19341102_Minutes.pdf

3372

A meeting of the Executive Committee of the Federal Reserve

Board ras held in - ashington on Friday, November 2, 1934, at 12:40

p. in.

PRESENT: La.. Thomas, Vice GovernorMr . Hozal inMr. MillerMr. Szymczal:

Mr. lorrill, Secretary

Mx-. Miller stated that he had been advised over the telephone

by Governor Harrison of the Federal Reserve _,ank of New York that he

vas sending a telegram to the Board in regard to certain expected

shipments of gold from Belgium to this country; that the currencies

of four European countries are under pressure, and particularly the

Belgian franc; that gold is being released to support the Belgian ex-

changes and gold is being shipped to New York; and that pending de-

livery of the gold the National Bank of Belgium desires to obtain a

temporary advance from the Federal Reserve Bank of New York so that

the Belgian bank can begin at once to sell exchange against it. In

order to do this it was understood, Mr. Liner said, that an equivalent

azIcunt of gold would be earmarked in Belgium for the account of the

Federal Reserve Bank of New York.

It rus observed that similar authority had beengranted on other occasions in the past and the ViceGovernor was authorized, upon receipt of the tele-gram from Governor Harrison, to approve on behalfof the Board advances up to amounts not exceeding25,000,000 outstanding at any one time.

Reference was made to the request received from 1.x. ,,a14,er

Liehtenstein, Secretary of the Federal Advisory Council, under date of

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

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October 17, 1934, for a list of such topics as the Board might desire

to suggest for the consideration at the meeting of the Federal Ad-

visory Council to be held on November 19-20, 1934.

It was agreed to be the sense of the meetingthat no topics should be submitted to the Counciland that the transmission to the Council of a com-munication on this subject should be deferred forthe time being.

The following telegram to the Federal reserveagents at all Federal reserve banks was approvedunanimously:

"Ruling No. 34 interpreting Regulation T. The Federal Re-serve Board has been requested to reconsider its rulings numbered16 and 27 interpreting Regulation 1, wherein it held in effectthat credit may not be extended on unregistered securities inconnection with bona fide cash transactions for the limitedperiods and subject to the terms and conditions specified insection 6 of the regulation. On reconsideration the Board isof the opinion that extensions of credit on unregistered securi-ties for the limited periods and subject to terms and conditionsSpecified in section 6 of Regulation T, may be permitted mhensuch extensions of credit are incident to bona fide cash trans-actions in such securities. The Board, therefore, now rulesthat section 6 should be interpreted as applying to bona fidecash transactions in unregistered, non-exempted securities aswell as to bona fide cash transactions in registered non-exemptedsecurities and the Board consequently revokes rulings numbered16 and 27."

Upon motion by Mr. Miller the following let-ter to the "First National Bank in Greensburg",Greensburg, Pennsylvania, was approved unanimously:

"The Federal Reserve Board has given consideration to yourapplication for permission to exercise fiduciary powers, andgrants you authority to act, when not in contravention of Stateor local law, as trustee, executor, administrator, registrar ofstocks and bonds, guardian of estates, assignee, receiver, com-mittee of estates of lunatics, or in any other fiduciary capacityin which State banks, trust companies or other corporationsWhich come into competition with national banks are permittedto act under the lama of the State of Pennsylvania, tho exerciseof all such rights to be subject to the provisions of the Federal


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"Reserve Act and the regulations of the Federal Reserve Board."The Board feels that, if you are tendered any of the

trusts now held by The First National Bank and Trust Company ofGreensburg, you should carefully scrutinize their condition andshould not accept any of such trusts which, through their as-sumption, may be detrimental to the interests of your institu-tion.

"Inasmuch as the application of the First National Bank inGreensburg was made prior to the date the Comptroller of theCurrency authorized it to commence business, you are requestedto have your board of directors adopt a resolution ratifyingyour application for permission to exercise trust powers, anda certified copy of the resolution so adopted should be for-warded as soon as possible to the Federal Reserve Agent at theFederal Reserve bank of Cleveland, who will forward it to theFederal Reserve Board. Ydien a copy of such resolution has beenreceived by the Board a formal certificate covering your author-ity to exercise trust powers will be sent to you."

