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PROCEEDINGS
of the

SEVENTH ANNUAL MEETING
OF STOCKHOLDERS
of the

FEDERAL RESERVE BANK
OF BOSTON

HELD AT THE
BANKING
HOUSE

FRIDAY




: NOVEMBER 8
1929

FEDERAL RESERVE BANK OP BOSTON

Officers
WILLIAM
WILLIAM

P. G. HARDING, Governor.
W. PADDOCK. Deputy Governor.

WILLIAM WILLETT, Cashier.
KRICKEL K. CARRICK, Secretary.

H.
Agent.

FREDERIC

CURTISS,

CHARLES F. GETTEMY, Assistant Fed-

eral Reserve Agent.
F. CURRIER, Auditor.

HARRY

ELLIS G. HULT, Assistant Cashier.
ERNEST M. LEAVITT, Assistant Cashier.
L. WALLACE SWEETSER, Assistant Cashier.

Directors
Chairman, Boston, Mass.
ALLEN HOLLIS, Deputy Chairman, Concord, N. H.
PHILIP R. ALLEN, East Walpole, Mass.
A. FARWELL BEMIS, Boston, Mass.
ALBERT C. BOWMAN, Springfield, Vt.
FREDERICK S. CHAMBERLAIN, New Britain, Conn.

FREDERIC

H.

CURTISS,

EDWARD S. KENNARD, Rumford, Me.

H. MANCHESTER, Providence, R. I.
L. RIPLEY, Boston, Mass.

CHARLES
ALFRED




Federal Reserve

Counsel
ARTHUR H. WEED.

Member of Federal Advisory Council
ARTHUR M. HEARD.

ADVISORY COMMITTEE OF THE STOCKHOLDERS OF
THE FEDERAL RESERVE BANK OF BOSTON, 1929
Chairman—Charles S. Hichborn, President,
The First National Granite Bank,
Augusta, Maine
Members—Lester F. Thurber, President,
The Second National Bank,
Nashua, N. H.
Clarence L. Stickney, Assistant Cashier,
Vermont-Peoples National Bank,
Brattleboro, Vt.
Channing H. Cox, Vice President,
The First National Bank,
Boston, Mass.
John W. Smead, President,
First National Bank & Trust Company,
Greenfield, Mass.
Florrimon M. Howe, President,
Industrial Trust Company,
Providence, R. I.
R. La Motte Russell, President,
The Manchester Trust Company,
South Manchester, Conn.
Secretary—Krickel K. Carrick, Secretary,
Federal Reserve Bank of Boston,
Boston, Mass.







MEETING of the STOCKHOLDERS of the FIRST
FEDERAL RESERVE DISTRICT
HELD at the FEDERAL RESERVE BANK OF BOSTON
on FRIDAY, NOVEMBER 8, 1929, at 10:30 A.M.

CHAIRMAN

CHARLES S. HICHBORN

(President, First National Granite Bank, Augusta, Maine), Presiding
Will the convention please come to order?
It must be very pleasing to you, Mr. Chairman, and to you, Mr.
Governor, to see the size and the fine spirit of this convention. It is
an inspiration to us all, and I am very sure that when we go to our
respective homes we shall feel that this meeting has not only been
pleasurable but highly profitable. To those two ends I invite your
attention.
I have enjoyed my year's service as Chairman of your Advisory
Committee,—although, as was expected, I have done nothing monumental,—and I appreciate the honor of presiding over this splendid
convention,—albeit I confess that I shrink from it, in the presence of
this distinguished company. For you are men of parts, men of high
ideals and strong purpose; you represent the very hearts of your
communities and the favor and confidence of those communities are
the credentials which admit you to membership in this organization.
You represent a political and geographic unit of which you may well
be proud,—for New England culture and New England character
have no superior in all the world.
You represent, too, in part, the great System upon which rests the
financial structure of this country, and it is that representation which
prompts me to ask your indulgence, for a very brief time, this morning.
I am a bit afraid that, in these days when the Federal Reserve
System is so viciously and violently attacked, we are not quite valiant
enough in its defense.
The people in general know very little about it. They have a
certain sense of security under it, but when they see it so bitterly
assailed they may,—and not unnaturally,—be conscious of a bit of
quiet questioning.
It seems to me that we ought to answer these questions frankly
and openly; that we ought to go out of our way to meet those charges,—
not apologetically but aggressively,—as men who know the truth and,
"knowing, dare maintain."
CHAIRMAN HICHBORN.




If this System of which we are a part is what we profess to believe
it to be, then we are not worth our salt if we do not defend it.
I have found audiences to which I have spoken willing to listen,
eager to learn and generous in their approval when they came to
understand. I get a genuine kick, to use a common expression, out
of telling them and showing them, so far as I am able, that this System
is entitled to their respect, their confidence and their cordial support;
notwithstanding the harangues of the demagogue, whether in the halls
of legislation or on the soap box on the common.
Put to the severest sort of a test almost before it was ready to
function, the Federal Reserve System met every reasonable requirement of those hectic years, and, by admitted accomplishments, amply
justified its existence.
It carried us through the great war; it stabilized our finances and
so enabled us to do that without which the allies never could have won.
During that war we had done what every nation always has done
which indulges in that which John Hay denominated as "the most
ferocious and futile of human follies.'' We necessarily had been governed by emergencies. We threw economic truths on to the scrapheap, because we had to. We said "Victory today; we will settle
somehow tomorrow."
And tomorrow came.
The war over, the flags having been furled, the drums having
ceased to beat and, necessarily, the enthusiasm having waned, we
were faced with the less romantic but much more difficult task,—the
trek back to normalcy.
No matter what you may have heard, no matter what you may
have read, you know, my friends, that the Federal Reserve System
was not responsible for the swollen rivers which we had to cross, nor
for the torn and bleeding feet which we nursed at the campfires.
Slowly and steadily and sanely and safely it led us back to the
old camp-ground, from which we were mustered out into the ways of
abounding prosperity and, let us pray, a lasting peace.
Ten colorful years, my friends! And during those years the
Federal Reserve System wrote a story which has no counterpart on
the financial pages of the world's history.
Of course, in all of its administrative details it is not perfect.
Nobody claims it to be, because it is a human instrument, and must be
as flexible as human needs. It has been amended in some particulars.
It will be amended further as years and experience and wisdom indicate. You remember at our last session certain amendments were
presented, upon which the committees will duly report and upon which
you will be privileged to act.




No man knows what bills affecting this System will be presented
at the next session of the Congress, some wise, probably some most
unwise.
Eternal vigilance is the price of safety as well as of liberty. We
must be on our guard; we must support the wise; we must condemn
the unwise.
Whatever changes are made, let them be made by friends of the
System and not by its enemies; by those who would protect it and
preserve it, and not by those who would destroy it; by statesmen and
financiers working in co-operation, and not by charlatans and demagogues and peddlers of quack nostrums.
I thank you, gentlemen, for the courtesy of your attention.
[Applause.]
Shall we proceed to the business of the convention,—if you have
recovered from the address of your Chairman sufficiently to normally
consider things?
The first business to come before the convention is the selection
of a secretary.
MR. R. LAMOTTE RUSSELL, (The Manchester Trust Company, South
Manchester, Conn.). I would like to nominate Mr. William P. Calder,
President of the Bristol American Bank & Trust Company, of Bristol,
Connecticut, to serve as secretary.
CHAIRMAN HICHBORN. Mr. Russell nominates Mr. William P.
Calder to serve you as secretary of this meeting. Is it your pleasure
that he serve you in that capacity ?
[The motion was seconded and unanimously carried.]
CHAIRMAN HICHBORN. The next business is the appointment of a
committee on resolutions.
MR. LIBBY, (Pittsfield, Maine). I move that a committee on resolutions be appointed by the Chair, consisting of seven members, two from
Massachusetts and one from each of the other States, due consideration being given in the appointment of the committee to impartial
representation of national banks and State banks and trust companies.
[The motion was seconded by Mr. Russell.]
CHAIRMAN HICHBORN. YOU have heard the motion by Mr. Libby,
seconded by Mr. Russell.
[The motion was carried.]
CHAIRMAN HICHBORN. The Chair will appoint as members of
the Committee on Resolutions the following: Chairman, Mr. H. F.
Libby, Cashier, Pittsfield National Bank, Pittsfield, Maine; Mr. Walter
L. Barker, Cashier, Indian Head National Bank, Nashua, New Hamp-




shire; Mr. L. H. Bixby, Vice President, The Montpelier National Bank,
Montpelier, Vermont; Mr. John E. White, President, Worcester Bank
& Trust Company, Worcester, Mass.; Mr. John F. Tufts, President,
The Union Market National Bank, Watertown, Mass.; Mr. A. R. Plant,
President, Blackstone Canal National Bank, Providence, R. I.; and
Mr. T. M. Steele, President, The First National Bank and Trust Company, New Haven, Connecticut. I wonder if they are all present ?
[It was reported that all members of the Resolutions Committee
were present,']
I am glad to know that they are all in the room.
I am sure that you will all agree with me that one of the things,
probably the principal thing, that makes this New England bank so
strong in the banking world is that we have had the rare good fortune,
—and I hope that we shall have it for years to come,—to have as its
chairman and its governor the two very able men who now fill, aye
fill, those important positions. We always listen to them with great
delight. This year I am sure will be no exception. And I take great
pleasure now in presenting to you the Chairman, Mr. Curtiss.




Address of Mr. Frederic H. Curtiss, Chairman of the Board of
Directors, Federal Reserve Bank of Boston.
Mr. Chairman, Guests and Stockholders of the Federal Reserve
Bank of Boston:
It is now about six years since we held the first of these stockholders' meetings and it is a source of the greatest satisfaction to see
the continued and increasing interest shown in these gatherings from
year to year; this year there were over 400 advance registrations for
this meeting. The greatest credit is due to the work that has been done
by your Advisory Committee, which each year has taken pains to
arrange interesting programs and has been able to induce speakers of
national prominence in touch with the Federal Reserve System to
address you on timely subjects. This year's meeting promised to be
no exception, for as you know we had expected to have Senator Glass
with us and it is a great disappointment to me as I know it is to you
that he has been unable to come to Boston on this occasion.
During the past few years, and especially since we met here a
year ago, there have been marked changes and new developments
in the particular field of activity in which we are all so closely associated and interested; developments in chain banking, investment
trusts, consolidations, changes in capital setups, etc. have been outstanding features of the changes in our financial life here in the
United States,—changes so vast that it is difficult to adjust our ideas
and judgment to the new problems which they bring forth, and doubly
so to keep our feet on the ground and to realize that it is well to study
and remember the experiences of the past when trying to analyze and
solve the problems that confront us today.
Someone has aptly called the period that we have been passing
through, the romantic age, but there are some of us who have believed
that there are many good rules of the classic age which it is still wise
to follow and I think some of those who have been recently accepting
the new doctrines of this romantic age are now coming to appreciate
again that there may be some good guiding principles laid down in
the old classic age which are still sound.
There has been a considerable change in the character of business
done by the member banks not only in New England but also throughout the entire country. I have had some studies made by our statistical department showing the changes in the balance sheets of our
member banks here in New England, and I have had some charts
prepared which show, I think, in rather a graphic manner what changes
have taken place in the character of their assets and liabilities.*
•The charts exhibited by Mr. Curtiss are reproduced on pages 10 to 12 of this
record.




