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61r CI
A meeting of
the Executive Committee of the Federal Reserve Board
We'S held
in
Washington on Wednesday, November 29, 1933, at 10:45 a. m.
PRESENT:
Mx.
Mr.
Mr.
Mr.
Szymczak, Chairman of Executive Committee
Hamlin
James
Thomas
Morrill, Secretary
Carpenter, Assistant Secretary
Bethea, Assistant Secretary
Martin, Assistant to the Governor
Paulger, Chief of the Division
of Examinations
Mx. Wyatt, General Counsel
Mr. Wingfield, Assistant Counsel
Mr.
Mx.
Mx.
Mr.
Mr.
Mr.
referred to the Board's letter of November 24, 1933, to
willims
Federal Reserve Agent at Cleveland, with regard to the proDO8ed
merger of the
"Dollar Savinp:s and Trust Company'of Wheplin, West
gtrile, a
nonmember, with the"dheeling Bank and Trust Company"of that city,
MeMber,
under the
charter of the latter institution, and to the condition
1=V03ed by
the
Board, in connection with its consent to the transaction,
thEtt the
member bank
shall not acquire from the Dollar Savings and Trust
Q(/r413allY, as a
result of the merger, any corporate stocks other than those
41111Qh
Might l
awfully be purchased by a national bank under the provisions of
the
Natiollal Bank
Act.
Ur.
Yesterday
130sed
Morrill advised that
Mr. Williams, in a telephone conversation
with
regard to this matter, stated that he would like to see the
merger
consummated as soon as possible as a relief to the serious
411king
situation in
Whee1in2;; that the persons connected with the two inet1t10;10113
are not
In position financially at this time to eliminate all the
held by
the Dollar
Savings and Trust Company which have an estimated
f'59
11/29/33
tI
- 2 val." °f aPproximately 4600,000; that he had supposed, prior to the receipt
tthe
Board's letter, that the acquisition by the member bank, through the
rIl ernf
the stocks in Question would not be a purchase within the meaning
°r the
n„,,,
---'ivisions of the statutes prohibiting the purchase of stocks of carP°retion...
bY member banks; that he would appreciate it very much if the Board
°lad
reconsider the matter with the view to ascertaining whether it is possible to modify
the condition imposed; and that he felt that, if the Board
)1.11d give the
member bank a year in which to dispose of the stocks which
Ivolald be
ac quired,
the bank could proceed on that basis.
IIT's Wyatt stated that, on the basis of the facts presented, he believed there
was no escape from the view that the acquisition of stock of
Q°1'13°ratio115
In the manner proposed would constitute a purchase within the
°r°7181°Ils of the law above referred to.
rlIrthAfter discussion, the matter was referred to counsel for
konri..er consideration and report at a meeting to be held on
December 4, 1933.
The committee then considered and acted upon the following matters:
-"Y on November 28, 1933, approved by five members of the Board, to
ted
ovember 23 from Mr. Austin, Chairman of the Federal Reserve
Of phi,
1-edalph1a; the reply reading as follows:
,
e
l "rdance with the action taken by the executive committee of
:
advice of which was contained in your letter of November 23,
Federal Reserve Board approves a minimum authorized buying
1/2 Of 1% for purchases of bankers' acceptances by your bank.
lioverablulderstood from your telephone conversation with thia office on
27 that the action of your executive committee was taken at its
etep4 ? November 22, 1933, and the Board approves the rate of 1/2 of
'
Iva as of that date."
Approved.
Lett_
cur dated
November 28, 1933, to the board of directors of "The
1/4
-rton T.„
ut Company", Mount Vernon, New York, approved by three mem-
°T.
e
-Qard, statin,,, that, subject to the conditions set forth in the
11/29/33
lettell)
in
the Board approves the institution's application for membership
the
rederal Reserve System and for stock of the Federal Reserve Bank of
New yo,
1141 effective if and when such institution is authorized to reopen on
an
-"trioted basis by the Superintendent of Banks of the State of New
YOrk.
Approved.