The attention of the meeting was called to a memorandum from

Mr. James, dated October 2, 1934, regarding minutes of a meeting of

the System Committee on Legislative Program held in Washington on

September 22, 1934, with special reference to the criticism by Er.

James of certain statements appearing on page 2 of a memorandum pre-

Pared by Professor Williams in regard to a decrease in the total

amount of bank deposits. The matter was discussed and no action was

taken.

The Committee then considered and acted upon the following

Matters.

Letter dated November 1, 1934, from Er. Roelse, Assistant

Secretary of the Federal Reserve Bank of New York, and telegram dated

Novotber 1, 1934, from Er. Sargent, Secretary of the Federal Reserve

Barik of San Francisco, both advising that, at meetings of the boards

or directors on that date, no changes were made in the banks' existing


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schedules of rates of discount and purchase.

without objection, noted with approval.

L'emoranc:um dated October 25, 1934, from Ia.. Wyatt, General

Counsel, recommending the renewal, at a cost of %:100, of the Board's

subscription to the Congressional service regarding banking and cur-

rency matters furnished by the Corporation Trust Company for the

forthcoming session of Congress which commences on Thursday, January

3, 1935.

Approved.

Letter to hr. Neuton, Chairman of the Federal Reserve Bank

of Atlanta, reading as follows:

"The Federal Reserve Board notes with regret from your let-ter of October 31, 1934, the death on that date of 1;x. HughFoster, Lanaging Director of the Jacksonville branch of theFederal Reserve Bank of Atlanta. It will be appreciated ifyou will express the sympathy of the members of the Board toMr. Foster's family and to his colleagues on the board of direc-tors of your Jacksonville branch."

Approved.

Letters to the boards of directors of the following named

State banks, each letter stating that, subject to the conditions pre-

scribed in the letter, the Board at-Troves the bank's application for

membership in the Federal Reserve System and for the appropriate

ezlount of stock in the Federal Reserve bank of the district in which

the applicant is located:

Applicant Bank Federal Reserve Bank

0Peoples Bank of Evans hills",

Evans Lills, New York.Irst State Bank of Greenville",

Greenville, Michigan.

New York

Chicago

Approved.


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Letter to Lr. ':;alsh, Federal Reserve Agent at the Federal

Reserve Bank of Dallas, reading as follows:

"Reference is made to your letter of October 22, 1934,relative to the application of 'The Farmers and :derchantsState Bank', Turkey, Texas, for membership in the Federal Re-serve System.

"It is noted that the 'Farmers • Lechanics Trust Company',Childress, Texas, holding company of The Farmers and 1,:erchantsState Bank, Turkey, Texas, has decided to withdraw its applica-tion for a voting permit and to adopt the alternative courseof disposing of its holdings of the bank's stock prior to thedate of the next annual election of the bank's directors. Inthe circumstances and in vievrof the Board's letter of Septem-ber 12, 1934, in which you were advised that the First NationalBank, Childress, Texas, does not appear to be a subsidiary ofthe Farmers L Lechanics Trust Company within the meaning ofthe provisions of Regulation P, the Board will give no furtherconsideration to the voting permit application, and it will beappreciated if you will advise the Farmers (..; Mechanics TrustCompany accordingly.

"In accordance with your recommendation the Board willdefer further action upon the application of The Farmers andMerchants State Bank for membership until after the terminationof the holding company relationship, and it will be appreciatedif you will advise the bank accordingly.

"It is noted that the examination of the bank in connec-tion with its application for membership mas made as of May 29,1934. In view of the time that has elapsed since the date ofthe examination it is felt that a current report of examination,preferably subsequent to the termination of the holding companyrelationship, should be submitted when reconsideration of theapplication for membership is requested."

Approved.

Letter to Lr. Walsh, Federal Reserve Agent at the Federal

Reserve Bank of Dallas, reading as follows:

"Receipt is acknowledged of your letter of October 16,1934, inclosing a copy of a brief opinion of the ,Assistant At-torney General of the State of Arizona to the effect that aState member bank located in Arizona may not, under the laws ofthat State, deposit securities in its trust department to securetrust funds deposited in its banking department. You calledattention to the fact that the Southern Arizona Bank and TrustCompany of Tucson, Arizona, is subject to a condition of mem-bership requirin; that institution to deposit securities in its


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"trust department to secure trust funds deposited in its bank-ing department to the same extent as is required of nationalbanks exorcising trust powers; and, in view of the opinion ofthe Assistant Attorney General, you recommended that no actionbe taken with regard to the failure of the Southern Arizona Bankand Trust Company to comply with the condition of membershipreferred to.

