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3292 A meeting of the Federal Reserve Board was held in Washington 011 Friday, October 261 1934, at 3:00 p. m. PRESENT: Mr. Mr. Mr. Mr. Mr. Thomas, Vice Governor Hmilin Miller James Szymczak Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary The minutes of the meetings of the Federal Reserve Board lielcl on September 251 26 (two meetings), and 27, 1954, were approved. The minutes of the meetings of the Executive Committee of the Federal Reserve Board held on September 22, 24, 26, and 271 and °etober 1, 22 4, 51 61 and 91 1954, were approved and the actions recorded therein were ratified unanimously. The minutes of the meeting of the Executive Committee of the ?eder 41 Reserve Board with the governors of the Federal reserve banks 111114O September 221 1954, were approved. The minutes of the meeting of the Executive Committee of the Piker al Reserve Board with representatives of the Industrial Advisory ei5niltlittees of the twelve Federal reserve districts held on September 27, 1,fl 44, were approved. Mr. Morrill reported that the Comptroller of the Currency toIssued a call on all natiorml banks for reports of condition as q the close of business on October 171 1954, and that, in accordance Itith th e usual practice, a call was made on behalf of the Federal Reei4lre 130ard on all State member banks for reports of condition as of 3293 10/26/34 -2- the same dateThe call made on behalf of the Board vas ratified. The Board then considered and acted upon the following matters: Renewal bond in the amount of 050,000, executed on October 1, 1924, by Mr. Oliver P. Wheeler as Assistant Federal Reserve Agent at the Federal Reserve Bank of San Francisco. Approved. Letter dated October 25, 1934, from Er. Sproul, Secretary of the - , eueral Reserve Bank of New York, and telegram dated October 28, 1934 'from Er. Stevens, Chairman of the Federal Reserve Bank of Chtc °Lgc, both advising that, at meetings of the boards of directors Or the dates stated, no changes were made in the banks' existing ached/Iles of rates of discount and purchase. Without objection, noted with approval. Letter dated October 25, 1934, approved by five members of the 8°Eird, to the board of directors of "The Brecksville Bank Company", 4443Ville, Ohio, reading as follows: you were advised in its letter of August 28, 1934, the _nleral Reserve Board has approved the application of 'The Brecksn;13:e Bank Company' for membership in the Federal Reserve System QuoJect to the conditions contained in that letter. ce, This is to advise you that the Federal Reserve Board canA,18 condition numbered 18 contained in its letter to you of 28, 1934, and amends condition numbered 20 contained "em n to read as follows: 20. Prior to admission to membership, such bank, if it has not already done so, shall charge off or otherwise eliminate estimated losses of $2,895.50 as shown in the report of examination of such bank as of May 19, 1934, made by an examiner for the Federal Reserve Bank of Cleveland, and in addition shall charge off or otherwise 10/26/34. -3- "eliminate all other known losses, and all depreciation in stocks, defaulted securities and securities other than those in the four highest grades as classified by a recognized investment service organization regularly engaged in the business of rating or grading securities. "The acceptance of the amended condition numbered 20 should, Of course, be accomplished by The Brecksville Bank Company in tne same manner prescribed in the Board's letter of August 28, 1934, for the acceptance of the conditions of membership. "In view of all the circumstances, the Federal Reserve Board extends to November 1, 1934, the time within which The Brecksville Bank Company may accomplish its membership in the Federal Reserve System." Approved. Letter to 1;:r. Williams, Federal Reserve Agent at the Federal 4cerve Bank of Cleveland, reading as follows: . "Receipt is acknowledged of your letter of Octobe r 3, 1934, 11 , that 'The Louisa National Bank', Louisa, Kentucky, has been deficient in its required reserves with the Federal Reserve nk of Cleveland for the period from April 1, 1934, to September 15, 1934, inclusive, and further, that the bank's reserve "count has been continuously deficient for thirty-five semi111°flthly periods. "In this connection it is noLed that, in view of the fact that 13 at no improvement has been evidenced in the bank's reserve ' t°s1tien, you will at an early date confer with the Chief Nai.t°11a1 Bank Examiner for your district regarding the advisa bilY.of communicating with the Board of Direct ors of the Louisa atonal Bank in regard to its continuous reserve deficiency. ti. In the circumstances, the Board will take no action at f il8 tine regarding such reserve deficiencies other than to mard copies of your letter to the Comptroller of the Currency or %s information. It will be appreciated if you will advise the Board as to "t" results of your confer ence with the Chief National Bank ExE;nr and as to any developments regarding the