1936_v23_part 1-6 index.pdf

INDEX TO MINUTES

OF

BOARD OF GOVERNORS

OF THE

FEDERAL RESERVE SYSTEM

1936

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

KEY TO INDEX

Branch Banks, Domestic, FRBanks andForeign, see Branch Banks

Clayton Act Applications, see Inter-locking Directorates

Directors of RBanks and Branchessee Directors

National Banks are listed underheading National Banks

Section 32 of Banking Act of 1933,see Relations with Dealers inSecurities

Securities Exchange Act, see Securi-ties Exchange Administration

State Banks are listed under StateMember Banks, Nonmember Banks,and Membership

Stock of FRBanks and Member Banks,see Stock


INDEX

1936

"A"

A. B. Pimm and Co., loans by banks to intermediaries for purchase

of stocks, reply to FRBank of Boston on in-

quiry of, as to applicability of Regulations

T and UA. E. Mester and Co., reply that securities may not be carried in

two accounts, one subject to 45% margin re-

quirements and one to 55%Abramovitz, Israel, reply re extension of time to answer margin

call under Regulation T, that Board can make

no exception to provisions of RegulationAckerman, Wayland and Mathews, interpretation of Regulation T re-

questedAddresses:

Board members:Bankers association group meetings, invitation of New York

State Bankers Association Group 1 for member

of Board to address, suggestion of Mr. Brod-

erick that such invitations not be accepted,

referred to/tr. Szymczak

Reply to Mr. Davis of New York State Bankers Association

regretting necessity of declining invitation

and suggesting that officer of FRBank of New

York be invited, letter to President Harrison

Invitations, suggestion that it might be desirable to

acceptProcedure suggested by Chairmen Eccles whereby all mem-

bers uould accept, from time to time and there

would be no conflicts of engagements

Broderick, I. A.:National Association of Supervisors of State Banks, report

re informal talk before convention of, on "Co-

operation"

Comptroller of the Currency, before California Bankers Associa-

tion, reply to Mr. Young and advice to FRAgents

re effect on right of member banks under invest-

ment securities regulation to purchase bonds

convertible into stock only at option of holder

FRBanks, over radio, Presidents requested by Mr. Szymczak to

give consideration to

Gardner, Walter, Division of Research and Statistics, banking

situation in Europe, to make before District

of Columbia Bankers Association

Lectures delivered by officers of FRBank of Minneapolis to

staffPeyton, John N., invitation to speak before National Associa-

tion of Supervisors of State Banks, request for

suggestions, to be requested to speak on bene-

fits of membership in FRSystem

Pages

10/14 1880

3/3 489

6/11 1170

5/26 1086

3/31 710

4/ 3 740

2/ 4 296

5/15 1025

9/22 1748

6/ 5 1148

3/16 597

10/13 1875

10/27 1953

8/ 4 1478


2 Pages

Addresses: (Continued)Powell, O. S., advice to, in connection with speech he has been

delivering that it is best to avoid controversialsubjects such as question of increasing reserverequirements

Radford, W. D., radio address, reply of Board re steps it hastaken to supply credit to snail industries

Staff members of Board, re FRSystem, required to be submittedin advance to Mr. Thurston for review and clear-ing with Board

Addressograph machine, graphotype machine, new plates and cabinet,to be used in connection with mailing of FRBul-letin and Par List, purchase authorized

Advertisements:First Federal Savings and Loan Association, Hollywood, that it

is member of FRSystem, letter to Federal HomeLoan Bank Board re

Letter to Mr. Clerk re explanation of, no action to be takenFirst National Bank of Anchorage, Alaska, reply to Mr. Clerk

noting that use of "Member of F.R.System" wasInadvertent and will not be repeated

Advisory Council on Banking of Connecticut: (See Connecticut)Affiliates:

Arrow Coal Corporation, publication of report of, by ColonialTrust Co., Pittsburgh, as of November I not tobe required as error was due to misinterpreta-tion of terms of waiver

Badger State Bank, Milwaukee, Wis., reports of, extension oftime for filing

Clark County National Bank of Vancouver, Wash., may be affil-iate of United States National Corporation,Portland, Ore., and latter may desire to makerequest for determination of own status asholding company affiliate

Condition reports:B. M. C. Durfee Trust Co., Fall River, Mass., failure to

submit, and statement that it will withdrawfrom membership rather than publish, not re-quired to publish under terms of waiver, cer-tain figures should be reported

Waiver of, ruling proposed to be issued by Board re,letter to Comptroller asking his concurrence

Consolidated Land Co., report not subject to waiver, Bank ofHartsville, S. C., not to be required to submitas of November 1

Corporation controlled by president of member bank, RFC ownscontrolling stock in bank which presidentvoted at last election as proxy for RFC, replyto Mr. Wood that it is not affiliate of bank

Deposits of, with Continental Illinois National Bank and TrustCo. of Chicago, reported as "not subject to re-serve", advice to FRBank of Chicago that suchdeposits are subject to reserve

5/26 1087

5/12 1005

2/14 356

1/21 180

8/25 15838/29 1619

8/31 1625

1/27 220

2/ 7 316

3/11 555

10/22 1931

5/21 1064

1/ 4 42

2/20 399

1/17 157


3

Pages

Affiliates: (Continued)Eason-Norwood Co., Lenoir City, Tenn., is affiliate of First

National Bank and appropriate exhibit should

be furnished by Hamilton National Associates

in connection with voting permit application 1/ 4 37

East Liberty Realty Co., additional investment by Dormont Sav-

ings and Trust Co., Dormont, Pa., through pur-

chase of assets of, will increase in excess of

capital, approved 12/ 4 2180

General Assets Co., improperly reported by Farmers and Merchants

Bank, Provo, Utah, now brought within general

terms of waiver 8/28 1608

Harcan Realty Co., letter to .ERBank of Cleveland in connection

with approval of membership application of Geo.

D. Harter Bank, Canton, Ohio, that Sec. 23A is

not applicable to credit extended to 5/ 5 967

Hutchinson Oil and Gas Co., Hutchinson State Bank, Hutchinson,

Kansas, not to be required to publish report

of, as it was unaware of affiliation and it has

now been terminated 3/ 7 534

Liquidating national bank, whose liabilities are practically

discharged, Metals Bank and Trust Company of

Butte, Montana, need not report on condition

report 5/21 1065

Loans to real estate corporations, affiliates of San Jacinto

National Bank, Houston, Texas, on mortgages,

reply to Mr. Walsh re applicability of Sec.

