Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, October 4, 1934, Volume 21, Part 5

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3065
'Arileetin6
- of the Executive Committee of the iTederal Reserve Board
hela

ashington on Thursday, October 4, 1934, at 3:00 p. m.
PRESENT:

Mr. Thomas, Vice Governor
Mr. James
Mr. Szymczak
1.1r. Bethea, Assistant Secretary
Mr. Carpenter, Assistant Secretary. '

The Committee
considered and acted upon the following matters:
theTelegrams dated October 3, 1934, fram 1.".±. Curtiss, Chairman of
'eeerve Bank of Boston, _r. Austin,

Ileaerve

hairman of the Federal

lk of
Philadelphia, and ix. Wood, Ohairman of the Federal ReOf St. Louis, all advising that, at meetings of the boards of
41 ctors
04
actiegules or that date, no changes were made in the banks, existing
rates of discount and purchase.
'Jithout objection, noted with approval.
Letter dated
October 3, 1934, approved by three members of the
' to

711l11ame, Chairman of the Federal Reserve Bank of Cleveas follows:

Gove "The

Federal Reserve Board notes with regret from Deputy
Ilaming's telegram of October 2, 1934, the death on
,1)tirphc117,,
:e of :,Tr. X. C. Nevin, Yanaging Director of the littsole'
aach or the Federal Reserve Bank or Cleveland. It will
or trreciated ir
you will express the sympathy of the members
boarcie c'ard to
Mr. Nevin's family and to his colleagues on the
directors of your Pittsburgh branch.
13 asaumed that you will advise the Board in due course
°Is t11
L1 1e i
ointment by your board or directors of a successor to

that

Approved.
Tel

gram dated
October 2, 1934, approved by three members of
11(41rcl) to .
)eq
Sargent, Assistant 2ederal Reserve Agent at the
'8erve Bank 01 San Francisco, reading as follows:




3066
IMP

ilat. "Your letter September twenty-seventh. Board approves desig131,01°11 of L. Larsen and
C. Haymond, employees of Salt Lake City
,)as assistant examiners in iiiederal reserve agent's depart'
ra,"44
Of youbanka
without change in compensation."
Approved.
Letter to Mr.
Case, Federal 1-, eserve Agent at the _,ederal Re8erve Sealk
Of New York, reading as follows:
aratt "Reference is made to the report of
examination of 'The SouthBank', Southampton, New York, as of 1.:ay 12, 1934, and the
leti-41-tion submitted in connection therewith, particularly your
:flitter °r :;eptember 10, 1934, with inclosures. The bank was adhas sd to
membership :ay 23, 1933, and it appears that the bank
1,e,, ot made
provision for depreciation in its banking house as
ed under
zoilows:
condition of membership nuhthered 13, which reads as
'Such bank shall mats adequate provision for depreciation
in its ba.ukjng house which in any one year shall be not
less than two per cent of the present carrying value.
has been noted that the bank feels
that while provision
quirdePrsoiation should eventually be made, it should not be re1111.11
to make
provision at this time in view of the fact that
twee;u111'e and fixtures with a
conservative estimated value of behEme-h r4,000 and :)5,000 are not carried on the
bank's books, but
b lak,-een written of_,
entirely, and that a recent appraisal by the
3
committee, working in conjunction with the builuplacco appraisal
ra
ntcto
r who erected the present building seven years ago,
cotill: a valuation
or ...114,036 on the banking house and lot, as
lal. :
er7d with a
carrying value of 1.10,000. This represents a
ka-tl,'Ilvsstment which is in excess of the bank's capital stock,
the Cs Board
believes that in accordance with sound banking policy
the t
4111 should make iirovision for depreciation in compliance with
)zeillbele,1T1
,s of the condition accepted at the time or admission to
vise il,
e4413. It will be appreciated, therefore, if you will adballk accordingly.
trUet he State examiner reports thnt the bank was acting as
baxIlt t: ,
/lIcter an agreement whereby 28,000 was deposited in the
be
kept
helit
'
ever cent uninvested, and upon which interest at the rate
was to be paid semi-annually, but that the agreefl01 be located durin the
examination. It is assumed
'lave taken steps to satisry yourself that payment of
at the rate
speciried on this deposit is permissible
°I the
pl'ovisions of the ,ederal deserve Act and regulations
bn oard or that
'
it has been discontinued if illegal. It
14ite1- €11)pl'soiated, however, if you will advise the Board defY ill this
respect."




Approved.

3067
-3-

Letter to
the "City National 3ank of Baton Rouge", Baton _ouge,
lana, read iA6
-- as
follows:
at