"Before the Board takes any action in this matter, you arerequested to furnish the Board with advice from the counsel foryour bank as to whether he concurs in the opinion of the As-sistant Attorney General of the State of Arizona with a state-ment of the reasons upon which the opinion of your counsel isbased. It will also be appreciated if, after consideration ofthis matter with your counsel, you will advise the Board as towhat safeguards, if any, are provided by the laws of Arizona forthe protection of trust funds held by a State bank and depositedin its banking department."

Approved.

Letter dated ITovember 1, 1034, approved by five members of

the Board, to the governors and Federal reserve agents at all Federal

reserve banks, reading as follows:

"During the meeting of Chairmen and other representativesof the Industrial Advisory Committees in 'Washington on September27, 1934, there was a discussion of the status of the committeesand their relations with the Federal reserve banks under the in-dustrial credit act. A. brief digest of this discussion is con-tained in the summary statement which was sent to you with theBoard's letter, of Cctober 2, 1934.

"Az you know, Congress, in establishing the Industrial Ad-visory Committees, provided that each member should be activelyengaged in some industrial pursuit within the Federal reservedistrict in which the committee is established; that each appli-cation should be submitted to such committee; and, after examina-tion by it of the business with respect to which the applicationis made, that the application should be transmitted to the bankwith the recoEullendation of the committee.

"Az the enactment of this new legislation was based uponthe belief that there were many established business enterpriseswhose needs for working capital had not been met by banking in-stitutions, it was evidently the expectation of the Congressthat establishment in each district of a body composed of care-fully selected industrialists mould bring to bear in the firstinstance upon the problem submitted in each application the kind


339811/2/34 -7-

"of independent judgment that would be most appropriate for thedetermination of the question whether the loan desired could bemade on a sound and reasonable basis notwithstanding the risksand uncertainties that might have deterred banks from =kingsuch loans.

"It is important, therefore, in order to carry out the ob-vious intent of the Congress that the Industrial Advisory Com-mittee shall be free to use such means and methods as they maydeem necessary in order to enable them not only to make theexaminations required by the law but to exercise their inde-pendent judgment in making their recommendations to the Federalreserve banks.

"The question has arisen, however, whether the officers ofthe banks, in a spirit of cooperation and a desire quickly toreach harmonious conclusions, may have overlooked the purposeof Congress as to the "precedent and independent position of thecommittees and have attempted to influence the members of thecommittees to adopt views which the officers, in the light oftheir own banking experience, felt should apply to the finaldisposition of the applications. however sound such views mightbe and however commendable the desire to assist, the Board feelsthat it should point out the advisability on the part of the of-ficers of the banks of refraining from any form of action withrespect to the proceedings of the committees which night seemto justify criticisms in the future that the recommendations ofthe Industrial Advisory Committees were reached otherwise thanthrough the exercise of their independent judgment. This ex-pression of the Board's feeling in this matter of course shouldnot be interpreted as restricting in any degree the freedom ofthe committee to call for any assistance that it may need andit is expected that the investigators who prepare data for sub-mission to the committees will include in their reports all per-tinent data that they have been able to gather regarding thecondition, management, etc., of the applicant, both of a favor-able and unfavorable nature, in order that the committees maybe in possession of all the facts which the investigators havebeen able to ascertain."

Approved.

Letter to 1.r. lioxton, Chairman of the Federal Reserve Bank of

hmond, reading as follows:

"As you know, the Federal Reserve Board has made an assess-ment against the Federal reserve banks, which has not yet booncalled, in connection with the new building to be erected initashington to house its operations, and the suggestion has beenmade by i]r. Grayson, Auditor of the Federal Reserve Bank of


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"Cleveland, who audits the accounts of the Board, that a separateaccount be set up on the books of the Federal Reserve Bank ofRichmond through which the building funds mould be handled.