23A 2/17 361

Meadow River Coal and Lumber Co., submission of report by Bank

of Rainelle, W. Va., subject to terms of waiver 1/ 4 42

Morrison Turning Co., Morristown, Tenn., is affiliate of Hamblen

National Bank, appropriate exhibit should be

filed by Hsmilton National Associates in con-

nection with voting permit application 1/ 4 37New England Trust Co., Boston, Mass., condition reports of cer-

tain business trusts, reply to FRBank of Boston

on question of waiver of 12/29 2311

New York Trust Co., New York, N.Y., reports of, reply to Mr.

Gidney that they may not be waived under provi-

sion re holding of stock in fiduciary capacity 6/ 1 1110

Pennsylvania Real Estate Exchange, transactions whereby Exchangeacquires title to foreclosed real estate and

Norristown-Penn Trust Co. charges amount to,

Sec. 23A not applicable to such loans nor to

carrying charges 3/27 696

Realty Investors, Inc., report from Bank of Hartsville, S. C.,

not received until after date of Board's letter,

submission of report as of November I not to

be required 1/ 4 42

Royal Realty Corporation, wholly owned subsidiary of Union Trust

Company of Maryland, request of latter for

amendment to membership condition to relieve

of necessity of publishing loans to, as sepa-

rate item, referred to Mr. McKee 3/25 666Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

4 Pages

Affiliates: (Continued)Royal Realty Corporation: (Continued)

Membership condition of Union Trust Company of Maryland,Baltimore, Md., requiring showing of loans toand investments in, canceled 5/ 5 970

Stock of corporations held by Springfield Safe Deposit Co.,Springfield, Mass., in fiduciary capacity, re-ply to Mr. Gettemy on status as 9/16 1714

Thomas T. Fisher and Co., Inc., letter to FRBank of Richmond inconnection with membership application of UnionTrust Company of the District of Columbia thatbank should not be considered as dealing in-directly in sale of real estate loans through 5/ 5 969

Thornton Laundry and Dry Cleaning Co., relationship to DollarSavings and Trust Co., Youngstown, Ohio, re-vealed by examination, was not realized bybank, and will be terminated 8/24 1573

Toledo Trust Co., Toledo, Ohio, reports of three, reply to Mr.Fletcher re failure to make, but as affiliationhas been terminated, no further question willbe raised

2/18 375Tracy Corporation, reply to Tracy Loan and Trust Co. that organ-

ization is an affiliate and question of publica-tion of reports depends upon applicability ofterms of waiver 1/20 166

Trust Company of Georgia, Atlanta, Ga., investment of trust fundsby First National Bank of Atlanta in securitiespurchased from, reply to Mr. Williams re auestionof violation of Regulation F 9/12 1695

Trust Company of Georgia Associates, Atlanta, Ga.:Plan whereby common stock of Liberty National Bank and Trust

Co. will be purchased by and preferred stock re-tired and sum will be transferred to, from non-book assets of Trust Company of Georgia, no ob-jection 1/31 255

Purchase of stock of Motor Contract Co., not a technicalviolation of Section 5136, R. S., but shouldbe disposed of, as not constituting an invest-ment Trust Company of Georgia could make 3/ 3 491

Stock of Motor Contract Co. (which Trust Company of Geor-gia could not purchase) to be permitted to re-tain 5/ 8 989

Absorption by Trust Company of Georgia, no objection 9/14 1709Trust funds, investment in securities purchased from Trust

Company of Georgia, by First National Bank ofAtlanta, reply to Mr. Williams re question of 9/12 1695

Agencies for depositors:Boyne City Exchange, reply to FRBank of Chicago that it is

not branch of First State Bank of Petoskey,Mich. 10/ 8 1849

Agencies, FRSystem:Havana:

Cuban pesos, payment for and delivery through agency ofsum of, to be coined by Philadelphia mint,no objection to transaction to be arrangedthrough Export-Import Bank 8/18 1538


5

Pages

Agencies, FRSystem: (Continued)Havana: (Continued)

Discontinuance of, resolution of FRBank of Atlanta recom-mending, or formulation of plan for operatingwithout loss, action deferred to permit Mr.Ransom to develop certain information 3/31 709

Consideration, Mr. Ransom unable to give, because ofillness, tabled until September 1, planned tovisit Atlanta FRBank with Mr. Broderick priorto that date 7/15 1364

Guard force, reply to Mr. Parker that Board has no objec-tion to non-replacement of one who died

Alston, A. H., Assistant Manager, salary approved for1936 at reduced rate 1/31 280

Frazer, H. C., Manager, salary approved for 1936 at re-duced rate 1/31 280

Vacation periods for officers and employees 3/24 653

Vaults, use of compartments in, by National City Bank forstorage of surplus silver coin, no objectionproviding FRBank of Atlanta is released fromall responsibility and at any time may resumeuse of 2/20 399

Necessity for continuance, FRBarks surveying, and suggestionthat member of staff of Division of Examina-tions should make such a study 7/ 7 1322

Savannah:Vacation periods for officers and employees 3/24 653Visit of Mr. Broderick, report re 12/ 4 2166

All es, Herbert: (See National banks, First National Bank and TrustCo., Waynesburg, Pa.)

Air conditioning:FRBank of Dallas, expenditure for installation approved 5/ 2 957FRBank of Minneapolis, no objection to entering into contract

for installation of system 11/18 2094Allendoerfer, G. W., President of National Bank Section of A.B.A.:

(See American Bankers Association, Noncash col-lection items)

Altschul, Frank, present at meeting of Board re Regulation U 4/30 929.1verson, Lyle T.: (See National Emergency Council)America Faces Bankruptcy", by H. Parker Willis, letter from Wilson

Chemical Co. re, referred to Treasury for at-tention 9/11 1685

Am erican Bankers Association:Guarantee of signatures on stock certificates by banks, prac-

tice being studied 8/11 1511Noncash collection items, advice from Mr. Allendoerfer that

committee of association is studying questionof requesting FRSystem to cease handling and

suggestion that committee cooperate with simi-

lar committee of Presidents' Conference 8/11 1512


6 Pages

American Bankers Association: (Continued)

National Bank Division, noncash collection items, resolutionthat FRBanks discontinue handling, informationrequested by Mr. Cook to be secured throughPresident Young, Committee on Free Services,previously discussed with Mr. Allendoerfer 10/16 1897-8

Regulation F, amendment to except sales of stock of fiduciarybank to officers, directors, etc., where au-thorized in trust instrument and where fullvalue can be secured only by this method, re-ferred to, for comment 8/ 4 1484

Regulation U, memo of subcommittee re, to meet with Board re,on April 22, Mr. Rounds to be invited and Mr.Parry to discuss with representatives of Se-curities and Exchange Commission 4/17 819

Subcommittee meeting with Board, MB= of, suggesting certainamendments, discussion of 4/22 839

Smith, Tom K., President:Trustees of bond issues, report to Board that Securities and

Exchange Commission is considering remumenda-tion of legislation to control activities ofbanks 11/13 2051

