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A meeting of the Federal Reserve Board was held in Washington on
'
lsclaY, September 15, 1932, at 11:00 a. m.
PRESENT:
Mr. James, Presiding
Ur. Hamlin
Mr. Miller
Mr. 'Magee
Mr. Pole
la%
Ybrrill, Secretary
Mr. McClelland, Assistant Secretary
The minutes of the meetings of the Federal Reserve Board held on
Alleust 24 and
31, September 2 and 7, 1932, were approved.
The minutes of the meeting of the Executive Committee of the Fedel'a1 Reserve Board held on September 8, 1932, were approved, and the
"tic)rie recorded therein were ratified.
The following matters were then presented for the consideration
4.44 "tiOn of the Board:
Letter dated September 8, 1932, from the Secretary of the Federal
Reserve Bank
of New York, and telegrams dated September 9, 1932, from the
Beeretrie8 of the Federal Reserve Banks of Cleveland and Atlanta, Septem712, 1932, from
the Assistant Federal Reserve Agent at Minneapolis, and
SeDtember is,
1932, from the Deputy Chairman at Richmond, all advising that,
4't illeetiligs of
the boards of directors on the dates stated, no changes were
1.44'1*e111 the bankat
existing schedules of rates of discount and purchase.
Without objection, noted with approval.
ReblY, approved by four members of the Board on September 9, to a
4ok
'"ted September 2, 1932, from the Chairman of the Federal Reserve
r t
to
laeuis making application for leave of absence from September 22
obi eDtellibel% 30) 1932, inclusive; the reply stutinc; that the Board has no
eot
0/1 to
the proposed leave of absence.
Approved.
•
9/15/32
Z.
Reply, approved by four members of the Board on September 9, to a
1
letter dated September 2, 1932, from the Federal Reserve Agent at PhiladelPhia, requesting approval of the designation of Messrs. Edward L. Algier,
11°447 X. helson and George L. Gerstenacker, employees of the bank, as
8Pecial assistants to examiners; the reply stating that the Board approves
the
-Ignationsrequested in the agent's letter.
Approved.
ileports of Committee on Salaries and Lxpenditures on letters dated
SePterab er
Se
f and 9, 1932, from Deputy Governor Attebery of the Federal Re-
'u 'bank of St. Louis, requesting approval by the Board of changes in the
Pel's°11-nel classification plan of the bank to provide for the transfer from
the T1.
enafer-Telegraph Depart4aent to the Transit Department of the head office,
°r the
or the
---14ion of "Clerk", with a salary range of
6.00-9100, and the creation
flew position of "Clerk" in the Custody Department at the Louisville
.
-anch
' with a salary range of .A200-..31500; the Board's Committee recommend1111 aPProval.
Approved.
Report of the Committee on Salaries and Expenditures on a letter
-eptelriber 10, 1932, from the Chairman of the Federal Reserve Bank of
'
lequesting approval by the Board of a change in the bank's personnel
LE'irication plan to provide for the creation of the new position of
"kruor
Stenographer" in the Reconstruction Finance Corporation Department
c't the 2
Antonio branch, with a salary range of .J200-4800 per annum;
th"°ard's
Cannittee recommending approval.
Approved.
Telegraphic reply, approved by five members of the Board on Septem-
,„
9/15/32
9
-3-
beli 9, to telegram of that date from Assistant Deputy Governor Gidney of
the Federal Reserve Bank of New York, requesting approval of a renewal in
the reduced
amount of ::Y700,000, for a Period of ninety days from September
'1932, at a rate of 5 1/2% per annum, of the advance nade by the Federal
12
ReServe Bank of
New York, in accordance with the provisions of section 10(b)
of the Federal Reserve Act, as amended, to the Lincoln National Bank, Newark,
New J.erseY; the reply stating that the Federal Reserve Board authorizes the
l'enewal in the reduced amount, as requested by the bank.
Unanimously approved.
Tele graphic reply, approved by five members of the Board on Septen
13'31
'9, to a letter
dated September 7, 1932, from the Governor of the Federal
Reserve Bank
of Atlanta requesting approval of the continuance without demand
ror
Pe.Ym'nt of the advance to the Georgia Savings Bank and Trust Company,
Atiezt
a, Georgia, made under authority granted by the Board on Tune 15, 1932,
"e°rdance with the provi:Aons of section 10(b) of the Federal Reserve
4et
'
amended, at a rate of 5 1/2% per annum and payable on demand with
illtel'eat
payable monthly, which advance has been reduced from 8890,000 to
'
;797,172.80.