MEMBER BANK CREDIT
ALL MEMBER BANKS F.R. DISTRICT I
NET CHANGES IN LOANS, INVESTMENTS AND DEPOSITS
FROM JUNE 3 0 , 1926 TO JUNE 29,1929
IN MILLIONS OF DOLLARS

DECREASE

10




INCREASE

MEMBER BANK CREDIT

ALL MEMBER BANKS IN BOSTON (CITY)
NET CHANGES IN LOANS, INVESTMENTS AND DEPOSITS
FROM JUNE 30,1926 TO JUNE 2 9 , 1 9 2 9
IN MIL-LIONS OF DOLLARS
DECREASE
INCREASE




11

MEMBER BANK CREDIT

ALL MEMBER BANKS INFR. DISTRICT IOUTSIDEOF BOSTON
NET CHANGES IN LOANS. INVESTMENTS AND DEPOSITS
FROM J U N E 30.1926 To JUNE 29,1929
IN MILLIONS OF DOLLARS

DECREASE

12




INCREASE

There are certain outstanding changes shown, as you will see,
notably the large increase in time deposits and the large decrease in
demand deposits; the heavy increase in collateral and real estate
loans, and on the other hand, the heavy decrease shown in commercial
loans. Up until a few years ago our banks were largely commercial
institutions but today the tendency is more toward their becoming
investment institutions, somewhat analogous to the saving banks. These
changes have brought new problems, for the average commercial loan
has been a somewhat more liquid asset in normal times than long term
bonds and real estate loans. On the other hand, time and savings deposits, if properly classified, are subject to less fluctuations than
demand deposits, and therefore do not need to be invested in as quickly
convertible security as demand deposits. A bank's policy should be
made dependent, on the one hand, on the probable demands of its depositors for cash and loans, and, on the other hand, its investments
should be of such a character and maturity not only to meet such
demands but to do so without loss of principal or interest.
The trend of changes in the deposit liabilities of member banks,
as shown from the decrease of demand and the increase in time deposits, has been accompanied, of course, by higher rates of interest
paid on deposits and there has been, therefore, a rather marked tendency in banks, as might be supposed, to seek investments yielding higher
returns. This tendency has manifested itself in real estate loans, high
yield bonds and collateral loans. In the case of mortgage loans and
high yield bonds there is, of course, the question of marketability, for
local mortgages, however good, have a narrow market and high yield
bonds even if listed must have a fairly narrow market or their yield
would not be out of line with the general run of high grade bonds.
Therefore the proportion of a bank's assets that can safely be carried
in such investments depends, as I said before, on the class of business
that a bank is doing.
From time to time I have had occasion to discuss with executives
of member banks an investment policy calculated to meet the changing
conditions in the business done by their banks, and this has led to our
having drawn up what we have come to call a liquidity chart, a copy
of which you see here before you.* You will notice that on this chart
the assets of the bank have been divided into four classes:—Primary reserves, Secondary reserves, what we have termed a Permanent
Investment Fund, and finally Fixed Assets. In laying out a policy
of operation for a bank, I believe it is desirable to segregate a bank's
investments and classify them in somewhat the manner that is outlined
in this chart, and I have no doubt that many, and perhaps all of you,
*The liquidity chart exhibited by Mr. Curtiss is reproduced on page 14 of this
record.




13

LIQUIDITY CHART

PRIMARY RESERVES
(ImmediatelyAvailableWithoutLoss Or depreciation
Of Principal Or interest
VAULT CASH
COLLECTED BALANCE IN FEDERAL RESERVE BANK
COLLECTED BALANCES IN OTHER BANKS
EXCHANGES FOR CLEARING HOUSE

SECONDARY RESERVES Somewhat Slower Availability,
(A Reserve with
But Readily Usable)

NOTES ELIGIBLE FOR REDISCOUNT WITH FEDERAL RESERVE BANK

(BothAsToCharacter And Maturity)
Federal Reserve Bank)

Demand
Deposits

B A N K E R S ACCEPTANCES(EligibleForSaleTO

UNITED STATES SECURITIES UNPLEDGED

(Collateral For Loan At Federal Reserve Bank)
CALL L O A N S T O B R O K E R S

(Properly Margined)

SHORT T E R M BONOS
OTHER CHECKS IN PROCESS OF COLLECTION, ETC.

INVESTMENT FUND

Time and

L O N G T E R M BOND
PURCHASED PAPER INELIGIBLE FOR REDISCOUNT

Savings
deposits

TIME LOANS TO BROKERS
REAL ESTATE LOANS

COLLATERAL LOANS TO CUSTOMERS
NOTES OF CUSTOMERS NOT ELIGIBLE FOR REDISCOUNT
WITH FEDERAL RESERVE BANK

FIXED BUILDING
ASSETS
BANK

FURNITURE AND FIXTURES
OTHER REAL ESTATE OWNED

14




Capital
Surplus and
Undivided Profits

are doing something of this kind. Now, what proportion a bank should
hold of each of these classes of assets depends, of course, on the character of a bank's business,—the stability of its demand and time
deposits and other liabilities, and the size of its capital and surplus
and the character of the accommodation it is called upon to furnish
its customers. You will notice that I have set up these liabilities
against these classified assets, and I have also bracketed them in each
case so that they overlap. This is because there is always a certain
proportion of each group that is subject to variation. A certain proportion of demand deposits are stable and not subject to quick withdrawal, and on the other hand, a certain proportion of savings and time
deposits may be subject to withdrawal. So also in the case of capital,
surplus, etc., the investment and fixed asset fund might be broadened
to meet a seasonal demand.
The seasonal demand for credit on any particular bank and the
seasonal fluctuation of its deposits call for a different diversity of
investment than that of a bank in a suburban community, and therefore such a bank as the latter need not carry itself in as liquid a
position as one in an active industrial community.
There are many of you who may disagree or have different views
as to the classification of certain of the assets that are shown on this
chart, for there has been much discussion among ourselves as to them,
but I am presenting it in its present form in the hope that it may
be of some help to you all in assisting you to solve the principal problem
that must confront each of you, and that is, how to invest your money
so that it may yield the highest return to your stockholders, and at
the same time maintain a position of liquidity that will give your
depositors the protection to which they are entitled.
On behalf of our Board of Directors, I extend to you a warm welcome and the best wishes for a successful meeting. We are looking
forward to having you as our guests for luncheon, and to the opportunity which the occasion will offer for us to meet each of you individually.
In connection with the studies reflected by these charts I want
to confess frankly that this study was prompted by a suggestion from
Mr. Thomas M. Steele, President of The First National Bank and
Trust Company of New Haven, who is here today and tells me he is
using the chart. I hope, Mr. Chairman, you will ask Mr. Steele to say
a few words in regard to it. [Applause.]
MR. HICHBORN. IS Mr. Steele present and would he like to supplement what Mr. Curtiss has said ?
MR. THOMAS M. STEELE, (The First National Bank and Trust Company, New Haven). I am present, and I would like to supplement




15

what Mr. Curtiss has said, if it were possible to supplement anything
that Mr. Curtiss has said. As a matter of fact, he covered the subject
so completely that I could not add to it.
This is a problem which had been troubling us for some little time
and we had not come to a satisfactory solution. We were working on
a chart of this sort when fortunately I mentioned the subject to Mr.
Curtiss and found that the bank here was working on something along
the same line and, as usual, we got a very great deal of help from the
Federal Reserve Bank. We have put this into effect, and we are
finding it extremely helpful in tracing our trends.
We have a chart made up as of the last day of every month and
we have also a table, so that we can follow exactly what our progress
is. There may be certain differences that arise between us which will
always have to be decided by the particular bank. For example, I think
there will be the question whether time loans to brokers should not
be classified in the same bracket with short-term bonds, because they
rest on securities presumably with a ready market, just as ready a
market as the bonds. That is the only thing on which we had any
particular difference of opinion.
I also think that that last bulletin which was sent out by the
Clearing House Section of the American Bankers' Association will be
found extremely helpful by anyone who wishes to study into the
subject. I had not expected to be called on, but I do welcome the opportunity to express my thanks to Mr. Curtiss and his associates here
for the help which they have given us in this matter and which I know
they will be glad to give to any other bank which calls upon them as
we have. Thank you. [Applause.]
CHAIRMAN HIGHBORN. And now shall we listen for a few moments
to him for whom our love is almost an obsession,—Governor Harding.

16




Address of Hon. William P. G. Harding, Governor of the
Federal Reserve Bank of Boston.
Mr. Chairman and Gentlemen of the Convention:
I am glad to be able to present to you this morning the very
strong statement of condition of this bank, at the close of business
November 6, which you see before you. It is one of the strongest
statements ever made by any bank in the Federal Reserve System. It
shows a reserve of 85.6 percent.