maintenance by bank of the required reserves." ZT Approved. t4 Letter dated October 25, 1934, approv ed by five members of Board 1-0 La.. Stevens, Federal Reserve Agent at the Federal ReOf Chicago, reading as follows: 3295 10/26/34 -4- "iLeference is made to the report of examination of the 'Jasper County Savings Bank', Ilevton, Iowa. as of March 12, 1934, and the supplementary information submitted in connection therewith. "The report of examination reflects an undercapitalized condition inasmuch as capital and surplus of ,JE0,000 amounted to but approximately of total deposits of $2,189,000. If consideration is given to estimated losses, securities depreciation and doubtful assets, exclusive of such assets which are Protected by a directors' guarantee, net sound capital and ,surplus amounted to but approximately 6% of total deposits. ihe already low ratio of capital and surplus to deposits has been reduced still further since the examination of Larch 12, 1934, by the increase in deposits effected since that date. "As you know, one of the standard conditions of membership 'which has been prescribed for some time past requires the maintenance of an adequate ratio of capital and surplus to deposits, and although such condition was not prescribed at the time of he admission of the Jasper County Savings Bank to membership In 1918, the Board believes that as a matter of sound banking P°1icy an adequate ratio should be maintained. . "In a letter dated May 12, 1934, la-. Young stated that While the bank had a considerable amount of undesirable assets, Your office believed that the depositors were amply protected fl ough the capital structure of the bank and the guaranty. Ihe Board appreciates the steps which have been taken by the ontrolling interests in the past to assist the bank, including ie execution in December 1933, of a secured guarantee of ?°0,000, and the assurances -which have been given that they 4111 continue to support the bank and not permit the depositors suffer any loss. A guaranty, however, while valuable as a 1;emporary expedient, cannot be regarded as a part of the bank's Permanent capital structure, and the 3oard believes that it 1./ould be to the best interests of the bank and its depositors effect a capital increase which would provide a ratio of eaPital and surplus to deposit liabilities of at least one to ten. "It will be appreciated, therefore, if you will advise the =JO ard as to any plans which may be under consideration by the Illanae;ement of the bank, the State'supervisory authorities, or Your office for increasing the bank's capital structure." Approved. Letter dated October 25, 1934, approved by five members of the 13 oard, to the "Peoples National Bank in Lakewood", Lakewood, Mew tle,ra Y, reading as follows: 10/26/34 -5- "The Federal Reserve Board has given consideration to your aPplication for permission to exercise fiduciary powers, and grants you authority to act, when not in contravention of State or local larr, as trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, coramittee of estates of lunatics, or in any other fiduciary capacity in which State banks, trust companies or other corporations Which came into competition with national banks are permitted to act under the laws of the State of New Jersey, the exercise of all such rights to be subject to the provisions of the Federal Reserve Act and the regulations of the Federal Reserve Board. "This letter will be your authority to exercise the fiduciary Powers granted by the Board. A formal certificate covering such authorization will be forwarded to you in due course." Approved. Letter dated October 25, 1934, approved by five members of the Board, to Mr. O'Connor, Comptroller of the Currency, reading as follows: "In accordance with your recommendation, the Federal Reserve Board approves a reduction in the common capital stock or 'The Jackson-State National Bank', Jackson, Mississiopi, frcla $300,000 to 4150,000, pursuant to a plan which provides that the bank's capital shall be increased by $150,000 of prostock to be sold to the Reconstruction Finance CorporatIon and that the released capital shall be used to augment the ballk's surplus in the amount of $100,000 and undivided profits account in the amount of $50,000, all as set forth in your letter of October 15, 1934." Approved. Letter dated October 25, 1934, approved by five members of the Board to Li.. O'Connor, Comptrolle:- of the Currency, reading as toliowe "In accordance with your recommendation, the Federal Reserve Board approves a reduction in the common capital stock the 'State National Bank of Corpus Christi', Corpus Christi, T ',xas, from ::?200,000 to $100,M, pursuant to a plan which prothat the bank's capital shall be increased by the sale of 100,000 of preferred stock to the Reconstruction Finance 3297 10/26/34 -6- "Corporation, and that the released capital shall be used to eliminate or reduce a corresponding amount of undesirable ascots, all as set forth in your letter of October 11, 1934." Approved. Letter to the Federal reserve