The reply stated that the Federal Reserve Board interposes no
(Thieetion to the continuance of such advance, in the amount now outstanding,
without aeraand
for payment, and also stated that, in the event the advance
1 llot repaid nor
13
' tile
demand for payment made within ninety days from September
natter should again be brought to the Board's attention with a state-
Inellt °I' the
circumstances which, in the opinion of the Federal Reserve Bank
or
4tlarlta, justify the bank in further continuing the advance without
v114°4111Q4 ror payment•
Unanimously approved.
9/15/32
-4Telegraphic reply, approved by five members of the Board on September
9
' to a letter dated September 7, 1932, from the Governor of the Federal Reael
've Bank of Atlanta, requesting authority for an advance, in accordance with
the Pr°visions of section 10(b) of the Federal Reserve Act, as amended, to
the Pe
rchants National Bank ofi,obile, Alabama, in the amount of .300,000,
at a rate
of b 1/2% per annum, payable on demand, on the security of city and
warrants and receivables totaling $592,603,50; the advance being
clesil
'
ad as a result of the loss of deposits and the necessity of funds for
heald1ing cotton and revival of 17E111 business.
The reply stated that the
13Qara authorizes the advance subject to the terms and conditions recommended
allei that, in the event the advance is not repaid nor demand for payment
il4tcle within ninety days from September 9, the matter should again be
broi.ocrl,
to the attention of the Board with a statement of circumstances
Whieh
' in the opinion of the Federal Reserve Bank of Atlanta, justify the
bahi. in
continuing the advance without demand for payment.
Unanimously approved.
TelegraPhic reply, approved by five members of the Board on Septembar 14
'1932, to telegram of that date from Deputy Governor Johns of the
Pecier
el. Reserve Bank of Atlanta, advising that .A00000 of the collateral
tend.
ere(
'
by the Merchants National Bank Mobile, Alabann, had been found
to
be i,,
nen-negotiable form and that it is proposed, therefore, to make an
Etaveze
e t° the bank in the reduced amount of 250,000 against the remaining
0011at ra
e --; the reply stating that, since the amount of the proposed advance
la lesa
than the amount authorized in the Board's telegram of September 9,
k)
. 3
an(' aine e
teqlleed
it is assuned that the collateral to the advance in the
°tInt is satisfactory to the Atlanta bank, no affirmative action
231
9/15/32
by the
,
Board is necessary and the Board interposes no objection.
Unanimously approved.
Letter to the Governor of the Federal Reserve Bank of Boston,
ctPProved by five members of the Board on September 12, 1932, with regard
to
advances made by that bank to the Luincy Trust Company, :-,uincy, Massae4118etts, in the amount of ,100,000 each, on Lay 26, Tune 10, June 25, July 13
111.d August 4,
1932, apparently under the impression that the Board's author44tiOn of Eay 6, 1932, extended for bi-weekly periods on 7-Ely 19, Tune 2,
17) June 30, July 14, July 28 and August 12, 1932, for advances in
6.1111t8
"
aggregating not more thnr ,r 250,000, meant that advances outstanding
one tire should not exceed :250,000. The letter stated that it was
the B
s3ard'3 intention to authorize the bank to make advances the aggregate
or 741,4
"'-ich should not exceed 250,000; that the Board, in order that its
l'ee°1‘cis and those of the Federal reserve bark may conform, amends the
"Lca'itY previously granted so as to authorize advances not exceeding
960())0001 and ratifies the action of the Federal reserve bank in making
84'4'allees beYond
the authority previously granted by the Board. The letter
EQso
stated that in
making advances hereafter to member banks in accordance
With the Provisions of section 10(b) of the Federal Reserve Act, the
eee
'tC or all advances made should not exceed the amounts authorized by
tile Board.
Unanimously approved.
Reply, approved by four members of the Board on September 10, to a
letter
-ated. 6ePtember 3, 1932, from the Federal Reserve Agent at Atlanta,
'oriti
that the Andalusia National Bank, Andalusia, Alabama, has been
10
IlelY deficient in its required reserves for more than six months;
y1
232
9/15/32
the reply statinrr, that, in view of the information submitted, and in
accordance with the agent's recomnendation, the Board will take no action
ill the matter at this time other than to forward a cony of the agent's
1"ter to the Comptroller of the Currency for the information of his office.
