection to the location of the new Federal Reserve
8(4
"builri4
an the site proposed on Constitution Avenue, and had re-
'Neste
d him to
investigate the possibility of locating the building nearer
the zr
ea81117 DePartment, possibly on the site of the Cosmos Club-Belasco
Ileatli
6 ProPertY at East Executive Avenue and H Street,
N. W. He said
that
e had s
ubmitted the matter to Mr. Miller as Chairman of the Site
c°11itt
eteel who had
prepared a memorandum which he (Governor Eccles) had
40t y
the
--c4 an opportunity to read; that he would consider the matter at
TN:::::::
°:
:
:
: :ty and would take it up with the Secretary of the
in the meantime, he felt no change should be made in
t4 tio
tIle:d's
present plans or the activities now in progress looking toward
ttdded eti°n of the building on the Constitution Avenue site. He also
that
he understood
that the Secretary of the Treasury had made no
Itt sti
gation of
sole
the matter, but that his suggestion was based an the
Il eerv
ec3tisicieration that
because of the close relation between the Federal
e 3Yetem a-,
lettlt
LIQ the
Treasury Department the Board's building should be
zietirer
the ,
q,—veasury
Building.
3636
11/28/34
-10The Board
then acted upon the following matters:
Letter dated November 27, 1934, from Mr. Sproul, Secretary of the
?ederal Reserve
Bank of New York, advising that, at a meeting of the board
dit'ectors on
that date, no change was made in the bank's existing
8ehedille of
rates of discount and purchase.
Without objection, noted with approval.
Memorandum dated November 24, 1934, from Mr. Smead, Chief of the
DIAri .
-Lsloh of
Bank
Operations, submitting and recommending acceptance of the
re8ignation of
Mrs. Geraldine E. Woolschlager as a comptomet'ar operator in
clivision,
effective at the close of business on November 50, 1954.
Approved.
Letter
dated November 27, 19540 approved by five members of the
to lAr.,
oargent, Assistant Federal Reserve Agent at the Federal Reserve
Ettk
Of se.
t
Francisco, reading as follows:
tozt,
"Reference is made to the report of examination of
rfe 'Seattle
Trust Company', Seattle, Washington, as of
tfil 2) 1934, and the information submitted in connection
b'rewith. The Seattle Trust Company was admitted to memse,,1:shiP in the System on December 4, 1935, and information
in connection with its application indicated that
ac
!--stitution operated an insurance department which transno business with the general public but acted solely in
a.
marbrtokerage
broke
capacity in connection with the bank's own
it .age loans and the properties and mortgages handled by
prel
s11 a
ibeAtrust capacity. Membership condition numbered nineteen
cr
- LT the Board and which was accepted by the bank
Prcvsides that
(-3-.01 bank
shall not engage in the tusiness of soliciting
c;writing
insurance as agent or broker for any insurance
theY even though such acts may be authorized under
.
w ,_provisions of its charter or the laws of the State of
The -snlngton.
the 11;elp°rt of examination as of April 2, 1934, indicates that
the
:
Ink continues to operate an insurance department, which
or ci,,,nner states does not represent any insurance companies
with the general public but acts solely in a brokerage
3637
11/28/s4
-11-It
capacity in connection with its first mortgage loans
and the properties and mortgages handled by it in a
trust capacity, which activities it would appear are in
direct violation of membership condition numbered nineteen.
"It will accordingly be appreciated if you will determine whether the Seattle Trust Company continues to operate
its insurance department in violation of condition numbered
nineteen and, if so, forward your recommendation as to the
action .
which should be taken by the Board with respect
T:e
"The report of examination as of April 2, 1934, indicates also that Directors Baillargeon and Winslow own a controlling interest in the Baillargeon Winslow Investment ComPanY. No information is available as to the character of the
business transacted by the Baillargeon Winslow Investment
;'°mPa457 but it is assumed that you have determined whether
the business transact
ed is of such character as to require
the filing of
applications by the two directors involved for
permits under the provisions of Section 32 of the Banking Act
of 1933•
With airs
appreciate definite advice in connection
1
:7=t
=
Approved.