"The Federal Reserve Board has given consideration to thissuggestion and, if agreeable with your bank, desires to adoptthe following procedure which is similar to that in effect atthe present time with regard to the handling of the Board's gen-eral fundss

"Two new accounts mould be established on the books of theFederal Reserve Bank of Richmond, one to be designated 'FederalReserve Board -- Building Account', and the other 'Federal Re-serve Board Fiscal Agent -- building Account'. All of the fundsassessed against the Federal reserve banks by the Board forbuilding purposes and funds received by the Federal ReserveBoard in connection with its building operations mould be de-posited with the Federal Reserve bank of Richmond for credit inthe 'Federal Reserve Board -- Building Account'. Such amountsas were necessary to moot disbursements chargeable to the build-ing account would be transferred from time to time to the 'Fed-eral Reserve Board Fiscal Agent -- Building Account' upon author-ization of the proper officers of the Board in the same manneras the Board's general funds are deposited in the 'FederalReserve Board -- Special Fund' and transferred from that accountto the 'Federal Reserve Board -- Fiscal Agent' account. A copyof the suggested form of requisition to be used in this connec-tion is attached.

"Il'e change would be made in the form of check now beingused, but on all checks dram by the fiscal agent against the'Federal Reserve Board Fiscal _Agent -- Building ccount' mouldbe stamped 'Building Account' with a rubber stamp in the upperleft hand corner and the checks used for this purpose would betaken from a block of higher numbers than the checks now in usein connection with the general expenses of the Board.

"It is also contemplated that a daily statement would besent to the Board by your bank showing the checks paid from the'Federal Reserve Board Fiscal Agent -- Building Account' andonce each month you mould send to the board a statement of thetwo building accounts.

"If the suggested procedure meets the approval of yourbank, it will be appreciated if you will open on your books thetwo new accounts referred to and take any other steps necessaryPreparatory to the transfer by the Federal reserve banks, uponcall by the Board, of the funds assessed for building purposes,and if you will advise the Federal Reserve Board accordingly."

Approved.

Letter to Eessrs. Hughes, Schurman & Dwight, attorneys and


tl3' 0t

11/2/34 -9-

counsellors at law, '.1. ew York, 1;ew York, reading as follows:

"Receipt is acknowledged of your letter of October 23,1934, requesting a further ruling regarding the applicabilityof section 32 of the Banking Act of 1933 to the service of di-rectors of member banks of the Federal Reserve System as direc-tors of the Bond and 1.:ortgage Guarantee Corporation.

"In its letter of Larch 13, 1934, replying to your inquiryof December 22, 1933, the Board expressed the opinion that theprovisions of section 32 were not applicable since it was under-stood that the business of the corporation was confined to the'servicing of mortgages', and that the corporation would notbuy or sell mortgages or issue any policies of insurance orsecurities of any kind.

"It appears from your letter of October 23, 1934, that alarge amount of mortgages against which certificates had beenissued and sold by the old Bond and 1,,,ortgage Guarantee Companyhave been and are being reorganized; that the great majorityof such reorganizations consist in the extension of the maturitydate of the mortgage and a reduction of the interest rate, withthe owner remaining in possession; but that, in a small percent-age of such reorganizations, the existing mortgage is foreclosed,and a new first mortgage in a small amount, called a 'cost mort-gage', is placed upon the premises to provide funds for thepayment of existing taxes and other charges which may be liensagainst the premises. These cost mort-ages are in amounts usu-ally ranging from 31.000 to 35000.

"You state that it would be most advantageous for the cor-poration to sell these cost mortgages and thereby to assist thecertificate holders in readily procuring the money necessaryto secure a clear title to the mortgaged premises. You suggestthat the sale of these cost mortgages by the corporation nightwell be considered as no more than one of the steps necessaryto enforce fully the rights existing under the previous mortgage,and night therefore be regarded as included in the activitiesmaking up the 'servicing' of such mortgages. You also suggestthat the sale of the cost mortgages will constitute such a smallPart of the business of the new corporation that the new corpor-ation should not be regarded as 'primarily' engaged in sellingsuch mortgages within the meaning of section 32. In this con-nection, you point out that, out of 254 reorganization proceed-1s involving mortgages of a principal amount of approximatelyA6,000,000, only 32 have involved the creation of such costmortgages of a total principal amount of less than c'il40,000.