Question raised with Mr. Landis as to attaining of ob-jectives by amendments to Regulation F, state-ment of principles of A.B.A., Mr. Coles to takecharge 11/13 2052

Mr. Smith to discuss with Chairman Eccles, Mr. Ransomto advise latter, with suggestion that he takematter up with Mr. Landis 11/13 2053

Mr. Ransom to confer with Mr. Douglas, copies of ABAstatement and SEC digest to be referred tocounsel for summarization and comment,Ransom may invite Mr. Douglas to meet withBoard 11/25 2123-4

State Bank Division, earnings and expenses of State member banksfor 1935, by States and size of banks, reply toMr. Hanes re data available 6/ 1 1111

Trust funds deposited in banking department, question of waiverof requirement for deposit of security for, toextent such funds are insured, referred to 4/ 8 775

Trust receipts, reply to request of Mr. Djorup for any rules re,made since July 1, 1934, and any suggestions inconnection with study of Uniform Trust ReceiptsAct 8/25 1584

American Bar Association:Federal Administrative Court recommended by Committee of, objec-

tions to, Mr. Wyatt authorized to attend annualmeeting and prepare memo on status and effect ofproposal 8/ 4 1474-7

Report of Mr. Wyatt re attendance and statement that he was pre-paring memo in accordance with action of Board 9/ 1 1628


7

Pages

Annual reports:Board of Governors, 1935:

Approval of, members to transmit any suggestions to Mr.

Goldenweiser and Chairman authorized to trans-

mit report to Speaker of House with any further

revisions that he may approve 1/30 240

American Institute of Accountants:"Examination of Financial Statements by Independent Public Ac-

countants", representing revision of bulletin

reprinted by Board as "Verification of Finan-

cial Statements", reply to Mr. Carey re revision 2/25 423

Revision of "Verification of Financial Statements" prepared

and to be distributed by, advice to FRAgents 3/10 550

Reply to Mr. Broad that Board has discontinued issuance of

"Verification of Financial Statements" and now

American Institute of Banking:

8/18 1540refers requests to Institute

Burgess, W. Randolph, Vice President, FRBank of New York, no

objection to accepting invitation of Mr.

Stonier to conduct course at Graduate School

of Banking next summer 9/11 1682

Conferences, attendance by delegates from FRBanks, leaves of

absence in addition to regular annual leave au-

thorized for 4/16 815

Reply to FRBank of New York that Board's authorization con-templated leave for attendance at Graduate

School of Banking to be in addition to annual

leave 4/28 905

Courses on FRSystem, Presidents requested by Mr. Szynczak to

give consideration to 3/16 596

FRSystem, statement prepared by Mr. Szynczak re participation

in, and support of activities of and on which

recommendations were received from Mr. Park,

referred to Presidents' Conference 10/30 1983

Graduate School of Banking: (See Graduate School of Banking)American Mercury:A__ "America Faces Bankruptcy": (See Readers Digest)4rnerican Retail Federation, Inc., deposits of, reply to Hamilton

National Bank, Washington, D. C., that they

may not be classified as savings accounts 3/21 627

American Telephone and Telegraph Co.:

Contracts with, letter to Mr. J. W. Adams re new form of,

suggesting changes and letter to Federal Com-

munications Commission requesting advice of

future changes in tariffs 12/11 2211-3

Installation of automatic sending equipment between Chicago

and Minneapolis 12/15 2222

New York - Washington wire, request for change in contract to

change from duplex to single wire and to change

three way switch at New York to single switch 6/ 1 1112

Anniston Soil Pipe Co., Anniston, Ala., reply to Representative Sam

Hobbs re refusal of FRBank of Atlanta to accept

application for 3/23 638


8 Pages

Annual reports: (Continued)Board of Governors, 1936:

Retirement system contributions, should be explainedclearly, as to discharge of prior service lia-bility

Salaries of FRBank officers and employees and number of,summary statement requested for inclusion in

MBanks, discontinuance, request of one FRBank for, but to sendsummary annual statement to stockholders, viewsof other FRBanks requested

Arac, Benjamin, reply that most of reports under Sec. 14(g) of FRActand Regulation N are largely confidential, butthat FRBank of New York might be able to offersome assistance

Arnold, M. A., reply re five questions raised as to interpretationof Regulation U

Articles:"America Faces Bankruptcy", by H. Parker Willis:

McCorzby, James C., Wilson Chemical Co., Tyrone, Pa., letterfrom, referred to Treasury for reply

Yeager, C. S., reply re statement of, re no metallic backingfor currency in circulation

"Common Sense Perverted", article in Bergen Evening Record,reply to Bergen County Bankers Associationthat Board believes Association has necessaryinformation to combat misinformation and thatit is not advisable for Board to attempt toanswer such articles specifically

illiBanks, preparation of, Presidents requested by Mr. Szymczakto give consideration to

Los Angeles Times, editorial stating that banks may secure 100%of face value of Government bonds in currencyfrom FRBank

Willis,H. Parker: (See supra "America Faces Bankruptcy")Articles of incorporation, amendment re number of directors, reply

to Mr. Thomas, in connection with inquiry ofNebraska Banking Department, that change recom-mended for Deuel County State Bank was a sug-gestion, not a requirement

Assessments on RBanks for Board's expenses:

Building, letter to FRBanks and letter to Mr. Leach, callingfor part of unpaid assessment

FRBank of Cleveland, reply to Mr. Strater that assessmentsshould be charged to profit and loss, but noobjection to carrying in expense account untilend of year

Resolution levying, including sum for new buildingResolution levying, including sum for new buildingSec. 13b surplus, reply to request of Governor Seay for recon-

sideration of inclusion in capital and surplusfor purposes of Board's assessment

Assets, fair value: (See Determination)Associated Business Papers: (See Committees, Direct Loans)

12/30 2332

11/23 2113

12/17 2229

7/15 1372

5/13 1012

9/11 1685

10/14 1883

10/27 1954

3/16 597

8/ 7 1505

5/27 1099

4/23 858

1/31 2676/22 1210

12/30 2330

4/4 755


Auditors Conferences: (See Conferences)Audits:

Board's accounts:Addition to Board's budget authorized to reimburse audi-

tors of FRBank of Cleveland forProcedure for, letter to Mr. Burke re making of three

each year, and continuing audits by FRBank

of Cleveland for another year, and re reim-

bursement of costs of auditsReport re, reply to Mr. Grayson re and approving suggestion

that only three audits a year be madeAyers, Leake: (See National banks, First National Bank of Gates-

ville, Texas)

"B"

Bailey, H.C.: (See National banks, Hartford National Bank andTrust Co., Hartford, Conn.)