, Letters
dated November 28, 1933, approved by five members of the
dvQ,
to the
boards of directors of the following named State banks, each
etter s,
Lett ng
that, subject to the conditions prescribed in the letter,
tile
8°Eird
approves the bank's application for membership in the Federal Reeerve s
te m and
"
for the number of shares of Federal reserve bank stock to
vrh
ieh the
"ank will be entitled upon the basis of its capital and surplus
f the date
Upon which its membership becomes effective:
Federal Reserve Bank
AP,22.19.1111.
State
Bank of Ellenburg",
Ellenburg Depot, New York.
Jerauld County
Bank", Wessington
SPrings, South Dakota.
New York
Minneapolis
Approved.
104
Letter dated
November 28, 1933, to the board of directors of the
Trust
CcrnPany of Maryland", Baltimore, Maryland, approved by five
ct the
Board, reading as follows:
eirrhi s
20, 19 1- refers
to the Federal Reserve Board's letter of November
Trliet 031 advi si ng of
the approval of the application of the Union
of
InPanY
lie
:
eral
Maryland, Baltimore, Maryland, for stock in the Fedelnorie oi:r
er
ve
s.Bank of Richmond subject to the following condition
!nor to admission to membership, not less than
41
° of the stock of such bank shall have been exchanged for stock in the City Certificates Corporaand transferred to that corporation.'
261
11/29/33
- 4c "The Board
is now in receipt of advice from 1.1r. J. Harry
0
(
,
,
)7111e;t0n that while the holders of approximately 97/0 of the stock
041,, the Union Trust Company of Maryland have consented to the replan of the trust company that proportion of the
pc"' can not be exchanged for stock of the City Certificates Corb,T1°n, since a large number of shares are required to be held
directors, as qualifying shares, under the laws of Maryland
;!).Tit
:thecharter of the trust company. Mr. Covington has advised
and 93% of the stock of the trust company can be so exchanged,
ha_ after
consideration of this matter the Federal Reserve Board
revised the condition numbered 36 contained in its letter of
vnber 20,
1933, and quoted above, to read as follows:
Prior to admission to membership, not less than
93% of the stock of such bank shall have been
exchanged for stock in the City Certificates
Corporation and transferred to that corporation.'
be "Acptce
ct,‘_
aace of condition number 36 as revised should, of course,
ter"
°mPlished by the Union Trust Company of Maryland in the manaccePfescribed in the Board's letter of November 20, 1933 for the
P`ance of the conditions of membership."
No:
Approved.
Letter dated
November 28, 1933, to the "City Certificates Corporation,
' Baltimore,
Maryland, approved by five members of the Board, reading
zia 4.0110,
13
20
"T1,
refers to the Federal Reserve Board's letter of November
' advisino of the approval of the application of the City
43
Ce;tiTrust- Zcates Corporation for a permit to vote stock of the Union
rlefite:31PanY of Maryland owned or controlled by the City Certito c
\-orporation,
subject to the following condition in addition
?rain other
reouirements:
• Prior to the issue of the voting permit, not less than
97°4 of the stock of the Union Trust Company of /:aryland
Shall be exchanged
for stock in the City Certificates
"The CorPoration and transferred to that corporation.'
t04
t!
° rd is now in receipt of advice from Mr. J. Harry Coving-,
While the holders of approximately 97 per cent of the stock
°r th
4ti:
'
Ilion
Trust Company of Maryland have consented to the reorgani0
be ex hPlen of the trust company that proportion of the stock cannot
a lare-afl"ged for stock of the City Certificates Corporation, since
Tageil:
.f1,11Tber of shares are required to be held by the directors,
t
hej1;;YIng shares under the laws of Maryland and the charter of
th
St
c°
2445anY. Mr. Covington has advised that 93 per cent of
-tde re(3
ti-- Of the trust
company can be so exchanged, and after con-°11 of this matter the Federal Reserve Board has revised the
11/29/33
- 5 ndition numbered 1 contained in its letter of November 20, 1933,
I'4"1,quoted
above,
to read as follows:
1. Prior to the issue of the voting permit, not less
than 93 per cent of the stock of the Union Trust
Company of Maryland shall be exchanged for stock in
the City Certificates Corporation and transferred to
that corporation.,“
Approved.