8(14rd,
Letter dated
November 27, 1934, approved by five members of the
to
"The National Exchange Bank and Trust Company of New York,"
New York,
reading as follows:
by ,7his
refers to the resolution adopted on January 3, 1934,
de,re board of
directors of your bank signifying the bank's
hav
'Lre to
surrender its right to exercise trust powers which
e,i een granted to it by the Federal Reserve Board.
The Federal
been
Reserve Board understands that your bank has
wit
scharged or otherwise properly relieved in accordance
the ""e law of all of its duties as fiduciary. The Board,
tyj
aefore, has issued a formal certificate to your bank certiridLthat it is no
longer authorized to exercise any of the
of ..
1,
"
- 417 powers covered
by the provisions of section 11(ki
clo "e Federal
Reserve
as amended. This certificate s nAct,
0:d
herewith.
that In this
conrection, your attention is called to the fact
Rese;under the provisions of section 11(k) of the Federal
bY th:,
e Act, as amended, when such a certificate has been issued
shall Federal Reserve Board to a national bank, such bank
,
(1)
Of then° longer be subject to the provisions of section 11(,c)
'
ederal Reserve Act or the regulptions of the Federal
oard made pursuant the7eto, (2) shall be entitled to
I
3638
11/2s/34
"have returned to it Any securities which it may have
deposited with the state or similar authorities for the
Protection of private or court trusts, and (3) shall not
exercise any of the powers covered by section 11(k) of the
Federal Reserve Act except with the permission of the
Federal Reserve Board."
Approved.
Letter dated Novo Yibcr
r.7, 1934, approved by five members of
the 1° d, to ?Ir.
Case, Federal Reserve Agent at the Federal Reserve
kraz of
New York,
reading as follows:
"Receipt is acknorledged of Mr. Dillistints letter
of November 20,
1934, with enclosures, in rogard to the proPosed reduction
in the common capital stock of the 'Mutual
Trust Company of Westchester County', Port Chester, New York.
"The Board has reviewed the informatioll submitted in connection with this transaction, from which it appears that the
released Capital will be used to eliminate the loses estimated
iLhe
banct examination of Septelber 6, 1934, and to augment the
surplus account. In the circumstances, the Board will
interpose no
objection to the reduction in the bank's capital,
Pr°71ding the assets charged c'f in connection therewith rethe property of the bank, and with the understanding, of
13°117'e, that the transaction has the approval of the State
2r1kInZ Department of the State of New York, and that your
ns
-s satisfied as to the legality of the proceedings
pn c'nnection therewith. It will be appreciated if you will
-La°rd copies of
the amendments to the bank's charter which
re adopted in connection with the adjustment of capital."
ruel
Approved.
1304111
Letter
dated November 27, 1934, approved by five members of the
Mrs °IConnor,
Comptroller of the Currency, reading as follows:
-L11 accordance with your recommendation, the Federal
rve
Board approves a reduction in the common capital
;,
oock
t
vl The West Hempstead National Bank', Hempstead, New
17.1.
(
1
;)
from $50,000 to 25,000, pursuant to
a plan which procores that the released capital shall be used to eliminate a
balzsponding amount of the least desirable assets in the
--) including all losses and depreciation in securities, all
Rese
:3639
11/28/34
-1311
as set forth in your memorandum of November 14, 1934."
Approved.
Letter dated November 27, 1934, approved by five members of the
to m„
Stevens, Federal Reserve Agent at the Federal Reserve Bank
°t Chicago,
reading as follows:
"This refers to Mr. Young's oral request, made to
member of the Board's staff, for a statement by the
°ard as to whether it would agree to a proposed amendment in an application for a voting permit to be filed by
Clearing Industrial District, Inc., Chicago, Illinois, to
vote the stock which it owns or controls of Ile State Bank
of Clearing, Chicago, Illinois.