Bank debits statement, release time changed from "Sunday morning"to "immediate" upon request of Chicago DailyNews

Bank for International Settlements:Advances against gold for foreign central bank requested under

authorization of Board of November 28, 1934, Mr.Sproul requested for further details

Opinions of Mr. Goldenweiser and Mr. Gardner that transac-tion should be approved, question of FederalOpen Market Committee action need not be con-sidered, question of entering in policy record

Mr. Eccles and Mr. McKee offer no objection by telephone,transaction approved and to be submitted toTreasury (which did not object)

Amendment to FRAct tentatively proposed to make clear that memberof Board of Governors may serve as director

Directors, report of Chairman re call of Mr. Fraser on desireof President Trip for American directors, sug-gesting that Chairman, his nominee or anothermember of Board be appointed, to be considered

laterFRBank of New York, account with, proposed reduction in, ap-

proved, FRBank members of _federal Open MarketCommittee to be circularized for approval

FRSystem representation, memo re, presented by Chairman Ecclesto members of Board, to be taken up before end

of yearBank loans on securities:

Additional advance in account established prior to May 1, reply

to Peoples National Bank, Charlottesville, Va.,

that it would be subject to Regulation U

Applicability to collateral for loans made prior to May 1, ofprovisions of Regulation U re withdrawal or sub-

stitution of collateral, to be published inFRBulletin

9

Pages

10/ 2 1821

5/16 1037

5/14 1021

7/29 1449

9/28 1777-8

9/28 1779

9/28 1782-4

12/18 2236

3/14 575

5/ 1 946

12/ 4 2173

7/ 9 1332

6/22 1213


10 Pages

Bank loans on securities: (Continued)

Bank may not be transferee of note (where broker has acceptedfor debit balance in restricted account trans-ferred from another broker) if maximum loanvalue is less than loan represented by note

Borrower makes loan not subject to Regulation U, then makes ad-ditional loan subject to Regulation and case inwhich conditions are reversed, reply to Mr.Geery on effect of, in connection with inquiryof Midland National Bank and Trust Co.,

Corporate investment trust for retirement of debentures, replyto FRBank of New York re inquiry of Larkin,Rathbone 8c, Perry of Central Hanover Bank andTrust Co. on loan that Regulation U is appli-cable to

Customer before May 1 for purpose other than carrying securitiesredemption of bonds after May 1 was applied toreduction but customer desired to substituteregistered stock, reply to Pennsylvania Companyfor Insurances on Lives and Granting Annuitiesthat substitution may be made as rectificationof error

Dealer to purchase securities pursuant to customers order, ap-plicability of Sec. 2(f) of Regulation U, rulingto be published in 1R1411etin

Examination procedure in connection with, reply to Mr. Sargentand copy to other FRAgents

Intermediaries for purchase of stocks, reply to MBank of Bostonre inquiry of A. B. Pima and Co. as to appli-cability of Regulations T and U

"Making a market", for purchasing inventory of stocks for re-sale, ruling re applicability of Sec. 2(c) ofRegulation U, to be published in FRBulletin

New Loan unsecured, question of right of bank to make when loanmade prior to May 1 under agreement that col-lateral secure all other loans, reply to Mr.Wheeler

Purchase of stock which although not registered, is intendedto be registered, reply to Mr. Dawes, FRBank ofChicago re applicability of Regulation U

Regulation U:Applicability to certain account, reply to First National

Bank, Keystone, W. Va., reInterpretation of, by Berry and Norvall, as expressed to

certain Nashville banks, reply re

Restriction of credit to margin requirements, reply to Mr. Sar-gent and copy to other FRAgents re question asto whether banks are on notice to make, and reexamination procedure

Sec. 2(c) of Regulation IT, reply to Mr. Wheeler on questions ofCrocker National Bank of San Francisco and Na-tional Bank of Commerce of Seattle turning oninterpretation of

8/25 1580

6/ 5 1143

11/ 5 2002

6/ 5 1146

6/22 1213

5/6 979

10/14 1880

6/22 1212

7/ 1 1291

8/ 7 1501

6/26 1257

6/25 1250

5/6 979

6/ 5 1145


Bank of England:Skinner, E. H.

Bank of France:Devaluation of

Mr.

D., Assistant to Governors, courtesy call atFRBank of New York, reported by Mr. Sproul

Bank suspensions study, memo from 'Mr. Smead, in connection with

plan previously submitted to Board, requesting

authority to seek records of FDIC nonmemberbank condition reports, data to be used inbringing up to date Report on Branch, Group

Bankers Associations:and Chain Banking

Group meetings, suggestion of Mr. Broderick that Board members

not attend, invitation of New York Bankers Asso-ciation Group 1 referred to Mr. Szymczak fordetermination

Reply to Bankers Association regretting necessity of declin-

ing invitation and suggesting that officer of

MBank of New York be invited

franc, report of Mr. Ransom that President Harri-

son advised of problem re balance in account

with FRBank of New York in view of possibility

of, he had determined to take no action

Harrison has nothing to add re situation, advised of

views of Board and staff, reports no new develop-

ments in French situation

Banking corporations:Discount Corporation, inclusion in par list approved, although

not strictly a banking institutionX. Henry Schroder Banking Corporation, inclusion in par list ap-

proved, but not strictly a banking institutionBanking quarters:

Bank of Carthage, Mo., permission to increase investment in

Blencoe State Bank, Blencoe, Iowa, permission granted to purchasequarters now occupied

Brooks Bank and Trust Co., Torrington, Conn., investment made in,without securing Board's permission, no objec-

tionCitizens Bank, Hartford, Ky., building occupied to be sold at

auction, no objection to bank buying it in

Corporation holding premises of, agreement with FRBank of San

Francisco that exception in FRAct is not limited

to those holding premises solely

Dormont Savings and Trust Co Dormont, Pa., additional invest-

ment by purchase of assets of East Liberty Realty

Co., will increase in excess of capital, ap-

provedFarmers State Bank of Worland, Wyo., permission granted for ad-

ditional investment inFirst Citizens Bank and Trust Company of Utica, N.Y., permission

requested to invest amount in, which would bring

total in excess of capital, reply to hfr. Case

that the inclusion of debentures in capital

would make investment legal and unobjectionable

11Pages

9/29 1788

9/24 1755

9/25 1759

6/17 1191

3/31 710

4/ 3 740

1/4 46

1/4 46

6/ 1 1109

3/13 573

7/23 1421

7/ 2 1294

5/6 978

12/ 4 2230

1/17 156

1/ 4 34


Monterey

Planters

Banking quarters: (Continued)

First Trust and Savings Bank of Pasadena, Calif., permissiongranted to purchase those now occupied

Building account set up in larger amount than authorized byBoard, no objection

Gary-Wheaton Bank, Wheaton, Ill., removal of Wheatonas membership condition

Lusk State Bank, Lusk, Wyo., purchase of real estatecuring Board's permission, approved