CONDENSED STATEMENT OF CONDITION
RESOURCES
Close of
Business
Nov. 7,1928

Gold
Other cash
U.S. Government Securities
Bankers' acceptances
Rediscounts
Checks in process of collection
Banking House
Other assets
Total resources

Close of
Business
Nov. 6, 1929

$215,468,305
23,912,756

$299,797,447
32,316,520

6,887,800
43,420,539
32,474,406

7,077,350
12,514,728
37,546,476

64,627,731
73,889,611
3,701,984
3,824,032
1,178,776
230,709
$390,846,278 $468,022,892

LIABILITIES

Capital paid in
Surplus
Member Banks' reserve
deposits
Deposits of uncollected
checks
Other deposits
Circulation
Other liabilities
Total liabilities




Close of
Business
Nov. 7,1928

Close of
Business
Nov. 6, 1929

149,879,864

154,586,063

56,003,925
4,074,969
150,907,695
1,964,602
$390,846,278

69,797,940
3,277,271
207,349,330
2,602,723
$468,022,892

$ 10,122,050 $ 10,790,700
19,618,865
17,893,173

17

Analyzing it, you will notice that our gold reserves are nearly
$300,000,000 as against $215,000,000 on November 7, 1928; other cash
is $32,316,520 against $23,912,756; United States Government securities $7,077,350 against $6,887,800; bankers' acceptances $12,514,728
against $43,420,539.
Rediscounts at the close of business November 6, 1929, amounted
to $37,546,476 against $32,474,406 last year; checks in process of collection $73,889,611 against $64,627,731; banking house, showing its
usual amortization, $3,701,984 against $3,824,032; other assets, $1,178,776 against $230,709.
On the other side you will notice our capital has been increased,
due to the increase in capital and surplus of member banks, to $10,790,700, against our capital paid in last year of $10,122,050; surplus,
$19,618,865 against $17,893,173; member banks' reserve deposits $154,586,063 against $149,879,864. That indicates an increase in the deposits of our member banks. Deposits of uncollected checks this year
amount to $69,797,940 against $56,003,925; other deposits, $3,277,271
against $4,074,969; circulation of Federal Reserve notes, $207,349,330
against $150,907,695; other liabilities, $2,602,723 for this year against
$1,964,602.
I want to say that in the matter of check collections our schedules
are so nicely balanced that frequently there is less than a million dollars' difference between those two items on the different sides of the
ledger. This difference here is larger than usual on account of the
holiday in New York on Tuesday. Generally speaking, there is less
than a million dollars' difference between our checks in process of
collection on one side and deposits of uncollected checks on the other.
The circulation of Federal Reserve notes outstanding is about
$57,000,000 higher than last year. That is due largely to the demand
incident to the recent change in the size of currency. The new currency was put in circulation on July 10 and, as we did not get a
supply of gold certificates from the Treasury, we were obliged for a
time to put out Federal Reserve notes instead of gold certificates. Our
circulation of gold certificates is therefore smaller and that of Federal
Reserve notes is larger. Our bank's Federal Reserve notes, however,
are virtually gold certificates in themselves, as the gold reserve against
them is 98 per cent.
I am very sorry indeed that our prospective guest of honor and
principal speaker, Senator Carter Glass, is not with us this morning.
He fully expected to be here. I received a letter from him yesterday
morning, dated the day before, saying that he would leave Washington
last night at eight o'clock and would be here this morning. But yes18




terday afternoon I received a telegram from him saying that circumstances had arisen which make it impossible for him to be here. Hon.
Charles S. Hamlin, member of the Federal Reserve Board, who is here
this morning, has brought a letter from him, which I will read.
While Senator Glass is a member of the minority party, he probably is one of the most influential of all the senators in connection with
matters relating to the Federal Reserve System. That is due to the
fact that he was Chairman of the House Committee on Banking and
Currency which put through the original Federal Reserve Act, was
later Secretary of the Treasury, and has at all times shown himself
a most intelligent and consistent friend of the Federal Reserve System.
Senator Glass' letter is as follows:
'' My dear Governor Harding: After writing you yesterday
that I would attempt the trip to Boston, circumstances arose
in the Senate situation here which, added to my physical
disability, seem to make it impossible for me to get away.
All appeals to defer two certain schedules of the tariff bill
in which my State is imperatively interested were unavailing.
These will be voted on today and tomorrow; they are of such
importance to Virginia as to make it exceedingly desirable that
I shall be in my place.
Aside from this, I am just out of a nerve-racking political
campaign, with my voice badly broken and my already somewhat depleted physical condition in great tension. In this
situation I would feel much disquieted in appearing before
a company of precise New England bankers.
With respect to the informal talk which I had genuinely
hoped to make before the member banks of the Boston Federal Reserve District, I merely wanted to indicate to them my
own view, and to seek their concurrence, of the desirability
of so modifying the Federal Reserve Act and the National
Bank Act as to make the Federal Reserve System more attractive to the stockholding banks. It is my purpose to press upon
the attention of Congress the bill which I introduced at the
last session giving to member banks of the Federal Reserve
System a larger participation in the net earnings of the System. The Government has not one dollar of proprietary interest in the Federal Reserve Banks. The only substantive
governmental privilege is the note issue right; and for this
the Government is more than compensated, over and over
again, by the routine and incidental service rendered by the
banks as Government agencies. Apart from this invaluable
routine service, the agencies of the Federal Reserve Banks have




19

been, time and time again, employed in floating Government
securities both of a permanent and current nature. In addition to this, the Federal Reserve System has already paid
into the Federal Treasury earnings vastly in excess of all the
franchise tax received from all the national banks in the
United States for the entire period from the establishment
of the national bank system to the adoption of the Federal
Reserve System. One year alone these earnings aggregated
sixty-two millions of dollars.
For the reasons briefly stated I shall very earnestly press
my proposition for a larger per centage for the member banks;
for unless this should be done and other incentives be applied,
we are certain to continue to lose member banks. In fact,
should the present rate of defection persist, it will soon be a
question as to whether the Federal Reserve System will predominate in the American banking community or yield to
the dangerous and irresponsible holding companies, now already reaching out over the country.
There are other matters which need grave attention, such
as modification of the National Bank Act and the Federal
Reserve Act so as to make it more mandatory, if possible, upon
the administrators of the banking laws to prevent by penalization such disasters in stock gambling operations as have recently disgraced the country. If there are men in the financial
world, as I think undoubtedly there are, who imagine themselves superior to the existing governmental banking system
and who are totally indifferent to the real commercial and industrial interests of the nation, the sooner such men are
restrained and severely disciplined by adequate punishment,
the better will it be for the country. In my view it is the
imperative obligation of the administrators of the Federal
Reserve banking system to assert to the limit the powers which
the laws confer and, in this way, to assert the dignity of a
Federal banking system which was intended to be supreme
within its sphere.
Permit me again to tell you of my distress over my inability to be the guest on Friday of your Association, so that
I might personally elaborate and stress what I have in mind
and also, by word of mouth, express my very great appreciation of the honor implied by your invitation.
Always with cordial regards and best wishes,
Sincerely yours,
CARTER GLASS."
20




We have a very powerful ally in Senator Glass.
I want to remind you of the fact that, although we are just one
corner of the United States, up in the extreme northeastern end,
sometimes resolutions passed at stockholders' meetings like this have
great influence upon legislation. You may recall the meeting of three
years ago when the McFadden Bill was pending in Congress. The
House passed the McFadden bill with the Hull amendment. The
Senate rejected the Hull amendment and there was a disagreement
between the two houses. The bill went to conference. The Conference
Committee could not agree and then the House took a separate vote
to see whether it would be willing to recede from the previous position
and adopt the Senate bill. Your meeting here three years ago passed
a resolution demanding the passage of the McFadden bill without the
Hull amendment. A copy of this action was sent to every New England
Congressman, and the separate vote taken in the House showed a
majority by just the number of the New England delegation.
Now, the passage of the Federal Reserve Act, looking backward,
seems almost a miracle. The original Federal Reserve Act was the
result of compromise. Some things which ought to have been included
were left out. Some things in it perhaps should have been omitted.
But I want to tell you that it is always possible to amend the Federal
Reserve Act. All it needs is intelligent co-operation on the part of the
member banks generally all over the country.
The average Congressman is not a specialist in banking and financial matters—his attention is directed in other ways—and he is
naturally impressed by what he hears from the bankers of the country
in regard to banking matters. The original Federal Reserve Act has
been amended in a great many particulars and up to January 1922,
no amendment to the Federal Reserve Act was made except upon
recommendation of the Federal Reserve Board and every recommendation made by the Federal Reserve Board for amendment to the Federal Reserve Act was concurred in by Congress with the single exception of some recommendations in regard to branch banks. Since
1922 Congress has been more or less of a free lance with respect to the
Federal Reserve Act, but I do not recall that the Federal Reserve
Board has been very persistent in proposing amendments since that
time.
We have with us today a member of the Federal Reserve Board, a
resident of this district, and I hope we can impress on him the reasonableness of what I know you desire. There are some resolutions which
you are going to consider. They strike me as being eminently fair.
In this connection I want to say that we have had the most friendly
co-operation on the part of our member banks, this year particularly.




21

We have had an unusual experience this year. We have run the gamut
from low to high in our reserve position. From the 26th of January to
the 1st of February our reserve was around 52 per cent, the lowest
in the System. Then we began to crawl up until today we are at the
top, 85.6 per cent, over nine points above the next highest and 33
points above the lowest. That is due for the most part to the co-operation of our member banks. We had occasion early in the year to send
them a letter or two, giving them a word of advice or caution, which so
far as we have heard was well received.
But I have noticed a sort of a feeling of unrest on the part of
some of our member banks, due to what they term the expense of
membership in the System. I take it the banks in New England may
have to pay more on their deposits than banks in other sections.
Now, the member banks know that the reserve balances which they
carry with the Federal Reserve Bank yield them no interest. If those
balances were carried with other banks they would get interest. They
inquire why it is that the Federal Reserve Bank cannot pay them interest. I will tell you.
It is because this bank is a reserve bank. You carry on an average
about five per cent of all your deposits as a reserve with this bank.
In the old days a national bank located outside of a reserve or central
reserve city had to carry six per cent lawful money in its own vault, on
which it got no interest. You carry about five per cent with the Federal
Reserve Bank. It would take at least $3,000,000 a year for us to pay
you two per cent interest on your reserve deposits. Ordinarily that is
more than we make. We have had an exceptionally good year this year,
but our total net earnings this year will hardly exceed $2,900,000, or
$3,000,000. That includes a dividend of about $600,000. After paying
the dividend we would still be $600,000 short of enough to pay you six
per cent interest on your reserve deposits.
In order to do that we would have to ask Congress to amend the
law, lose entirely our character as a reserve bank and enter into competition with you. In other words, we might be placed in the position
of saying to your best customer, "Come here and borrow money direct
from us; we will lend you money at four per cent." Do you want to
lose two per cent or three per cent on your best paper for the sake of
getting two per cent interest on five per cent of your deposits ? Figure
it out and see how you stand.
What you want is a reserve bank, something you can call on in
case of need, and something that you can depend on and not a big competing bank, which would be a nuisance.
At the same time, there is a matter of gross injustice which member
banks may call in a temperate way to the attention of the Federal