Letter dated November 28, 1933, to Mr. Stevens, Federal Reserve Agent
at chic
ago, approved by five members of the Board, reading as follows:
193
ReeeiPt is acknowledged of Mr. Young's letter of November 20,
:
:
sou
9 inclosing a letter from the cashier of The Home State Bank,
par",
11 Milwaukee, Wisconsin, together with copy of a memorandum preby
bY one of your examiners with respect to a possible violation
thet-Z lic)me State Bank of condition numbered nineteen under which
,
:
v ank was admitted to membership in the Federal Reserve System.
tioriTm the information submitted, it appears the subject instituOr sA1,
- "
n
engaging, either directly or indirectly, in the business
rerr-T-Ing insurance in violation of the membership condition ret° and that any profits derived from this activity accrue to
the
!
torm
eahier acting in an individual capacity. In view of such inNV,the Board will not consider this insurance business, as
-eted a violation of the conditions of membership."
Approved.
ReplY on November 28, 1933, approved by five members of the Board, to
4 letter
dated October 4
from Mr. Newton, Federal Reserve Agent at San Frane reply reading
as follows:
Plialtl a refers to your letter of October 4, 1933, inclosing the, aptor ;
:
.
I 1°4 of the 'First Security Corporation of Ogden', Ogden, Utah,
ission to merge 'First Security Bank of Boise', Idaho, and
'Atd -;Security Bank of Pocatello', Idaho, state member banks, into
°11 Bros. rank' Idaho Falls, Idaho, also a state member bank,
1111clere:
Ileze -t`due charter of .41e
last named bank; to change the corporate
buein ° First Security
Bank of Idaho and the principal place of
from Idaho Falls Idaho, to Boise, Idaho; to convert the intit
Illirt:°fle at Pocatello and Idaho Falls into branches and to absorb
n°n-member banks by the purchase of acceptable assets and the
1121cati;:ken of liabilities and to establish branches at their respective
all in the State of Idaho.
iica4iour
letter states that the Executive Committee of the Federal
Bank of San
tion
Francisco recommends the approval of the applicaliled upon certain conditions set forth in the letter and
e..10e,g)
AgssoUt__)
11/2s/33
6 "that
You concur in such recommendation. The
Board will interpose
L
lestohiection to the proposed merger of the member banks or to the
rroablishment of the fifteen branches of the institution resulting
m such merger, subject to the following
conditions:
"1. Prior to merger the First Security Bank, Boise, Idaho,
First Security Bank, Pocatello, Idaho, and Anderson
Brothers Bank, Idaho Falls, Idaho, shall, if they have
not already done so, charge off or otherwise eliminate
lo sses in
loans of 4126,048.87, losses in overdrafts of
116.76; claims and judgments of ,.i,7,864.36; other real
estate of 471,715.94, and depreciation in securities
other than those in the four
highest grades as classified
Y a recognized investment service organization regular'Y engaged in the business of rating and grading securities,
segregating 4364,588.30, all as shown in the reports of
credit investigation made by
an examiner for the Federal
Reserve Bank of San Francisco as of dates
between July
,2
25, 1933 and August 25, 1933.
• The
bank
stook of resulting from such merger shall have capital
not less than 41,250,000 and surplus of
2
,. 0000, and shall establish reserves of not less than
„
wu0,000 for depreciation and
any losses which might act-3 ;
rue in assets classified as doubtful.
