19310321_Minutes.pdf

A meeting of the Federal Reserve Board was held in the office of

tlie Federal Reserve Board on Saturday, March 21, 1931, at 11:3J a. m.

PRESENT: Governor MeyerMr. HamlinMr. MillerMr. JamesYr. PoleMr. McClelland, Assistant Secretary.

PRESENT ALSO: Mr. Hoxton, Federal Reserve Agent atRichmond.

The Board discussed with Mr. Hoxton the request of the McDowell

C°1111ty National Bank in Welch, West Virginia, on which action was deferred

4t the meeting on March 14th, that the Board reconsider its action of

Pebrilary 27th in limiting the exercise of trust powers by that

to such business as may

Q welch,

institution

be taken over from the McDowell County National Bank

Which it was organized to succeed. Mr. Hoxton was advised of the

re48°45 for the Board's policy of declining to aathorize the

efteral trust

eleIllined by

114(1r4ation

11441ille of

(1141atio,- Of interlocking directorates with particular reference to the City

Of w

powers by newly organized national banks until

exercise

they have

of

been

the Comptroller of the Currency, and the desire of the Board for

as to the qualifications of the management of such banks in the

trust business.

At the conclusion of the discussion,

it was voted to request Mr. Hoxton to advise

the McDowell County National Bank in Welch

that the Board does not feel it can grant

full fiduciary powers to the bank at this

time, and that it has therefore voted notto reconsider its action of February 27th.

The Board then discussed with Mr. Hoxton, in a general way, the

48414gton.

4144 tO c.m4,-".'ner, there is no evidence that interlocking directorates

in this

Mr. Hoxton state a that from all information he has been

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4aerv

3/21/30 -2-

1/ clitYare working to the detriment of the public interest.

Hoxton then left the meeting.

The Governor presented to the Board for action the application of

Xr. George A. G. Wood, which was ordered circulated at the meeting on

ebruary 25th, for permission to serve at the same time as a director of

he Atierican Jecurity and 2rust Company and the Linsey Trust Company, both

°2 4ashingto11, D. 0., and also the application of lir. John Saul involving

45.4 service as a director of the American Security and Trust Company and

tlas Lincoln National Bank, also of Washington.

After discussion, during which it wasbrought out that the Board at all times hasauthority to revoke Clayton Act permitspreviously granted if at any time a changein policy should be decided upon, it was,upon motion, voted to approve the applica-tions of—essrs. dood and Saul.

The minutes of the meetings of the Executive Committee of thePea._

Aeserve Board held on !larch 6th, 11th, 12th, 14th, 17th and 19thWere

then approved and, upon motion, the actions recorded therein were

The minutes of the meetings of the Federal Aeserve Board held on

9th and 10th were also approved..

711c Assistant Secretary then presented various matters of business

wsre considered by the Board and acted upon as follows:

Letter dated Li.arch 19th from the Secretary of the Federal eserve

°f ew York and telegram dated :,Iarch 19th from the Chairman of the Federal

e 1/411 of San Francisco, both aavisiAg that their boards of directorslat

4(ahtia::"Ig's on the dates stated, made no changes in the banks' existing

es Of rates of discount and purchase.

Without objection, noted with

approval.Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

3/21/31 '-3-

Letter dated March 18th from the Comptroller of the Currency, advising

" tha appointment of :fl's. Thelma toy, as a money counter in the Federal

lieaerve Issue and Aedemption Division, with salary at the rate of 41,380 per

e4411m, effective April 1, 1931.

Noted with approval.

Letter dated March 20th from the Governor of the Federal Heserve

j144k Of New York, transmitting the regular monthly compilation of the amount

°f short-term funds held in New York for foreign account, agr,regating

12,204,295,000 as of Vebruary 28, 1931.

Noted.

Letter dated March 20th from Deputy Governor Crane of the Federal

4e4el've Bank of New York, advising of the completion of the liquidation of

the ,4Peeial sterling bill account, amounting to approximately b7,200,000,

lieh has been maintained at the Bank of England for the past several months.

Ordered circulated.

Letter dated March 19th from the Governor of the Federal Aeserve

Of i;ew York, requesting approval of the action of the board of

clilleetore of

0, 24euahill,

bellartnlent, at

It 14 "t Proposed

I'l4111 directly

t114 b

Bkik

and

441t's cash

that bank in voting to authorize the employment of Lr. L,yles

now a member of the Jecret Service Division of the Treasury

a salary of 46,500 per annum; Governor Harrison stating that

to give Lr. LcOahill any special rank but that he will

to the senior officers of the bank regarding matters of

procedure relating to the protection and safeguarding of

and securities.

After discussion, upon motion, it was

voted to aDprove the salary fixed by the New

York directors for Mr.


3/21/31

ship in

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Application of the Farmers jtate 3ank, Leridian, 2exas, for member-

the Federal .teserve System and for 15 shares of stock in the Federal

asserve Bank of Dallas, to which was attached a memorandum from Counsel point-

gut that on the basis of losses set up by the Federal Aeserve Examiner

the report of an examination of the applicant bank made on January 15,

1931, the capital of the institution is impaired to the extent of approximately

and that, in his opinion, the bank is not at this time legally

ligible for membership in the system uecause of this impairment of its capital.