."The Federal
eserve Board has given consideration to your
yotlt!”i°n for permission to exercise fiduciary powers, and grants
lav c"'unority to act,
when not in contravention of State or local
boz /Is trustee,
executor, administrator, registrar of stocks and
set'8, euardian Of
estates, assi:nee, receiver, comidittee of
attes or lunatics, or in any other fiduciary capacity in which
intoe banks, trust companies or other corporations which come
the leolapetition
with national banks are permitted to act under
to 13,.aws Of the state of Louisiana, the
exercise of all such rights
7 sUbjeet to
the provisions of the Federal Reserve Act and the
'11-lations of the ederal 1-,eserve Board.
s letter will be your authority to exercise the
Dowe s
fiduciary
aut,_ Cranted by the Boara.
A formal certificate covering such
1ZatiOn will
be forwarded to you in due course."
Approved.
Letter to
the "Louisiana :rationnl sank of Baton -euge", Baton
.L°Ilisiana, reading as follows:
aDpii 'The Federal _:eserve board has given
consideration to your
/.z1Oti..011. for permission to exercise fiduciary powers, and
or 100
- You authority to
act, when not in contravention of
Staeo
o 11 law, as trustee, executor, administrator, registrar
of
b°nds, guardian of estates, assignee, receiver, conestates of lunatics, or in any other fiduciary capacity
came
-tate banks, trust companies or other corporations which
deriT.° competition with
national banks are per_litted to act
laws or the state of Louisiana, the exercise of all
Aet
to be subject to the provisions of the .::ederal .eserve
irTh4the regulations of the "ederal _ceserve
llovrers 4s letter will be your authority to exercise the
fiauciary
by the Loard.
formal certificate covering such
zation v
ill be forwarded to you in due course."
Approved.
Letter
_-

4441,c1

$ to

m04ta

"r

dated
d,
ctober 3, 1964, approved by three members of the
r\ I
Con.nor, comptroller of the uurrency, reading as follows:

117.
*L11 aCco
apy)
'dance with your recommendation, the 'federal iieserve
°ves a reduction of ,21,600 in the common capital stock
3ank of "airfie10, Fairfield, Pennsylvania,




3068
10/4/34
-4-

a

llsuant to a plan which provides that the bank's capital shall
"creased by the sale of 225,000 of preferred stock to the
etccnstruction Amance uorporation and J9,000 or new comrnon
04,(3e locally, that the resultant amount of common capital stock
:
21 04,000 be
reduced to y32,400, and that the released capital,
4.,2600, shall be used to eliminate a corresponding amount of
Qatieractory assets, all as set rorth in your letter of September 18,
193z., "
consiaerinc; the plan under which the reduction in common
wirtal stock
is to be efrected, it has been noted that there
eia}.rernain in the bank a substantial amount of securities deprecomm̀11°n• which, if considered as a loss, would impair the bank's
eoZ°11.caPital stock. It is assumed, however, that you have this
m.11.1110/1 in mind and that whenever it is feasible to do so you
require such further corrections as may be practicable."
Approved.
Letter
dated October 3, 1934, approved by three members or the
c3111*(1 1 t
--• O'Connor, L;omptroller of the Jurrency, reading as follows:
193,4_ 7!!!elpt is acknowledged or your mel_orandum of _=.eptember 1?,
ato; with reference to the proposed reduction in common capitawhich °r 'The ,armers Lational dank of Lincoln', Lincoln, _ansas,
plE14 - 7"
1
approved by the joard on jay 16, 1934, pursuant to a
the 27"ich Provided for the sale of ,30,000 of preferred stock to
1ea4ec0nstruction linance Jorporation, and the use of the retory
caPital to eliminate approximately 40,000 of unsatisfaceete, and to establish a surplus account of ,5,000.
bes4'
" ell advise that the original plan of recapitalization has
Pref:eaded and that the bank now proposes to sell ,25,000 of
redue
'
'
l ed stock to the .teconstruction ,inance (Jorporation, to
tlel,,,it3 common capital stock from ,35,000 to . 25,000, and to
-7,006 released capital, together with a local contribution of
"sets. in eliminating a corresponding amount of substandard

the

e

accordance with your recommendation, the board approves
ellit!
cl Plan as set forth in your memorandum of Leptember 19,
19
,or theapproval supersedes the board's approval dated lay 16,
oricrinal plan or capital reduction."

!-934

Approved.
dated October 2, 1934, approved by three members or
reserve agents at all 2eaeral reserve banks,

rollows:




3069
-5, "On account or highly technical nature of questions arising
-J3iL'ulat1on z, necessity of conferences between ,ounsel's
and technical stafr and necessity of obtaining Board
apr:07al before
any
rulings
or
interpretations
are
made,
it
is
t:pested
that all such questions be submitted in writing or by
e'
Legraph rather than by
telephone. 2,nswers to all questions of
ser,i:ral interest will
be sent simultaneously to all federal ret je aEf;ents and
each federal reserve agent is requested to see
or,!' Pies
such rulings are furnished promptly to appropriate
4.1cials or
each securities exchange in his district."
Approved.
Tele
gram dated October 2, 1934, approved by three members of
)111"cl, to the
Federal reserve agents at all Federal reserve banks,
as
follows:
011111,,alePlYin.; to inauiry as to whether and under what conditions
Oz, T
r bank which has executed
agreement on F.R.B. Form T-1
stIch
Under section 8(a) of Securities Exchange Act may cancel
3111alzeRagreealent, Board has taken position that, inasmuch as statute
or c 110 reference to termination or cancellation except in case
is ci6c 's failure to comply with 1,rovisions or agreement, there
a bZ as to Board's power to permit voluntary cancellation
by
pret;;iin other
cases and that, since question depends upon inter°criminal statute rather than interpretation of Board's
Witia,
a vlOn, Board could not safely sanction such cancellation
wollij
Illt
ion fram Attorney General holding that such action
witla nbe lawrul and would relieve bank from further compliance
cliale-F'eerdent. _Since it is practice of Attorney General to deactILea") exPress opinions except on basis or specific facts in
lieNred ie.a3es requirir
n, some action by Yrovernment, it is not beO hv,,,"
)be possible to obtain opinion from Attorney General
toarr'Qletical auestion. In order to clear up this question,
statutwill consider recommening to Congress at next session that
eellate
i be amended so
as expressly to authorize voluntary can10a4s -°11 0i such agreement by a bank which has closed out
all
)Quade
ulader section 8(a) while agreement was in force."
Approved.
tIle