"The proposed amendment to the application reads as
t AAYthing herein to the contrary notwithstanding, this
agr2ement is terminated and becomes null and void upon
a - Tender of resignation from the Federal Reserve
System by the State Bank of Clearing.
tb
7ritten request of Clearing Industrial District,
Inc., to have the Federal Reserve Board immediately rescind its application to vote its stock
of the State Bat-11,c of Clearing.
- Upon the termination of the status of holding
company affiliate of the Clearing Industrial
District, Inc., through its sale of stock of
the State Bank of Clearing so that it no longer
directly, or indirectly, owns or controls 50%
or more of the stock of the State Bank of Clearing
which voted at the last annual meeting of the
State Bank of Clearing.'
'As will be noted the name
the holding company aftllate stated in the above amendment is Clearing Industrial
to accept Inc. However, the agreement on F. R. B. Form P-5
:staFr
the provisions of section 5144 of the Revised
Of the United States, as amended, which was forwarded
!ehe State
Bank of Clearing, was executed by Chicago Transfer
Clearing Company. This difference of names is mentioned merely
to
Call the matter to your attention.
com 'Paragraph b of the above amendment would give the holding
by PalW affiliate the right to nullify its agreement at any time
Tb_
written request that its application be rescinded.
Federal Reserve Board believes that it would not be justified
IIlgreeing
to such an amendment.
3640
I
11/28/34
-14"The Board is of the opinion, however, that it may
properly agree to the following amendment, to F.R.B. Form
P-1, which amendment contains the substance of paragraphs
a and c of the amendment submitted for consideration:
'Anything herein to the contrary notwithstanding,
this agreement shall be terminated and become null and
void upon:
'1. Cancellation of all of the Federal Reserve
Bank stock held by all subsidiary member banks of the
Applicant.
'2. Termination of the status of the Applicant
as a holding company affiliate of all member banks.'
"Although the Board will not object to this amendment,
it feels that such an amendment
is unnecessary because the
provisions of the amendment are already effective under the
law
i
"It will be appreciated if you will advise the holdi_ng company affiliate of the Board's attitude in this mat-
Approved.
Letter to the governors of all Federal reserve banks,
readIN as
follows:
"Refc,rence is made to the Board's letters B-9.17 and
B-998 of July 16, 1934, relating to net earnings on industrial
advances and reports thereof to be submitted to the
Federal Roserve Board.
"Paragraph numbered 6 on page
of the regulations
issued by the Secretary of the Treasury pursuant to subsection (e) of
Section 13b of the Federal Reserve Act, as
?ended, which were inclosed with the Board's letter
4-8034 of October
5, 1934, reads as follows:
. 'The amounts of all payments to be made to the
United States by the Reserve Bank pursuant to the provisions of subsection (e) of Section 13b of the Federal
Reserve Act shall be comluted in the manner prescribed
bY the Federal Reserve Board in agreement with the
Secretory. There shall be such an apportionment in
determining the
net earnings of the Reserve Bank for a
calendar year derived from the use of the sum paid by
the
Secretary to the Reserve Bank under Section 13b,
as the Federal Reserve Board
and the Secretory shall
devi just
and fair.'
You will note from the above luoted paragraph that
"u amounts of
all payments to be made to the United
3641
11/28/34
-15"States under the provisions of subsection (e) of Section
13b are to be computed in the manner .7rescribed by the
Federal Reserve Ba- rd in agreement with the Secretary of
the Treasury. Pending such agreement, it is re-luested
that reports of net earnings on industrial advances and
commitments be furnished the Board currently each month,
in duplicate, on Form B-23, one copy of which will be delivered to the Treasury Department. A copy of Form B-23
is attached, and a supply is being mailed you under
separate cover.