The
rePlY also requested that the agent advise the Board, within a reasonable
time, as to whether the bank has restored and is maintaining its re()Aired
reserves.
Approved.
Letter to the Federal Reserve Agent at Chicago, approved by four
111%114,
4:8
of the Board on September 12, referring to Assistant Federal Re-
aerve Agent Youn3'5 letter of September 6, 1932, reporting that the
LXchange Bank, Waukesha, Wisconsin, has been deficient in its reclillred r
eserves for six consecutive months; the reply stating that, in
view
of the
information submitted, and in accordance with the recommendation
°r the p
ederul reserve agent's office, the Board will take no action in the
latter
at this time
other than to forward a copy of Mr. Young's letter to
aomntroller of the Currency for the information of his office.
The
l'eplY also
requested the agent to advise the Board, within a reasonable
tInge) as to whether the bank has restored and is maintaining its required
reael.vese
Approved.
Letter to the Federal Reserve Agent at Chicago, approved by four
ti1131,4er
8
4Dtemb
the,
°f the Board on September 14, referrinc, to 1:r. Young's letter of
1932, reporting that the First National Bank, Henry, Illinois,
Elt lanai Bank 6; Trust Company, Cambridge City, Indiana, the 7irs't
liatiortai
-Balik, Lewisville, Indiana, and the Elk Rapids State Bank, Elk
9/15/32
114Pids, Liichigan, have been continuously deficient in their re‘luired reserves for six months or more, and that the following banks also have an
Unsatisfactory
reserve record:
First National Bank,
National Trust Bank,
National Bank of Pontiac,
First National Bank,
First National Bank,
Greensburg National Bank,
First National Bank,
U. S. Bank & Trust Company,
Farmers Loan Ec. Trust Company,
First National Bank,
First National Bank,
First National Bank,
New London National Bank,
Antioch, Illinois,
Charleston, Illinois,
Pontiac, Illinois,
Ridge Farm, Illinois,
Secor, Illinois,
Greensburg, Indiana,
1:cintnelier, Indiana,
Rochester, Indiana,
Tinton, Indiana,
Ashton, Iowa,
Graettinger, Iowa,
Little Rock, Iowa,
New London, Iowa;
the re
Ply stating that, in view of the information submitted regarding the
I-rst
--0111) of banks, and in accordance with Lir. Young's recommendation,
the 8
°ard will take no action in the matter at this time, other than to
forwara
a copy of Fr. Young's letter to the Comptroller of the Currency
l'c'r the Information of his office.
The reply also requested that the agent
aclv-ise the
Board, within a reasonable time, as to whether the respective
c'e
'
llks have
restored and are maintaining their required reserves.
The reply
rilrther stated
that it is the Board's assumption that the deficiencies in
the
reserves of the second group listed above have not been continuous for
Dezlod of
six
Board is, therefore, taking no action at
months' and the
tiMe in
regard to the reserve deficiencies of these banks.
Approved.
Lettur to the Federal Reserve Agent at Chicago, referring to
Asai
it
11°11111
Federal Reserve Agent Young's letter of September 7, 1932, re-
that the First National Bank of Northboro, Iowa, has been continuousnit in its required reservesfor six months; the reply stating that,
9/15/32
•
-8_
la view of the information submitted, and in accordance with the reconmend-
ati°11 of the Federal reserve agent's office, the Board will take no action
in the matter
,
at this time other than to forward a copy of Fir. Young's
letter to
the Comptroller of the Currency for the information of his office.
The l
‘eplY also requested that the agent advise the Board, within a reasonable time, as to whether the bank has restored and is maintaining its rereserves,
Approved.
Replies, approved by four members of the Board on September 9 and
12) to
letters dated August 26 1932, from the Federal Reserve Agent at
St. L,„,
'Lae, reportins that the Farmers National Bank of Glasgow, Kentucky,
4114
the :first
National Bank of Livingston, Illinois, respectively, were
c°11tinun 1
--118-1-Y deficient in their required reserves for the period of seven
•
°118-lia1f months ending August 15, 1932; the replies stating that, in
▪ " °r the information submitted, and in accordance with the agent's
rec°141-Ienclations, the Board will take no action in the matters at this tine
othez, ,
taan to forward copies of the agent's letters to the Comptroller of
the 04
l
'rencY for the information of his office. The replies also requestell that the agent advise the Board, within a reasonable time, as to whether
the b
allks have restored and are maintaining their required reserves.
