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269 A meeting of the Executive Comittee of the Federal Reserve Board was held in the office of the Federal Reserve Board on Wednesday, October 7, 1931, at 11:15 a. in. PRES-LUT: ALSO PRESENT: Governor Meyer Mr. Hamlin Mr. Miller Mr. James Mr. Merrill, Secretary Mr. McClelland, Assistant Secretary. Mr. Harrison, Assistant to the Governor. The Governor reported that on October 5th, in accordance with 44thority previously granted, he advised all Governors and Federal Reserve Agents that the fall conferences set for October 19th have been postponed 8404 that they will be advised later with respect to another date. The Assistant Secretary advised that the Comptroller of the llericY on October 6th made a call upon all national banks for reports of C4I ' e°11dit1on as of the close of business Tuesday, September 29, 1931, and that ill accordance with the usual procedure a call was made on all state member blInks for reports of condition as of the same date. Upon motion, the call made on behalf of the Board for reports of condition of state member banks was ratified. The Assistant Secretary then presented the following matters of b481nes8 which were considered and acted upon by the Committee: Reports of Committee on Salaries and Expenditures on lists submitted b•Y the Federal Reserve Banks of New York and Philadelphia of employees for Iihorn the directors authorized leaves of absence with pay, on account of ill4"8 ' during the month of September, where the total of such absences since 3.444ar1 1, 1931, has exceeded thirty days; the Board's Committee recomiendi4C" aPproval of the salary payments involved. Approved. 10/7/31 -2Report of Committee on Salaries and Expenditures on letter dated October 1st from the Chairman of the Federal Reserve Bank of Dallas recuestillg aPproval of the appointment of la'. Guy E. Felty as special representative in the loan department of the bank, an appraised position under the bank's " 13 8°nnel classification plan, at a salary of 0.,000 per annum; the Board's C(Xmaittee recommending approval. Approved. Draft 02 reply to letter dated October 2nd from Congressman Louis T, McFadden, requesting a copy of the agreement entered into with the Board by the International Acceptance Bank, Inc., as a condition precedent to the Pill ' ehase of the stock of the latter by national banks under the provisions °t Section 25 of the Federal Reserve Act; the proposed reply enclosing a Y of the form of agreement used by the Board in this connection and advisinC that with the modification referred to in the letter addressed to 141 '4 IcFadden under date of Seotember 15th it is the agreement under which the International Acceptance Bank, Inc., is now operating. Upon motion, the proposed letter was approved. Letter dated September 29th from the Federal Reserve Agent at Dallas e°111.ting in detail on the unsatisfactory condition and the particularly 411.atisfactory reserve record during the period 12ay 16th to September 15, 1931) of the City National Bank, Wichita Falls, Texas. Upon recommendation of the Committee on District No. 11, draft of reply to 1:r. Walsh's letter requesting that he advise the Board of the progress made in connection with certain steps to improve the condition of the bank, and draft of letter to the Comptroller of the Currency transmitting for his information a copy of the Federal Reserve Agent's letter, were approved and ordered transmitted. ,27j 10/7/31 -3Letter dated October 3rd from the Federal Reserve Agent at flfleaPolis inquiring whether the Board would approve the designation as Assistant Federal Reserve Agent of one of the Directors of the Helena Branch and the desirmation as Alternate Assistant Federal Reserve Agents of °fDicer of each of two large banks in Helena; the Federal Reserve Agent ng that with the gold cover of the bank at a point where any further l'sduction in deposit balances may require the sale of some of the bank's illvestments, it is desired to make use of all the gold available by redile;.3.14g to the louest workable basis the amount of Federal Reserve notes carried in the bank's cash; that in order to accomplish this at the Helena 4to,, ' en, it is proposed to retire from ,e1,500,000 to ,;20 500,000 of notes; that the usual custody arrangement approved by the Board for the carrying or 'asaued notes at branches of Federal Reserve banks does not appear 1111 " ticable, and that if the designations above referred to are approved by the va it is proposed to hold the unissued notes in joint custody at the branch through chest combinations held separately by the agent's re, vres entatives and branch officials, with a seal on each chest by a ren, ' esentative of the head office controller stationed at the branch. After discussion, upon motion, it was voted to advise the Federal Reserve Agent that the Board has no objection to the proposed plan and will designate an Acting Assistant Federal