22



Reserve Board and the Congress of the United States in the hope that
they can get it remedied. The Government, as Senator Glass has pointed
out, has not one dollar of proprietary interest in the Federal Reserve
Bank. The Federal Reserve Bank belongs to its member banks. It is
all right, of course, that the Federal Reserve Banks should be under
very strict governmental regulation, but in other respects they are very
much like the national banks. The national banks operate under Government charters and the Federal Reserve Bank operates under a Government charter, a charter signed in each case by the Comptroller of
the Currency.
The law provides that you may have six per cent cumulative dividends on your stock and requires your Federal Reserve Bank to build
up its surplus and when the surplus reaches a certain point, that is,
after the surplus is equal to the subscribed capital or double the paidin capital, the Government gets 90 per cent of all the rest of the earnings of the Federal Reserve Bank, the remaining 10 per cent going to
surplus.
Every dollar with which the Federal Reserve Bank operates, as
to capital stock, and almost every dollar as to deposits, comes from
the member banks. The Government deposits are small and temporary
in character and their value is far more than offset by the actual outof-pocket expense incurred by the Federal Reserve Bank in acting as
fiscal agent for the Government. Senator Glass has pointed out that
the Government is tremendously compensated for anything it may have
done for the Federal Reserve Banks. The earnings of the Federal Reserve Bank properly belong to you, and I believe if you stand up
for your rights you are going to get them. I know the banks in other
sections of the country feel as you do, and there are other sections
that seem to have more political power than New England.
There is another matter. The. Federal Reserve Act provides that
in the event of liquidation of a Federal Reserve Bank, the member
banks get back their deposits, they get back what they have paid in on
the capital stock, and all the rest of the assets go to the Government of
the United States. Now, we have approximately $10,800,000, paid-in
capital. This bank can only be dissolved by an act of Congress or be
liquidated for violation of law. It cannot be liquidated by vote of the
stockholders. It may continue in business as long as Congress permits;
Congress could put us out of business tomorrow. What I want to point
out is this: In the event of liquidation of this bank, you would get
back approximately $10,800,000. The Government of the United States
would get about $20,000,000. That money, that surplus, belongs to
you; it has been made with money furnished by you, and it has been
made principally by transactions which this bank had with you. That




23

fund is the result of members dealing with this bank. Now, I ask
where is the justice of the great Government of the United States saying that your share in the earnings of your own bank, every dollar of
the stock of which is owned by you, shall be treated in that way, that a
certain amount shall be carried to surplus regardless of whether the
bank needs the surplus or not, and that everything else shall go to the
Government and that in the event of liquidation, all the accumulated
profits and surplus shall go to the Government ? I cannot see it and I
do not believe any Congressman can see it. I believe in the spirit of
right and justice and I believe that is recognized in the halls of Congress.
Let us analyze this situation today. I estimate that we may have
net earnings of approximately $3,000,000 this year. We have already
paid you approximately $300,000 in dividends for the first six months
of this year. In addition, under the present law, you will get $300,000 more in dividends. We must, as the law stands, accumulate a
surplus equal to 100 per cent of our subscribed capital, or $21,600,000
at this time. That means that we shall carry between $1,800,000 and
$2,000,000 to surplus. There is no occasion for carrying $2,000,000
more to surplus. Yet, under the present law, when we pay you a semiannual dividend of $300,000 on the 31st of December, we must carry
at least $1,800,000 more to surplus and pay the remainder or about
$600,000 to the Government of the United States as a franchise tax.
This estimate is of course based upon present capital and earnings, both
of which may change before December 31.
This arrangement regarding the accumulation of surplus does
not work fairly even for the Government. The franchise tax paid to
the Government depends primarily not only on the Reserve Bank's
earnings but also on the proportion of the Reserve Bank's surplus to
its capital. If member banks increase their capital, the capital of the
Federal Reserve Bank increases.
What has been the history of this Government frachise[franchise]tax? Up
to the first of January 1929, the Government of the United States has
received as franchise tax from the Federal Reserve Banks $142,826,000
but those payments have not been at all regular. In 1920 the banks
paid the Government something over $60,000,000; in 1921 they paid
the Government something over $59,000,000; in 1922 and 1923 they
fell off; in 1924 the banks all told paid the Government $113,000; in
1925 they paid the Government $59,000, and last year, although the
total net earnings of the Federal Reserve Banks were over $32,000,000
the Government received a franchise tax of $2,500,000, which was paid
by the six smaller banks in the System. Except for the year 1926, when
it paid $45,000, the Federal Reserve Bank of Boston has paid no franchise tax to the Government since 1923.

24




Last year the net earnings of the Federal Reserve Bank of New
York were over $11,000,000. The amount left after payment of $2,700,000 in dividends was not enough to build up its surplus to the required
amount and consequently it did not pay anything to the Government.
The Federal Reserve Bank of Minneapolis, smallest in the System, made
net earnings of over $600,000 and, because it had a large surplus in
proportion to its capital, it paid a franchise tax of $390,000 to the
Government.
If this proposed amendment had been in effect last year, looking
at it from the Government standpoint, the Government would have
received from the Federal Reserve Banks a franchise tax of about
$6,000,000 instead of $2,500,000. That is a pertinent fact to bring
to the attention of the Congress.
Now I want to refer again to that other provision of the Federal
Reserve Act which provides that, in the event of liquidation of a Reserve Bank, the member banks take the par value of the stock and get
back their reserves. All the rest of the assets goes to the Government.
Take the case of a bank that is considering today whether or not it
shall remain in the System. Such a bank might say, "Our stock is
worth three times what we paid for it, but what is the use of staying
in? All we are going to get is the par value of it. The Government
is going to get the rest.7' If this Act were amended as proposed in
your resolutions, a member bank deciding to withdraw would be getting $50 per share (the paid-in subscription on each share of stock)
for stock having an asset value of $150. By withdrawal, it would accept
one-third of the worth of the stock, abandoning the other two-thirds
to increase the equity of the fellow who stays in. If the proposed
amendment were adopted, it would be an inducement to the member
bank to remain in the System, particularly if it knows there is going
to be an extra dividend from time to time.
It seems to me that your whole proposal is equitable. It would
not require the Reserve Bank to pay you two per cent interest on your
deposits or any rate of interest, but the Reserve Bank would be in a
position to assure you an equitable division of any excess profits made.
That I think is desirable.
There may be from time to time further amendments that might
be desirable. There is the question of reserves. I have no doubt that
all these things can be ironed out in the course of time. I believe that
if you adopt the resolutions before you and put a strong committee to
work on them, you can bring about this change in the law, and I will
pledge you to use every personal effort in that direction.




25

CHAIRMAN HIGHBORN. I am sure you have been more than well
repaid for the attention which you gave to the address of our beloved
Governor, and if we are called upon to divide our affections, for the
third time, the next man must be Charlie Hamlin, of Massachusetts,
and of the Reserve Board, and of everywhere where good men are
known and loved. Will you say a word, General Hamlin?

26



Address of Hon. Charles S. Hamlin, Member of the Federal
Reserve Board.
Mr. Chairman and Stockholders of the Federal Reserve Bank of Boston:
Your Chairman has always in the past referred to me unofficially
as " General." I am not entitled to be designated as such. Personally
I should much prefer to be called "Admiral." I see he at last broke
loose and called me '' Charlie'' and, as this is not to be taken down, I
should say that pleased me most of all.
I cannot tell you what a pleasure it is to come on from Washington and attend this annual meeting of stockholders. When I first received your invitation I was afraid—because of circumstances I need
not now narrate to you—that it would not be possible to come, but
on reflection I really felt that a request from this body to appear before it was really a command. But it was a command which it was
a great pleasure to obey, and here I am.
I want to tell you how Governor Young regrets that he can not
be here this morning. He had it all arranged but at the last moment
he felt that, under existing conditions, he ought to stay in Washington.
I am sure you will sympathize with him in that feeling.
Governor Harding has told you also the deep regret of Senator
Glass that he was unable to come here. He takes the very deepest
interest in this bank and in its officers, and from his letter you will
see that he is in perfect sympathy with what I believe to be your wish
as to the amendment of the Federal Reserve Act.
I can only say that to me it is a real pleasure to come here. I
really feel at home. One day last week our Board was in session all
day long; we did not even adjourn for lunch, but I ate two apples
from my Mattapoisett farm, and there was something about the flavor
that suggested this good old district, and I was happy. That was
all the lunch I needed.
The Federal Reserve System has piloted our financial craft
through two major crises in the fifteen years, more or less, of its
existence. The first crisis, as you know, was the world war crisis. That
crisis carried to suspension, and almost to destruction, practically
every monetary system of the world except that of the United States.
And that kind of crisis was not dreamed of by the Congress which
enacted the Federal Reserve Act.
Having established a system to promote sound banking in the
United States, to supply credit where credit was needed, we soon
found ourselves, like Atlas, with the whole credit structure of the
world practically resting on our shoulders. How well that burden was




27

maintained by the Federal Reserve System, history alone can tell, but
I think the verdict already has been rendered, that our success in going through that terrible crisis of inflation and of destruction, was
due not only to the relatively strong economic position of the United
States but in large part to the magnificent manner in which the crisis
was handled by the Federal Reserve Banks.
Then came the current crisis, in the throes of which we are now,
and we are facing the terrible collapse of inflated security values.
At the same time the surprising fact will stand forth in history, that
throughout this crisis money was freely available to agriculture and
industry. There was, to be sure, an extra cost, but it was freely
available.
The credit demands of course increased enormously and it necessitated an increase in one week in the member bank reserves of $275,000,000, or ten percent. I think we can easily see that if that crisis
had overtaken us without the Federal Reserve Act and the Federal
Reserve System we might have had one of the greatest panics in the
world's history.
The present crisis through which we are passing is typical of
the kind of crisis that the framers of the Federal Reserve Act had in
mind. The Act was designed to prevent the close dependence or interdependence of American industry upon speculative activity throughout the community. Industry, of course we know, is closely affiliated
with the security markets. It is the security markets that fix the
going price of capital in the United States. It is through the security
markets that most of our capital must be obtained or marketed.
We sought to avoid the regularly recurring sequence of events
leading to financial panics that seemed to be part of the regular
order in former days but, fortunately, is not part of the regular
order of today. The Federal Reserve System was designed to break
up the vicious circle under which a speculative orgy accompanied every
forward step of industry and would drag with it in its collapse the
very prosperity on which it was based.
The success of the Federal Reserve System is apparent today. In
spite of the collapse of a speculative movement of such huge proportions the business elements of the country look with perfect confidence
to the future. Readjustments will have to be made. They always have
to be made. The return to reality of inflated hopes may be reflected
in a diminished demand for some luxuries. The real losses of small
traders whose credulity exceeded their knowledge will undoubtedly
impose privations in many cases among our people. These events are
deplorable, but they were of course inevitable and could not have been
avoided. Their effects, however, will be largely, I believe, confined to
those who made the foolish venture.
28