Approved.
RePlies, approved by four members of the Board on September 12, to
letter
a dated September 3, 1932, from the Federal Reserve Agent at Dallas
Ite13°11i
-11-: that the First i
- ational Bank of Hale Center, Texas, and the City
1\ititiot
a- B/Ink of Wichita Falls Texas, have been continuously deficient in
their r
eqllired reserves since ',arch 15, and Lay 15, 1931, respectively; the
9/15/32
-g-
rePlies statinc; that, in view of the information submitted, and in accordance
with the
reconnendations of the agent, the Board will take no action in the
matters at this time other than to forward copies of the agent's letters to
the Comptroller of the Currency for the information of his office.
The
rePlies also recuested that the agent advise the Board, within a reasonable
tirlle, as to whether the banks have restored and are maintaining their rereserves.
Approved.
Letter dated September 13, 1932, from the Federal Reserve Agent
at St. Louis, recommending approval by the Board of a request on behalf
n
Or the ,u
aranty-Plaza Trust Company of St. Louis for an extension of the
ilell°c1 of thirty days from August 19, in which that institution may com131ete arrangements for membership in the System.
Extension of thirty days from September
18 granted.
Letter to the Federal Reserve Agent at New York, approved by four
%berOf
8
the Board on September 9, 1932, stating that the Federal Reserve
4418 considered the application of the Neptune Bank and Trust Company,
NeDttlni„ ,_
iew Sersey, for membership in the Federal Reserve System and that,
ih vie,
of the unsatisfactory condition of the applicant as revealed by the
l'eP°rt
2 +I,
the bo,
3
'r(1
cloe
examination of October 20, 1931, and the recommendation of
f directors of the Federal Reserve Bank of New York, the Board
"feel that it is warranted in taking favorable action on the
tima; the letter requesting the agent to suggest to the bank that
it 1,egu
est the Board not to take any action on the application at this time
kld,
that „
11.e bank submit a new application when it has effected a correction
236
9/15/32
-10-
in ita
unsatisfactory condition.
Approved.
Letter to the Liorganfield National Bank, LIorganfield, Kentucky,
tatine; that, in addition to the authority heretofore granted to the bank
to act _ s
u trustee, executor, administrator and registrar of stocks and
b°142, the Federal Reserve Board has approved the bank's application for
Permi
eslon to act, when not in contravention of State or local law, as
ardian of estates, assignee, receiver, committee of estates of lunatics,
01' in any other fiduciary capacity in which State banks, trust companies
other
corporations which come into conDetition with national banks are
13erMitted to
act under the laws of the State of Kentucky; the exercise of
alleh
1-Ights being subject to the provisions of the Federal Reserve Act
8
'41 tile regulations of the Federal Reserve Board.
Approved.
IlePlY, approved by four members of the Board on September 9, to a
letter dated
August 10, 1932, from the Federal Reserve Agent at San Franelse()
with regard to the consolidation on Lay 14, 1932, of the Carbon
4lerY Bank
and the Price Commercial and Savings Bank, both member banks of
irices Utah,
under the charter of the latter and the title of the former;
the zaply
stating that it appears from the information submitted that the
e°1180lidat1on has not resulted in a change in the general character of the
11.2etS °r
the Price Commercial and Savings Bank or a broadening in the
4e°11e of the
functions exercised by the institution within the meaning of
elleral
'qezal
condition under which it was admitted to membership in the
Reserve System: and that, accordingly, the Federal Reserve Board
ihterpose no objection to the transaction.
Approved.
237
9/15/32
-11Letter to the Federal Reserve Agent at I:ew York, approved by four
raerlibere of the Board on September 9, referring tol:r. Dillistin's letter
Allgust 22, 1932, with regard to the consolidation of the Citizens Trust
(I°1111)811Y and the farmers rational Bank, both of Adams, liew York, effective
16, 1932, under the charter of the former and the name of the
Citizens and -,
?armers Trust Company; the letter stating that, in accordance
With the
Board's usual Dolic y, action upon the question as to whether the
tItIls"tion has resulted in any change in the general character of the
e'
"ets of the Citizens and Farmers Trust Cam)any, or a broadening in the
aoPe Of
the functions exercised by it within the meaning of the general
ecIliclition under which the Citizens Trust Company was admitted to membership
in +1,
-Aderal Reserve System has been deferred until after an examination
the cwisolidated institution has been made, and requesting the agent to
tirl
ge for
participation by an examiner of the federal reserve bank in such
and, to submit to the Board the information thus developed, to-
Other
17ith 1113
recommendation in the premises.