"The facts discussed above indicate that the sale of suchcost mortgages constitutes only a very small part of the busi-ness of the new corporation, and that it is merely incidentalto the servicing of the mortgages previously made. Under thecircumstances, the Board does not believe that the provisions


g

0381

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Hof section 32 of the Banking Act of 1933 are applicable tothe service of directors of member banks of the Federal ReserveSystem as directors of the new Bond and Lortgage Guarantee Cor-poration.

".he facts contained in your letter are not sufficientto form the basis of a conclusion as to whether the cost mort-gages in question are 'securities' of the kind referred to insection 32. however, in view of what has been said above,this question is turmaterial."

Approved.

Letter to ir. Case, Federal Reserve Agent at the Federal Re-

serve Bank of New York, reading as follows:

"There are inclosed the original and copies of a ClaytonAct permit granted to 1.,r. Otto S. Lartin, 155 Lontclair Avenue,Lontclair, New Jersey, to serve at the same time as a directorof The First National Bank of Belleville, Belleville, New Jer-sey, and as director and officer of The Lontclair NationalBank, Lontclair, New Jersey.

"In considering Lr. Lartin's application it was notedthat the report of examination of The First National Bank ofBelleville as at "Lay 8, 1934, shoved that doubtful assets, es-timated losses, and depreciation in securities were approxi-mately v315,700 in excess. of its entire capital structure; thatthe management of the bank was considered unsatisfactory bythe examiner, mho stated that apparently more than incompetencewas responsible for the bank's condition; that the board of di-rectors was largely composed of out-of-town individuals whoapparently had no regard for, nor interest in, local depositors;that the directors apparently left the active management of thebank to Vice President Rung, who displayed no conception ofsound banking practice; that the bank was unsoundly managedand poorly operated, with no trend toward improvement evident;and that any reorganization which would not provide for com-plete elimination of the present directorate and executive of-ficers would be a waste of time, money, and effort. The Boardhas been advised that a plan of rehabilitation of the bank hasbeen under consideration, but that to date the directors havebeen unable and apparently unwilling to raise the requiredamount of local capital. In this connection it was noted thatthe applicant, whose net worth was reputed to be considerablein comparison with that of ,ho other directors of the bank, hasindicated a willingness to contribute only a nominal amounttowards its recapitalization.

"In the circumstances, the Board has been reluctant togrant the permit, but felt that in order to avoid any unnecessary


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"misunderstanding by the communities which might prove detri-mental to a possible rehabilitation of The First National Bankof Belleville, it would be preferable to Grant the permit toMr. Martin, effective, however, only for the period ending atthe close of December 31, 1934.

"When the permit is transmitted to Mr. Martin please callhis attention to the limited status of the permit and informhim that, at the expiration of the present permit the Boardwill give consideration to a new application if he desires tosubmit one in accordance with the Board's Regulation L. Pleasekeep the Board informed of the action taken in this matter.

"Your attention is directed to the Clayton xxt permitgranted in September, 1928, and now in effect, to Li-. ArthurT. Vanderbilt, 790 Broad Street, Newark, New Jersey, to serveat the same time as a director of the Savings Investment 8:Trust Company of East Orange, East Orange, New Jersey, as adirector of The First National Bank of Belleville, Belleville,New Jersey, and as a director of The Livingston National Bank,Livingston, New Jersey.

"In the report of examination of The First National Bankof Belleville as at May 8, 1934, it was stated that Mr. Vander-bilt was insolvent, and, in a letter attached to this report,dated August 20, 1934, addressed to the Loan Agency of the Re-construction Finance Corporation in New York City and writtenby order of the board of directors of The First National Bankof Belleville, it was stated that Er. Vanderbilt had recentlymade a settlement with his creditors on the basis of approxi-mately thirty cents on the dollar, and that, on the present es-timate of Mr. Vanderbilt's earning capacity, it mould requirehim fifteen years to pay off his creditors. It was also statedthat, notwithstanding these facts, Lr. Vanderbilt has obligatedhimself to contribute 1.0,000 toward the proposed recapitaliza-tion of this institution.