• brior to absorption
by the First Security Bank of Idaho
he Proposed
purchase of acceptable assets and assumpir of liabilities, the thirteen
non-member banks shall,
theY have not already done so, charge off or
otherwise
171ate losses in loans of
414,498.26; claims and judgd nts of v4,535.44, other real estate of 439,993.46 and
:
in securities other than those in the four
high
grades as classified by a recognized investment
raljice organization
regularly engaged in the business of
al,1112: or grading securities, aggregating 4
261,915.63,
t, as shown in the
'
reports of credit investigation made
elssn examiner for the
Federal Reserve Bank of San Fran•
1933° as of dates between July 25, 1933, and
August 25,
o/'Idt171 Matter of
the establishment of the fifteen
branches in the State
° ahas
oD val.
„ bee n gubmitted to the
Comptroller of the Currency for his
the , "u there • .
t4h1, C,omptr,,
ls inclosed herewith for your information a copy
'
L
shrtie
'
L
ler's
%tit .
letter of November 11,, 1933, approving the esnt or
111.0
ranc hesthsubject
to the same conditions which are
4
8118cillelt
Aor
Q are
4equested
to advise the applicant, the First Security Cor°D 0,A _
'Id n, Ogden,
Utah, accordingly."
Approved.
Letter
dated
November 28, 1933, to Lr. O'Connor, Comptroller of the
264
11/29/33
-7
ClIll'ancY, approved by five members of the Board, reading as follows:
t
-Ln accordance with your recommendation, the Federal Reserve,
e°
,drd approves a reduction in the common capital stock of the '/ebr'ar and Atlas
1
National Bank of Boston', Boston, .e.ssachusetts,
t:
(
+T 41,000,000 to i;500,000, in accordance with a plan of rehabilib—'°n which provides that the bank's capital shall be increased
eli
t. the sale at par of st,500,000 par value preferred stock to present
riders and others, the purchase of such preferred stock to be
ti-anced in whole or in part by means of loans from the ReconstrucorcY4 Finance Corporation secured by such stock, and that ,300,000
be the
funds released by the reduction in common capital stock shall
emollaed to
eliminate, if the bank has not already done so, an equal
v20101nt °f
loses
losses and depreciation in securities, and that
re)°00 of such released
capital funds shall be used to establish
memoserve for depreciation and losses, all as set forth in your
1ndum dated
November 10, 1933.
soeialb regard to the question whether the bank's Articles cf Asm04 ulon should authorize a maximum dividend rate of 5% on its comdete8t°°k, instead of 3;), it would seem that this is a matter to be
Pifljrn
!
d bY your office upon consultation with the Reconstruction
404:
6'
L orporation, and the Board therefore will express no opinion
,he matter,
"Althou h
Attea t g the Board approves the plan of rehabilitation as subchare Y Your office, it would seem preferable for the bank to
the 10 °ff at least the amount of depreciation in its securities
of
cfrsetwer grades rather than to have any part of such depreciation
Your c bY an unallocated reserve, and this suggestion is made for
be evarsideration
in view of the fact that ample funds appear to
leble for that purpose through the capital reduction."
4
Approved.
tette r
dated November 28, 1933, to
04rrency
O'Connor, Comptroller of the
' a pproved by five members of the Board, reading as follows:
Foeb3a accordance
with your recommendation, the Federal Reserve
lAgtuaaPproves a reduction in the common capital stock of the
/11,polineek National
Exchange Bank and Savings Company of Newport',
°D reh
h°de Island, from ;300,000 ta 0.50,000, pursuant to a
planers-uiton inwhich provides that the bank's capital shall be
the
bY the sale
at
par of ,200,000 par value preferred stock to
Recent
tl,esrction Finance Corporation, and that the funds released
11.Eiblil:duc tion in common capital stock, together with funds
tzs
in the bank's surplus and undivided profits accounts, shall
408e: to e
liminate, if the bank has not already done so, estimated
-and de
in securities of the lower grades aggregating
ber --LmatelyPreciation
;
r ,n
14, 1933., -.5,000,
all as set forth in your memorandum of Novem-
)
` 65
11/29/33
Approved.
to e
Reply on November 28, 1933, approved by five members of the Board,
.