The letter also requested
theaeent to
obtain and forward to the Board a copy of any amendment to the
eali es
Qiof a
ssociation of the trust company, together with copies of the
tilizrtea or
the meetings of the stockholders of the constituent banks
X tityilic
the
transaction, a reference to the provisions of State law
the
transaction, and any other relative data; also, advice as to
711(ither the
consolidation involved the accuisition by the trust company
of
11111rbrtIliche3 beyond the corporate limits of Adams, rew York, or any other
17hieh
night affect its legal status as a member institution, indeDen-
411t1Y 0.2 8- 1)e38ible violation of the condition of membership referred to
Elb0.7.e1
9/15/32
-12Approved.
Reply, approved by four members of the Board on September 13, to
a. letter dated
August 16, 1932, from the Federal Reserve Agent at Atlanta,
l'eferrin3 to a bill for attorneys' fees of 45,000 in connection with the
illdebtednese of
L. A. Boyd and C. E. Dorsey; the reply advising that the
Federal Reserve Board has approved of the payment by the Federal Reserve
Bar4
: of Atlanta of its Pro rata share of such fees (9,643.04), subject to
the 00
prescribed by the executive committee of the bank.
Approved.
Letter to the Federal Reserve Agent at Atlanta, approved by four
3:tie/libel% 04, 4.,
Tioard on September 12, referring to Lir. Albertson's letter
Of Aur,
st 24, 1932,
and advising that the Board has no objection to the
tn
Igentho
lding 'In joint custody with the Zederal Reserve Ban:',: of Atlanta
sqbsidi
arY silver and minor coin for the account of the United States
ilirfaezia
rer,
in accordance with the authorization contained in a letter of
the,
1r
asurer of the United States, under date of August 22, 1932.
e'
Approved.
Letter, approved by five members of the Board on September 9, to
kr
* c. G. ,
Larshall, News llanager of The United States Daily, referring to
412 lette
r of August 23, 1932, and inclosing an article prepared by the
legal uePartment of the Board bearing the caption "Recent Amendments to
the
P
s''erel Reserve Act" in which there have been summarized briefly amend1%tv5
to
the federal Reserve Act which were adopted by the Congress during
ita
st recent session, which adjourned on Tuly 16, 1932; the letter
4tErtito:
that The
United States Daily may Print this article if it so desires.
Approved.
239
9/15/32
-13Telegran to the Chairmen of all Federal reserve banks, approved by
f°11r lernbers of the Board on September 10, 1932, advising that no change
'4111 be made this year in the group classifications for elections of Class
4 and B directors, and suggesting that each agent begin at an appropriate
time next Year to canvass the situation in his district with a view to
8t1bmitting
recommendations as to changes, if any, in group classifications
alifficiently in advance to Permit ample time for consideration and action
by the Bo
ard before the regular annual elections.
Approved.
Letter to the Governors of all Federal reserve banks, approved by
t°114"zetibers of the Board on September 13, 1932, submitting a revision of
Z'orra
LI" 6170 on which the Federal reserve banks heretofore have furnished
the B,
,ard with
quarterly reports covering member banks borrowing 84,04 or
°f the time
during the quarter; the revised form calling for semi:45'1414e' reports
covering all member banks which were borrowing 80-,L or more
or the .
tthe during the twelve month periods ending Tune 30 and December 31,
e413eetiv
with information as to the average daily borrowings of each
'
4ernber bank durinr, the Last month of the period covered by the report,
the
nalrabe of
r
b
days on which each bank was indebted to the Federal reserve
44k 4
ejaci
ng the last month and year, and the amount of the bank's capital
rPlus.