agents at all Federal reserve bank4, reading as follows: "The Board's letter of Larch 12, 1934 (X-7820) requested You, in any case in which a ruling was required as to the apPlicability of section 32 to a so-called investment trust of the management type, to furnish the Board with certain information regarding the nature of the operations of the organization, but that letter did not request information as to the extent and nature of the activities of the organization in connection With the sale, distribution, repurchase or redemption of its own stock, bonds, or other securities. However, in considering aPplications and requests for rulings involving the applicability of section 32 to such investment trusts, it has come to the attention of the Board that in some cases the nature and extent otT' their activities in connection with dealings in their own securities has been such as to become a factor in determining the applicability of section 32 to them. "Therefore, it will be appreciated if, in connection with ;42.1ture cases requiring a ruling of the Board as to the applica°laity of section 32 to such investment trusts, you will obtain and furnish the Board with information as to the following, in addition to the information requested in the Board's letter of 1:iarch 12, 1934 (X-7320): "1. The manner in which the stock, bonds or other securities of the organization were originally sold and distributed to the public. "2. The manner in which such securities are at pre3 ,ent being sold or distributed, if they are now being sold or ,i stributed. 3. For each or the past three years, the number and Par value of the (a) shares, (b) bonds, and (c) other securities °f the or7nization which have been sold or issued. "4. For each of the past three years, the number and Pax value of the (a) shares, (b) bonds, and (c) other securities the organization which have been repurchased or redeemed by cile organization. "5. In the event that any such securities have been thus repurchased or redeemed, a description of the terms, con10115 and manner of such rei)urchase or redemption. to ha In addition to such information, the Board will be glad 7e any further information or comments which you feel 10/26/34 -7- 11 , sflould be furnished." Approved. Letter dated October 25, 1934, approved by five members of the Board, Co Governor Harrison of the Federal Reserve Ban": of :Jaw York, readinm as follows: "zteforence is made to your letter of September 18, 1934, to Vice-Governor Thomas, inclosing a copy of a letter from Che Governer of the Bank of England under date of August 22, 1934, in regard to relations between the Bank of zngland and "the Federal Reserve Bank of i;elit York. "The Board has noted your statement that in your opinion Present conditions are such that it is unnecessary to request the Bank of England at this time more formally or definitely to accept your letter of January 27, 1933, but that transactions of the kind which were the subject of such letter will be handled in accordance with the terms and conditions specified therein. The Board assumes that, upon a change in circumstances, you will consider the desirability of reaching a c. lefiniLe understanding with the Bank of England on this subject." Approved. Letter to 1:1r. Case, Chairman of the 1- c.deral 1,eserve :-Jalik of York, reading as follows: "Reference is made to your letter of August 30 in reply to the Board's letter of August 16 regarding the report of examination of the Federal Reserve Bank of New York as at the close of business Larch 10, 1934. "leferring to the first; paragraph on page 3 of your let,L,01", the Board has been informally advised by the Treasury t'ePartment that your requests for reimbursement of expenses Icurred in obtaininA., analyzing ,and reporting data relative foreign exchange transactions, in accordance with the Presint's Executive Orders, have recently been approved and subIllitted to the Comptroller General for direct settlement, and ?Il will no doubt be advised in due course of the action taken snereofl. You have been advised in Ir. Smead's letters of 1DePtember 21 (B-1017), and October 10 (B-1023), as to the 'ar°Gress being made in obtaining reimbursement for extraordin4rY expenses incurred by the Federal Reserve banks during and '1.2,mediately after the banking holiday. r t 3299 1, 10/26/34 -8-- "ith respect to the expenses incurred for flowers and a memorial in connection with the death of former Deputy Governor Gilbart, the Board approves payment of these expenditures. In , k his connection, however, attention is invited to the Board's letter of October 20, 1932, A-7276, which stated with reference to such expenditures that 'if in a particular case and for some special reason it is believed that an expenditure of this general character would be advantageous from the standpoint of the proper conduct of the business of the Federal Reserv e bank, a.statement of the amount and nature of the Proposed expenditure, with the reason therefor, should be submitted to the Board for consideration.'" Approved. Telegram to 1r. Crane, Deputy Governor of the Federal Reserve Leal f Lew York, reading as follows: "Board approves compliance by your bank with the request of the Banco de la Lacion Argentina that you receive and hold in custody for its account .35,000 of gold referred to your wire this date." Approved. Letter dated October 25, 1934, approved by five members of the h Trea c)ard, to honorable henry 1,]orgenthau, Jr., Secretary of the surY, reading as follows: "Attached is a copy of the Board's letter of Lay 2, 1934 to the Governors of all Federal Reserve banks, except Linneapolls, with regard to the use of the franking privilege in .