"Reports on Forms B-181 B-19 and B-201 inclosed with
the Board's letters of July 16,
may be discontinued. Expenses reported on Form B-23 should include an equitable
Proportion of the expenses of •the provision of space function, rental
of furniture end equi-ment (whether owned by
Federal Reserve bank or rented from outside agencies),
retirement system contributions at the full rate, and all
Other ex,)enses incurred in connection with the making of
industrial advances and commitments under Section 13b, except such expenses
as are paid by the applicants for loans.
"It is requested that, in addition to reports on Form
B-23
:
m 3k:arnings on industrial advances, and on commitments
to
such advances, be reoorted as separate items on
Form 95
following items 2 and 6, respectively, and that
all expenses incurred in connection with industrial advances and commitments under Section 13b, other th n those
Paid by applicants for advances, be included in the appropriate expense items on Form 96. Expenses or per diem
allowances paid members of the Industrial Advisory Committee
should be re ,orted following item 7 on Form 96.11
Approved.
Telegram to Mr. Crane, Deputy Governor of the Federal Reof New
York, reading as follows:
in
Your telegram. Board approves action your directors
authorizing officers your ban': to make advances of not
tto? exce-- fifty million dollars outstanding at any one
lnle to B I S secured by refined gold bars of reccgnized
refiners and
assayers in transit to New York or earmarked
You abroad free for export pending shi:)ment to New
York,
anY such advances to bear interest at discount rate
in
11
;effect at your bank. It is assumed that as usual
ivi;,
eiPation in any advances made under this authority
-L1tlbe
offered to other Federal reserve banks."
Approved.
3642
11/28/34
-16-
Letter dated November 27, 1934, approved by five members of
the B°ard, to 11r.A. E. Demaray, Acting Director of the National
Park Service,
Department of the Interior, reading as follows:
"As you know, negotiations are pending for the conveyance to the Federal Reserve Board of certain property
included in Squsres East of 87 and East of 88, in the
District of Columbia, now owned by the United States.
Consideration is being given to the form of deed which
Should be used by the Secretary of the Treasury in conveying the property in question to the Federal Reserve
Board and a draft of a proposed deed has been prepared
in the Treasury Department and informally submitted to the
Board for consideration. There is inclosed herewith, for
your information, a copy of this suggested form of deed.
Your attention is invited to the following words which
have been included in the description of the property in
Square East of 87:
'together with all right, title and interest of the
United States 4n and to all other property comprising
the said Squsre E-87 and not embraced within the above
. metes and
bounds.'
similar clause is included in describing the property
In Square
East of 88. Before the Board gives final consideration to the form of the deed and the description of
the property
to be included therein, it will be appreciated if you
will advise whether there is any objection on
the part of
- the National Park Service to the deed and
description of the property in the form inclosed herewith,
and also
whether there would be any objection to the description if the words above quoted were omitted therefrom
In each place where they now occur.
1.),Yao;
will "
exce in this matter at your early convenience
:
appreciated."
Approved, together with a letter, also dated
November 27, 1934, and approved by five members
of the Board, to Mr. T. S. Settle, Secretary of
the National Capital
Park and Planning Commission,
reading as follows:
4..
"This rcfers to your letter of September 10, 1934,
Which you submitted to the Board a description of the
Property in Squares East of 97 and East of 88 which it is
:
171. the Federal Reserve Board will acquire for a
°
c4
W4
3643
11/28/34
-17"The •froceedings for the closing of the street and
two alleys in Square East of 88, as you know, will
Drobz,bly be consummated soon after November 261 1934.
Accordingly, consideration is being given to the form of
deed to be used by the Secretary of the Treasury in conveying the property in 1,uestion to the Federal Reserve
Board and a draft of a proposed deed has been prepared in
the Treasury Department and informally submitted to the
Board for consideration. There is inclosed herewith for
Your inform tion a copy of this suggested form of deed.
The description contained therein of the property to be
conveyed is similar to the description furnished by you
With your letter of September 10, 1934, but your attention
iS invited
to the following words which have been included
in the description of the property in Square East of R7:
'together with all right, title and interest of the
United States in and to all other property comprising
the said Square E-87 and not embraced within the above
. metes and
bounds.'