Approved.
ilePlY, approved by four members of the Board on September 9, to a
letter
dated Auc4st 3_ ,
1932, from Mr. C. E. Woodward, Associate Editor
°I* the „
'10rtimest Farm, Equipment Journal, Unneapolis, Llinnesota, regardinz
-vie
eklY statements released by the National Association of Finance
°°15aDatii
ee of Chicago, Illinois, with respect to the eligibility of the
240
9/15/32
-1/1-
"of 2inance companies for rediscount by Federal reserve banks; the
Par)
stating that this subject has been considered by the Board at various
times in the
past and it has been the uniform opinion of the Counsel of the
'.3oara
that such paper is not eligible for rediscount under the terns of the
Federal
Pills/Ice
Reserve Act, and that in October, 1931, the National Association of
Companies was advised of this opinion in response to a petition
riled with
the Federal Reserve Board, requesting it to amend its regulati°118 so as to make eligible for rediscount at Federal reserve banks "a
40te a
-rawn by a banking or finance company, the proceeds of which are to
be Used
for the Purchasing of obligations or evidences of indebtedness
c'es:ted in the
marketing of goods on a deferred Payment plan". The reply
also
stated that during the first session of the 72nd Congress certain
bills were introduced to amend the law so as to make such paper eligible
l'els
rediscount by Federal reserve banks, but these bills were not reported
Or the Committee to which they were referred.
Attention was also
ellea
111 the reply to the Act of February 27, 1932, known as the Glass2teEteal
'4- Act) under the provisions of which Federal reserve banks, in
certai
,
Special circunstances and with the approval of the Federal Reserve
Boctra,
1114Y make advances to groups of member banks (and until Larch 3,
1"3) to
the ei
-nuividual member banks) upon security which is not confined to
ctsses of paper eligible under other provisions of the law for redisNtit
or,
14rchase by Federal reserve banks.
Approved.
T_
ReplY, dated September 10, to a letter dated September 9, 1932, from
wrence
Richey, Secretary to the President, inclosing a letter address-
9/15/32
-15-
ea to him by
I:T. V. L. Boeck, Treasurer of the Empire China Company of
1311113E111k, California, regarding discounts for individuals, partnerships and
c°ITorations under section 13 of the Federal Reserve Act as amended by the
A" of Ally 21, 1932; the reply inclosing a copy of a letter which was
sent
or
Boeck on September 9, 1932, with the approval of three me:]bers
the Board, answering the question which he raised in a letter to the
Board on
August 23, 1932, and also in a telegram to the President under
date of 11.
ualst 25, 1932, and stating that it is believed that the matter
11a8 been fully covered and that there is no necessity for a reply to 1;:r
Boeck's letter
of September 27, 1932.
Approved.
Circular letter to the Governors of all Federal reserve banks,
4111'evect by- four menbers of the Board on September 13, 1932, on the subjo
t °r "Surcharges on registered mail shipments of Currency", inclosing
a.
c°173Y °f a letter on this subject which Governor Meyer addressed to the
wilaster General
under date of August 12, 1932, and a copy of the Postle"I'tel* General's reply of September 3, 193L:, transmitting a memorandum
"44'e2sea to him by the Third Assistant 2oslmaster General; the letter
atectinc tha
t in view of the nosition taken by the Post Office Department,
11,t 71°111d aeera advisable for a suitable committee representing all of the
the
l'eserve banks to consider what changes, if any, should be made in
Practices regarding shipments of currency and what other steps, if any,
411°111a be taken;
44
and also requesting any comments or suggestions regarding
1114tter which
the Governors may care to make. The letter also advised
,
L the
egotiations which were conducted by the Federal Reserve Bank of
With the American ti.ailway Express Company resulted in a decision
242
9/15/32
-16-
bY that
company to make no change in the tariff .1...tes for federal reserve
banka on currency or security shipments, and that the express company had
847ised the New York bank that it could not see its way clear to reduce
rates to the point where it would be advantageous for the federal reserve
beaks t
0 use the express service in preference to the postal service.
Approved.
Letter, approved by four merbers of the Board on September 9, 1932,
to the. Chairman of the Federal Reserve Bank of Boston, stating that the
Board ,
'las received the report of examination of the Boston bank, made by
the Bo
4r03 examiners as of August 13, 1932, and has noted references to
111Amb or
-- of matters which were discussed with the officers of the Boston
1)8,41Partiaularly the comments under the captions "Credit Department", on
114111 12, and the
"Exceptions to Notes Under Rediscount or Fledged as
ecliaateral", on pages 40 to 42, inclusive, which seem to involve the
ileeszity for
the consideration of improvement in operating practices in
14 bank; the
letter requesting the Chairman to advise the Board as to the
"tioll taken
as a result of the discussion of the examiners with the
cllel'icers so
that the Board's re cords may be complete.