'Letter dated November 16 from Mr. Newton, Federal Reserve Agent at
Atlanta; the
reply reading as follows:
ed,7118caiPt is acknowledged of your letter dated November 16, 1933,
th'lin,f of the proposed reduction in the common capital stock of
2ank of Eastman', Eastman, Georgia, from 460,000 to 450,000
Pi- '
1118 sale of c25,000 of capital notes to the Reconstruction
cZlee Corporation,
and recommendina that such reduction in the
capital stock and the sale of capital notes be approved.
Since it aopears from the information submitted that the entir,
cen74elnount of the funds made available by the reduction in common
hei-l ual is to be used to eliminate objectionable assets from the.
rlotand since the Board's consent to the reducticn in capital is
by law, or the conditions of membership applicable to
the ;quired
1/1 tr4k, the Board offers no objection to the reduction in capital
the e 61-m)unt indicated, or to the issuance of capital notes, with
cciseunderef. „
„ 'nuIng, of course, that your counsel has considered the
ls satisfied as to its legal aspects, that such reduction
the
()almon
capital stock and the sale of capital notes will not
uit
will ;4,111 anY change in the corporate existence of the bank which
the t;'Lect its
membership in the Federal Reserve System, and that
the ,,arlsaction has
the approval of the Superintendent of Banks for
Q 4,ate of
Georgia."
Approved.
Letter dated
November 28, 1933, to Mr. O'Connor, Comptroller of the
Y' approved by five members of the Board, reading as follows:
Alvet
; 11 accordance
with the recommendation of Acting Comptroller
raoll '
'
0, the IT
,-ederal Reserve Board approves a reduction in the comColo Ttal stock of
'The First National Bank of Holyoke', Holyoke,
rrom 50 000 to 425 000, pursuant to a plan of rehabilithe ;1"eh provides that the bank's capital shall be increased by
str4: ;:,111.
,
,
t Par of 425 000 par value preferred stock to the Recont
rediacti-"
4inance Corporation,
o
end that the funds released by the
staildA,-,!,111 in common Capital stock shall be used to eliminate subkwai.,„;-'
/14 assets
in the amount of
;25900°, all as set forth in Mr.
'
I 8 niernorandum
of November 21, 1933."
Approved.
'16('
11/29/33
9
Letter dated
November 28, 1933, to Mr. O'Connor, Comptroller of the
Cill'reneY) ePProved by five members of the Board, reading as follows:
11-r.
-1-ri accordance
with the recommendation of Acting Comptroller
elt I the
Federal Reserve Board approves a reduction in the cam-,
pl n capital stock
of the 'First City National Bank of Floresvrlle ,
1,:,°_resville, Texas, from 4100,000 to 450,000, pursuant to a plan of
crusbilitation which provides that the bank's capital shall be inby the sale
at par of ,50,000 par value preferred stock to
by-'ecohstruction Finance Corporation, and that the funds released
the redu
ubction
Ubstandain
common capital stock shall be used to eliminate
itostandard assets in the amount of approximately ,p43,450, establishUS fund in the amount of 45,000 and in increasing the unProfits account approximately 41,549, all as set forth in
alts
memorandum of November 17, 1933."
Z
Approved.
0111.rerle
Letter dated November 28, 1933, to Mr. O'Connor, Comptroller of the
approved by
five members of the Board, reading as follows:
Awaitn .,.!c°rdence with the recommendation of Acting Comptroller
Mori ' 'lie
Reserve Board approves a reduction in the comGardcaPital stock of
'The First National Bank of Garden Grove',
Or re!
,
r Gr°ve, California, from 450,000 to 425,000, pursuant to a plan
illereflabilitation which provides that the bank's capital shall be
lto
Y th sale at par of 425,000 par value preferred stock
41":1,c1 be
ee84
'
sconstruction Finance Corporation, and that the funds re!
.