Montana Bank and Trust Co., Great Falls, Mont., permissiongranted to invest in purchase of present

County Trust and Savings Bank, Salinas, Calif., permis-sion to transfer building to bank and for ex-penditures for alterations and improvements

Bank and Trust Co., Hopkinsville, Ky., permissiongranted for proposed investment

Provident Trust Co., Philadelphia, Pa., expenditures made andcontemplated for improvements and alterations

State Bank, Saginaw, Mich., permission granted to investin building and equipment

Deposit Bank and Trust Co., Elyria, Ohio, question of re-moval of Depositors Mortgage Loan Co. from,raised in connection with membership application

Bank of Steeleville, Ill., no objection to proposed ex-penditure for new building

Savings Bank, Templeton, Iowa, permission granted tomake investment looking toward acquisition ofother quarters

Bank and Trust Co., Williamsport, Pa., permissionto invest in, in excess of capital stock

Alben W., reply on absorption of exchange and col-lection charges as prohibited by Regulationthat provision has been suspended

Securities Corporation, Jacksonville, Fla., replyto FRBank of Atlanta re inquiry of, that Boardrules government securities to be readily market-able assets under Sec. 5144, Revised Statutesand Sec. 26(d) of Revenue Act of 1936

Koch Paper Co., Mimeograph paper, contract to sup-ply Board until end of year

R.: (See Commission for Financial Institutions ofIndiana)

and Co., reply that practice of demanding margin in con-nection with securities purchased for foreigncustomer is mandatory

Bergen County Bankers Association:

"Common Sense Perverted", article in Bergen Evening Record, re-ply to Mr. Eldridge that Board believes Associa-tion has necessary information to combat misin-formation and that it is not advisable to attemptto specifically answer such articles 10/27

Bergen Evening Record: (See Bergen County Bankers Association)

Berry, W. H.: (See National banks, Seattle-First National Bank,Seattle, Wash.)

Saginaw

Savings

State

Templeton

West Branch

Barkley, Senator

Barnett

Barton,

National

Duer and

Batton, Robert

Bear, Stearns

12

Mortgage Co.

without se-

Pages

7/24 1431

9/30 1809

7/24 1429

8/21 1566

2/7 315

9/ 8 1662

9/24 1757

7/ 8 1327

2/13 347

4/28 914

7/30 1453

7/29 1447

5/13 1012

1/9

12/29

5/21

88

2301

1067

6/24 1231

1954


13

Pages

Bethlehem Steel Corporation (McClintic - Marshall Corp.), approved

as sub-contractor for Board's new buildingBicycle

asAssociation, deposits of, may not be classi-

B fled as savings accounts, reply to Mr. Schack

ill, Raymond: (See National Conference of Business Paper Editors)Bingham, A. L.: (See National banks, Union National Bank)Birchfield Boiler Company of Tacoma, Wash., reply to Senator Bone

re reasons of FRBank of San Francisco for re-

fusal to make industrial advance toBirdzell, L. E.: (See Federal Deposit Insurance Corporation, Staff)Blue Ridge Federal Credit Union, Blue Ridge, Texas, cannot be

classed as banic and may not be placed on par

listBoard of Governors of IRSystem:

Accounts, audit of:FRBank of Cleveland to continue to make for additional

year, letter to Mr. Burke requesting and re mak-

ing of three instead of four, and re reimburse-

ment of expenses of auditsReport of, reply to Mr. Grayson re and approving suggestion

that only three audits be made each year

Administration, vouchers and purchase orders, statement of Mr.

Szymczak that recommendation for new procedure

had been prepared which would relieve Board

members of duty of approving, to be circulated

Memo reviewing present procedure and recommending new, ap-

provedAdditional items, expenditures for printing ERnotes, leased

wire system and other items reimbursable to

Board from FRBanks included in new procedure

Annual report for 1935, members to transmit any suggestions to

Mr. Goldenweiser and Chairman authorized, with

any further revisions he may approve, to trans-

mit report to Speaker of House

Assessment on FRBanks for expenses: (See infra Expenses)

Budget:Board members--Repairs to equipment, addition authorized

Budget for 1937, consideration to be given to, by Personnel

CommitteeApprovedDiscussion of item Providing for retirement contributions

and particularly discharge of prior service

liability, should be explained in annual report,

question of making in smaller amounts in years

when earnings are low

Counsel's Office, increase for subsistence and travel

Division of Research and Statistics, additions approved

Additional sum for equipment approved

Fiscal Agent's Office, budget increased for additional print-

ing"Special and Miscellaneous - General", addition to item

authorized to reimburse Cleveland FRBank audi-

tors for expense of auditing Board's accounts

2/18 377

6/12 1173

2/21 412

1/23 189

5/16 1037

5/14 1021

2/ 4 291

2/ 5 301

2/14 355

1/30 240

9/11 1690

11/25 213312/30 2329

12/30 23324/15 8127/ 1 1291

10/29 1965

4/30 937

10/ 2 1821


14 Pages

Board of Governors of FRSystam: (Continued)Budget: (Continued)

Subsistence Expenses - Board Members, addition recommendedby Mr. Morrill, approved 10/26 1943

Bylaws:Amendments proposed re signing of checks on RAgents' fund,

Article IX, and re requisitions for FRnotes, Ar-ticle X, approved subject to approval of GeneralCounsel 2/25 420

Article IX, Counsel not able to approve amendment resignature of orders on Interdistrict SettlementFund, Board may resolve question, proposed pro-cedure would be satisfactory to Treasurer, tobe resubmitted with farther amendment 3/21 633

Article X, approved by Counsel, in accordance with actionof Board on February 25 3/21 632

Revision being prepared, at request of Chairman 2/25 421Chairman: (See Members)Circulation of matters for initial, provision made for sending

matters to another member during absence of themember whose assignment includes, to expeditebusiness of Board 2/14 353

Correspondence:Mail confirmations of telegrams to RBanks and branches dis-

continued 10/ 9 1863Policy and salary letters, circular to be prepared to

FRBanks to bring all, to attention of directors 9/22 1745-6Letter to all FRBanks requesting that communications

re policy matters, salary, and of other impor-tance, be brought to attention of directors 10/16 1900

Counsel's Office:Budget, increase in, for subsistence and travel 4/15 812

Destruction of useless records, list and samples sent to Ar-chivist with request that authorization besought to destroy, should not be sold 12/11 2210

Division of Bank Operations:

Bank suspensions study, authorized to undertake and to em-ploy temporary help 6/17 1192

Division of Examinations:Relationship with FRBank examination function, question

raised re, in connection with withdrawal of re-port of Integrity Trust Co., statement of Mr.Miller that examination function should becentralized under 1/ 4 13-4

Mr. Paulger authorized to study question and FRAgentsto be advised to submit copies of all reportsto Board and to refer any serious condition toBoard for determination of action 1/ 4 15

Division of Issue and Redemption:Expenses of, review by Mr. Morrill of consideration given to

change in method of paying, Comptroller's officeagreeable, brought up in connection with pro-posed retirement of six employees of Division 3/31 707


15

Pages

Board of Governors of FRSystem: (Continued)Division of Issue and Redemption: (Continued)

Expenses of: (Continued)Messrs. Morrill, Snead and Wyatt requested to formulate,

with Mr. Broderick, a recommendation re method

of payment whereby Comptroller would be reim-

bursed forRemoval of employees of, from Board's payroll and reim-

bursing Comptroller's office for expenses of,

letter to Comptroller reChange in method proposed, understood that Comptroller

is opposed, action on appointment of chief of

division deferred pending determination, Messrs.