°11nection with their operations as fiscal agents of the rnited States, and of the replies of the Federal Reserv e banks :,'Ilereto. There is also attached a letter from the Federa l 4eserve Bank of Linneapolis, dated1..-.ay 4, in regard to the rle subject. uA It will be appreciated if you will advise the Board to extent, if any, the Federal Reserve banks as fiscal agents the United States are authorized to use the franking privilege.11 Approved. the Letter dated October 25, 1934, approved by five members of ard, to honorable I. Llyers, Governor of the Farm Credit 3300 10/26/311 -,41.11.1 straion, reading as follows: "iteference is made to your letter of September 7, 1034, With regard to charges made by the Federal Reserve Bank of St. Louis against the farm loan registrars at St. Louis and Louisville and the receiver of the St. Louis Joint Stock Land Bank for the safekeeping of securities deposited with that bank. "In accordance with the request contained in your letter, this matter has been taken. up with the Federal Reserve Bank of St. Louis, and the Board is in receipt of a letter from the governor of the bank stating that, inasmuch as the matter is now- under consideration by a committee of governors of the Federal reserve banks with the object of working out a uniform Plan of procedure for all Federal reserve tanks, the St. Louis bank has decided to forego for the time being the charges referred to." Approved. Letter to r. Herman Oliphant, General Counsel to the 6ecre- of the Treasury, reading as follows: "This will acknowledge receipt of your letter of September 10, 1934, inclosing a copy of a letter addressed to the Secret,.arY of the Treasury by the Secretary of the Interior and a graft of a banking law for the Virgin Islands -which has been proposed for enactment by the local legislative assembly of the Virgin Islands. You request an expression of the views of the Federal Reserve Board regarding the proposed legislation. "The Federal Reserve Board has very little information f i I ecarding the economic and financial conditions in the Virgin , 1 8113-nds; but it appears from a report submitted to the House of ' ePresentatives by its Committee on i:ankinP: and Currency, under date of June 12, 1934 (Report ho. 1952, 73d Congress, 2d Session), whleh presumably was based upon information furnished by the reasury Department, the Department of Interior, the Comptroller °If_ the Currency, or the Reconstruction Finance Corporation, the Virgin Islands are a group of islands, the principal °nes beinr, St. Thomas and St. John, which form one municipality, fld the island of St. Croix; that the island of St. Croix has 4° Principal towns, Christiansted with a population of approxie1Y 3,800 and Frederiksted with a population of approximately (1 '100; and that the population of the islond of St. Thomas is _I/Pro:':imately 7,000. It further appears that the only commer' 10.1 bank located in the Virgin Islands at the time the above lelatiened report was rendered was the 1;ational tank of the 'anIsh Ibest Indies, which had its main oft'ice in the island of t, Thomas and had two active branches in the island of St. r 3301 10/26/34 -10- "Croix, one located at Frederiksted and one at Christiansted. It further a ,pears that the National Bank of the Danish 'jest Indies was organized pursuant to a concession granted by Denmark in June 1904, which expired on June 20, 1934, and that the Reconstruction Finance Corporation and persons living in the Virgin Islands have agreed to buy stock in a proposed new bank to be situated at St. Thomas. It is also understood that this proposed new bank will be organized under provisions of the National Bank Act, which were made applicable to the Virgin Islands by the Act of July 19, 1932. . "In view of the above circumstances, and especially in view of the facts that banks can be organized in the Virgin Islands under the provisions of the National Bank Act as amended, that a bank is being organized there under such provisions and that the population of the Islands appears to be too small to support enough local banks to justify the organization Of a local supervisory authority properly equipped to give adequate supervision to banks organized under local law, the Board is of the opinion that the enactment of a local law authorizing the organization of such banks would be inadvisable. "If banking business is being conducted in the Virgin Islands by