3Y* the
reduction in common capital stock shall be used in
substandard
assets and depreciation in the amount of
appro1ma
or Nov4 telY )?25,155, all as set forth in Mr. Awalt's memorandum
ember 20, 1933.'1
Approved.
tette r
dated November 28, 1933, to Mr. O'Connor, Comptroller of the
C4,
,retcy
' approved by five
members of the Board, reading as follows:
Awaitn eecordance with the recommendation of Acting Comptroller
t1104 can'
ithe Federal
Reserve Board approves a reduction in the cosellt€t
StOCk of 'The Commercial National Bank of Santa Ana',
1344 0;", Ca
lifornia, from 4200,000 to 4100,000, pursuant to a
shall
be itcrehabilitation which provides that the bank's capital
the essd by the sale
at par of 4100,000 par value preferred stock
eased -1econstructien Finance Corporation, and that the funds ree-Limin 4 Y the
reduction in common capital stock shall be usedp99„553
to
E111
s
substandard assets in the amount of approximately
set forth in the memorandum of Acting
Comptroller Await of
N.PLI 1
11/29/33
- 10 "Ikmember 20, 1933."
Approved.
Reply to a letter dated
November 24, 1933, from Mr. Z.
Fenner,
,
'issistant Federal Reserve Agent at Philadelphia; the reply reading
Eta follows:
:
No 114 acomp
phiember 24 lience with the recommendation made in your letter of
the Pennsylvania Company for Insurances on. Lives, etc.
deilledelPhia, and the Camden Safe Deposit and Trust Company, Cam' Iret hereby
granted an extension of time to November 29 withto submit the
report of their deposits on Schedule Q."
Approved.
p y
Re l to a letter dated November 24, 1933, from Yr. Fletcher,
Assisteat ped
eral Reserve Agent at Cleveland; the
reply reading as follows:
ccmPliance with the request conveyed in your letter of Novemhereb:
I- the Commonwealth Trust Company, Pittsburgh,
Pennsylvania, is
Port
granted an extension of time to December 6
within which to reIts d
eposits on Schedule Q."
Approved.
MeMorandum dated November 28,
1933, from Mr. Smead, Chief of the
14/'181011 of
Bank
t4Itklait
Operations, stating that it is understood that the Federal
Insurance Corporation
will ask member banks to pay in to the Tern13(4Ell'Y
-b'ederal
Deposit Insurance Fund as soon as practicable after December
133)
ote-half of the
first assessment, based on their deposits as of
ttlat ciEtte,
in
order that a
certificate of membership in the insurance fund
414Y be
issued as of
January 1, 1934; that it is expected, therefore, that
111 or
/iearly all
of the banks will pay in such assessment prior to
the date
the text
call
which Will be made as of some date not later than Saturday,
e"lhelt 30;
that inasmuch,
i
however, as some of the banks may not have paid
14their
assessment it is
understood that it is the intention of the Comptroller's
I)0
14.dtili
11/29/33
-11°trice not to have such payments as shall have been made shown separately
°11 the face
Of the call report but to have them included in Other assets"
elld to have
such payments shown separately in a schedule, which is not made
Plablio, in
the inside of the report; and that it is recommended that State
411ktnernbers be instructed to include, at the time of the next call report,
such
Payments as shall have been made by them to the Temporary Federal Deposit
Insul'ance Fund among "Other assets" on the face of the report and to
1101// them
separately under a proper designation in the appropriate schedule
°11 the
inside of the report. The memorandum also stated that no other
11t14es are
cc3rtiPeny1ne
recommended in the form of the call report or in any of the acschedule5.
Approved.
Re plY on November 28, 1933, approved by five members of the Board,
to a let. er
I
dated November 24 from Li% Ronald Ransom, Chairman of The
4111f'111
c0de Committee of the American Bankers Association, Atlanta, Georgia;
the reP1Y
readillo. as follows:
ter"The pederal Reserve Board has given consideration to your letPreZ N°vember 24, 1933, in which you inr_alire whether or not the
ortlined would be considered contrary to that .
F
i
:
allit
rvf
oci::oill
19 of the Federal Reserve Act, as amended, which
'No member bank shall, directly or indirectly by
NrellViCe w
hatsoever, pay any interest on any deposit which is
e on
demand.'
