The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
3325 A meeting of the Federal Reserve Board was held in Washington on Tuesday, October 30, 1934, at 11:00 a. m. PRESENT: Mr. Mr. Mr. Mr. Mr. Thomas, Vice Governor Hamlin Miller James Szymczak Mr. Morrill, Secretary Mr. Carpenter, Assistant Secretary The minutes of the meetings of the Federal Reserve Board held Ohl October 10, 12 (two meetings), and 18 (two meetings), were approved. The minutes of the meetings of the Executive committee of the Federal Reserve Board held on October 11, 15 (two meetings), and 171 1964, were approved and the actions recorded therein were ratified 11138/Ainously. The Board then considered and acted upon the following mattel.% Memorandum dated October 22, 1954, from the Committee on Sal" -es and Expenditures, submitting a letter dated October 16, 1934, tt°111 Preston, Deputy Governor of the Federal Reserve Bank of Chicago, Which requested approval of a change in the personnel clas"cation plan of the bank to provide for the new positions of Has_ sletant to general counsel" and "secretary" in the legal department. The ..,„ e morandum stated that the committee had reviewed the proposed Cluth, " 6 " and recommended that they be approved. The recommendation Was approved by five members of the Board on October 29, 1934. Approved. 3326 10/30/34 -2- Eemorandum dated October 24, 1934, from the Committee on Salaries and Expenditures, submitting a letter dated October 10, 1934, from Lr. Day, Deputy Governor of the Federal Reserve Bank of " 11 Francisco, which requested approval of changes in the personnel classification plan of the bank to provide for twenty-eight new positicns in various departments of the head office, Los Angeles, Portland, and Spokane branches, the discontinuance of fifteen positions it various departments of the head office, Los Angeles, Salt Lake City, and Spokane branches, the revision of the description of work alld qualifications required for a number of positions at the head office and branches, and changes in the titles of several depart1114111t8, The memorandum stated that the committee had reviewed the 131.cpcsed changes and recommended that they be approved. The recom- Inendation was approved by five members of the Board on October 29, 1934. Approved. Letter dated October 29, 1934, approved by five members of the Board, to L. O'Connor, Comptroller of the Currency, reading as tcllowe i "In accordance with yourxecommendation, the Federal Reserve Board approves a reduction in the common capital stock Of 'The Second National Beni?. of Ashland', Ashland, Kentucky, from , A .'*00,000 to $300,000, pursuant to a plan which provides that the bank's capital shall be increased by ,g';200,000 of preferred stock to be sold to the Reconstruction Finance Corporation, and that the released capital shall be used to eliminate 5:!. corresponding mount of the least desirable assets in the _uank, including all estimated losses, all as set forth in your Inemorandum of October 17, 1954." 3327 10/304/34 -3- Letter dated October 29, 1934, approved by four members of the Board, to Mr. Case, Federal Reserve Agent at the Federal Reserve Bank of Lew York, reading as follows: "This refers to 1.r. Downs' letter dated October 20, 1934, with regard to the issuance of limited voting permits to 'First Securities Corporation of Syracuse', and 'First Trust Deposit Company', both of Syracuse, Ilew York. "You are instructed not to issue the limited voting permits authorized in the Board's Ancigar telegram dated October 1, 1934, on the basis of the agreements executed by the applicants on October 19, 1934, which agreements'were inclosed in Lr. Downs' letter. "You are, however, authorised to issue such limited voting Permits, provided tho applicants execute the agreemonts required by the Board's Ancigar telegrams dated October 1, 1934. The agreement to be executed by First Securities Corporation of Syracuse may contain the following proviso: 'provided, however, that in respect to any understandings or agreements herein contained on the part of the undersigned relating to said subsidiary banks the same shall only be deemed to require it to do or cause to be done by such subsidiary banks such things as it has the power to do or cause to be done, either as a holding company affiliate thereof or otherwise, and also that, in respect to any subsidiary banks which are national banks, the undersigned shall not be required pursuant thereto to take any action that shall be objected to by the Comptroller of the Currency, the Reconstruction Finance Corporation or other duly authorized federal supervisory agencies, nor, in respect to any of said subsidiary banks which are State banks, any action that shall be objected to by the Superintendent of Banks of the State of New York or the Reconstruction Finance Corporation.' The agreement to be executed by First Trust a Deposit ComPallY may contain the following proviso: provided, however, that the undersigned claims that it is not a holding company affilia te of any of the subsidiary banks hereinbefore referred to, and that in respect to any Understandings or agreements herein contained on its part relating to said subsidiary banks the same shall only be deemed to require it to do or cause to be done by such sub5.diary