private individuals, partnerships or organizations 'which are not properly organized and equipped, such a situation could be cured by the enactment of legislation forbidding anyorls to transact a banking business in the Virgin Islands except national bank duly organized under the provisions of the Lational Bank Act. "If it is necessary to obtain legislation in order to en! -.1?le national banks organized in the Virgin Islands to establish branches at various different places in the islands, it would seem advisable to obtain such authority through the etactment by the Congress of the United States of a bill such S. 3287, 73d Congress, 2d Session, as recommended by the Tilleasury Department, the Comptroller of the Currency, the DePartment of Interior, and the Reconstruction Finance Corporation.0 Approved. Letter to Au-. H. B. Lard, Cashier of the National Bank of lachigan, reading as follows: 'his refers to your letter of July 30, 1934, regarding the question whether the retention by the trust department of ur.bank of a savings deposit pass book complies with the ; °(1111rements of the Federal Resurve Board's Regulation Q in _e?pect to savings deposits. It appears that the pass book "adences a savings deposit which is a part of certain n 3302 10/26/34 -11- properties held by the bank in trust. Under the agreement creating the trust, the bank is authorized to manage such Properties and to pay over the income and/Or principal to the trustor or to such persons as he may designate. "Az you know, the Federal Reserve Board has heretofore ruled that a savings deposit in respect to which the pass book or other form of receipt is retained by the bank or by an officer, employee, or agent thereof, rather than by the depositor, does not comply with the requirements of Regulation q in respect to savings deposits. however, it is understood that in the instant case the pass book is not retained by the bank for the purpose of avoiding the necessity of the depositor's presenting such pass book each time a withdrawal is made, but that it is a part of certain assets which have been transferred to the bank, as trustee, pursuant to transactions entered into in good faith and not for the purpose of evading the provisions of the law or of the Board's regulations relating to savings deposits. "If in fact the real depositor is the bank in its capacity as trustee and not the beneficiary of the trust, and if withdrawals are permitted to be made only by a representative of he trust department upon presentation of the pass book and ln no case by the beneficiary or upon a check or similar order cf the beneficiary, the case does not COMB within the principle upon -which the Board's earlier ruling was based and the Practice is not unlawful. however, any such practice will be ”rutinized with great care and it will be incumbent upon the Dank to be prepared to show that the practice is engaged in in good faith and not as a means of evading or circumventing the Iules against the payment of interest on demand deposits or e withdrawal of savings accounts without the actual presenta' 10n of the pass book or other similar receipt. In this connection, your attention is invited to the pr ovisions of section VIII of the Board's Regulation F regard121g the deposit of trust funds in the commercial or savings Partment of the trustee bank and the necessity of the bank's e ,Pcsiti ng collateral with the trust department to secure such Zrust funds. In general, it is not proper for a trustee bank r hold trust funds on deposit in its own commercial or savings 4?Partment except temporarily pehding investment or distribu11; and, in the absence of a clear requirement in the trust tristrument or other written directions of the beneficiary, it ; L:e8 not seem proper for a bank to hold trust funds in the : 1 111 of a savings deposit with its own savings department in8 , ad of investin g them in the manner required by section IX °r Regulation F." r Approved. Letter to Lr. Sargent, Assistant Federal Reserve Agent at 3303 10/26,/34 -12- the Federal Reserve Bank of San Francisco, reading as follows: "Reference is made to your letter of September 24, 1934, transmitting a copy of a sample form of 'Trust Department Annual Report' prepared by your trust examiner, and requesting aPproval by the Board of your proposal to send this form to all national and State member banks in your district with the request that a report be made thereon in connection with the call report to be made as of December 31, 1934. Is hile the information to be obtained through the use of the proposed report would no doubt have some value, the Board feels that the present is not an opportune time for you to request such data from either national or State member banks. Furthermore, as you know., it has been the practice of the Comptroller of the Currency to request a similar report by national tanks at the time of the mid-year call report, and lt is not believed to be advisable for a reserve bank to duplicate such request. "Further consideration, so far as State member tanks