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meeting of the Federal Reserve Board was held in the office of the letj ' eral aeserve Board on 2riday, October 17, 1930, at 11:15 a. m. PRESENT: Liovernor:.eyer Mr. Hamlin Mr. Miller Mr. James Mr. Cunningham 1.1r. McClelland, Asst. Secretary. The minutes of the meeting of the Federal Reserve Board held on October 16th were read and approved as amended. Letter dated October 16th from the Secretary of the Federal Reserve Sank 01.11 "iork, advising that the board of directors at a meeting on that date 1114tie"change in the bank's existing schedule of rates of discount and puroluise, Without objection, noted with approval. Tielogram dated October 16th from the Chairman of the Federal Reserve Bank or ' 411 Praneiseo, advising that due to lack of a quorum, the regular meeting r)t the ), -oard of directors of the bank was not held on that date and no change 4 de in the existing schedule of rates of discount and purchase. Without objection, noted with approval. or Letter dated October 15th from the Governor of the Federal Reserve Bank Y0r'4, transmitting the regular monthly compilation of the amount of • 44%1 term funds held in New York for foreign account, aggregating 42,639,643 or Se ptember 30, 1930. Ordered circulated. laftorandum from Counsel dated October 16th with regard to the application r the First National Bank of Boston for permission to establish branches in 441 4 11"telltine Republic at Avellaneda and Rosario de Santa Fe, the latter being 10h7/30 -2irely new branch and the former an existing branch, which has been treated as a sub -branch of the branch at Buenos Aires, and was omitted from the barf°s recent application for ratification of several branches established with011t first securing the Board's permission. Counsel, in his memorandum, reported tnat he knows of no legal reason why the application should not be " ed and the Assistant Secretary stated that the matter has also been 4131°r ed to the Comptroller of the Currency and the Federal Reserve Agent at l'eferl ' (Iston, both of whom recormend approval. After discussion, upon motion, the following was adopted and ordered spread upon the minutes, Mr. Cunningham voting "no". "THE FIRST NATIONAL BANK 02 BOSTON, having on or about October 13, 1930, filed an application with this Board for the purpose of obtaining permission to establish branches in the Argentine Republic at Avellaneda and at Rosario de Santa Fe, and the said application having been considered and it appearing that the said application is properly made under the laws of the United States of America and should be granted; NOW, THEREFOiE, IT IS "0.0ERED, that the said application be and it hereby is approved, and that the said Bank be and it hereby is authorized to establish a branch at Avellanela and a branch at Rosario de Santa Fe, in the Argentine Republic." Upon motion, it was also voted to approve a letter to Messrs. Burnham, Bingham, Gould & Murphy, attorneys for the First National Bank of Boston, submitted with Counsel's memorandum advising that the Board offers no objection to the designation of some of the bank's foreign branches as subbranches or sub-offices for administrative purposes, provided that the so-called sub-branches or suboffices comply with all of the provisions of law applicable to branches. Letter dated October 16th from the Assistant Federal Reserve Agent at Ork 9 . advising of plans for the merger of the American Trust Company of 4%7 1.0r kl liew York with the Bank of Manhattan Trust Company of New York City. 206 10117/30 ) -3After discussion as to the practice of the Federal Reserve Agent at 1ew York of submitting advice of contemplated consolidations, etc., to the Board merely as a matter of information, upon motion, the above letter was referred to the Committee on Examinations for report. .lemorandum from Counsel dated October 15th, approved by the Law Committee, With regard to the amendment of Regulation F, Series of 1928, incident to the kienclment to Section 11 (k) of the Federal deserve Act approved June 26, 1930, Pr°vicling for the voluntary surrender of trust powers by national banks; C°1111801 submitting draft of a resolution reading as follows: "BE IT RESOLVED by the Federal Reserve Board that Regulation F Series of 1928, be amended by inserting therein a new Section XIV 40 read as follows: "SECTION XIV. SURRENDER OF TRUST PMERS. "(a) Procedure.--' Any national bank which has been granted the right by the Federal deserve Board pursuant to Section 11 (k) of the Federal Reserve Act, to act in any fiduciary capacity or capacities !Ici which desires to surrender such right, shall signify such desire wirough a resolution adopted by its board of directors. A properly ce rtified copy of such resolution of its board of directors should be ' lied with the Federal Reserve Agent of the district in which such Ilational bank is located and should be accompanied by (1) a letter sating the reason why, or the purpose for which, such national bank Wishes; to surrender its right to exercise trust powers, unless such ason or purpose shall have been amply stated in the resolution ,self; and (2) the permit or permits previously granted by the ''eaeral deserve Board to such national bank granting it the right to t in any fiduciary capacity, except that in case any such permit ii have been lost or destroyed an affidavit by any officer of i ch national bank as to such loss or destruction may be filed in etl of such lost or destroyed permit. All such documents filed with the Federal deserve Agent shall be promptly forwarded by him to the Federal deserve Board with a recommendation as to the action o be taken by the Federal Reserve Board. "(b) Examination.