Telegram dated
Cctober 2, 1934, appraTed by three members of
4"°1) to fl,
"Le federal
reserve agents at all federal reserve banks,
€) 4

f011ows:




3070
_6_
In response to
4(
an inquiry as to applicability of section
c e! or Board's Regulation T in light or
word 'additional' preth ing,"rd 'margin' in first sentence, Board has replied that
suusection refers to all margin which must be demanded in
'
•L cler to comply
with Regulation T."
Approved.
Telegram dated October 2, 1934, approved by three members of
tastrd, to
the _ederal reserve agents at all Federal reserve banks,
484416; aa
rollaws:
the

porma." e Regulation T.

Under Section 11 of Regulation T, F.R.B.

Ae ni
,
- 4-1 and T-2 are to be filed in duplicate and Federal Reserve
re

reeuested to iorward to Board one original counterpart
ea
P
rarra riled.
or the pariod prior to 1ovember 1, 19
each
017Reserve
Agent is authorized, notwithstanding the provisions
ilatile
gulation T, in
any case which he deems to be of an emergency
T,141;,:),to
acce t an agreement properly executed on JJ.R.B. Form
p
sati
0-ri the case of the Federal 'Reserve
Agents at i:ew York of
cate=elsco) on F.R.B. Form T-2 even though not filed in duplisuch
even though the resolution
authorizing the execution of
resoleement and the certiricate as to the adoption of such
:
Dr01
1°11 are not in the identical form prescribed by the Board,
kak "ed that
in t_e opinion of counsel for the Federal Reserve
14e aslleh resolution is
sufficient to authorize the execution of
silteeeraant on Form
T-1 or T-2 and such certificate furnishes
jatord-1,ent
evidence of the adoption or such resolution. Thile
isellex cleeires prompt advice in
accordance with Trans. iTO. 2094 of
COPies o
ev°1
:_certificates on Form T-3, it is not necessary to send
Poi
T-3 to Board."
Approved.
Letter

dated October 3, 193,1, approved by three members or the

.'".0cret8-17 or the Treasury, reading as
follows:
194-," :!?1.-11t is acknowledged of your letter or September 26,
111)-s'e .j"°siag
-a copy of your regnintions issued plvsuant t_o
el7'?1
,
1 (0) of section la of the Federal Reserve Act and
letter sent by you to the 'Federal Reserve Bank of
4/‘e8(1
3
;
e
rill)
liia on this subject.
The Federal Reserve Board has adall z
l
a letter
to the Governors and rederal Reserve ,.gents at
13(11.4-eral. reserve
bans invitini; their attention to the last
al)h °r Your letter with regard to compliance with section




3071
10/4/34

"3 Or

the regulations on this
Jubject."
Approved, together with a letter, also
dated October
1934, and approved by three
members or the Board, to the Governors and
Federal reserve agents at all rederal reserve
banks, reading as follows:

"There is inclosed herewith for your information a
copy of a
01
, .4.er r
let,.6
eceived by the rederal Reserve Board from the Secretary
tli:he
et SeeTreasury with regard to the agreement entered into between
:
retexY of the :1.
- easury and each rederal reserve bank purr to the provisions
of section la of the Yederal Reserve -ct
to:
lel°3111E
a
copy
of
the Secretary's regulations issued pursuant
or
tuat.section. Your attention is invited to the last paracfraph
or le 111clo8ed letter ;,ith regard to compliance with section
:
3
egu1ati0n5
of the Secretary of the Treasury on this subJect.'t
Letter

to ti-ie .Yederal reserve agents at all r'ederal reserve

actillg as
follows:
the Board's letter of Tune 26, 1934, ,
- :-7936, the federal
ACents were advised that it would not be necessary to subDrovis.the
o
Board copies or reports or examination made under the
,t)ns Of Section 21 of the Banking Act of 1953.
eZE1411reral questions, however, have since arisen regarding
or ti-c"1°118 made in accordance with the provisions of Section
21
11'117e ; a
" nking Act or 1935 and it will be helpful to the Board to
t44t ,
,
(3De's 01 such reports available. It is requested, therefore,
be
1,;"es of all such reports or examination made in the suture
itil:J41"cled to the Board, together with your comments on the
weld any other pertinent data in connection therewith,
t° co,c°Plee or briefs 01'correspondence or memoranda relating
131e4se7;rerices with representatives oi the Institutions examined.
Q.reEt -1/°rward also copies of reports of
examination which have
4di rea completed if such copies are available. If copies
60 be°f,'Available
it 111 not be necessaryto make an extra copy
!]?Pre i-471arded to the Board. In such cases, however, it will be
4,:!'eci if You will forward a brief analysis of each report,
-J-- vlith the
other information referred to above."
Approved.
80

Lettel.
to

dated October c)

193q, approved

three members of the

*as
e,i,hairman of the rederal Reserve Bank of New York,
e
follows:




3072

I

10/4/34
-8"The attention af the members
I1$
or the i'ederal deserve Board
),"
been
Called to your letter of September 21, 193,
i, in which
Y
tl°
1 8tate that the directors of your bank, in accordance with
l'aquest contained in the Board's letter of
September 10, 1934,
13 '
u suggested
tentatively that a meeting with the Federal _Reserve
th°"4
...iashington on October 9 or 10, 1934, or on some day other
vio
,
a11
,:
:°ndal/ or Thursday during the week of October 15, 19L)4,
4-14 811 t
their convenience.
selyt "AS stated in
the last paragraph of the Board's letter of
19, 19`,-,a, when replies hRve been received from all
r'e-reserve banks as to when it will be convenient for the
to:Peetive boards
of ciirectors to meet with the Federal Reserve
'Oua sched
ule w ill be made up or dates for such meetings and
you1
:771
,,1
;1 be advised as to whether any of the dates suggested by
as 1. '-u-rectors
will also be convenient for the Board. Inasmuch
banke
sPlies Illay not be received from some of the .1.,.ed.eral reserve
Or
because or the fact that the boards or directors
the b
tLat e banks Meet only once or twice a month, it is suggested
soze c°11sideration be given by your board to the
convenience of
clate aubsecluent to the dates suggested in your letter.
Butt ;Pit is
noted that you have written to the directors of yotx
You ve,-;°„1-3zanch regarcting their meeting with the Board and that
rroza't4-1-1
corammicate with us further upon receipt of a reply
State hen
" Aaile the Board's letter oi jepterther 19 did nfleetct
it Was contemplated that branch directors should
ez
-- ,theBoard at the same time as the directors of the
braze
:
b anics or whether separate meetings should be held vdth
bredaw, directors,
the Board believes that both head orrice and
is 1:
,31 4 directors
should meet jointly with the Board. This view
Poilitctillpted largely by the desirability frcut a
practical standr
3e4a
sz
i nIV
oliat
°e
ectliing
ris.
twelve joint meetings as against thirty-seven
ilherefore, in the absence of compelling
able ro
s t° the contrary, the i3oard feels that it would be preferYctur
to nr boarci of directors and the directors of the Buffalo
ree upon a date which will be mutually satisfactory.'

rese4nn

.A.pproved.
Tel
the

dated October 2, 1934, approved by three members oi

Ne t )308

t°

ieederal reserve agents at all ...,'ederal
reserve banks,

t°11'ew Yorl'z and ilailadelphia, reading as
follows:
1?1 1'°D0:
11
1Plelnellting Board's letter of September 19 relative
airectors or reserve banks meet with board here
an at some convenient time during each year, the
eves
that both head office and branch directors




3073
-9;
.3hould meet

jointly with the i3oard. 'dlis view is prompted
ilf°e1Y by the desirability from a practical standpoint of holdiZ twelve joint meetings as against thirty-seven separate meetob6e. 'Thererore, in the absence of compelling
reasons to the
0
di trarY, the ,Joard feels that it would be desirable for your
1,_-ecto e and
branch directors to agree upon a date which will
'
ce
o plaltually satisfactory before submitting tentative dates for
4sideration in working out a schedule ror such meetings."
Approved.
Letter

dated October 2, 193,
1, approved by four members of the

to the
chairmen of all Federal reserve banks, reading as fol-

--s appeared in a few instances from corresponaenc! :
and
‘
EtZers4t10n3 that the Board's position on the matter of public
beel
:,°”ee by responsible officers of Federal reserve ban' has
tio- ra-LsIluaerstood. ,he Board has imposed no general prohibi:
orr1,
1,
1132?4 the making of speeches or addresses or talks by such
Lieet;--a-Le.S was indicated to the governors at their recent
raerab-o-,
jashington, there have been two or three cases of
Clka,Z13 or the staffs of the Federal reserve banks who have in11.17:;' in publicity on controversial aspects of banking which
the possibility of embarrassment to the system, but such
"ave been taken In individually and directly with the redhati.Itlese xTe banks concerned and the action thereon has nat.
any misunderstanding of the Board's position on the
or .674. subject.
There is attached for ready reference a copy
drea-e 13°ard's
letter of -nril 18, 1932, on the subject 'Ad'
rhilse.sbh°4 Banking and Credit', frau which it will be noted that,
adcirL'
Board desired to be advised currently with regard to
the
on banking and credit made by persons connected with
°r aireral reserve system and that it be furnished with copies
1310yer-, actdresses
on these subjects delivered by officers and emc t the Federal rcserve
'
banks, it was expressly stated that
actlf4:01 such addresses need not be furnished to the Board in
'(3zitr(1 -:,°'' their delivery although they should be sent to !,he
be iflptlY.
This request was made so that the Board might
1)°
d or what is being said and written and also be in
t° assist in correcting misunderstandings that maL;ht
1-,
"4 serious consequences. This is the latest circular
eleEtr - "3r the l oard on this subject and therefore it
should be
ed nat the Board has not required that addresses be approved
the 4 7
1 ce. While the Board desires to ,be informed fully as to
the p
or talks or speeches which relate to matters in :which
e—ral reserve system is interested, it has not been the