are concerned, may be given the natter at a later date with a view to covering all Federal Reserve districts simultaneously, and, in the event that it is decided to request such information from the State member banks, it is believed that the request should be made as of the same date as the request made of national banks by the Comptroller of the Currency. In that event, it is possible that arrangements might be made with he Comptroller of the Currency to supply the reserve banks with copies of the reports of national banks covering their trust departments. "It is requested, therefore, that any action in this connection by your office be deferred until a decision has been Feached as to the advisability of requesting all State member banks to file similar reports." Approved. Letter to Li. Case, Federal Reserve Agent at the Federal lleeer* "Lank of row York, reading as follows: "Consideration has been given to Yir. Eillistin's letter (sf* August 20, 1934, regarding the request of Lr. Prentiss N. Gray ay for a ruling as to the applicability of section 32 of Banking Act of 1933 to his service as an officer and director of J. Henry Schroder Trust Company, lieu, York, Lew York, and as a director of hydro-Electric Securities Corporation. t. "It appears from the information forwarded with la-. Dillisln's letter that hydro-Electric Securities Corporation is enllged in the business of investing its funds and that it does 3304 10/26/34 -13- engage in the underwriting, flotation and distribution of securities. It appears that the purchases and sales of securities by the corporation during the years 1931 to 1933 inclusive amounted to the following percentages of its total assets: Year Purchases Sales 1931 32 37 1932 5 5 1933 5 16 Average for three years 14.2% 19.5% "It further appears that, at the end of the year 1933, the securities in the corporation's portfolio had been held for the periods hereinafter set forth and in the following Proportions: Held for less than 6 months 2% Held between 12 and 18 months Held for over 24 months 97% "On the basis of the information which has been submitted, it appears that Hydro-Electric Securities Corporation is not engaged primarily in the business of purcha sing, selling, or negotiating securities' within the provisions of section 32. . "No information has been submitted regarding the activi ties, if any, of the corporation in purchasing, sellin or g distrib uting its own stock or other securities to the public. In the event that the corporation is actively engaged in such transactions, a further question would be raised regarding the aPPlicability of section 32 in this case." "not MIM1.10.10 Approved. Letter dated October 25, 1934, approved by five members of the -coard, to Er. good, Federal Reserve Agent at the Federal Re- Elerre sEtrik of St• Louis, inclosing the following Clayton Act permits; Iltatilic that the Board understands that, when transmitting the per4.tt3 to Messrs. Sager, Ford, Riesmeyor, and Danforth, the agent will Etdvise them that it is with the expectation that they will improve their at tendance at directors' meetings that the permits have been 11Q4L1Ited; and requesting that, when the agent submits his recommendati0 4 as a result of his nnrual review of the permits, he report 1111Y 48 to the attendance of Lessrs. Sager, Ford, Riesmeyer, and 3305 10/26/34 Danforth at directors' meetings. -14The letter stated also that de- live.ry of the Clayton Act permit to Mr. Riesmeyer should not be made ulatil it has been determined that his service with the G. Riesmeyer }eroantile and Investment Company, St. Louis, Missouri, the Securities Investment Company, St. Louis, Missouri, and the member bank involved in his application does not come within the provisions of " e .fton 32 of the Banking Act of 1933, or that his service with such institutions has been brought into conformity with the requirements or that section, and requested that the agent advise the Board of the action taken in the matter: 14r. C. L. Sager, for permission to serve at the same time as an officer of the First National Bank in St. Louis, St. Louis, 1:zssouri, as a director of the State Bank & Trust Company of Wellston, Wellston, Missouri, and as a director of The First National Bank of Pana, Pana, Illinois. lar. Jas. L. Ford, Jr., for permission to serve at the same tIme as an officer of the First National Bank in St. Louis, St. Missouri, and as a director of the State Bank 61 Trust ' 0111Pany of 7Tel1ston, Wellston, Missouri. W. C. Connett, for permission to serve at the same time as EI:. r1 officer of the First hLtional Bank in St. Louis, St. Louis, 5souri, and as a director and officer of the State Bank & xrust Company of Wellston, 'Wellston, Missouri. Edward Norman, for permission to serve at the sane time an officer of the First National Bank in St. Louis, St. Missouri, and as a director of the State Bank & Trust "craPany of Wellston, Wellston, Vissouri. ZS C. Hunt, for permission to serve at the same time as an nrIcer of the First National Bank in St. Louis, St. Louis, tIssouri, and as an officer of the First Bank of East Prairie, Lat Prairie, Lissouri. 