banks such things as it has the power to do or cause to be done, and also that, in respect to any subsidiary banks Which are national banks, the undersigned shall not be required pursuant thereto to take any action that shall be objected to by the Comptroller of the Currency, the 10/30/54 -4- "Reconstruction Finance Corporation or other duly authorized federal supervisory agencies, nor, in respect to any of said subsidiary banks which are State banks, any action that shall be objected to by the Superintendent of Banks of the State of New York or the Reconstruction Finance Corporation.' "The only effect of the amendment to the provisos is to change the provision that the applicants shall not be required to take any action which shall not have the consent or approval Of the supervisory authorities to a provision that the applicants shall not be required to take any action that shill be Objected to by the supervisory authorities. It is believed that the revised form of the provisos contains the substance of the amendments suggested by the applicants." Approved. Letter dated October 29, 1954, approved by five members of the Board, to the Federal reserve agents at pil Federal reserve banks ecept Boston and Philadelphia, reading as follows: "Replies have been received from the Federal Reserve agents to the Board's letter of August 25 (X-7992) on the above subject (Issuance of Federal Reserve notes at Branches of Federal Reserve banks) and, after careful consideration of such replies, the Board is of the opinion that no Federal reserve notes should be issued, except upon specific authority, in each ease, of the Federal reserve agent or an assistant Federal reserve agent at the Head Office. . "It will be appreciated, therefore, if instructions to '11.18 effect are issued to all persons designated to act for You in the issuance of Federal reserve notes at the Head Office and at each branch of the Federal reserve bank." Approved. Letter dated October 29, 19b41 approved by five members of the Board to Honorable Louis Ludlow, House of Representatives, Washington D. C., reading as follows: to your letter of October 18, advances approved by th"Referring e Federal Reserve banks for the purpose of supplying working capital to industrial and commercial establishments, toether with commitments to make such advances, as authorized Y the Act of June 19, 1954, numbered 321 and totaled t 3329 10/30/34_ -5... %13,047,000 up to October 17, 1934. Of this total ,;.1,632,000 represented advances and 02,182,000 commitments actually made, i;5,739,000 advances and commitments that had been approved unconditionally by the Federal Reserve banks but have not yet been consummated, and the balance applications uithdraun after approval. In addition 133 industrial advances, totaling 9,144,000 had been approved by the Federal Reserve banks subject to fulfillment of certain conditions. Of the industrial advances made v63,500 represented advances to borrowers in the state of Indiana. "Az you know, at the present time member banks have about 1,725,000,000 of excess reserves with the Federal Reserve banks and, consequently, there is little need for them to borrow from the Federal Reserve banks. The total amount of borrowings from the Federal Reserve banks of member banks in the state of Indiana amounted to'015,000 on September 29, the latest date for which figures by states are available. Those figures are, of course, exclusive of industrial advances under Section 13b of the Federal Reserve Act." Approved. Letter dated October 29, 1934, approved by four members of the Board, to 11-. John Enrietto, Washington, D. C., reading as fol10y13 "In accordance with your oral request which has been confirmed by a letter dated October 27, 1934, from Ia.. 'hr. L. Andrews, Assistant Secretary of the Transamerica Corporation, there are inclosed herewith two certificates furnishing information with regard to the dates on which the applications of The Bank of America and the Commercial Exchange Bank of Hew York, both of New York City, made on behalf of The Bank of America Lational Association and the Commercial Exchange National Bank in liew York, both of Hew York City, respectively, for permission to exercise fiduciary powers, were received by the Federal Reserve Agent at the Federal Reserve Bank of New York, the dates on which the board of directors of that bank made its recommendations with respect thereto, and the dates upon which tuese applications were forwarded to and acted upon by the Federal Reserve Board. Andrews' letter requested information as to the date of the Federal Reserve Agent's recommendation in each of these ea-3e5. However, since in these cases the recommendation was Made by the board of directors of the Federal Reserve Bank rather than by the Federal Reserve Agent, the dates of such roeommendations are given in the inclosed certificates. You 3330 104/30/34 -6- "mill also observe that the certificates do not include information as to the nature of the recommendation of the board of directors of the Federal Reserve Bank of New York. The Board considers information of this kind as confidential in its character and it is not the Board's practice to disclose such information. It may also be stated that it is not the Board's usual practice to furnish information