- Upon receipt of such documents, the Federal Reserve Board will request the Comptroller of the Currency, 11)(311 the occasion of the next regular examination of such national bank, to have the examiner make a special investigation of the trust l ePartment of the bank in order to determine whether the bank has act1411 accepted or undertaken the exercise of any trust, whether under Court, private or other appointment, pursuant to authority granted rlcier Section 11 (k) of the Federal deserve Act; and if so, whether it appears from the records of the trust department in the case of each rUst so accepted or undertaken: 4 r 10/17/30 -4"(1) That the duties of the bank as fiduciary have been completely performed or that a substitute fiduciary has been appointed in accordance with the State law; "(2) That a final account has been filed, by the bank, and that such account has been approved by the court or other proper aathority where this is required by State law; "(3) That all assets and papers belonging to the trust estate have been delivered by the bank to the person or persons entitled to receive them; and "(4) That the balk has been discharged or otherwise properly relieved of its duties as fiduciary. In exceptional cases, the Federal Aeserve Board may make a special examination or may request the Comptroller of the Currency to make !Special examination of such national bank in order to obtain the lniormation above sat forth. "(c) Certificate of Federal lieserve Board. - If upon receivi g a copy of the report of such examination of such national bank I) tIle Federal deserve Board shall be satisfied that such bank has teenrelieved in accordance with State law of all its duties as l'astee, executor, administrator, registrar of stocks and bonds, Fuardian of estates, assignee, receiver, committee of estates of ill?atics, or other fiduciary, under court, private or other apP?intements previously accepted by such bank under a permit grantby the Federal Reserve Board pursuant to the provisions of rction 11 (k) of the Federal Reserve Act, the Board may in its 'soretion issue to such national bank a certificate certifying at such bank is no longer authorized to exercise the powers c5011ferred upon it by such permit of the Federal Reserve Board. ch bank thereupon (I) shall no longer be subject to the provi;°ns of Section 11 (k) of the Federal Reserve Act or the Aegula,lons of the Federal Reserve Board made pursuant thereto, (2) shall entitled to have returned to it any securities which it may have posited with the State authorities or with the Federal deserve ngent for the protection of private or court trusts, and (3) shall t exercise thereafter any of the posers granted by Section 11 (k) i uf the Federal Aeserve Act without first applying for and obtaina new permit from the Federal Reserve Board to exercise such Powers. - r 1) '1 "BE IT FURTHER RESOLVED that the present Section Y.IV and the present ,.,,ction XV of this regulation be renumbered Section -2IV and Section AvI respectively. "BE I? FUliTHER RESOLVED that Section I of this regmlation, which ! ets forth the provisions of Sect ion 11 (k) of the Federal Reserve ,:ct, "41 amended so as to set forth the provisions of said Section 11 (k) °f the Federal Aeserve Act in the form as amended by the Act of June 26, 1930. 4 "BE IT FURTH-EA AESOLVED that the regulation as amended be designated ne t liegulation F, Series of 1930', and that it become effective in such -Mended form as of the date of adoption of this resolution." 10/17/30 -5- ) After discussion, upon motion, the resolution quoted above was adopted. Upon motion, a letter to all Federal Reserve banks advising of the amendment of Regulation F, which was submitted with Counsel's memorandum, was also approved and ordered transmitted, and publication in the Federal Reserve bulletin of a statement in the same form was also authorized. R1 S OF STANDING CUMITTEES: p4tea, October 16th 17th 4ted, October 16th 4tea, October 16th patea, October 16th b4ed, October 17th 4tea, October 17th Recommending action an applications for fiduciary powers as set forth in the Auxiliary :_inute Book of this date. Recommendations approved. George Recommending approval of the application of time serve at the same to F. Schmidt, for permission Trust Company, as officer and director of the Clifton Clifton, N. J., and as officer of the First National Bank of Clifton, N. J. Recommendation approved. 71. E. Recommending approval of the application of as time at the same serve Hughey, for permission to Company, Clifton Trust officer and director of the Clifton, N. J., and as an officer and director of the First National Bank, Clifton, N. J. Recommendation approved. .Recommending approval of the application of hr. Louis Drukker, for permission to serve at the sane time as a director of the Clifton Trust Co., Clifton, N. J., and as a director of the First National lank, Clifton, J. ii Recommendation approved. Recommending approval of the application of Mr. Richard T. Childs, for permission to serve at the same time as director of the Home National Bank, i.alenville, N. Y., and as director of the Nassau Aunty Trust A., Lineola, N. Y. Recommendation approved. Recommending approval of the application of Mr. Frank A. Farrell, for permission to serve at the same time as director of the Liddlesex National Bank, Lowell and as director of the Bancroft Trust Company, .Arcester, Recommendation approved. The meeting adjourned at 12:50 p. m. 4DDroveci: --I , ,. .- Governor 1/ A 7 (120 1 6 9 Assistant Secretary
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