A similar
clause is included in describing the property
in Square East of 88. Before the Board gives final consideration to the form of deed and description of property
to be
used, it will be appreciated if you All advise
whether there is any objection on the part of the National
Capital Park and Planning Commission to the form of deed
-111d description of the property as inclosed herewith, and
-2° whether there would be any objection to the descripl'n if the words above quoted were omitted therefrom in
?”h place where they now occur. In view of the fact that
proceedings for the closing of the street and alleys
1,71:11 soon be
completed, it will be appreciated if you
1 advise us with regard to this matter at your early
con
venience."
Letter
dated November 27, 1934, approved by five members of
V
the Bou.
844k of
to mr •
Case, Federal Rese-ve Agent at the Federal Reserve
New York, reading as
follows:
"Recei7it is acknowledged of your letter of October 8,
1:•_;34, and
the inclosed coj:y of a letter from Mr. Maze,
cecutive Officer, First National Bank & Trust
Company,
Pearl
River, New York, which ask whether it is necessary
tc"'
I member banks operating under the blanket permit referred
in the Board's telegram
of June 23, 1934 (Trans. 2015)
to
submit to you data of the kind referred to in the
,
3644
11/28/34
-18IrBourd's lette
r of July 17, 1934 (X-7963) in connection
with subscriptions which such member banks enter for
obligations of the United States for the account of
dealers in securities.
"The Board's letter of July 17, 1934 (X-7963) requested you to obtain certain inform_ tion regarding the
operations of member banks pursuant to the blanket permit
in order that you might
inform yourself whether, in your
Opinion, the permit in the particular case is in the public interest. However, the Board
feels that the racking
of subscriAio
ns for obligations of the United States by
member banks for the account of dealers in securities
would not involve the evils at which section 32 was
apparently directed and that, therefore, the submission of
information regarding such subscriptions would serve no
useful purpose. Accordingly, the Board feels thPt such
information need not be submitted."
Approved.
Qf the
Letter dated Novem
ber 27, 1934, approved by five members
Board, to Mt.
Sargent, Assistant Federal Reserve Agent at
the
"al
Reserve Bank of San Francisco, stating that the Board
has giv
en co
nsideration to the following applicE - ion for a permit
Iltder the
Clayton Act, and that, upon the basis
of the information
befcfre
it/ feels that
the issuance of the permit applied for would
be
inc°mPatible with
the public interest. The letter also requested
1111% s—
'u-rgent to
communicate to the applicant the Board's position
111 the
Ilatter, and to advise
the Board promptly as to whether the
4PPlicant
desires to submit any addit
ional data, and, if not, as to
bat
stePs he proposes
to take in order to comply with the proviSiots of
the
Clayton Act.
Mr,
* C. von Ha-mm,
as
aoR4_
for permicsion to serve at the same time
lulu
,rector of the Bisho Natio
p
nal Bank of Hawaii at Hon%
Bish
'
0 Honolulu,
Terri
tory
Hawai
of
i, and as a director of -?.e
P Trust
Comany, Limited, Honolulu, Territory of Hawaii.
3645
11/28/34
Letters dated November 271 19541 approved by five members
caf the Board,
to applicants for permits under the Clayton Act, ad71431-4 of
approval of their applications as follows:
Mr, w F.
dic
Frear, for permission to serve at the same time as
of the Bishop National Bank of Hawaii at Honolulu,
Ro
Territory
of Hawaii, and as a director and officer of
the B'
lshHawai . oP rust Company, Limited, Honolulu, Territory of
!
r. J• W. Waldron, for permission to serve at the
same time
78 e director
of the Bishop National Bank of Hawaii at Honolup Honolulu,
Territory of Hawaii, and as a director of the
131shop Trust
Company, Limited, Honolulu, Territory of Hawaii.