regarding matters between the Board and the Federal reserve agents and the Federal reserve banks, such as the dates of colamunications between the Board and such agents and banks, but such information is being furnished in this instance on the basis of your oral advice that it is important to you in connection with the proper construction of an agreement involving the dates requested and involving the banks above referred to which you represent. The action in this instance should not be considered a precedent as to what action it would take on any other requests for similar information." Approved. Letters dated October 29, 1934, approved by five members of the Board, to Li-. Curtiss, Federal Reserve Agent at the Federal Re8erv0 Bank of Boston, and la-. Hoxton Federa , l Reserve Agent at the ?ederal Reserve Bank of Richmond, statin g that the Board has given e0118iderat ion to the following applications for permits under the Clayton Act, and that, upon the basis of the information before it, te°13 that the issuan ce of the permits applied for would be incamPatible with the public intere st. Each letter also requested the Ilgent to communicate to the applicant the Board's position in the blEttter, and to advise the Board promptly as to whether the applicant (1e8ires to. submit any additional data, and, if not, as to what steps he, eroposes to take in order to comply with the provisions of the C4Aon Act. 1::re William L. haywurd, for permission to serve at the some time as a director of The Franklin attional Bank, Franklin, 3331 10/30/34 -7-- Massachusetts, and as a director and officer of The Blackstone iational Bank of Uxbridr;e, Uxbridge, Massachusetts. Ir. Grover C. Greer, for permission to serve at the same time as a director of The First National Bank of Bel Air, Be? Air, Maryland, and as a director of The Harford Bank, Be? Air, :Laryland. Approved. Letter dated October 29, 1934, approved by five members of the Board, to an applicant for a permit under the Clayton Act, adof approval of his application as follows: Mr. Geo. Wallace Smith, for permission to serve at the same time as a director and officer of The Peninsula National Bank of Cedarhurst, Cedarhurst, New York, and as a director of The Lynbrook National Bank and Trust Company, Lynbrook, New York. Approved, together with a letter, also dated October 29, 1934, and approved by five members of the Board, to Ir. Case, Federal Reserve Agent at the Federal Reserve Bank of New York, suggesting that he endeavor, in cooperation with the appropriate supervisory authorities, to bring about a strengthening of the capital structures of the banks referred to above and a correction of the matters criticized by the examiner, and requesting that, when the agent submits his recommendations, as a result of his annual review of the permit, he report fully as to the progress made in bringing about an improvement in the condition of the banks. Letter dated October 29, 1934, approved by five members of the Board, to Er. Stevens, Federal Reserve Agent at the Federal Re0 Bank of Chicago, reading as follows: "2.eference is made to Assistant Federal Reserve Agent Young's letter of October 5, 1934, inclosing a copy of a letter dated September 28, 1934, from the directors of The Third Lational Bank of Rockford, Rockford, Illinois, submitting additional information relative to the application of 12:r. G. W. Ault, Kirkland, Illinois, for permission under the provisions Of the Clayton Act to serve at the same time as a director of The Third National Bank of Rockford, Rockford, Illinois, and 632 10/30/34 -8- "as a director and officer of the State Bank of Kirkland, Kirkland, Illinois, which application was not approved by the Board after consideration on July 31, 1934, and on August 28, 1934. "The Board has given consideration to the additional information submitted but still feels that the issuance of the permit applied for would be incompatible with the public interest. You are requested to advise the applicant accordingly. "It is mated that the applicant has submitted his resignation as a director of The Third Lational Bank of Rockford, Rockford, Illinois, but that his resignation apparently has not yet been accepted. In order that the files in this case may be complete, please ascertain the effective date of Lir. Ault's resignation and advise the Board when his relationships have been brought into conformity with the provisions of the Clayton Act." Approved. Letter dated October 29, 1934, approved by five members of the Board, to Lr. McClure, Federal Reserve Agent at the Federal Re"rile Bank of Kansas City, inclosing the folloviing Clayton Act permit, arid requesting that the agent ascertain the status of the charges, if anY, against the applicant as a result of possible violations of the provisions of section 22(g) of the Federal Reserve Act, and statthat, in the event the case has been duly considered and closed Without prosecution, the agent is authorized to release the permit to the applicant, at the same time furnishing the Board with complete information concerning the disposition made of the matter: Li'. Ross R. Bayless, for permission to serve at the same time 113 a director and officer of The First National Bank of Miami, Oklahoma, as a director and officer of The First