The Federal Reserve System for over two years has pursued a
firm policy against the further increase of credit to the security markets. Today business remains sound with credits readily available
to all trade and industry where there is a genuine need for credit
accompanied by sound assets. For once the effects of a speculative
collapse will, it is believed, be confined largely to those who took the
risks and sought to participate in the outcome.
I believe that when history records this crisis through which we
have gone, it will be the consensus of judgment that the Federal Reserve System has brought about soundness in our banking system
and that it has operated for the greatest good of the greatest number
of our people.
I want to state again the pleasure it has given me to come here
before you this morning. I want to repeat, what I have said over and
over again, my confidence and admiration in your executive officers,
in the chairman of your Board, Mr. Curtiss, and in the splendid work
of that great banker, Governor Harding, your Governor. I want to
tell you what confidence we have in your Board of Directors. They
are sound, conservative, able men. You have a splendid organization
here. I am proud indeed that I come from New England, the seat
of this Federal Reserve Bank, and I want you to feel that the Federal
Reserve Board looks with the deepest gratification upon the splendid
work which your bank has performed during this major crisis.
The boards of directors in the other districts throughout the system have also behaved wisely and conservatively. Occasionally you may
hear rumors of differences between a board of directors and the Federal Reserve Board. You will, I am sure, appreciate that sometimes
the action of one Federal Reserve Bank has far-reaching effects over
the whole country, and that our Board has to consider the country as
a whole, but between our view of the good of the country as a whole
and the good of the particular Federal Reserve District, any little
difference that there may be is cleared up in a few moments of heartto-heart conference.
Again I want to thank you for this opportunity, and I can only
say that every year, at the beginning of the year, I put down in my
diary a note to remember the meeting of the stockholders of the
Federal Reserve Bank of Boston. You speak with force; you have great
influence, and I hope that out of your deliberations today will come
a resolution with which I need scarcely say I have the deepest sympathy. I hope that out of this meeting we may have a resolution that
will meet all of our hopes and all our desires. I thank you. [Applause.]
CHAIRMAN HICHBORN. Governor Harding has already expressed
his personal regret that Senator Glass is not able to attend this meet-




29

ing. The Chair also will take opportunity to express to the Senator,
with whom he has a delightful personal acquaintance, the great regret of the meeting that he was not able to be here.
You were notified, I think, in advance, that lunch would be served
by the Federal Reserve Bank, at which we would be guests, at one
o'clock, but we have an abundance of time at our disposal now, and
the Chair is going to take the liberty of changing the program, somewhat, and move it ahead; so that instead of taking the recess now,
we will get rid of some of that part of the program that would have
come afterwards, and if you will all move your appointments ahead
thirty minutes,—our luncheon being moved ahead to 12 :30 instead of
one,—the Committee on Resolutions will move its meeting ahead thirty
minutes, and we can get through the meeting after recess in time so
that all of us who are going east on the Pine Tree, and you who are
going west on some other train, will have abundance of time to reach
the train. I apprehend there will not be a long session after recess.
In the first place, to get rid of this underbrush of one kind or another.
You remember at the meeting last year, Resolution No. 1 referred
to a proposed change in Section 5219 U.S.R.S., in the matter of taxation
of banks, and you instructed your Advisory Committee to take whatever steps might be necessary to impress your feelings upon the Committee of Congress, and you authorized us to employ counsel to carry
out your wishes. But, inasmuch as this organization has no treasury
and no treasurer upon whose private funds we can draw, it did not
seem a very easy thing for us to employ counsel; because we have
found that counsel, unlike the rest of us, do not work for nothing.
The Chair was instructed to see what he could do under the circumstances; and he found that the Massachusetts National Bank Association had employed Mr. Philip Nichols, one of the recognized
authorities in this country in the matter of taxation, to appear before
the Committee at Washington. It seemed to us that it would possibly
strengthen Mr. Nichols' hands if he appeared as representing all of
New England, that is, every member bank in New England,—rather
than simply those of one State. The Massachusetts National Bank
Association was entirely willing for us to associate him with us. Mr.
Nichols felt that it would strengthen him; and so we were generous
enough to allow Mr. Nichols to appear in Washington as representing
this entire New England membership. We felt that so far as Resolution No. 1 was concerned we had been a success in our conduct of the
case.
As to Resolutions No. 2 and No. 3, in regard to the continuation
of the circulation of the national banks. We passed, at our meeting last

30




year, you will remember, a very strong resolution, condemning the
proposition of retiring the national bank circulation. The Advisory
Committee caused to be printed and sent copies of that resolution to
all the Senators and Representatives from the New England States.
I do not know what returns you got, but so far as my State was concerned, our Senators and Representatives replied to me, "We will
stand with you." That is the way we have of doing down in Maine.
There is no politics among us, but we stand together.
You also directed us to take up the matter of amending Section
19 of the Federal Reserve Act so that no reserves would be required
on postal savings deposits. We did. We caused inquiry to be made
as to the attitude of the Federal Reserve Board upon that proposition.
We received an adverse report. Inasmuch as the Federal Reserve
Board appeared to be opposed to the change suggested, we did not
think it was necessary to stir it up. It was a small matter anyway.
We had more important things to come up and we thought it best to
let the subject rest.
In the matter of the maturity on short-term notes given by the
member banks to the Federal Reserve Banks, making a minimum of
seven days on the fifteen days' paper, we took up the subject with the
Federal Reserve Board and they agreed with us, and replied to the
effect that no such minimum would be incorporated in the regulations.
The only other matter that you referred to us was that of the
division of the earnings of the Federal Reserve Banks, upon which we
have very definite views, all of us. The present injustice in regard
to this seems apparent to all of us, and you instructed your Advisory
Committee to take what action they deemed wise in the premises. You
instructed your Chairman to appoint a committee of not less than
three to make an investigation of the subject and report at this meeting. Acting on your instructions the Chairman appointed a special
committee consisting of Hon. Channing H. Cox, Vice President of
The First National Bank of Boston, Mass., Chairman; and Messrs. A.
M. Heard, President of The Amoskeag National Bank, Manchester,
N. H.; E. A. Onthank, President of The Safety Fund National Bank,
Fitchburg, Mass.; A. R. Plant, President, Blackstone Canal National
Bank, Providence, R. I.; and T. M. Steele, President of The First National Bank and Trust Company, New Haven, Connecticut. They have
considered the matter and I am pleased at this time to ask Governor
Cox in person to present his report and—if he thinks it necessary—
to justify it by any argument that occurs to that active and virile
brain.




31

Report of Committee on More Equitable Participation by
Member Banks in the Earnings of the Federal Reserve
Banks, by Hon. Channing H. Cox, Committee Chairman.
I sympathize heartily in your desire to clean up the rubbish and
underbrush, and I shall try to be as brief as possible.
It is needless to say that any committee appointed by the stockholders of this Federal Reserve District would be apt to take the
officials of the Reserve Bank into their confidence. We have done
so, and I think Governor Harding has made a far clearer and better
report of the matters we were to investigate than the combined efforts
of the Committee could present to you. He has stated the reasons
which have prompted us to offer the resolution which will later be
considered by the Committee on Resolutions. In addition to what he
said, your Committee was greatly impressed as we came to find the
number of banks located in this district which are not members of the
Reserve System. For instance, today there are in Connecticut 49
banks with total assets of over $200,000,000, which are eligible for
membership; in Maine, 42 banks with total assets of $171,000,000; in
Massachusetts, 65 banks, with total assets of over $325,000,000; in
New Hampshire, 10 banks with total assets of over $25,000,000; in
Rhode Island, four banks with assets of over $22,000,000, and in Vermont, 31 banks with assets of more than $76,000,000.
Then, too, there are other non-member banks which would be
eligible under the 60 per cent clause, with assets of more than $48,000,000.
In other words, while the total assets of the member banks today
are $3,190,000,000, there are banks in the district which would be
eligible for membership whose total assets are $870,000,000. That is a
very large percentage of eligible banks which have not become members. Evidently the principal reason why they have not become
members or have failed to retain their membership was, as Governor
Harding has said, the element of expense. Already four large institutions that were once members of the Reserve System, have withdrawn,
and at the time of their withdrawal their total assets were over $65,000,000.
Now, as a result of our investigation, which was really made by
Governor Harding and Mr. Curtiss and the officials of the district
bank, we have presented the resolution which will go to the Committee
on Resolutions. I think it carries out in every way the principles
which Governor Harding advocated before us this morning. I will
not read it, but it provides in brief that we would seek an amendment
to the Federal Reserve Act which would provide that after payment

32




of a six per cent cumulative dividend to the stockholders, the remaining net earnings of each Federal Reserve Bank shall be distributed
as follows: 25 per cent of such earnings to the United States as a
franchise tax, 50 per cent of such earnings to member banks, and 25
per cent of such earnings to the surplus of such Federal Reserve Bank
until such surplus shall amount to 100 per cent of the subscribed capital
of each Federal Reserve Bank.
In the case of our district bank, as has been indicated, where we
have not only a surplus equal to our paid-in capital but almost equal
to our subscribed capital, if such a law were in effect this year the
earnings coming to the member banks would be very considerable,
which would be very welcome to all of the member banks.
The other provision of the resolution calls for a distribution of
any surplus, in case of liquidation, to the member banks rather than
that it should go to the Government.
When we come to consider the matter of the justice of our claim
that we should have a larger division of the profits, it would only be
fair to call attention to the fact that not only does the Government
receive a really great amount in the way of earnings from a bank in
which it has no investment but in addition, all the time the Federal
Reserve System is performing fiscal duties for the Government which
at any reasonable rate of compensation would cost millions of dollars.
I anticipate that the Committee on Resolutions may desire to make
a further explanation when it reports the resolution, as we hope it
will. [Applause.]
CHAIRMAN HICHBORN. YOU have heard the report of the special
committee.
[On motion duly seconded, it was voted that the report be accepted.]
This report will automatically go to the Committee on Resolutions,
which will report immediately after lunch.
There is nothing else on our program but general discussion, save
two or three minor matters, and then the announcement of the election of the Chairman of the Advisory Committee for the ensuing year,
to come up after lunch.
The luncheon having been moved ahead half an hour and the meeting of the Resolutions Committee having been moved ahead half an
hour, of which please take notice, our coming together will also be
moved ahead half an hour, so that instead of reconvening at three
o'clock we will reconvene at 2:30. Then we will have an abundance of
time for general discussion. If anybody wants to take up any germane
propositions we will give him all the time he needs.




