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A meetin, 7, of the i,xeoutive Committee of the Tederal ,eserve 7oard 1748 held in the office of the'Federal eserve 3oard on ?uesday, October 7, 1930) at 11:45 a. la. PAES=: Er. Cumninhum Er. Liiller Er. James rIcClelland, Assistant Secretary. Letter dated October 2nd from the Secretary of the Federal Reserve Batik Of New York advising that the board of directors at a meeting on that (1111;15 made no change in the bank's existin schedule of rates of discount 411c1 purchase. Without objection, noted with approval. Letter dated October 6th from the Assistant 2reasurer of the United Ste'tee advising that no applications were received from national banks, 11/ 11/rillE the Quarter ended September 30th, L'or t -le sale of bonds under Section 18 er the Federal eserve Act. Noted. Bond in the amount of .:=,000 executed under date of October 1, 1930, by 1, Oliver P. ':'heeler, Assistant iilederal Reserve Agent at San Francisco. Approved. -elaorandum dated October 4th from the Director of the Division of Ae%*ch and Statistics transmittimg the resignation of hr. John Cummins as er of the staff of the division, effective October 13th. Accepted. deports of Cornittee on salaries and i,xoenditures on lists submitted Y the Yederal deserve Banks of St. Louis, iinneapolis and Dallas, of err1151 0Yees for whom the directors of those banks authorized leaves of absence Vith 134Y, on account of illness, during the month of September, where the 10/7/30 -2- total of such absences since January 1, 1930 has exceeded thirty days; the Board's Committee recommending approval of the salary payments involved. Approved. Matter approved on initials yesterday, namely, a letter to ressrs. Mgrray, Aldrich and Webb, New York City, granting permission to NT. Sherrill Smith, an officer of the Chase i!ational Bank of the City of I,ew York, to serve also as director of The Chase Bank, a corporation organized under the Edge Act, all of the stock of which is owned by the Chase National Bunk. Formally approved. Draft of letter to the Assistant Federal i(eserve Agent at Cleveland with regard to the purchase of the Jeffry Building and Loan Company of CollImbus, Ohio, by the First Citizens Trust Company of Columbus; the letter stating that since the only condition of membership of the First Citizens Trust Company which might apply to the proposed transaction is the general condition, he is correct in his assumption that permission of the Board is not necessary provided the member bank is satisfied that the absorption of the building and loan company will not result in any change i4 the general character of its assets or broadening of the functions exercised by it. Noted, with approvta. The Assistant Secretary then submitted a memorandum dated October eth from the Comptroller of the Currency recommending approval of an applica- tion of the Washington Park National Bank of Chicago, Illinois, for permission to reduce its capital stock from advising 800,000 to :400,000; the Comptroller :7) 10/7/30 1. That immediately upon completion of the capital reduction the bank's capital will be increased to .600,000 through the sale of 2000 additional shares of stock at „200 per share, the premium to be used to increase the surplus fund of the bank from .,)200,000 to :A00,000. 2. That a securities company will be organized to take out of the bank approximately .,;800,000 of undesirable assets giving the bank stock in the company in the amount of •'400,000 and a note or notes for a like amount. 3. That the stock of the company will be turned over to the stockholders of the bank or trustees for them, through the declaration of a dividend in assets, and 4. That the note or notes will be curtailed annually With final liquidation at the end of five years, with interest. hr. Cunningham stated that no recommendation of the Leederal Reserve Agent being at hand, a telegram has been dispatched to him requesting same. U6 alSO stated that he has discussed the proposed arrangement with the Chief Rational Bank Examiner of the Seventh District, who is in Washington, 4114 18 inclined to approve provided a favorable recommendation is obtained 111%1M the 2ederal Reserve Agent and provided the ;400,000 of new money is allbeeribed before the reduction in capital is actually permitted. At his suggestion, upon motion, it was voted to authorize the Executive Officer of the Board, upon receipt of a favorable recommendation of the Federal Reserve Agent at Chicago, to approve the proposed reduction in capital from $800,000 to 1100,000, on condition that a subsequent increase in capital of 4200,000 and in surplus of 3200,000 will be entirely subscribed and paid into the bank in a special account before authorization for the capital reduction is issued by the Comptroller. REPORTS OF STANDING CONMITTEE: DeLted, October 3rd 6th 7th Recommending changes in stock at 2ederal Reserve Banks, as set forth in the Auxiliary idnute Book of this date. Recommendations approved. The meeting adjourned at F, . APProved: Member of Execu ve Committee m. Assistant Secretary
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