"In view of the above indicated status of Mr. Vanderbilt'sPersonal financial affairs, as well as the unsatisfactory condi-tion and management of The First National Bank of Belleville,for which he apparently must share responsibility with Li-.Martin and other directors and officers of this institution,you are requested to make a review of 1:r. Vanderbilt's permitand submit your recommendation regarding its revocation at thistime."

Approved.

Letter dated November 1, 1934, approved by five members of

the Loard, to Mr. Case, Federal Reserve Agent at the Federal Reserve

441: of New York, reading as follows:


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"There are inclosed the original and copies of a Clayton11.ct permit granted to Mr. F. L. Horse, Turner Place, Ithaca,New York, to serve at the same time as a director of The FirstNational Bank of Ithaca, Ithaca, New York, as a director of theIthaca Trust Company, Ithaca, New York, and as an officer anddirector of The First National Bank at Orlando, Crlando, Flor-ida, for transmittal by you to ir. Morse and the three banks,and a copy for your files.

"In considering this application, it was noted that TheFirst National Bank of Ithaca was in poor condition and neededstrengthening both as to management and capital and that thesame held true, although in a lesser degree, of the IthacaTrust Company. The Board suggests that you endeavor, in coopera-tion with the appropriate authorities, to expedite the formula-tion and completion of a program for strengthening the conditionof the banks.

"It was also noted from a recent report of examination ofThe First National Bank at Orlando that the applicant attendedonly 3 of 10 meetings held by the directors of the Orlando banksince its opening in February, 1934. In granting the permit,the Board took into consideration information to the effectthat the applicant is an able and successful business man, thathe owns 35% of the common stock of the Orlando bank and that heexpects to take up his residence in Florida this year and pre-sumably to become more active in the management of the Orlandobank.

"The Board has requested the Federal Reserve Agent atAtlanta to report fully on January 1, 1935, concerning Mr.Norse's participation in the management of the Orlando bcalkand his attendance at its directors' meetings, and to submithis recommendation.

"The Board requests that, in accordance with your sugges-tion, you review the permit on January 1, 1935, and submit yourrecommendation, reporting fully as to the management and condi-tion of the two Ithaca banks involved in this permit and theapplicant's attendance at the meetings of the directors of thetwo banks.

ItA copy of the letter to the Federal Reserve Agent at At-lanta with respect to this application is inclosed for yourfiles."

Approved, together with a letter, also datedNovember 1, 1934, and approved by five members ofthe Board, to Mr. Newton, Federal Reserve Agentat the Federal Reserve Bank of Atlanta, in accor-dance with the above.



338411/2/34 -13-

the Board, to Lr. Case, Federal Reserve Agent at the Federal Reserve

Bank of New York, reading as follows:

"There are inclosed the original and copies of a ClaytonAct permit granted to Li-. A. K. Spaulding, Ithaca, New York,to serve at the same time as an officer of the Ithaca TrustCompany, Ithaca, New York, and a director of The First NationalBank of Trumansburg, Trumansburg, New York, for transmittal byyou to Lr. Spaulding and the two banks, and a copy for yourfiles.

"In considering this application it was noted that in thereport of examination of The First National Bank of Trumansburgas of April 12, 1934, the national bank examiner expressed thebelief that the continuation of Lr. Spaulding's services to thebank would not be compatible with the public interest, that hissalary is not justified crid the domination of the Ithaca inter-ests that assisted in the reorganization of the bank is notbeneficial. In granting the permit, the Board took into con-sideration the fact that the reported condition of the Trumans-burg bank indicates sound management, that Lr. Spaulding wasactive in the reorganization of the bank and is familiar withits affairs and that his services are considered necessaryuntil January, 1935, at least, because of the lack of familiar-ity of the new local management with the bank's affairs.

"The Board requests that you review this permit on January1, 1C35, and submit your recoulmondation as to what action, ifany, should be taken at that time."

Approved.


the Board, to L:r. Williams, Federal Reserve Agent at the Federal Re-

serve Bank of Cleveland, stating that the Board has given considera-

ti°11 to the following application for a permit under the Clayton Act,

elld that, upon the basis of the information before it, feels that

the issuance of the permit applied for would be incompatible with

the Public interest. The letter also requested the agent to corn-

2111111icate to the applicant the Board's position in the matter, and to

ci/lise the Board promptly as to whether the applicant desires to


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submit any additional data, and, if not, as to what steps he proposes

to take in order to comply with the provisions of the Clayton Act.