33

MR. LIBBY. I would suggest that the Resolutions Committee meet
in the conference room at 1:15.
CHAIRMAN HICHBORN. The Chairman of the Resolutions Committe[Committee]suggests that the Committee meet in the conference room
1:15 instead of 1:45. Please take note of that,—in the conference
room at 1:15.
Will you get back here as promptly as you may after lunch, so
that we can assemble not later than 2 :30 and begin our short afternoon 's work?
If there is anything that might come up after lunch which someone would like to bring up now, instead of taking 15 minutes to stretch
your legs—which you want to do, I know,—we will take them up now,
but I think you better adopt the stretching process and adjourn until
2:30 sharp. Shall we recess?
[A recess until two o'clock was suggested by several of the delegates and on motion duly seconded, it was voted that a recess be taken
till two o'clock.]
MR. LIBBY. I am not sure that would give the Resolutions Committee time enough.
CHAIRMAN HICHBORN. The Chairman of the Resolutions Committee feels that between the time of picking chicken bones and the
time they would have to report there might not be time to take care
of the resolutions if you meet as early as that.
MR. LIBBY. The Resolutions Committee does not want to miss
anything, you know.
CHAIRMAN HICHBORN. I am sure it will not miss any part of the
lunch.
The Secretary says there will be sufficient time after luncheon for
the Committee meeting. We will meet at two o 'clock.
[Whereupon a recess was taken till 2 P.M.]

34




AFTERNOON SESSION.
CHAIRMAN HICHBORN. Will the convention please come to order ?
Will the gentlemen in the rear of the hall kindly come in and take seats ?
Is the Committee on Resolutions ready to report?

REPORT OF COMMITTEE ON RESOLUTIONS.
By Mr. H. F. Libby, Committee Chairman.
Your Committee has attended to its arduous duties and is ready
to report. In view of the discussion which we have had here I think
the resolutions submitted by the Committee on a more equitable participation by member banks in the earnings of the Federal Reserve
Banks are thoroughly understood, having been printed and distributed
in advance of the meeting and carefully presented by the Governor this
forenoon. Therefore, your Committee simply recommends the passage
of those resolutions.
CHAIRMAN HICHBORN. YOU have heard the report of the Committe[Committee].Is it your pleasure to accept the report?
[On motion duly seconded, it was voted that the report of the
Resolutions Committee be accepted.]
It is a vote.
Is it your pleasure now to adopt the resolutions as presented
by the Committee?
[On motion duly seconded the resolutions were adopted.]
[The following are the resolutions which were thus adopted.]
Whereas the continuance of the functions and services of the Federal Reserve System is of vital importance to the commercial, agricultural, industrial and banking interests of the country and such
services cannot be furnished in an adequate and dependable degree
unless the membership of commercial banks and trust companies, which
furnish all the capital and practically all of the deposits of the Federal Reserve Banks, is maintained and encouraged, and,
Whereas some banks and trust companies have felt compelled,
because of the cost of membership, to withdraw from membership in,
or to remain out of, the System, and
Whereas the present distribution of the earnings of the Federal
Reserve Banks is inequitable to member banks in that proper recognition is not given to their contribution to the resources and earnings of
the System; and such distribution is at the same time unfair to the
Government because of the provisions of the existing law for the accumulation of surplus, the further rapid accumulation of which is no
longer necessary as a safeguard for the operation of the System,




35

Now therefore be it resolved that the member banks of the First
Federal Reserve District favor an amendment of Section 7 of the
Federal Reserve Act to provide that after expenses have been paid or
provided for and a six per centum cumulative dividend has been paid
to stockholders, the remaining net earnings of each Federal Reserve
Bank shall be distributed as follows-—twenty-five per centum of such
earnings to the United States as a franchise tax, fifty per centum of
such earnings to member banks and twenty-five per centum of such
earnings to the surplus of such Federal Reserve Bank until such surplus shall amount to one hundred per centum of the subscribed capital
of such Federal Reserve Bank, any portion of such twenty-five per
centum which shall not be needed for the creation of such one hundred
per centum surplus to be distributed to the member banks, and
Resolved further that we favor an amendment of said Section 7 so
that in the event of the dissolution or the liquidation of a Federal Reserve Bank, any surplus remaining, after the payment of all debts and
obligations of every description, shall be distributed among the stockholding member banks in proportion to the capital stock held by each
of them in such Federal Reserve Bank, and
Resolved further that, believing that an amendment such as proposed herein would recognize more equitably the contributions of the
member banks to the Federal Reserve Banks and the interest of the
Government in their operation, the member banks of the First Federal
Reserve District respectfully petition the Congress to amend the Federal Reserve Act accordingly, and
Resolved further that the Chairman of this Convention be instructed to send a copy of these resolutions to each Senator and Representative in Congress from New England.
The resolution provides that the chairman of this meeting shall
cause a copy of these resolutions to be transmitted to each member of
the Congressional delegation from New England and that will be done,
together with any added words that may be deemed necessary on the
part of the chairman, to the effect that he personally hopes that the
New England delegation will get busy.
Governor Harding wants to say one word to you before we take
up general discussion.
GOVERNOR HARDING. Gentlemen, I just want to make one point
clear that I overlooked this morning.
We have net earnings up to date, for the year, of $2,602,000. Let
us estimate that at the end of the year that figure will be about $3,000,000 of which, as I outlined before, you have already received about
$300,000 and will receive as much more in dividends; a franchise tax
36




would be paid to the Government, after carrying $1,800,000 or more
to surplus in order to bring our total surplus up to 100 per cent of
subscribed capital or about $21,600,000. It does not make any difference to us whether our surplus is $21,600,000 or $21,000,000. I merely
want to point out that if the law were amended as suggested in your
resolutions, we could pay you on December 30, instead of $300,000,
approximately $1,500,000, which would represent the semi-annual dividend of $300,000 and $1,200,000 besides. That would mean five times
as much as you will receive for the second half year, under the present
law, or, adding in the dividend already paid for the first half of the
year, three times the present return on the stock for the year, while the
payment to the Government as franchise tax would not be affected. It
would be about $600,000 in either case. [Applause.]
CHAIRMAN HICHBORN. I am sure, Governor Harding, that we who
partook of your repast upstairs will already conclude that we have got
one extra dividend this year out of you.
The floor is now open for general discussion. Is there anybody
present who desires to address the convention? There is nothing cut
and dried about this affair. If you have anything to say, the opportunity is freely given.
MR. LIBBY. This will not be a proper motion for you to put, but
the Secretary may put it.
I move that we give a rising vote of thanks to the Chairman for
the able and dignified manner in which he has conducted the affairs
of this meeting.
[The motion was carried.]
CHAIRMAN HICHBORN. That is very gracious, gentlemen.
MR. RUSSELL. I think it has been usual at these meetings and
apparently has been overlooked today, to offer our thanks to the Federal Reserve Bank and its officers for the hospitality which they have
extended to us in this meeting, and I offer such a resolution at this
time.
CHAIRMAN HICHBORN. I assure you it had not been overlooked;
it was still on the program, but we had not gotten to it. There might
be something more we wanted them to do for us, and we did not want
to thank them until we got through.
MR! RUSSELL. I am sorry. I withdraw the motion.
CHAIRMAN HICHBORN. We will take matters in order, so they will
not be confused.
.
Heretofore the Federal Reserve Bank has printed the proceedings
of the convention, I presume they will do so again if they understand




37

it is the desire of the convention that they shall do so. Is it your desire
that we ask the Federal Reserve Bank to print the proceedings in
order that they may be kept in permanent form?
[On motion duly seconded it was voted that the officials of the
Federal Reserve Bank of Boston be asked to have the proceedings of the
1929 meeting printed.]
It is a unanimous vote.
Now, Mr. Russell moves that the thanks of this convention be
tendered to the officers and directors of the Federal Reserve Bank for
their courtesies extended to us during this session.
[The motion was carried.]
It is a unanimous and earnest vote.
This completes the prepared program. Only one thing is left.
That is the announcement of your present Chairman that he has
filled the term of one year which custom has allotted to the Chairman
and it becomes his duty now to turn over to his successor the trust
which you reposed in him. It is with some degree of pride that I
extend my thanks to you. There is some pleasure in thinking even
of the little I have done; but it is a greater pleasure to transfer this
trust to one of the very best known and one of the ablest bankers in
New England. I am privileged now to present him to you, in the
person of Mr. Florrimon M. Howe, President of the Industrial Trust
Company, of Providence. [Great applause.]

Remarks of Chairman-Elect Florrimon M. Howe.
That is quite an introduction. It is rather embarrassing. All I
can say is that you had some experience with me fifteen years ago,
and it is quite flattering that you are willing to try it again. I wish I
could say that I will do as well as your present Chairman. Anyhow,
I will try.
CHAIRMAN HICHBORN. There remains now nothing except the singing of the doxology. Mr. Hiram Ricker, will you please lead?
Mr. Ricker pretends that he is no singer, but he has sung a good
many songs in my ear in the last 20 years, and he is generally correct
both as to pitch and tune; because he is one of our really big men,
not only of Maine but of New England. I thought it would be fine
if we had him up here singing, " Thank God From Whom All Blessings Flow."
[Whereupon, on motion duly seconded, it was voted to adjourn
without date.]