1 2 ' 1. Danforth, for permission to serve at the sane time c ! i a director of the First Bank of East Prairie, East Prairie, 88curi, and as a director of the First National Bank in St. °las, St. Louis, Missouri. 3306 11 10/W34 -15- 14r. G. Riosmeyer, Jr., for permission to serve at the same time as an officer of the First National Bank in St. Louis, St. Louis, Missouri, and as a director of the State Bank a; Trust Company of Wellston, Wellston, Missouri. Approved, together with a letter, also dated October 25, 1934, and approved by five members of the Board, to Mr. Stevens, Federal Reserve Agent at the Federal Reserve Bank of Chicago, inclosing a copy of the Clayton Act permit granted to Er. Sager, and requesting that, when the agent submits his recommendation as a result of his annual review of the permit, he report fully as to Lr. Sager's attendance at directors' meetings of The First National Bank of Yana, Illinois. Letter dated October 25, 1934, approved by five members of the Board, to L. Peyton, Federal Reserve Agent at the Federal Re- serve Bank of Minneapolis, reading as follows: "Reference is made to your letter of August 7, 1934, inclosing a copy of a letter which you addressed to Er. T. O. hammond, aelena, Montana, and to your letter of August 13, 1934, inclosing a copy of the reply which you received from Er. Hammond. that the files and the information submitted, it appears Mr. Trevor 0. Hammond was granted a permit on January 15, 1932, under the provisions of the Clayton Act to servo as director and officer of the First National Bank & Trust Company Of Eelena, Helena, Montana, and as director and officer of the l'irst National Bank in Niles City, Miles City, Montana, that 11. Hex-mond has not attended any of the meetings held by the directors of the First National Bank in Liles City during the Past two years, but that he is often called upon for advice ! i, tbout matters of importance concerning the bank and that the o'nk's president frequently confers with him by telephone. In : :73 : ew of existing difficulties of the First National Bank in x.iles City due to the drought iituation, you feel that Mr. Yammond's service to this bank will be valuable to the bank between now and the first of the year and recommend that his Per:flat be allowed to continue in force until the next annual teetinC, at which time you think it will be desirable that he be replaced as an officer and director. In the circumstances d in accordance with your recommendation, the Board is willto allow the permit granted to Er. Hammond to continue in effect until the next election of directors of the First 3307 II 10/26/34 -16- "liational Bank in Miles City, at which time the situation Probably can be met by the election of a successor to Mr. Hammond. "Please inform Mr. Hammond of the Board's position in this matter and, before the expiration of the period during which the permit is to remain in force, advise the Board as to the action that mill be taken at that time by the bank and hr. Hammond, together with any recommendation that you may deem appropriate in the circumstances." Approved. Letter to hr. Peyton, Federal Reserve Agent at the Federal Reserve Bank of Minneapolis, reeding as follows: "Reference is made to your letters of June 22, July 26 and August 2, 1934, submitting additional information relative to the application of Er. Vim. G. Lather, Cleveland, Ohio, for a Clayton Act permit, which was not approved by the Board for the reasons set forth in its letter to you of June 15, 1934. "Careful consideration has been given to the special circumstances which are present in this case, particularly the fact that while 14r. Eather lives a considerable distance from the banks and has not attended any of the directors' meetings during the last two years, he received full and complete rePorts from each of the banks and the institutions insist that his service as a director is a distinct benefit to them and to the community. The Board feels that when a person accepts the responsibility of the office of director of a bank he should attend a sufficient number of directors' meetings to enable him not only to keep in personal contact mith the bank and its problems, but also to participate in his capacity as a. director in the determination at such meetings of the pollcles of its Board, and that, if he is not in a position to discharge his responsibility in this regard, he should not continue as a director. ,. "Realizing, however, that, because of the high esteem in . 