3074
10/4h4
-10aci"4catlon of the Board to undertake to edit the manuscripts in
1;
- :nuca and the Board has advised officers of the 2ederal reserve
urs that, when
the nature of the occasion and the conditions
trcter which a talk is made are such that it is not practical to
ireP"a a manuscript in advance, it will meet the Board's desires
4 resume of the remarks be sent as promptly as possible.
ir.1 "The Board
not only sees no objection to addresses or talks
.„c3,?,,haillnell, Governors and other responsible officers or the
reserve banks when it is felt by the banks tbnt they
be
beneficial to the msderal reserve system but is of
alTion that there are times and circnmstances when. it is desirtilse that there be uctivity of this character, especially when
40t:
ubject °r uiscussion is in the nature of an exposition and
con troversial
one. :-.3.uch a situation exists at this time
rese 1:esDect to the inuustrial loan activities of the IP.ederal
Boari
'
clli banks, in connection with which it is the desire of the
Pose :
hat every efro-nt possible be made to carry out the purshoul°1 the industrial loan act, and discussions of this subject
ttle id afrord an opportunity to promote better understanding of
enlieltIncticas and services of the --'ederal reserve system and to
the cooperation of bankers generally in matters of coon
'rest.”
Approved.
Letter
t
°
atte
„

dated October 2, 1934,, approved by tnree members of the

re

presentatives of the Industrial Advisory (;ommittees
meeting in Washington on

Ell ° to

eptember 27, 1934, and

Stuart L. Rawlings, Uhairman of the Industrial Advisory

OO

the 2welfth Federal Reserve

qz tollow8:

istrict.

The letter read

Hirt
accordance with the understanding had at the meeting of
csr the °I. the eederal Reserve Board with the representatives
27,
1.6.3industrial ..1dvisory Jornittees in Hashington on September
that /4 44 t 1ere is attached a copy of a sualmary statement of
,4j,11 * There is also attached a copy of the signed
:11111t e-rw
°.411liZe
t,
-1 the meeting of the members of the Industrial Advisory
es held during the afternoon of September 27, 19'64.
Crctcoldes of these documents are also inclosed and it
°r Yellr
if you will hand these to the other members
4c=t:teesct

7
tt he Federal Reserve Board has arranged to send directly to
e*r01. the respective Industrial Advisory Committees in




3075
10/4/34
-11"othe

twelve _ederal reserve districts weekly, a summary statement
,10'aPPlications received and considered by the Industrial Advisory
and the .b'ederal reserve banks. jhis is in conformity
- 'Jaees
action taken during the afternoon meeting.
In
connection with the question of the unwillingness of
to extend loans which would reduce the liquidity of their
all;: s.or which might be subject to criticism by administrative
a
resta, ies, consideration is being given to the preparation of
taMent which may be sent to all banks in accordance with the
e
s.tion
made by the members of the Industrial Advisory
et%
that a definite announcement by proper officials on
st
, ancl
11-24 or industrial loans be made immediately.
tile 'it is reported on nage 6 of the minutes of the meeting of
ersthe
Industrial Advisory Jommittees that the followl'esolution was unanimously adopted during the meeting:
ti
or
Althouh in our experience the attitude of officials
0, Federal
reserve banks has at all times been a liberal
on. the Construction and interpretation or the
law and
etaking
or
loans,
we
have
been
impressed
today
in our
meetj
)30 ,11Ce by the very apparent desire of the ederal eserve
in iashington and the _ederal reserve banks to handle
1;;Z matters in connection with such loans in such a liberal
Aer that the maximum number of proper loans be made, with
tile
e east
delay and expense to the borrower.
to ,
1 je therefore pledge ourselves to use our best errorts
'
rin0 this about in our several districts.,

S

Of e "The Federal
eserve Board appreciates very much the spirit
the 1°1°Deration
evidenced by the above resolution and expresses
Zeeti °De that the
closer contact which has been created by the
--"C
'
1 in :ia3
hington will be continued."
Approved, together with a letter, also dated
October 2, 19;)4, and approved by three members of
the Board, to
the ieederal reserve agents and
Governors of all iederal reserve banks, reading
as rollows.

'Tho
8l utel/1,„I
'
e are inclosed for your information a copy of a mammary
erabe 3
-7" °I' the meetingin Washington on 3eptember 27, 1934 of
,3;4q4al'
t
. the zederal Reserve Board with representatives of the
St j'''
civi8orY Committees or the twelve 2ederal reserve
"t
411d a ca7rr of the minutes of the meeting of the members
ette l; '11(111strial Advisory Committees held in Washington on the
l eal..
(
r°
1 -Z 11 or that day. A copy or a letter being addressed by the
00
oday
ittee, to each or the members of the Industrial 2_dvisory
- 17110 attended the meetings above referred to is also




3076

10/v3i
-12"inclosed.
”.
ti"It will be
noted from the summary record of the morning
44,
_nE;
when the question was raised as to reimbursement of
:fl-members
of the Industrial Ldvisory Oommittees for the time
tTlre ill Performing their duties, the opinion was expressed by
e;ir, Presentatives present that any sugestion in this regard
110;
4-4 came from the 1.edera1 reserve banks. It will also
be
to :.cilithat aevernor Calkins suggested that the law be amended
per
17 reimbursement for actual expenses and, in addition,
/dents for the time spent by the members of the In-lal 2Ldvisory eommittees in committee activities.
stud The
_Jederal .eserve Board will appreciate it if you will
yoj? this natter and submit to the 13oara for consideration,
-L reco
mmendation with regard thereto."
Letter dated
October 3, 1934, approved by three members of
the 130a
rct,
t°
Ldr7a,
.
7,:ayne, Ace-President of The Columbia
Ti
tle I43iirazice
uonpany, hashington, I). C., reading as follows:

you :This refers to your letter of ,-Jepteriber 29, 1934, in which
the1
77iee that your title comnanies will examine the title to
,
ar4 °,13ertY describea in the 2oard's letter of September 28,
19o4,
eepiZle YoUr report on the
same as outlined in your letter of
01'
ijer 26, 1964, for a fee of .)b40 provided the purchase price
It,ProPerty does not exceed the total amount or 90,090.
twee.1-1 '4-so
understood as a result of a telephone co
bnversatio eIieeer-varrsel f and
vest, .1s7Astant uounsel of the ,.1-ederal
Your
46°ard, that in te event that the liability assumed by
°°,00n. iliee in connection with this matter does not exceed
lese OT "Lie fee which you
will charge will be only 5<1.0 regardthe amount
of the Durcllase price of the property.
40e :'°11 are advisea that
the .ederal Reserve Board desires to
titlellIr title
companies proceed to make an examination o.f
o'the
f
Selitel-t: the entire areas aescribed in the Boardfs letter
1934, includingany now existing streets and alleys
all :c-4 areas, and to certify to the Board in wham the title
'stri,;-e said property, as appears from the records in the
eeedin;" or :01
umbia, is vested upon completion of certain proL')istri' i.
a which have been cou,aenced by the ,
ommissioners of the
lleye ;°I Columbia for the closing of Eldredge Street and two
it ia
°c4ted in Square east of Square 88. In this connection
the e -,4derstood
that all the necessary work in connection with
Qilee:nati°n ana certificate or title will be commenced at
I)letio4- will be completed by your companies prior to the camc‘lle:1, °I. the
Et c„,44a tila tProceedings for the closing or such street and
immedi.-tely upon completion of such proceedings
at
-e stating who
is the then record oLner of all of the




3077

1

10/4/34
"ieaid property
will be given to the Federal Reserve Board. It
;s
understood and agreed that the maximum liability assumed by
,
1c)
11111 companies for the examination and certificate or
title in
estion will be
:,90 000 and, therefore, it is understood that
dour
tl„e
e Lill be 540 and no more regardless of the amount of
PUrchase price of the said property.
Ipro "If in the
course of the examination of the title to the
or DertY in question you shoula discover that there is any lien
'lloumbrance upon the property or other defect or imperfection
the title
to the property, it will be appreciated if you will
the Federal
Reserve Board as to the facts of the matter
Kl
attl°ut delay
and without awaiting the rendering of the certifite or
title.
ter "It is
requested that you acknowledge receipt of this letstat ild COrIfirM the
Board's understanding of the arrnngement as
ed in this
letter."
Approved.
Letter dated
October 3, 19311-, approved by three members of
the ,
jc)arci) t
-re O'Connor, Comptroller of the Currency, reading as
tollowa:

zeeti;This
refers to :..r. GouEh's letter of September
l9,
laedlita
;
1
.11; the
classification as a savincs deposit or an account
tioz
Zlied by the Town
of Arvada, Colorado, with The First 1:aArvada, Colorado.
otru ,t is understood that
the account in question consists
rillici7s set
aside annually by the Town of .Lrvada as a scing
T01711
the Purpose of retiring certain bond issues of the
understood
th4t °r Z-rvada
when they shall mature. It is also
that
this ;:110 national
bank examiner has taken the position
C
raeallicoUnt
does not constitute a thrift account within that
the
the LTa°r the
Federal eserve Board's Regulation
and
has been so advised.
40 "-rte having
carefully reviewed the facts, the Board sees
1,"°11 to
differ from the conclusion reached by the examiner
I.Elsse
ie
ri
'
l s that the
account in question may not properly be
tion - ed as a savin-s deposit within the
meaning of Regula',ItiDon
which interest nay lawiully be paid.
tthiz connection it is suggested
that the Town of Arvada
ollea,t4 ° c onsider the
possibility or converting the deposit
Dair:,:;°4 into a
time deposit as defined in Regulation /14„which
1-aore than thirty days
after date or with respect .o
days' notice in writing of intended withdrawal i!cl
If this were
done, of course, interest might be pal




3078
-14"cal the
deposit in accordance with the Provisions of the regula-

Apraved.
Letter dated October 3, 1934, approved by three members of the
3t011

Austin, woderal Reserve Agent at the Federal Reserve Bork
readinz as follows:

13e,.._ "There are
inclosed the original and copies of a Clayton J„ct
to seat
it granted to
Robert
Digel, .. methport, Pennsylvania,
or
at the same time as director or The First 3.'ational Bank
alillzolt Allegany, Port Allegany, Pennsylvania, and the Hamlin
b, alld Trust Company, amethport, Pennsylvania, for transmittal
to I T.
Digel and the two banks, and a copy for your files.
able 72u are requested to iniorm Fr. Digel of the Board's favordireo;
c6i°11 on his application and, upon his qualification as a
the ,,
- "°r or The First :ational Bank of Port Allegany, to forward
-tJermit to him
an the copies thereof to the banks."
Approved.

tEuak

Lett
er dated October 3, 1934, approved by three members or the
to
Federal deserve Agent at the Federal Reserve
4118"

City, reading as rollows:

Act:
1 There are inclosed the original and copies of a Clayton
to
granted to Fr. Grover E. Totten, Denver, uolorado,
r7
se at the same time as director and officer or The Central
a or;i 13ank and ?rust Company, Denver, Colorado, and as director
aelorac eer of The First 'iational Bank of Strasburg, Strasburg,
Celltral „, 111-Ich as Fr. Totten was not serving as director or
' The
ti/ile hi
'
alrinSs Bank and Trust Company, Denver, Colorado, at the
aPPlication was submitted, but desired that his applica!
1-04
'hat
34.88ed on in anticipation or election, it is requested
cleliv;-4 advise r Totten of the Board's action, but withhold
deriiii7 or the
permit and copies until such time as you are
,113V Y advised that he has been elected a director.
14ktter
iniorm the Board concerning the disposition or this
-4 °I'der that its records may be complete."
Approved.
lett°

dated October 3, 1934, approved by four members of the




:30re9
1°/4/34
-15&34rcl: to Lx.
McClure, Federal Reserve Agent at the Federal deserve
Of

'
84.sae City, reading as follows:

July 30, 1964, the Board advised you that it had given
11:11sideration to the application of 7:r. H. F. G.
Humboldt,
. 011
:
as, for permission under the provisions of the Clayton 2_ct
tTerve at the same time as director and officer of
the Humboldt
111A-°141.al Bank, Humboldt, Kansas and as director and officer of
th- ouate Bank
of Garden Plain, Garden Plain, Kansas, and upon
t
tilee basis of the information before it held that the issuance of
Perclit applied for would
be incompatible with the public
theeirlew
" rhe Board's action upon the application was based upon
taoi-1-!
lirs or the use which the applicant had made or the credit
oper
ies or the Humboldt *ational :!3ank and the criticism or
ot,„2„:
Practices and policies as shown in the current report
ssci'?-aMination of that bank. .1Jubsequeatly, in accordance with
laot .1
a1,
c)
(g) or :egulation L, additional facts and arguments
Daitt,:?earin in his application and accipanying forms were sub1' the
consideration or the Board.
ahd i Based upon the additional facts and arguments presented
the:
/1 accordance with your reco=endation, the Board has approved
a4d -PPlication of
Li'. Wulf and there are inclosed the original
tor !!Ples or a Clayton Act permit covering his service as
direc4
.officer of the Humboldt ::tional Bank, 7Tumbolat, Kansas,
GEtrd:: ,
II'l*ector
.
and ()nicer or The State Bank of Garden Plain,
two hiansas for transmittal by you to ir.r.
and the
and a copy for your files."

:;

Approved.
Lettsr
dated October 3, 1964, approved by three members of
410 (341.(1
tam_ or pal,
t°

IJederal _eserve Agent at the federal Reserve

-Las, reading as
follows:
Derial:Thers are inclosed the original an copies or a Clayton _let
direetnranted to Ir.
I. K. Cain to serve at the same time as a
a/1d es— ' The State National Bank of
Robstown, Robstown,Texas,
CorD4of the State National Bank of Corpus Christi,
Oh
ti_he t:0-Zibisti, Texas, for transmittal by you to Mr. Cain and
44siX1f uanks and a copy for your files. Inasmuch as Mr. Cain
YoU that he has resigned as a director of the Citi"allk 44;11triel Bank, Corpus Christi, Texas, his service with that
,ilot been
included in the permit.
ilas. been noted rram the letter of September 14, 1934,
"
Daimwood, president or The State National Bank or




3080
1

10A/34
-16"Robst
--owa, to Assistant
Federal Reserve Agent Hall, a copy of
wus transmitted to the 'oard with your letter or September
that :.:.r. Cain has not attended any of the thirty-four
Reriags
held by the directors of The State national Hank or
stown during 1932, 1930, and 1934 to date. In granting the
the Board took into consideration the fact that the
y;InT'eant has been a director of the aobstown Bank for several
that he apparently is a man of considerable influence
acLille communities served by the two banks; that apparently the
ofricers of the iiobstown brink cJnrer with him from time
to
to "lils concerninr the bank's affairs; and that he has expressed
zeeY
4.°11 his hope or attending often in uhe future the directors'
"11k2e of The
State I;ational Dank of Robstown.
rec "The Board feels that a director should have a satisfactory
Datrd of discharging his duties and responsibilities by particisex,,I
in the mana.;*emnt and operations of a bank which he is
c.estz2:,throu3h
attendance at directors' meetings and it is sugthat-17 611at You inform
Cain that it is with the expectation
ot th-e will satisfactorily attend directors' meetings of both
ese banizs that the permit as been granted.
tio4 'The Board rduests
P.
that, when you submit your recomenda1411 a8 a result or your annual review of this permit, you report
Y
to
Cain's attendance at directors' meetinzs.',
Approved.
Letter to
Mr. WaiSh, Federal Reserve Agent at the Federal ReDallas, lnclosiig the following Clayton Act peruit; sugt
,
Liat the
agent advise the applicant that it is with the expectatl°4 thn t
- 4-le will
satisfactorily attend directors' meetings of the
44riela
&tate Bunk
t4t,
that the permit has been granted; and requesting
W4e4 the
441111a1
(It+.er

agent

submits his recommendation as a result ol his

..7.
1ew of
the permit, he report fully as to the applicant's

ilcs at
directors' meetings:
4.
C.
4s
.:Tat on, for permission to serve at the same time ,
4.1"ector of
The First ::ational Bank of Streetran, Ftreet)
StEite m"(1 , and as
a director and officer of the Fairfield




2exas.
Approved.