Mr. G
• P.
,jdirectorWilcox, for permission to serve at the same time as
and officer of the Bishop National Bank of Hawaii
Honolulul
Honolulu, Territory of Hawaii, and as a director
Te*11,g (ATicer of the
Bishop Trust Company,
ny Limited, Honolulu,
rritory of
Hawaii.
:-c
Approved.
Letter dated
November 271 19541 approved by five members
cl*the 41ard, to Mr.
Sargent, Assistant Federal Reserve Agent at
thep,.
'leral Reserve
Bank of San Francisco, inclosing the following
ele4rt A 4.
°4
permit for transmittal to the applicant,
and requesting
that
'when trans
mitting the permit to the applicant, Mr. Sargent advise hi
la that it is- with
te14111
the expectation that he will improve his atat directors'
that, ee
wh
meetings that the permit has been granted, and
64 the
assistant agent submits his recommendation as a result
01V I—
zils 4
ralUal
review of the permit, he report fully as to
Etttelifia
the applicant's
Ilea at
directors' meetings:
A. Baldwin, for permission to serve at ti
:
vai im time
of the Bishop National Bank
14,H.director
ofHono11°/101ulul
°P Trust
Territory of Hawaii, an
a director of the
Company, Limited, Honolulu, Territory of Hawaii.
Approved.
3646
U/28/34
-20Letter dated November 27 1934, approved by five members of
theB°ard, to an applicant for
a permit under the Clayton Act, adIri3ing of approval of his application as follow
s:
George P. Rea, for permission to serve at the same time
a director and
officer of the Bishop National Bank of Hawaii
Honolulu, Honolulu, Territory of Hawaii, and as a director
of the
Bishop Trust Company, Limited, Honolulu, Territory of
,
6
Approved, together with a letter, also dated
NOvember
27, 1934, and approved by five members of
tl'e Board, to Mr. Sargen
t, Assistant Federal Reserve
Agent at the
Federal Reserve Bank of San FrLncisco,
reading as follows:
"There is inclosed for your files a copy of the Clayton Act permit
granted to Mr. George P. Rea, Honolulu,
Territory of Hawaii to serve at the same time as director
,
and officer of BishoT) National Bank of Hawaii at Honolu
lu,
and as director of Bishop
Com2an
Limite
Trust
y,
both
d,
of
Honolul
u, Territory of Hawaii.
"In the confidential section of his report of examination of
the Bishop National Bank as of August 5, 1933, the
examiner noted, among other matters which had produced some
unrest among the de:)ositors
of this bank, a suit brought
In Federal Court
against the applicant by the United States
Government involving the collection of a sum allegedly due
Ofl
1929 income taxes, which claim the applicant disput
es.
From
informLtion available to the Board it appears that no
suit was
actually filed against the applicant but that
"
P bablY certain stens had been taken to force a collection
theof
amount claimed due, that the applicant had taken the
to the United States Board of Tax Apneals from the
,?cislon of which he had not taken
an appeal, and that negolations between the apprcant and the Bureau of Intern
al
Revenue have been
in arocess looking toward a settlement
Of the
matter.
/ "In view, however, of the comments made by the examiner
,
4 1118 report of examination of the Bishop National Bank
(
4132;
1 August 5, 1933, the Board requests that when you
:
;
1 1.. -Lt your
recommendation as a result of your annual re?f this permit you ascertain, if possible, the
status
'
;Ll this
matter and its effect, if any, on the qualifications
:_01, ability
of the applicant, on the bank and its deoositors
B°L on the community
in general and report fully thereon."
3647
11/28/34
-21-
Letters dated November 27, 1934, approved by five members
Of the
-,
'a rui, to applicants for permits under the Clayton Act, advisOf aPproval of
their applications as follows:
Mr. j
• Waterhouse, for permission to serve at
the same time as
:4:Ln-rector and officer of the Bishop National Bank of Hawaii
tItal
Honolulu, Honolulu, Territory of Hawaii, as a director of
lawaiian Trust Company, Limited, Honolulu, Territory of
r;
wal.i, and as a director of the International Trust
Company,
-L.-Limited,
Honolulu, Territory of Hawaii.