It was pointed out that the .ixecutiveCommittee of the Federal Aeserve Bank ofDallas recorm.ends that the Farmers StateBank of -eridian, 10exas, be admitted tomembership, and upon motion, it was votedto refer the application to the Dallas bankfor reconsideration in the light of Counsel'sopinion.

aeport of _;xecutive Committee on memorandum dated Larch 18th fromthe ,

omptroller of the currency, with regard to an application of the rirst

44tioaso nDank of Lacona, iiew York, for permission to reduce its capital from

i5C) onn'--v to v25,000, and immediately thereafter increase the capital back to

*5°1°00 the sale of stock at a premium of 100,0, the amount of the capital

reatIction and the premium on the new stock, along with approximately ,,;10,000

tl‘" Undivided profits, to be used in eliminating from the bank losses aggrega-tini,45,,503;

the .xecutive committee concurring in the recommendation of

the e°111Ptroller that the application be approved, provided the new stock issola

only to those who have knowledge of the use to which the released capital

414 Pli6rni11111 on the new stock is to ue put.

Upon motion, the application was approved

as recomended.


34/21.),31 -5-

Iteport of .r.latecutive Committee submitting draft of letter to the

14/(141%1 Aeserve Agent at Cleveland, with regard to stock in the First

lietional Bank of Wilkinsbarg, Pennsylvania, purchased and held by the Peoples-

Pitteburgh Trust Company, Pittsburgh, Pennsylvania, without first securing

the approval of the Federal Reserve Board, as required by one of the condi-

of membership under which the Peoples Savings and Trust Company, the

151lecleoessor of the Peoples-Pittsburgh Trust Company, was admitted to membership

the Federal Reserve System; the proposed letter (1) advising that in view

of the circumstances, the Board feels that it cannot approve of the memberbtro,

continuing to carry the stock among its assets, and that the Federal

488alive agent should so advise the Peoples-Pittsburgh Trust Company and report

t° the Board what arrangements the member bank will make to divest itself ofeiraerip,4

-AP of the stock, and (2) requesting the Federal Reserve Agent to advisethe ,

Qoard whether the Peoples-Pittsburgh Trust Company is now holding any stockOf

oth r 1,e- -anks acquired by it in violation of its conditions of membership.

After discussion, upon motion, the pro-posed letter was approved and ordered trans-mitted.

Application of the Citizens National Bank of Cicero, Indiana, for1/ertais

84011 to exercise general fiduciary powers; together with a favorablereottorne

ncletion thereon from the Federal Reserve Bank of Chicago, and akernorail

cl4n1 Prepared at the request of Mr. Hamlin, pointing out the slight

4144 it anta 1 examination following which the granting of trust powers was

-7, 10

vement which has taken place in the condition of the applicant bank

Clete rreti

Qa recommendation of the Chicago bank.

Ordered circulated.


3/21/31

i()-6-

Memorandum from Counsel dated March 16th, with regard to stock in

the Depositors state Bank, ehicago, Illinois, held by the affiliated

4positors securities eompany; eounsel auvising that the Depositors Securities

ectliPallY is not awned by the member bank, its

tiltae trustees for tae benefit of all of the

end that accordingly the holding of stock of

the affiliated company does not constitute a

tha Federal Aeserve Act prohibiting a member

its own stock.

stock being held in trust by

stockholders of the member bank,

the member bank in the assets of

violation of the provision of

bank from purchasing or holding

After discussion, upon motion, it wasvoted that no further action be taken by theBoard in the matter.

OP STAND V 0

144°49 Uarch 21st 'Recommending changes in stock at Federal deserve Banks,as set forth in the Auxiliary Minute Book of this date.

Recommendations approved.Waarch 20th Recommending approval of the application of 1.1r. Allen

Kirkpatrick, Jr., for permission to serve at the sametime as a director of the Braddock National Bank ofBraddock, Pennsylvania, as a director of the MonongahelaNational Bank of Pittsburgh, Pa., and as a director ofthe First National Bank of Indiana, Pennsylvania.

Approved.

The meeting adjourned at 12:25 p. in.

VAVOIred;

wAssistant secretary


Ti

AUXILIARY L:INUr2(Larch 21, 1931.)

Aeports of Standing Committee, dated Larch 21st, recommending changesAri stock at Federal Reserve Banks, approved as follows:

tat!1.19ations for SUARENDER. of Stock: 44tional Safety Bank & Trust Co., New York, N.Y.(Decrease in capital and surplus)

4korsernere Trust Company, Palisades Park, N. J.(Insolvent)

District No. 4.4rine National Bank, Ashtabula, Ohio. (V.L.Suc. by

Marine Savings Bank Company)fl.rat National Bank, Jeannette, Pa. (V.L.Abs. byJeannette Savings & Trust Company)

cIrst National Bank, Cherokee, Iowa. (Insolvent)

Dietrict 110. 11.ALI Citizens National Bank, ar1in, Texas. (Cons.vltizens National Bank with the above bank)

41)prov.

Shares

1,115

75 1,190

68

120 188

120 120

105 105Total 1,603

(01W/ft,Assistant Secretary.


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19310321_Minutes.pdf