38




LIST OF REPRESENTATIVES FROM MEMBER BANKS WHO
REGISTERED AT STOCKHOLDERS' MEETING
NOVEMBER 8, 1929
Boston
Arthur P. Stone, Vice-President
Arnold Whittaker, Vice-President
Richard F. Churchill, Assistant Cashier
Olney S. Morrill, Assistant Cashier

Atlantic National Bank

Beacon Trust Company
Day Trust Company

L. A. Haskell, Vice-President
A. S. Nelson, Vice-President

W. D. Clark, Jr., Vice-President and Treasurer

Engineers National Bank
Exchange Trust Company

T. M. Ragan, President
Robert E. Fay, Vice-President
John J. Martin, Jr., Vice-President

Federal National Bank

Daniel C. Mulloney, President

First National Bank

B. W. Trafford, President
Channing H. Cox, Vice-President
George W. Hyde, Vice-President
Charles F. Mills, Vice-President
Edwin R. Rooney, Vice-President
Merchants National Bank
Robert D. Brewer, President
Carl J. Swenson, Vice-President
William B. Coy, Asst. Vice-President
W. F. Burdett, Assistant Cashier
National Rockland Bank William B. Carolan, Assistant Vice-President
National Shawmut Bank
William F. Augustine, Vice-President
R. E. Chambers, Vice-President
New England Trust Company
Edward B. Ladd, Vice-President
John W. Pillsbury, Treasurer
Francis B. Lothrop, Assistant to President
Old Colony Trust Company
James C. Howe, Vice-President
Llewellyn D. Seaver, Vice-President
Second National Bank
Herbert E. Stone, Cashier
State Street Trust Company
Charles F. Allen, Vice-President
David E. Hersee, Vice-President
United States Trust Company
Frederick W. Stockman, Vice-Pres.
Webster and Atlas National Bank
Raymond B. Cox, President




39

Massachusetts
ABINGTON

Abington National Bank

William S. O'Brien, President
ADAMS

First National Bank
Greylock National Bank

W. W. Wilson, Cashier
Frank Hanlon, Cashier
AMHERST

First National Bank

E. W. Elwell, Cashier
ANDOVER

Andover National Bank

Chester W. Holland, Vice-Pres. and Cashier
ATHOL

Millers River National Bank

Walter M. Hunt, President
ATTLEBORO

First National Bank

Frederick G. Mason, Vice-President
AYER

First National Bank

C. A. Normand, Cashier
BARRE

Second National Bank

Clyde H. Swan, Cashier and Director
BEVERLY

Beverly National Bank

Edward S. Webber, Vice-Pres. and Cashier
BROCKTON

Brockton National Bank

Clarence R. Fillebrown, President
Francis C. Stacey, Vice-President
CHELSEA

National City Bank

Samuel R. Cutler, President
COHASSET

Cohasset National Bank

Ralph H. Cahouet, Secretary
Edward R. Hastings, Jr., Director

Concord National Bank

C. Fay Heywood, Vice-Pres. and Cashier

CONCORD

DEDHAM

Dedham National Bank

Ralph W. Redman, President
G. Gordon Watt, Vice-President
EAST CAMBRIDGE

Lechmere National Bank

40




Fred B. Wheeler, President
C. W. S. Wheeler, Cashier

Massachusetts
EVERETT

Everett National Bank

E. Leroy Sweetser, President
FAIRHAVEN

National Bank of Fairhaven

George B. Luther, President
FALL RIVER

B. M. C. Durfee Trust Company
Fall River National Bank

John S. Brayton, President
John C. Batchelder, Vice-President
F. E. Bemis, Cashier

FALMOUTH

Falmouth National Bank

E. K. Dean, Vice-Pres. and Cashier
Sumner Crosby, Director
FITCHBURG

Safety Fund National Bank
Worcester County National Bank

Elmer A. Onthank, President
F. W. Holden, Vice-President

FRANKLIN

Franklin National Bank

J. E. Barber, Cashier
GARDNER

First National Bank

Amasa B. Bryant, President
Marcus N. Wright, Cashier
GLOUCESTER

Cape Ann National Bank

J. Hollis Griffin, Asst. Cashier

GREAT BARRINGTON

National Mahaiwe Bank

J. H. Lansing, President
GREENFIELD

First National Bank & Trust Company

John W. Smead, President

HAVERHILL

Essex National Bank
First National Bank
Haverhill National Bank

Harold M. Goodwin, Vice-President
C. E. Dole, President
Herman E. Lewis, President
John A. Towle, Director
HOLYOKE

Park National Bank

John M. Henderson, Cashier
HOPKINTON

Hopkinton National Bank

H. E. Corwin, Cashier
HUDSON

Hudson National Bank




Fred H. Fosgate, Cashier

41

Massachusetts
LAWRENCE

Bay State National Bank

Philip L. Wheeler, Cashier
John A. Perkins, Director
H. L. Sherman, President
A. C. Dame, Treasurer

Merchants Trust Company
LEE

Lee National Bank

Frank J. Diamond, Cashier
LENOX

Lenox National Bank

George A. Mole, President
LEOMINSTER

Leominster National Bank
Merchants National Bank

Fred A. Young, President
John M. McPhee, President
LOWELL

Appleton National Bank
Middlesex National Bank
Old Lowell National Bank

Stanley A. Griffin
James E. O'Donnell, President
John L. Robertson, President
J. M. Andrews, Vice-President
John F. Sawyer, President

Union National Bank
LYNN

Central National Bank
Manufacturers National Bank

Roger L. Currant, Cashier
Walter M. Libbey, President
Earle I. Foster, Cashier
MALDEN

First National Bank
Second National Bank

Arthur W. Walker, Vice-President
Bartholomew F. Griffin, Director
MANSFIELD

First National Bank

Justin L. Cobb, President
Ira C. Gray, Cashier
William H. Bannon, Director
Fred W. Brigham, Director
MARLBORO

First National Bank
Peoples National Bank

George E. Greeley, Cashier
S. R. Stevens, President
MEDFORD

First National Bank
42




John Dean Corley, Cashier

Massachusetts
METHUEN

Methuen National Bank

Edward F. Byrnes, Director
MILFORD

Home National Bank
J. Allen Wallace, Cashier
Milford National Bank and Trust Company
Victor W. Collier, President
MILLBURY

Millbury National Bank

R. W. Brigham, Cashier
NEEDHAM

Needham National Bank

I. J. Davis, Cashier
NEW BEDFORD

First National Bank

Louis W. Tilden, Asst. Cashier
Stanley Kendrick, Asst. Cashier
Edmund H. Leland, President
William S. Cook, President

Merchants National Bank
Safe Deposit National Bank

NEWBURYPORT

First and Ocean National Bank
Merchants National Bank

J. H. Balch, Jr., Vice-President
L. S. Finger, Vice-President
Norman Russell, Director
William Ilsley, President
Charles W. Goodwin, Director
Jerome A. Hardy, Director
Henry B. Trask, Director

NEWTON

Newton National Bank
Newton Trust Company

Thomas Weston, President
Seward W. Jones, President
NORTH ADAMS

North Adams National Bank

William H. Pritchard, President

NORTH ATTLEBORO

Manufacturers National Bank

John L. Thompson, President
Ernest C. Mulvey, Cashier

NORTH EASTON

First National Bank of Easton

George C. Barrows, Cashier

NORTHFIELD

Northfield National Bank

William F. Hoehn, President
NORWOOD

Norwood Trust Company




Walter F. Tilton, President
Hon. James A. Halloran, Vice-President
Roland K. Bullard, Treasurer

43

Massachusetts
ORANGE

Orange National Bank

Frank A. Howe, President
Franklin H. Gath, Cashier
PALMER

Palmer National Bank

Louis J. Brainerd, President
PEABODY

Warren National Bank

Harry E. Trask, Cashier
PITTSFIELD

Agricultural National Bank
Clark J. Harding, Cashier
Pittsfield-Third National Bank and Trust Company
Malcolm W. Lehman, Vice-President and Cashier
PLYMOUTH

Old Colony National Bank
Plymouth National Bank

George L. Gooding, President
Edward R. Belcher, President
PROVINCETOWN

First National Bank

Horace F. Hallett, Vice-Pres. and Cashier
QUINCY

National Mount Wollaston Bank
Quincy Trust Company

George F. Hall, Cashier
Herbert E. Curtis, President
George H. Lowe, Jr., Director

READING

First National Bank

Walter S. Parker, President
Clarence C. White, Cashier
SHELBURNE FALLS

Shelburne Falls National Bank

Frank S. Field, Cashier
J. L. R. Brown, Director

SPRINGFIELD

Springfield Chapin National Bank and Trust Company
E. J. Wheeler, Vice-President
Third National Bank and Trust Company
Frederick M. Jones, President
STOCKBRIDGE

Housatonic National Bank

Ralph E. Heath, President
TAUNTON

Machinists National Bank

William 0. Kingman, President
TOWNSEND

Townsend National Bank
Blackstone National Bank
44



C.B. Willard, President
H.C. Bridges, Cashier

Massachusetts
WALTHAM

Waltham Trust Company

Clifford S. Cobb, Vice-President
WAREHAM

National Bank of Wareham

John C. Makepeace, President
J. W. Whitcomb, Cashier
WATERTOWN

Union Market National Bank

John F. Tufts, President
WEBSTER

First National Bank
Webster National Bank

William A. Cash, Cashier
L. H. Tiffany, President
J. C. Buffum, Cashier
WELLESLEY

Wellesley National Bank

B. W. Guernsey, Director
WESTBORO

First National Bank

E. H. Bigelow, Cashier
WESTFIELD

First National Bank
Hampden National Bank

C. E. Avery, Cashier
C. J. Little, President
WEST NEWTON

First National Bank of Newton

Charles E. Hatfield, President
Clifford R. Eddy, Vice-President

WHITMAN

Whitman National Bank

Randall B. Cooke, Cashier
E. W. Hunt, Director
WINCHESTER

Winchester National Bank

Edwin M. Nelson, Cashier
WOBURN

Tanners National Bank

Walter H. Wilcox, President
A. Herbert Holland, Director
John C. Buck, Vice-President
Sidney M. Price, Cashier
L. Waldo Thompson, Director

Woburn National Bank

WORCESTER

Worcester Bank & Trust Company
John E. White, President
Worcester County National Bank
Walter Tufts, President
H. R. McIntosh, Assistant to President
WRENTHAM

National Bank of Wrentham

Charles B. McDougald, Cashier

YARMOUTHPORT

First National Bank of Yarmouth




Thomas S. Crowell, Cashier
45

Maine
AUBURN

National Shoe & Leather Bank
Parker B. Smith, Vice-President and Cashier
AUGUSTA

First National Granite Bank

C. S. Hichborn, President
BATH

Bath National Bank

F. D. Hill, Cashier
BETHEL

Bethel National Bank

Ernest M. Walker, President
Ellery C. Park, Cashier
BIDDEPORD

First National Bank

A. F. Maxwell, Vice-President
BRUNSWICK

First National Bank

Samuel L. Forsaith, Cashier
William H. Farrar, Asst. Cashier
CALAIS

Calais National Bank

Percy L. Lord, President
CARIBOU

Caribou National Bank

John B. Roberts, President
DAMARISCOTTA

First National Bank

Leon A. Dodge, Cashier
ELLSWORTH

Union Trust Company

Omar W. Tapley, President
PARMINGTON

First National Bank

A. L. Wolcott, Assistant Cashier
FORT FAIRFIELD

Fort Fairfield National Bank

Tom E. Hacker, President

FORT KENT

First National Bank

Paul D. Thibodeau, President
GARDINER

National Bank of Gardiner

H. M. Lawton, Cashier
David Bowie, Director
HOULTON

Farmers National Bank

R. H. Britton, Cashier
KEZAR FALLS

Kezar Falls National Bank
46




William A. Garner, President
0. L. Stanley, Cashier

Maine
LEWISTON

Manufacturers National Bank

Hiram W. Ricker, yice-President
E. B. Parker, Cashier
NORWAY

Norway National Bank

Fred E. Smith, Cashier
PITTSFIELD

Pittsfield National Bank

H. F. Libby, Cashier
PORTLAND

Canal National Bank

William W. Thomas, President
Widgery Thomas, Director
Charles G. Allen, President
Ralph A. Bramhall, Vice-President