Morrill, Wyatt and Snead requested to recommendcourse of action to Board

Comptroller has not considered all questions involvedand is away, Mr. Rusch appointed temporarily

Method, letter to Mr. O'Connor calling attention totemporary appointment of Mr. Rusch as Chief,and requesting early advice re general ques-tion of

Attention called to fact that no replies have been re-ceived by Board re payment of, Mr. Morrill toconsult with Deputy Comptroller re continuanceof services of Mr. Rusch

Transfer of employees to payroll of Comptroller and pay-

ment by Board of expenses to became effectiveat the close of November 30, appointment of Mr.Rusch extended to that date

Resolution effecting transfer, letter to Comptroller reprocedure in payment of expenses, letter to em-ployees of division and advice to all FRBanks,expenses to be prorated

Division of Research and Statistics:Budget, request for additions to, approved

Additional sum for equipment authorizedDeposits study, report of Messrs. Goldenweiser and Currie

re test study conducted and proposed procedure,letter to niBanks and form of letter to memberbanks

Enlargement of functions of, statement by Chairman Ecclesre necessity for, caused by new responsibilitiesof Board

Memoranda analyzing current matters of interest to Board,attention called to fact that Division had re-cently undertaken to furnish periodically, data

affecting margin requirements to be more de-tailed

Monetary aspects of Social Security Act, study by Divisionrequested by Chairman

Personnel changes, appointment of Mr. Blattner as AssistantDirector and five increases in salaries, reasonsfor

4/28 909

4/14 800

6/25 1241-2

6/30 1281

11/ 5 2004

11/13 2057

11/16 2064

11/25 2127

7/ 1 129110/29 1965

1/16 149

3/16 594

11/12 2042

11/25 2125

4/28 903


16 Pages

Board of Governors of FRSystem: (Continued)

Division of Research and Statistics: (Continued)

Research and statistical work of FRSystem, enlargement ofactivities, memo of Dr. Goldenweiser outliningprogram for work and personnel of Board's Divi-sion and FRBanks' function, approved in principle,to be submitted to Mr. Broderick and Mr. McKeefor determination of their positions 8/ 4 1479

Mr. Broderick agrees and Mr. McKee has no objection 8/18 1534Division of Security Loans:

Haskins and Sells, renewal of arrangement with, for furthersix months on adjusted basis recommended by Mr.Parry, and payment of additional compensationfor May, approved 5/ 1 943

Documents furnished to National Archives, letter to Archivessubmitting, with list of 1/25 214

Equipment:Check protectograph, purchase for use of Fiscal Agent's of-

fice authorized 8/20 1562Mimeograph paper, contract with Barton, Duer and Koch Paper

Co. to supply for remainder of year 5/21 1067Purchase of addressograph machine, graphotype machine, new

plates and cabinet, to be used in connectionwith mailing of FRBulletin and Par list 1/21 leo

Typewriters, contract with Underwood Elliott Fisher Co. au-thorized for servicing Underwood typewriters, ifsatisfactory similar contracts to be made cover-ing other makes 4/25 896

Expenses of:Assessment on FRBanks for, resolution levying 6/22 1210

12/30 2330Building, letter to FRBanks and letter to Mr. Leach, call-

ing for part of unpaid assessment 4/23 858Charging to profit and loss, reply to Mx. Strater, FRBank

of Cleveland, but no objection to carrying inexpense account until end of year 1/31 267

Policy, question of Mr. Fleming if Board has made any changewith respect to, statement of Mr. Eccles re ex-panded activities 11/18 2099

Statement of, for 1935, sent to Senate Committee on Federal1296

755

301

rules and regulations, letter to Mr. Kennedylisting 2/25 422

FRBanks, relations with, inquiry of Mr. Morrison of Presidents'Conference re state of, and of any steps to im-prove, 17 points presented by Presidents asbasis for improvement, statement by ChairmanEccles re visits of Board members to FRBanks 3/17 609

Organization, under S. R. 217 7/ 2Surplus of FRBanks, reconsideration at request of FRBank of

Richmond of inclusion of Sec. 13b surplus, af-firmed 4/ 4

Survey made of methods of incurring and approval and paymentof vouchers, memo recommending procedure formore efficient and economical administration of 2/ 5

Federal Register, laws under which Board is authorized to issue


17

Pages

Board of Governors of FRSystem: (Continued)Files, consolidation of, recommendation to Board for, approved,

and appointment of Miss Poeppel as Chief File

Clerk approved 9/ 1 1628

Fiscal Agent's Office:Budget increased for additional Printing 4/30 937

Fiscal agency operations of FRBanks for Treasury, question of

procedure raised in connection with negotiations

with foreign banks and bankers by monetary

agreement between France, England and U. S., re-

view by Chairman Eccles of procedure in case of

reserve requirellent increaseReport of Mr. Ransom re consideration by senior staff mem-

bers, and his memo re cooperation between Trea-

sury and Board, discussion of arrangement be-

tween Treasury, FRBanks and Board, Chairman to

take up with Secretary of Treasury

Report of Chairman on conference with Secretary of Trea-

sury and proposed procedures, Chairman to con-

fer again with Secretary on October 13 and out-

line to be prepared for conference with officers

of FRBank of New York

Chairman and Mr. Ransom to confer with Secretary of Treasury

and Assistant Secretary Taylor tomorrow re pro-

cedureReport of Chairman re conference with Secretary of Treasury,

Assistant Secretary Taylor and Mr. Upham, agreed

that there was overlapping of responsibility and

need for cooperation

Messrs. Goldenweiser and Gardner to confer with Messrs.

Haas, White, Lochhead and Upham on arrangement

for exchange of information, periodic confer-

ences to be held by Chairman and Vice Chairman

with Secretary and Assistant Secretary of Trea-

sury

Procedure for FRBanks to follow, to be drafted by Messrs.