3081
-17-

th -0„

Letters dated
October 3, 1934, approved by three members of
to

or 10

aPplicants for permits under the Clayton Act, advising

1 of their applications as follows:
J.
Finn, for permission to serve at the same time as
%director of
The Park National Bank of Holyoke, Holyoke, ::Assaa director or The Ykorris Plan Company of Holyj`e'II01Yoke, Lassachusetts.
1:r. Geo
as
r-e F. Tyler, for permission to serve at the same time
tertna girector
of The Philadelphia National Bank, Philadelphia,
TitaYlvania, and as a director and officer or the _:ewtown
ana Trust Company Newtown, Pennsylvania.

Bellows, for permission to serve at the same time as
as:!ctor of the Bank or Lancaster, Kilmarnock, Virginia,
and
vi
uirector
of The Lancaster 1.:ational Bank of Irvington, Ir4,)toa, virginia.
anerY, for permission to serve at the same time as a
°r The Citizens National Bank Of Bedford, Bedford,
and as a director and officer of The Citizens Trust
—"II',
Bedford, Indiana.
4Q, _

d1reet
Farmer, for permission to serve at the same. Bedfori
time. as a
;
°
ar and
ofricer or The Citizens National Bank of
,
11a111;3 -',Indiana, and as a director of The Citizens Trust Con Indiana.
a al;; R. 1:_artin,
for 'permission to serve at the same time as
14(11 1;:t°r or The Citizens ::ational Bank of Bedford, Bedford,
Celablam 44d as a director and orricer of The Citizens Trust
Bedr°rd, Indiana.
111r* A.
'Crtprie, for permission to serve at the same time as a
IIrld officer of The Citizens National Bank of Bedford,
dia, and as a director and officer of The Citizens
1111113t
-MDany, Bedford, Indiana.
• j-obli
(:)r 'e44edY for permission to serve at the same time as a
-Ixt. officer of The Citizens First National Bank of
"4er'exihilska Oklahoma, and as a director and officer of
13.11 State Bank, Barnsdall, Oklahorn.
43
di GI 1;:ellens1ek, for perLdssion to see
serve at the same time
artnd
Islea'reetor and officer of The Overland National Bank %.
% EtIld Island, Nebraska, and as a diroctor of The —list,
Utelton, Nebraska.




3082
10/4/34
-18Geo. B.
Davis, .Cor permission to serve at the same time as
%
,
irector of The Security 1:ational Bank of ‘'jianah, cjianah,
B4
”, and as a director and officer of The First National
8144 of Eldorado, .:_adorado, Oklahoma.
W. Tones, for peiwission to serve at the same time as
e0t01' of The Corpus Christi National Bank, Corpus Christi,
4
as a director and officer of the Alice Bank and Trust
piri
:n)
p
Alice, Texas, and as a director and officer of The
ational Bank of lAssion, Lission, ljexas.
fi

1.r.
Richard Elng, for permission to serve at the same time as
a
director and officer of The Corpus Christi National Bank,
2°rPus Christi
, Texas, and as a director of the San Antonio
ul'anch of
the
Federal Reserve Bank of Dallas, San Antonio,
Texas.

\7e"Slaughter, for permission to serve at the same time
a
director and officer of The Durant National Bank in
ilaalat) Durant, Oklahoma, and as a director of The Atoka State
--k3 Atoka, Oklahoma.
Lz
' • 1.1.
Leonard, for permission to serve at the same time as
eet°r of The First National Bank or :
"
1 Taitsburs, 'Saitsburg,
ngt
&ink or ler
a,
d as a director and officer of The First National
Athena, Oregon.

kl,
• a

•
Shuham, for permission to serve at the same time. as
Wail ect0r and officer of The Baker-Boyer National Bank oralla
or
Walla Walla, Washington, and as a director and officer
First National Bank or Thitsburg, Waitsbur.3, Washington.
Approved.
There

were then Presented the follovin

-c)el (11.
Pederal reserve banks:
413
Il
,
lEi
!et
tiZL for oRIGLITAL Stock:
-warp.
e
lo'
''s, lie-aria se,
ants National Bank of
-Laer)
.tk i
Rensselaer, Indiana
''catioll 1,
3 -°Is SURRENDER of Stock:
'114
114F*411112
111

applications for changes

Shares

36

r.ational Bank,

-2) New York




18

18

3083
-19biel
tiri
ca
ctts f
ilo: SURRENDER of Stock:
Tile First
National Bank of Braddock,
Braddock, Pennsylvania

(Continued)

b,,,,istriot No. 5.
etrat
iluntinzton National Bank,
/161i114tirleton, ',lest Virginia
Second
Washington
National Bank of
i'ectington, D. C.
48triet No. 6.
IPtrat
Ntxtional Bank of 1.:cDonough,
lic°11011gh, Georgia
ThI/18trict No.
7.
-6 S
11 tate National Bank of
te
l'etersburg,
Persburg, Illinois
anerican National Bank of Rockford,
--311"411°11(1 Illinois
1-14,Qa
National Bank and Trust
ComPanY of
4.4.0
Wayne, ,b‘ort
?irist
Wayne,)
in
nd
a,
ki 71611°114)State Bank of 'v'greno
iana
ectto4 „
'-allst So
Savings Bank,
ktt
Illinois
C°11.11tY
Savings Bank,
tt1TIOl,
otte
2:.iohigan
StEtte
SaVings
1,
:ichigan Bank'




Shares

300

300

600
90

690

6

6

65
135
90
9
9
57
45
Total

410
1,424

Approved.

Thereupon the meeting adjourned.

Assistant Secretary.