Approved.
lemorandum from Counsel dated September 10, 1932, approved by four
Itlernb ez
S
40 obje
spf the Board on September 13, 1932, advising that if the Board has
cti°n he plans to call a conference of counsel of all Federal re-
b
St
"for Monday, October 10, 1932, to consider, jointly with the
a31
C
°ThIlaittee on Collections (1) the clarification of the rights,
11(1 resPonsibilities of Federal reserve banks in "cashing" Governlexrt ch
eek2 and warrants pursuant to the terms of Treasury Department
243
-17Circular No. 176, and (2) legal and practical problems arising under the
IjIlif01111 Bank Collection Code.
11±. Wyatt was called into the meeting and
.e: Plained to the members of the Board in detail the questions which it is
Proposed to discuss at the conference.
Approved.
la% Hamlin then referred to the numerous press statements lately
with r
cgard to the visit to this country of Governor Norman of the Bank of
and,
containing references to alleged conferences between Governor
troz
4nd officials of the Federal Reserve System.
He inquired whether
°fricial communications had been received from the Federal Reserve
_
or hew
York or any other Federal reserve bank with respect to any
such
conferences.
The Secretary advised 1.1.r. Hamlin that no such communicat
_
-44 have been received.
Bank
RePorts of Standing Committee dated September 9, 10 and 130 1932,
"
l' 011Zier,A
approval of the following changes in stock at Federal reserve
bahke:
A
I) lications
rin strict Nos for
12. ADDITION AL Stock:
4e
li'irst
National Bank in Turlock, Calif.
134e(Increase in
surplus)
?Ye Valley
Bank, Buckeye, Arizona.
134v4kIncrease in surplus)
Liontreal San Francisco, California.
li<1.4(Iller
•'
t, ease In
surplus)
(
lis.tional Bank, Enumclaw, Washington.
'Increase in capital)
Shares
1
4
1
2
24
28
4 lien*,for SURRaIDER f Stock:
The -Let"lona
No. zlalettral National
N.
T. (V.L;Abs.
Bank, Leonia,
144,0Y
. Lecillia Bank
nonmember
Trust Company,
lt!
rust Company, Plainfield, U. J. (Decrease
t4
Partly offset by increase in surplus)
72
19
91
'3'44
9115/32
-18-
A l
ications for SURRENDER of Stock: (Cont'd)
bistriet 1107
ll'atffaiiii-Bank, Coeburn, Virginia.
(Decrease in surplus)
Shares
bistr•
-qrst
National Bank, Arlington, Georgia. (Insolvent)
1?,,istrict No.
7.
-ir8t National Bank LL Trust Company in Pontiac,
1,Iiehigan. (Insolvent)
N
ational Bank, Marengo, Illinois. (Insolvent)
8't American National Bank and Trust Company of
Bermurn, Illinois. (Insolvent)
biat
i°11-;"2"1"7"—list Company, Madison, Illinois. (Insolvent)
P
uir
,..,.National Bank, Lawrenceville, Illinois.
Insolvent)
1,,I4triet
39
39
23
23
600
60
135
795
42
75
117
90
90
39
39
34
34
NO. 9.
waitecl States
National Bank, Iron Mountain, Michigan.
(In
solvent)
katrict No. 10.
ljariners N4tional Bank, Wewoka, Oklahoma. (Insolvent)
bietriet
11
Pirst
1Tational Bank, George West, Texas. (Insolvent)
P1
i)'13,t1'let No. 12.
1-8t National
B
(In
solvent)
lc in Kerman, California.
17
Total
17
1,245
Approved.
RePorts of Standing Committee dated September 8, 1932, recommending
k31)Zoit
e-1 of the
following Clayton Act applications:
time Lir* Norman I. Adams, for permission to serve at the same
Boa; aa director and officer of the National Shawmut Bank of
Merchants
Nat' llassachusetts, as director and officer of the
orri°nal Bank of Salem, Massachusetts, and as director and
ce
h usettsof the Winchester National Bank of Winchester, Massa.
'
e4
tilae
• Henry
Cooper, for -Permission to serve at the same
T1,48ta3 director and officer of the Harriman r!ational Bank and
C°1110anY of New York City and as director of the Dunbar
°nal Bank of New York City.
245
9/15/32
-19-
W. 0. Washburn, for permission to serve at the same
time as director of the fliners Bank of Wilkes-Barre, Pennsylvania,
end as director and officer of the Peoples National Bank of
Edwardsville, Pennsylvania.
Approved.
Thereupon the meeting adjourned.
41:)Dr()-treci:
ahaimma, EzecutiecaVgAtee.
@FedFRASER