Morrill, Wyatt and Goldenweiser, conference

with Messrs. Harrison, Sproul and Knoke to be

postponed until Oct. 27

Memo of Chairman Eccles, prepared in connection with Bank-

ing Act of 1935Memo prepared by Messrs. Morrill, Wyatt and Goldenweiser, to

be considered Oct. 23

Memo of Messrs. Morrill, Wyatt and Smead discussed, confer-

ence with New York officers to be upon broad

grounds of responsibilities of Board, to be re-

vised accordinglyRevised memo discussed. and amended, copies to be sent to Mr.

Sproul, arrangements made for early meeting onOctober 30 with Messrs. Harrison, Sproul and

Knoke

10/ 6 1834-6

10/ 6 1837-8

10/ 9 1857-60

10/12 1872

10/13 1873

10/13 1874

10/13 1874-5

10/16 1893-6

10/20 1922

10/23 1935

10/27 1945


18

Board of Governors of .n?System: (Continued)Fiscal agency operations of FRBanks for Treasury: (Continued)

Further discussion of memo, reference to bills purchasedfor foreign banks, outstanding foreign bank agree-ments should be reviewed 10/29

Conference with Messrs. Harrison, Sproul and Knoke, changesin memo agreed upon, to be referred to Presi-dents' Conference, section re authority of

Pages

1958

FOMC eliminated, to be prepared separately andreferred to FOMC 10/30 1967

Functions and activities, chart showing, sent to Senate Commit-tee on Federal Organization, under S. R. 217 7/ 2 1296

Hours of duty of employees, regulation, memo of Mr. Vest re Actof March 14, 1936 regarding issuance of, andmaintenance of record of over-time duty and re-ports to Civil Service Commission 6/11 1165

Regulation recommended by Mr. Morrill, adopted and reportsof overtime work of certain classes of employeesto be reported to Civil Service Commission 6/30 1274

Information re organization, legislative history, etc., to bemade available to representative of Committeeon administrative management at discretion ofDr. Goldenweiser 9/11 1685

Information furnished to public, letter to Senator Byrd re 11/20 2108Inquiries from member banks and individuals for interpretations

of law and regulations, to be sent to appro-priate FRBank for answer in future 8/ 4 1477

Inquiry directed to Board by Mr. Todd under Regulation T, re-ferred to FRBank of Chicago for reply 9/10 1672

Interpretations of law and regulations, digest form, reply tosuggestion of Mr. Clerk that they be furnishedto FRBanks in 9/17 1721

Leaves of absence, Government limitation for sick and annual,adopted, regulation not to be drawn up untilGovernment departments have adopted their regu-lations 4/28 903-4

Letterheads, individual, with name of Board member to be printedfor any member desiring 2/14 352-3

Meetings:Plans and specifications for Board's new building, Mr. Miller

would like to have meeting next week to considerRegular, to be held on Tuesday and Friday mornings each

weekRegulation U, suggestion of Chairman for consideration next

1/ 4

2/ 4

27

285

week 1/4 27Reorganized Board, as of Feb. 1, first meeting of 2/ 4 285Staff attendance, to be attended by Messrs. Morrill, Bethea,

Carpenter, Clayton, Thurston and Wyatt and anyother members of staff who may be asked to attend 2/ 4 291

Members:Absences, agreement to notify Secretary's office of impend-

ing, in order that other members might be noti-fied and so arrange their attendance as to insurequorum 2/14 353


Board of Governors of FRSystem: (Continued)Members: (Continued)

Addresses, suggestion that it might be desirable for members

to accept invitations to make

Amendment tentatively proposed to FRAct to permit participa-

tion in Retirement System

Assignments of subjects for special supervision of each of

members, memo listing and explanatory memo re,

assignments approved

Credit control, statement of Chairman Eccles that subject

was included in his assignment, but that he felt

other members of Board should give careful study

2/ 4

12/18

2/ 4

2/ 4

19

Pages

296

2235

285

291

Provision made for circulation of matters primarily of

interest to a particular member to another mem-

ber during absence of former to expedite Board's

business 2/14 353

Addresses, statement of Chairman that while public rela-

tions are assigned to Mr. Szynczak, other mem-

bers should accept invitations to make addresses,

to clear engagements with Mr. Szymczak 5/15 1025

Reassignment of Mr. Morrison's topics to Mr. Szynczak

and of Mr. Ransom, during his illness, to Mr.

McKee 5/15 1026

Amendment to FRAct tentatively proposed covering assign-

ment of duties to members of Board 12/18 2235

Bank for International Settlements, amendment tentatively

proposed to make clear that members may serve

as director 12/18 2236

Bankers association meetings, suggestion of Mr. Broderick

that he felt it desirable for members to attend 1/ 4 296

Broderick, J. A.:Assignment of subjects to, for primary consideration 2/ 4 286

Chairman pro tom, elected as, during absence of Chairman

Eccles 3/25 665

Cooperation of FRBanks and branches with Board, state-

ment of Mr. Broderick expressing appreciation at

treatment accorded him on visits 11/18 2097

Drinnen, F. J.,. FRExaminer, no objection to accampany-

ingria.. Broderick on visits to FRBanks in connec-

tion with organization surveys • 3/25 663

Government securities, to attend conference on padding

of subscriptions for 5/ 1 945

National Association of Supervisors of State Banks, re-

port of attendance at convention of 9/22 1748

Personnel Committee, to continue to serve on, during

April, May and June 5/25 1075

Designated member for remainder of year 7/31 1459

Retirement System, designated Board's representative on

Board of Trustees of 2/20 395

Sec. l(f) of Regulation Q, report that various bankers

had suggested that it be put into effect and if

decided during his absence he desired to be

recorded as favoring 12/ 4 2166


20 Pages


Broderick, J. A.: (Continued)Statement re presidents and first vice presidents at

meeting with presidents, cooperation betweenBoard and FRBanks and that he will visitFRBanks in connection with reorganizationsurveys 3/16 595

Survey of Board's staff and salaries of employees, des-ignated to supervise 3/ 6 524

Visits to FRBanks and branches, report re:FRBanks of Minneapolis, Chicago and Cleveland, and re

progress of surveys of organization of FRBanks 5/12 997Denver Branch, FRBank of San Francisco and its

branches, FRBank of Minneapolis and HelenaBranch and FRBank of Chicago 8/14 1525

Detroit, Cincinnati, Pittsburgh and Buffalo branches,does not believe volume of business handled bylatter justifies continuance 9/22 1748

FRBank of Atlanta, Birmingham, Nashville, NewOrleans, Memphis and Louisville branches, andwith Mr. Davis, at FRBank of Cleveland 10/20 1926