State Bank, Commerce, Oklahoma, and as a director of the First State Bank, Picher, Oklahoma. Th,„ 'v letter also suggested that the agent endeavor, in cooperation 171:blithe appropriate supervisory authorities, to consummate the recar) -4-1;allzation of the idami bank, to effect a further improvement in J 3333 10/30/34 itS -o- condition, and to bring about a correction of all of the condi- tions vhich have given rise to the examiner's criticisms, and requested that, when the agent submits his recommendation as a result of his annual review of the permit, he report fully as to whether the applicant has further violated any provisions of the law, as to the status Of his loans in the banks involved, and as to the progress which has been made in bringing about an improvament in the condition of the L]iami bank. Approved. Letter dated October 29, 1934, approved by five members of the Board, to L. Walsh, Federal Reserve Agent at the Federal Reserve Bal* of Dallas, reading as follows: "The Board has given further consideration to the application of Ia... Geo. L. Paxton, Sr., Abilene, Texas, for permission under the provisions of the Clayton Act to serve at the same time as director and officer of The Citizens ilational Bank in Abilene, Abilene, Texas, and as a director of The Farmers and Lerchants National Bank of Merkel, iderkel, Texas, and in view Of the additional information submitted with your letter of October 11, 1934, and the stated intention of 1..r. Paxton to attend regularly the directors' meetings of The Farmers and Lerchants National Lank of Lerkel, has granted the permit. The °rIzinal and copies of the permit granted to Er. Paxton are flolosed for transmittal by you to the applicant and the two Lillnks. There also is inclosed a copy of the permit for your files. "The Board requests that,' when you submit your recommendation as a result of your annual review of this permit, you report fully as to Er. Pax-bon's attendance at directors' neetiflcs . ” Approved. Letter dated October 29, 1934, approved by five members of the ard, to Mr. Walsh, Federal Reserve Agent at the Federal Reserve 3334 10/30/34 -10- B8nk of Dallas, reading as follows: "The Board has given further consideration to the application of Lr. George F. Rozelle, Dallas, Te:ms, for permission under the provisions of the Clayton Act to serve at the same time as a director of the Alvord National Bank, Alvord, Texas, and as a director of the First State Bank, Arlington, Texas, and in view of the additional information submitted with your letter of October 5, 1934 and the stated intention of Lir. Rozelle to improve his attendance at directors' meetings of the Alvord rational Bank, has granted the permit. The original and copies of the permit granted to 1.r. Rozelle are inclosed for transmittal by you to the applicant and the two banks. There also is inclosed a copy of the permit for your files. "The Board requests that, when you submit your recommendation as a result of your annual review of this permit, you report fully as to Lr. Rozelle's attendance at directors' meetings." Approved. Letters dated October 29, 1934, approved by five members of the Board, to the respective Federal reserve agents, inclosing the f°11awing Clayton Act permits for transmittal to the applicants; 811C esting in each case that the agent advise the applicant that it 4 'with the expectation that he will improve his attendance at director8' meetings that the permit has been granted; and requesting that, 11113 the agent submits his recommendation as a result of his annual of the permit, he report fully as to the applicant's attendance Ett d irectors' meetings: E. Thomas, for permission to serve at the same time as a director and officer of The Lake Crystal National Bank, Lake Crystal, annesota, and as a director of the State Bank of Vernon Center, Vernon Center, Idnnesota. L. Clayton, for permission to serve at the same time as a director and officer of The First National Lank of Emory, lor:/, Texas, and as a director and officer of The Greenville ilational Exchange Bank, Greenville, Texas. 3335 10/30/34 -11- Ir. T. R. Coffield, for permission to serve at the same time as a director and officer of The First National Bank of Bolide, Bowie, Texas, and as a director and officer of the Farmers National Bank of Newcastle, Newcastle, Texas. Approved. Letters dated October 29, 1934, approved by five members of the Board, to applicants for permits under the Clayton Act, advising °f aPproval of their applications as follows: Lr. W. S. Corbin, for permission to serve at the same time as a director and officer of The First National Bank of Pocasset, Pocasset, Oklahoma, and as a director and officer of The First ilational Bank of Eine°, Lanco, Oklahoma. Li.. Chas. L. hale, for permission to serve at the same time as an employee of The First National Bank of Liami, Liami, Oklahoma, and as a director and officer of The First State Bank, Picher, Oklahoma. Li's J. J. Perkins, for permission to serve at the same time as a director and officer of the Farmers National Bank of Newhcastle, Newcastle, Texas, and as a director of the City National Bank in 'achita Falls, Wichita Falls, Texas. Approved. Thereupon the meeting adjourned. ,4)01-AA-Le -6jVCIV4-,&.4 ecretary. 41:Toyed: Vice t_rovernor.
@FedFRASER