Portland National Bank

PRESQUE ISLE

Presque Isle National Bank

Carl A. Weick, President
ROCKLAND

North National Bank
Rockland National Bank

E. F. Perry, Cashier
Homer E. Robinson, President

Rumford National Bank

Edward S. Kennard, Vice-Pres. and Cashier

RUMFORD
SANFORD

Sanford National Bank
Sanford Trust Company

Eugene M. Hewett, Cashier
Thomas W. Wallace, Treasurer
SEARSPORT

Searsport National Bank

W. R. Blodgett, Cashier
THOMASTON

Georges National Bank
Thomaston National Bank

Charles M. Starrett, Assistant Cashier
J. Walter Strout, Cashier
VAN BUREN

First National Bank

John J. Plourde, Vice-President
WATERVILLE

Ticonic National Bank

John Ware, Director
New

Hampshire
BERLIN

Berlin National Bank

M. H. Taylor, Cashier
TOLEBROOK

Colebrook National Bank
Farmers and Traders National Bank




Earl P. Wadsworth, Cashier
H. B. Hallett, Cashier

47

New Hampshire
CONCORD

First National Bank
Mechanicks National Bank
National State Capital Bank

Burns P. Hodgman, President
Carl H. Foster, Vice-Pres. and Cashier
Harry H. Dudley, President
I. Reed Gourley, Cashier
DERRY

First National Bank

H. J. Curtis, Cashier
DOVER

Strafford National Bank

Frank R. Bliss, Cashier
EXETER

Rockingham National Bank

F. W. Peet, Cashier
FRANKLIN

Franklin National Bank

A. L. Smythe, Cashier
HANOVER

Dartmouth National Bank

Perley R. Bugbee, President
KEENE

Cheshire National Bank
Keene National Bank

W. R. Porter, Cashier
Wallace L. Mason, President
LACONIA

Laconia National Bank
Peoples National Bank

William F. Knight, President
George P. Munsey, President
LAKEPORT

Lakeport National Bank

Louis Hallas, Asst. Cashier
LANCASTER

Lancaster National Bank

H. A. Moore, Vice-President
W. H. McCarten, Cashier
MANCHESTER

Amoskeag National Bank
First National Bank
Manchester National Bank
Merchants National Bank

Arthur M. Heard, President
Marston Heard, Assistant Cashier
Harold A. Holbrook, Cashier
N. S. Bean, President
E. B. Stearns, Vice-Pres. and Cashier
H. L. Additon, Vice-Pres. and Cashier
MILFORD

Souhegan National Bank

F. W. Sawyer, President
NASHUA

Indian Head National Bank
Second National Bank

48




Walter L. Barker, Cashier
Ernest J. Flather, Director
Lester F. Thurber, President
George F. Thurber, Vice-President

New Hampshire
NEWMARKET

Newmarket National Bank

Arioch W. Griffiths, Vice-President
PLYMOUTH

Pemigewasset National Bank

Dr. George H. Bowles, President

PORTSMOUTH

First National Bank

J. A. Borthwick, President
R. W. Junkins, Vice-Pres. and Cashier
P. B. Brooks, Director
F. A. Gray, Director
W. M. Norton, Director
C. H. Walker, Director
New Hampshire National Bank
W. C. Walton, President
John W. Emery, Vice-President
SOMERSWORTH

Somersworth National Bank

E. A. Leighton, Cashier
TILTON

Citizens National Bank

Charles E. Smith, Cashier
WILTON

Wilton National Bank

George G. Blanchard, President
H. P. Parker, Cashier
John K. Whiting, Director
David Whiting, Director
WINCHESTER

Winchester National Bank

James S. Kellom, Cashier
WOLFEBORO

Wolfeboro National Bank

Ernest H. Trickey, President
WOODSVILLE

Woodsville National Bank

H. B. Knight, Cashier

Vermont
BARRE

Peoples National Bank

W. C. Johnson, Jr., Vice-President
BELLOWS FALLS

National Bank of Bellows Falls

Walter B. Glynn, President
Edmond C. Bolles, Cashier

BENNINGTON

County National Bank
First National Bank




Homer H. Webster, Cashier
Arthur J. Colgan, Vice-President
49

Vermont
BETHEL

National White River Bank

Christopher N. Arnold, Cashier
BRADFORD

Bradford National Bank

C. A. Haskins, Cashier
BRANDON

First National Bank

George H. Young, President
F. W. Briggs, Cashier
BRATTLEBORO

Vermont-Peoples National Bank

Charles G. Staples, Cashier
C. L. Stickney, Assistant Cashier

BRISTOL

First National Bank

Frederick R. Dickerman, President
BURLINGTON

Howard National Bank

F. H. Shepardson, Director
CHESTER

National Bank of Chester

C. O. Fullam, Director
ENOSBURG FALLS

First National Bank

Arthur J. O'Heare, Cashier
ISLAND POND

Island Pond National Bank

T. C. Dale, Director

MANCHESTER CENTER

Factory Point National Bank

.

W. H. Roberts, Cashier

MIDDLEBURY

National Bank of Middlebury

Peter J. Hincks, Cashier

MONTPELIER

First National Bank
Montpelier National Bank

A. G. Baton, Cashier
L. H. Bixby, Vice-President
NEWPORT

National Bank of Newport

J. B. McCarten, President
F. R. Sherman, Director
ORWELL

First National Bank

D. L. Wells, Cashier
POULTNEY

Citizens National Bank
First National Bank
50




George H. Norton, Cashier
J. B. Holmes, Cashier

Vermont
PROCTORSVILLE

National Black River Bank

Henry L. Drugg, President
RANDOLPH

Randolph National Bank

M. M. Wilson, President
RICHFORD

Richford National Bank

A. L. Esty, President
RUTLAND

Central National Bank
Killington National Bank
Rutland County National Bank

Fred C. Spencer, Cashier
A. C. Hughes, Cashier
R. D. Smith, Cashier

ST. ALBANS

Welden National Bank

Harold P. Ledden, Assistant Cashier
ST. JOHNSBURY

Merchants National Bank

J. F. Puffer, Cashier
VERGENNES

National Bank of Vergennes

E. W. Graves, Cashier

WHITE RIVER JUNCTION

First National Bank

Everett J. Eaton, Assistant Cashier
WINDSOR

State National Bank

W. J. Saxie, Cashier
WOODSTOCK

Woodstock National Bank

Henry C. Cushing, President

Rhode Island
ARCTIC

Centreville National Bank of Warwick
Everett W. Whitford, President
NEWPORT

Aquidneck National Exchange Bank and Savings Co.
Peter. King, President
William H. Langley, Director
James T. O'Connell, Director
T. T. Pitman, Director
Newport National Bank
William A. Leys, Director




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Rhode Island
PROVIDENCE

Blackstone Canal National Bank

Albert R. Plant, President
Charles H. Merriman, Director
Industrial Trust Company
F. M. Howe, President
Mechanics National Bank
Shirley Harrington, Cashier
National Bank of Commerce
Henry L. Wilcox, President
Phenix National Bank James E. Thompson, Vice-President & Cashier
Rhode Island Hospital Trust Company George H. Capron, Secretary
Union Trust Company
Walter F. Farrell, President

Connecticut
ANSONIA

Ansonia National Bank

Frederick W. Davis, Assistant Cashier
BRISTOL

Bristol American Bank & Trust Company
William P. Calder, President
DERBY

Birmingham National Bank

Byron W. Wheeler, Assistant Cashier
HARTFORD

Capitol National Bank & Trust Company Calvin C. Bolles, Cashier
First National Bank
James W. Knox, President
Robert A. Boardman, Vice-President
Phoenix State Bank and Trust Company
A. D. Johnson, Vice-President
Charles A. Lillie, Vice-President
LITCHFIELD

First National Bank

Albert W. Clock, Assistant Cashier
MERIDEN

Meriden National Bank

Harris S. Bartlett, President
MIDDLETOWN

Central National Bank
First National Bank

Howard H. Warner, President
E. Dudley Butler, President
Elton E. Clark, Cashier
Guy Cambria, Auditor
George W. True, Director
Middletown National Bank and Trust Company
Francis A. Beach, President
Allen W. Holmes, Assistant Cashier
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Connecticut
NEW BRITAIN

City National Bank
New Britain National Bank
New Britain Trust Company

Paul K. Rogers, President
W. H. Judd, Cashier
W. E. Attwood, Chairman of Board
NEW HAVEN

First National Bank and Trust Company
Thomas M. Steele, President
Warren M. Crawford, Cashier
Merchants National Bank
Carl F. Hauser, Assistant Cashier
New Haven Bank
Abel Holbrook, Vice-President
Second National Bank
Eugene G. Allyn, Vice-Pres. & Cashier
Elton T. Perkins, Assistant Trust Officer
NEW LONDON

National Bank of Commerce

Earle W. Stamm, Vice-Pres. & Cashier

NEW MILFORD

First National Bank

Robert E. Murphy, Cashier
NORWICH

Uncas-Merchants National Bank

Henry F. Powers, President

PLANTSVILLE

Plantsville National Bank

Edward L. Sullivan, Cashier

SOUTH MANCHESTER

Manchester Trust Company

R. LaMotte Russell, President
Harold C. Alvord, Treasurer
TORRINGTON

Torrington National Bank

John H. Seaton, President
WALLINGFORD

First National Bank

Frederic M. Cowles, President
WATERBURY

Waterbury National Bank

F. W. Judson, President
WILLIMANTIC

Windham National Bank




H. C. Lathrop, President
Arthur I. Bill, Director

53