Mr.
_
_' h. Wodehouse, for permission to serve at the same
time
director and officer of the Bishop National Bank of Hawaii
then°nolulu Honolulu, Territory of Hawaii, and
as a director of
%WM.ir"-lan Trust Comany, Limited, Honolulu, Territory of
I
R. Hemenway, for permission to
serve at the same time
Ro
,,director of the Bishop National
Bank of Hawaii at Honolulu,
7,1,, Territory of Hawaii, and as a director of the
Hawaiian
qst Company,
Limited, Honolulu, Territory of Hawaii.
Mr. J.
.
c:,r, cI
for permission to serve at the same time as
;001115:e4 Mnergy,
of the Bishop National Bank of Hawaii at Honolulu,
7.1.1440-1-1, Territory of
Hawaii, and as a director of the Hawaiian
Company, Limited, Honolulu, Territory of
Hawaii.
Mr. ,101,.. as a az
Russell, for permission to serve at the same time
Rotoiii.14-ector of the Bishop National Bank
of Hawaii at Honolulu,
711.1_,'±u, Territory of
Hawaii, and as a director of the Hawaiian
u°V-11Y, Limited, Honolulu, Territory of Hawaii.
%eaC.
APproved, together with a letter, also dated
Buvetber 27,
1934, and approved by five members of the
a.r!dy to Mr.
Sargent, Assistant Federal Reserve Agent
Ole Federal
Reserve Bank of San Francisco, reading
as follows:
"There are inclosed for your files copies of Clayton
Act
u
permits
granted to Messrs. J. Waterhouse, F. H. Wode,4ous
.
Ro„ ') C. R. Hemenway, J. D. McInerny and
John E. Russell,
as-icIflu,
s
Territory Jf Hawaii, to serve at the same time
of i'iijectors and/or officers of the
Bishop Nationni Bank
the Hn at
Honolulu, and as directors and/or officers of
lian Trust Company, Limited, and/or
International
3648
11/28/34
()2
"Trust Comnany, Limited, both of Honolulu, T.H.
"It is noted from your reports on form 94b, with respect to these applications, that you have been unable to
obtain information concerning the character of the management and the financial condition of the trust companies
since they are o-)erating under territorial laws and are not
members of the Federal Reserve System. Information available to the Board indicates that the applicants are men of
high standing and integrity and that if the calibre of the
applicants is any criterion as to the financicl condition
and management of the trust companies, the latter would
aPpear to be in good condition. While the Board was reluctant to grant the above mentioned permits in the absence
°A- specific information with respect to the trust companies,
has given consideration to the information available
With respect to the standing and qualifications of the applicants and is cognizant of the fact that there is a lack
any evidence indicating that the national bank has sufIered from its relations with the trust companies and that
the
desirability of delaying further consideration of these
!ses until specific information with respect to the condiY1 of the trust companies could be obtained is questionale. In the circumstances, the Board re,uests that when
You.submit your recommendations as a result of your annual
review of these permits you report fully such information
Y°u may be able to obtain in the meantime from the terr-Ltorial banking authorities with respect to the financial
condition
and the character of the management of the trust
companies "
T
There were
then presented the following applications for
ell"gee in stoC.k
of Federal reserve banks:
"ilg.-111,on for
ORIGINAL Stock:
11°• 10 Ft-M;rchants
West
National Bank of
Point, West
Point, Nebraska
A 14
Shares
36
38
360
380
SURR1ME of
Stock:
mNe17 Raven
Bank, N. B. A.,
-ew
Haven, C
onnecticut
Approved.
3649
-25-
Thereupon the meeting adjourned.
0)
(C
.
APP4'°ved:
trU"M_
Secretary.
@FedFRASER