17n1ch 1,r. Lather is held in the respective communities, the flqmediate discontinuance of his, service to one of the banks involved might be adverse to the best interests of the institutions, the Federal Reserve Board has issued a permit to Mr. lather to serve as a director and officer of The First National .!1 alk of Alger County at Munising, Lunising, Michigan, and as a o rector of the Guinnv Bank, Guinn, Lichigan, for State Savings i 0 t(11? Period ending at the close of December 31, 1935. The 1Cinal and copies of the permit are inclosed for transmittal ;.!,Y011 to Mr. hather and the two banks and a copy for your lles, lithen transmitting the permit to the applicant, you are 3308 10/26/34 -l7 "requested to call his attention to the opinion stated above and to the expiration of the permit on December 31, 1935. You are also requested to advise him that if he desires to serve the banks after that date the Board will be pleased to give consideration to a now application submitted in accordance With the provisions of Regulation L and accompanied by a statement of his intentions with respect to his attendance at meetings of directors of the banks. "Please keep the Board informed of the action taken in this matter." Approved. Letters dated October 25, 1934, approved by five members of the Board, to the following applicants for permits under the Clayton Act, advising of approval of their applications as follows: lar. Scott Fink, for permission to serve at the same time as a director of the Barclay 'Westmoreland Trust Company, Greensburg, .P ,ennsylvania, and as a director of the First National Bank of txport, Export, Pennsylvania. 1,1r. Harry Heasley, for permission to serve at the same time as a director and officer of The First National Bank of Emlenton, Ilenton, Pennsylvania, and as a director of the Peoples Natlonal Bank of Clintonville, Clintonville, Pennsylvania. Ir *k.A ii. Johnston, for permission to serve at the same time as an officer of the Cordova State Bank, Cordova, Alabama, and as a director of The First National Bank of Jasper, Jasper, Aiabama. Er. George Donworth, for permission to serve at the same time director of the Seattle Trust Company, Seattle, 'ilashington, and as a director of The Pacific National Bank of Seattle, Seattle, l'iashington. "a • P. E. Harris, for permission to serve at the same time as a director of the Seattle Trust Company, Seattle, 'Washington, sald as a director of the First National Bank of Seattle, Seattle, Washington, Worrall Vinson, for permission to serve at the same time r a director and officer of the Seattle Trust Company, Seattle, =on, and as a director of the Federal Home Loan Bank, : P1 . 8 Oregon. Approved. 3309 10/26/34 -18- Letter to an applicant for a pernit under the Clayton Act, 841/i-sing of approval of his application as follows: Lir. Joseph Wayne, Jr., for permission to serve at the same time as a director and officer of The Philadelphia National L'ank, Philadelphia, Pennsylvania, as a director of the Provident Trust Company of Philadelphia, Philadelphia, Pennsylvania, and as a director of the Federal Reserve Bank of Philadelphia, Philadelphia, Pennsylvania. Approved. There were then presented the following applications for Changes in stock of Federal reserve banks: A lications for ADDITIONAL Stock: District 2. /he ars ational Bank of South Amboy, 8cwth Amboy, New Jersey The First National Bank of Glens Falls, Glens Falls, New York Ilion National Bank and Trust Company, Ilion, New York Di strict No. 9. Pirst National Bank of Barron, Barron, Yiisconsin he First National Bank of Sherman, Sherman, South Dakota District No. 10. The C olorado National Bank of Denver, , Denver, 'the First Colorado National Bank of Sterling, Sterling, Kansas 'hien National Bank in Kansas City, Xansas City, Lissouri he havelock National Bank of Lincoln, T1. Lincoln, Nebraska 4Lie Security National Bank of Duncan, Dulloan, Oklahoma Farmers & Merchants National Bank of T lobar, Hobart, Oklahoma he Citizens National Bank of Luskogee, Th 14164Goe, Oklahoma -6 Paule Valley National Bank, Pauls Valley, Oklahona Shares 75 75 69 219 15 12 30 2 6 2 6 1 3 6 27 3310 10/26/34 -19- 4 lications for ADDITIOnAL Stock: (Continued) kstrict No. 10. (Continued) Ille Americaniational Bank of PawhuskaL Pawhuska, Oklahoma "le First Lational Bank of Prague, Prague, The First Oklahoma National Bank of Vinita0 Vinita, Oklahoma 'ne First National Bank of Greybull$ Greybull, Wyoming Decatur County National Bank of Oberlin, Oberlin, Kansas The Par -OCD-Te Bonk. of Clarendon, Clarendon, Texas First State Bank of Mathis, kathis, Texas let Lo. kehe alley 12bankingCompany, Logan, Utah qringville Banking Company, t 8Pr ingvil1e, Utah of Vernal, lierzaa, Utah e°Ples Bank & Irust Company, Seattle, Washington Shares 9 6 1 6 6 84 13 6 19 19 3 p uiPlieations for SURRENDER of Stock: etriet No. 2 Citizens Ilational Bank of Lancaster, Lancaster, New York 1444. ,riot ho. 6. he,irst National Lank of Montgomery, 4311tgcmeryy Alabama ,1?).,etrict to, 9. -41 First National Bank of Choteaup Choteau$ Lontana ketr iet 140. 10. e First iational Bank of Eads$ e$ Colorado R4,3t National Bank of Stillwater' '11Water$ Oklahoma r 9 300 Total 331 680 168 168 120 120 36 36 48 15 63 10/26/6 %1 -20- pl1cations for SURREUDER ofStock: (Continued) 11. .rstp r e i,..ational Bank in Goldthwaite, Goldthwaito, Texas Shares 18 18 405 Total 405 810 Distri 1A0. 12. Lational Banic Pasadena A California -77 " . I lrst Pa a ena, Approved. Thereupon he meeting adjourned.
@FedFRASER