Reserve Agent and alternates for the balance of the current year upon advice of the names of those whom he wishes to have so designated. Letter dated October 3rd from the Federal Reserve Agent at San Fran% o and telegram dated October 6th from the Assistant Federal Reserve Agent 4ts, -11 Francisco, transmitting voluntary notice filed under date of October 272 ist hY the Multnomah Commercial and Savings Bank, Multnomah, Oregon, of its intention to withdraw from membership in the Federal Reserve System and the Igliest of the bank that it be permitted to withdraw from membership immediate1Y; the Federal Reserve Agent stating that the bank is in a very unsatisfactory cerdition and that he recommends, with the concurrence of his Executive C°Inraittee, that the bank be allowed to nithdraw from membership immediately. Upon motion, it was voted to waive the usual six months' notice and to permit the immediate withdrawal of the member bank. Draft of reply to letter dated October 1st from the Assistant Fed"al Reserve Agent at Chicago with regard to the consolidation on September 15th of the American National Bank, the Security National Bank the Home State Bank for Savings, all of Grand Rapids, DAchigan, under tile charter of the latter and title of "American BOMB Security Bank of Clind Rapids"; the proposed reply stating that in view of the fact that eharg ' "fs against certain reserves which were set up for losses and e-1 dsPreciation are being deferred pending the next examination, the Board has cierel'red action on thc question whether the consolidation has resulted in a challe in the general character of the assets of the member bank, within the msatine of r its general condition of membership in the System, and that conshould be given to the advisability of having a representative or the Federal Reserve Agent participate in the next examination of the member t0 the bank, following which a further detailed report should be submitted ard. Bo Upon motion, the proposed letter was approved. Coyernor Leyer reported that on October 5th he talked with Governor tlack or the Federal Reserve Bank of Atlanta and communicated to him the 10/7/31 1 ) —5— ecttitude expressed by the Board at its meeting on September 30th with regard toeligibility for rediscount of bankers' acceptances drawn by Anderson, ClEtYton and Company and secured by warehouse receipts issued by a subsidiary or thE4t company, and that he had reouested Governor Black to discuss the raEltter with Anderson, Clayton and Company with great discretion. The Governor also advised that Mr. Andreas Ueland, Counsel for the Irecleral Reserve Bank of Minneapolis, had called on him to inquire whether the action taken by the Board on October 1st with regard to the appeal to 11.1)rame Court of the case of Hiring, Receiver v. Federal Reserve Bank orm inteapolis was to be construed as an order or mandate to the Federal Pe '" 8 70 Bank. The Governor stated that he had advised 1,:r. Ueland that it 81431-11d not be so construed. Mr. Hamlin then referred to a report made to the Board that the , ' 8-1 Reserve Bank of New York is holding approximately 4.,2,500,000 of gold it sarekeeping for two New York City banks and requested that inquiry be Iticle Of the New York bank as to the nature of the deposit. Upon motion, it was voted to authorize the Chief of the Division of Bank Operations to take the matter up with the New York bank in accordance with Mr. Hamlin's suggestion. Itl'Ouotm STANDING COv;'ITar- : 1:1;Ited October 5th 6th Recommending changes in stock at Federal Reserve banks as set forth in the Auxiliary Minute Book of this date. Recommendations approved. The meeting adjourned at 12:15 p. m. Secretary. 4PrOved: (Executive C ommittee) eh 274 AUXILIARY VINUTES (October 7, 1931) Reports of Standing Committee dated October 5th and 6th, recommending in stock at Federal Reserve banks, approved as follows: ' llees e A l b ications for ADDITIONAL Stock: istrict °id-First National Bank and Trust Company, Fort Wayne, Indiana. ;1•411...•81,r_ic-___nio. 8. Of Eastern Arkansas, Forrest City, Ark. !irat National Bank, Carlyle, ill. eirst National Bank, Dawson. Springs, ICY'• hret National Bank, Russell Springs, ICY. 8te Louis National Bank, St. Louis, Mo. 1)14......ttiet No, 9. 4t8.Cf l'.1a' 13/"lal --Bank, Princeton, Minn. Shares 1,200 1,200 30 2 1 1 1 35 12 Total 12 1,247 Ab 1 ulatricications for SURRENDER of Stock: Citizens National Bank, Delphi, Ind. (V.L.Suc. by Union State Bank of Delphi) 4.4%st National Bank, WinF/Trin , Ind. (V.L Abs. by Union Bank end Trust Co.) 81; National Bank, Preston, Iowa. (V.L.Sua. by United Bank & Trust Co.) °Iteillin-State National Bank, Chicago, Ill. (V.L.Abs. by First National Bank of Chicago) 414:Ix:jet No. 9. 4rir5tlieutiBank, Kalispell, Mont. (Reduction P4 ill caPital) 1141ere National Bank, Fairfax, S. Dak. (Insolvent) A liprOyed: 55 45 18 13„200 13,318 60 18 Total 78 13,396
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