,
3,Peare that Article VIII, Paragraph (3) of the Bankers
0
,f41
3, 1933 air Competition, as approved by the President on October
e)rolln -' re quires every clearing house, county association, county
eervi' °I% State bank
association to adopt rules fixing uniform
tYbancle, charges to be charged by banks whereby services rendered
Qerri--3 shall be
compensated for either by adequate balances
by a Scale of charges.
°r
It al
aPpears from your letter that, in order to determine
tle4e
ethe- blle balance carried in an account is sufficient to comtha bank fairly for services rendered, it is necessary to
269
11/29/33
-12 -
h mllYze the account; that this requires the establishment of
'
ellifbrm
s
rules which must give consideration to the value of the
ticl!?unt and proper service charges against the account; and
e
these charges are of two classes: first, general overhead
e?,!nses of the bank, and second, out of pocket expenses, such as
"allge, collection and other charges arising out of specific
b 'neactions for
specific customers and actually paid or credited
Y the bank on
behalf of such customers.
ta "It furt
her appears that, under the Code, it is the duty of the
raill
tking Code
Committee to consider the rules which are being subfor approval by clearing houses and other banking groups
Provided
,;
for in the Code and that, before passing upon these rules,
th-4 L'oMmittee
desires to know whether it would be contrary to
:
/11
Pr°vision of the Federal Reserve Act referred to above for
banks to take into consideration 'the reasonable value of
:
theie
customers' deposit balances in analyzing accounts in accorditiZe
t with a
uniform plan to be approved by the Banking Code Comshotr for the purpose of determining whether service charges
to bed be assessed against their customers and, if so, the amount
to th assessed: Provided, That (1) the value of each account
by tl,e bank is computed in accordance with a uniform plan approved
:
rei
Banking Code Committee and (2) the banks require actual
vaill
uurseme nt (without deduction of interest or of the estimated
coif of the
customers' balance to the banks) for exchange charges,
actie
n et"n charges, and other charges arising out of specific transfor specific
customers and actually paid or credited by the
40n behalf
of such customers.'
the Aftero
careful consideration, the Federal Reserve Board is of
wouldPinion that a practice such as that outlined in your letter
erel not be
contrary to that provision of Section 19 of the FedIReserve„
Act which is quoted above.
into ” re aching this conclusion the Board has taken particularly
other%c°1ant the fact that it is proposed, in proviso No. 2, among
ezche,'Ilings, that the banks will require actual reimbursement for
or or—ge and
si.tell the e collection charges, without the deduction of interest
stinInted value of the customers' balances to the banks.
ihtabPrectice would eliminate any question of illegality which
0011 be oc casioned by the absorption by a bank of exchange or
latioll'on charges in
an amount bearing a substantially direct re31'4 to the
amount of the balance."
Approved.
Letter
to
dated November 28, 1933, approved by four members of the
,
A
ePplicant for a permit under the Clayton
.111
Of th8
ePplication as follows:
Act, advising of ap-
11/29/33
- 13-
1V11". George B. Morley, for permission to serve at the same time
director hnd officer of the Second National Bank and Trust
,?11,1PanY of Sai;inaw, Saginaw, Nichigan, and as director of the
roit branch Federal Reserve Bank of Chicago, Detroit, LichiEan.
Approved.
Letters to applicants for permits under the Clayton Act, advising
0
PPr°val of their applications as follows:
Car.
Neils, for
cp13:'ector and officer
Fi
Zingham, Alabama,
-ral Reserve Bank
permission to serve at the same time as
of The First National Bank of Birmingham,
and as director of the Birmingham branch,
of Atlanta, Birmingham, Alabama.
Edwara R.
as d.
Estberg, for permission tc serve at the same time
'rector and officer of the daukesha National Bank, Waukesha,
ch.
'
J-I e°11sin, and as director of the Federal Reserve Bank of Chicago,
caga, Illinois.
Approved.
Thereupon the meeting adjourned.
(9V.
41:11)1'0yea:
Chairman, Executive Committee.
QJ
Secretary.
@FedFRASER