L:r. George i,:. Laughlin, Jr., for permission to serve at the sametime as a director of The Keystone National Bank in Pittsburgh,Pittsburgh, Pennsylvania, and as a director of the Peoples-Pittsburgh Trust Company, Pittsburgh, Pennsylvania.

the

Approved.


Board, to Lr. Williams, Federal Reserve Agent at the Federal Re-

serve Bank of Cleveland, inclosing the following Clayton Act permit

for transmittal to the applicant; suggesting that the agent advise

the applicant thc,t it is with the expectation that he will attend

regularly directors' meetings of The Keystone National Bank in Pitts-

burgh that the permit has been granted; and requesting that, when the

agent submits his recommendation as a result of his annual review of

the permit, he report fully as to the applicant's attendance at direc-

tors' meetings:

Lr. George P. Rhodes, for permission to serve at the same timeas a director of The Keystone National Bank in Pittsburgh,Pittsburgh, Pennsylvania, and as a director of the FidelityXrust Company, Pittsburgh, Pennsylvania.

Approved.


the Loard, to Lr. Stevens, Federal heserve Agent at the Federal Re-

ser'm Bank of Chicago, reading as follows:

"Reference is made to Assistant Federal Reserve AgentY°11It's letter of October 15, 1934, inclosing a copy of a let-ter dated October 10, 1934, from Lr. Guy O. Babcock, WisconsinRaPids, Wisconsin, submitting further additional information


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relLtive to his application for permission under the provi-sions of the Clayton Act to serve at the same time as directorand officer of The -;bood County National Lank of WisconsinRapids, Jisconsin Rapids, Nekoosa State Lank, Nekoosa, andFarmers Lerchants Bank, Rudolph, all of Wisconsin, rhich wasnot approved by the Board for the reasons set forth in its let-ter to you of July 30, 1934, which action was confirmed, uponreconsideration, as indicated in the Board's letter of Septem-ber 22, 1934.

"The Board has given consideration to the further addi-tional information submitted in accordance with Section V (g)of Regulation L, but still feels that the issuance of thepermit applied for would be incompatible with the public inter-est, and you are requested to advise the applicant of theBoard's decision in the matter.

"In order that its files in this case may be complete,please ascertain and advise the Board as to what steps Lr.Babcock proposes to take in order to comply with the provisionsof the Clayton Act."

Approved.


the Board, to an applicant for a permit under the Clayton Act, ad-

A-sing of approval of his application as follows:

La-. Len Williamson, for permission to serve at the same timeas a director of The Second National Bank of Ashland, Ashland,Kentucky, and as a director and officer of The First NationalBank of 'Williamson, Williamson, West Virginia.

Approved.

There were then presented the following applications for

chaages in stock of Federal reserve banks:

*21.2Etions for ADDITIONAL Stock: Shares

Citizens bank and Trust Company of"ice, Utica, New York 900 900

rjet1:0. 5.j'he l'axa-17-1Unal Bank of Columbia,The

c South Carolina bia, 15'"Pirst National Lank of Ashland,lishland, Virginia 2 17


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Applications for ADDITIONAL Stock: (Continued) Idstrict No. 10.The Colorado Bank 0: Trust Company,

Delta, ColoradoHarlan County Bank,

Alma, NebraskaWahoo State Bank,

Viahoo, Nebraska

cations for SbilrE:,DEdi of Stock:District No. 2. 1110 Peoples Iational Bank of Keuark,

Neuark, ievrJersey

Distrie- No. 4.The Van ,iert National Bank,

Van ';iert, Ohio

District No. 10.The Exchange National Dunk of Osborne,

Osborne, KansasThe First National Bank of Goltry,

Goltry, Oklahoma

%roved:

Shares

1

1

1 3lotal 920

270 270

180 180

45

18 63Total 513

Approved.

Thereupon the meeting adj(Awned.

144 ;ice ,..rovornor.


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19341102_Minutes.pdf