Baltimore, Charlotte, and Jacksonville branches andSavannah agency 12/ 4 2166

FRBank of Chicago and Dallas, Omaha, Oklahoma City,Little Rock, Houston, San Antonio and El Pasobranches, report that program of visits wascomplete 12/28 2286

Withdrawals from membership, statement that possibilityof, as consequence of Board's refusal to grantrequested powers should not deter Board fromany action it believes to be in the interest ofthe System 11/12 2042

Chairman, consensus of members of Board that Federal OpenMarket Committee as reconstituted March 1,should have as its chairman 2/ 4 290

Davis, Chester:Appointments of directors (Class C and branch), charged

with primary responsibility in developing infor-mation re persons to be considered 12/29 2307

Personnel Committee, appointment as member for 1937 andcharged with primary responsibility for develop-ment of information re persons to be consideredfor appointment as Class C and branch directors 12/29 2307

Present at first meeting on June 25, but did not partici-pate in discussion of amendments to RegulationsT and U 6/25 1240

Visit to FRBank of Cleveland with Mr. Broderick and re-port of latter re 10/20 1926

Eccles, M. S., Chairman:Absence in West contemplated and suggestion of election

of chairman pro ten, Mr. Szymczak will not beavailable, Mr. Broderick elected 3/25 665


21

Pages


Eccles, M. S., Chairman: (Continued)Advances to Bank for International Settlements against

gold, no objection to proposed transaction, ob-tained by telephone 9/28 1782

Assignment of subjects to, for primary consideration 2/ 4 285Hamlin, C. S.:

Appointment, on expiration of term as member, as SpecialCounsel to Board, and salary 2/ 4 295

(See also Staff of Board, Special Counsel)McKee, John K.:

Advances to Bank for International Settlements againstgold, no objection to proposed transaction, ob-tained by telephone 9/28 1782

Assignment of subjects to, for primary consideration 2/ 4 286Conference re condition of Perth Amboy Trust Co. and

Raritan Trust Co., Perth Amboy, N. J., memo re 9/11 1683Personnel Committee, designated alternate to serve in

absence of Mr. Broderick 11/25 2133Appointment as member for 1937 12/29 2307

Statement before Presidents re desirability of securinglarger State bank membership, and re examina-tion functions of FRBanks 3/16 596

Miller, A. C.:Examination function of RBanks, statement that it

should be centralized under Board, Mr. Paulgerauthorized to study

Retained in advisory capacity in connection with Board'snew building, letter setting forth arrangementand press statement to be prepared

1/ 4

2/ 7

14-5

310Letter to, re arrangement 2/13 349

Morrison, Ralph W.:Absence of, continued 5/15 1026Assignment of subjects to, for primary consideration 2/ 4 285

Topics assigned to, reassigned to/tr. Szymczak duringabsence of 5/15 1026

Maximum interest rate under Regulation (: recommendationthat it be reduced to 1N, referred to Mr. Ran-som for report 3/ 6 520

(See also Rates, Interest)Presidents' Conference, queries as to reasons for failure

of State banks to apply for membership and re im-proving relations between Board and IRBanks 3/17 609

Statement before presidents re developing in memberbanks appreciation of 'RSystem and re necessityof, and advisability of issuing Regulation U atpresent 3/16 597

New York State Bankers Association, Group 1, invitation tomember of Board to address meeting of, sugges-tion of Mr. Broderick that Board members notaccept invitations of groups, referred to Mr.Szymczak for determination 3/31 710


22 Pages


New York State Bankers Association: (Continued)Reply to Mr. Davis regretting necessity of declining in-

vitation, and suggesting that officer of FRBankof New York be invited, letter to President Harri-son re 4/ 3 740

Pension for, reply to Congressman Mott re provisions pro-posed in legislation at last session of Congress 11/ 4 1997

Press relations, discussion of, and new Board to adhere topast policy of discussing nothing relating toaction of Board with reporters 2/ 4 296

Ransom, Ronald:Absence because of illness, subjects assigned to, trans-

ferred to Mr. McKee 5/15 1026Assignment of subjects to, for primary consideration 2/ 4 287Devaluation of French franc, report re 9/26 1767Expectation that he would return to office about July 1 6/25 1241Leave of absence, to be away for approximately three

weeks from July 17 7/15 1364Relations between Treasury and Board in connection with

fiscal agency operations of FRBanks in foreign10/ 6 1837matters, memo re

Reports re proposed legislation, memo of Counsel submit-ting suggestion that Board adhere to practiceagreed upon Feb. 27, 1935 re not making 4/10 790

Statement at meeting with presidents re decreasing gov-ernment lending and re increasing member bankearnings 3/16 595

Vice Chairman, designation as, for four years 8/ 7 1497Violation by MBank of New York in negotiating with

Banco Central de Reserve de El Salvador, vote of"no" on letter calling attention to because ofpreference for different procedure 9/ 4 1650

"Repairs to Equipment", addition to budget for, authorized 9/11 1690Stationery to be printed for, with name on letterhead if

desired 2/14 352-3Szymczak, M. S.:

American Institute of Banking, statement prepared re par-ticipation in, and support of activities of, re-ferred to Presidents' Conference 10/30 1983

Personnel Committee, to continue to serve on, duringApril, May and June 5/25 1075

Personnel Committee, designated member for remainder ofyear 7/31 1459

Statement at meeting with Presidents re relations be-tween FRBanks and public and listing of itemsfor consideration by Presidents 3/16 596

Topics assigned to Mr. Morrison for consideration reas-signed to, during absence of Mr. Morrison 5/15 1026


23

Pages

Board of Governors of ERSystem: (Continued)Members: (Continued)

Thomas, J. J.:Appointment of directors of FRBanks and branches, feel-

ing that minute entry of November 29, 1935,should be enlarged, authorized to make changes 1/ 4 28

Visits to FRBanks, statement of Mr. Eccles that he feels it

desirable that each member of Board visit each

FRBank at least once a year 2/ 4 296

Travel regulation and allowances, to be prepared 2/ 4 297

Statement of President Harrison that nothing would be

more conducive to good relations between FRBanks

and Board 11/18 2099

Minutes:

Executive Committee meetings, approved and actions ratified:

November 2, 8, and 13, 1935 (which became meeting ofBoard upon entrance of Mr. Thomas) 1/10 92

December 5, 7, 13, 1935, and January 7, 1936 1/24 204

January 25 1/31 251

Meetings of Board, approved:November 29 meeting, entry re election of directors at

FRBanks and branches, statement of Mr. Thomas

that it should be amplified, authorized to makeamendments or additions 1/4 28

Approved, Mr. Thames not voting 1/30 240

October 30, 31, November 1, 5, 6, 8, 9, 11, 12, 14, 15,

16, 18, 19, 20, 22, 23, 25, 26, and 27, 1935 1/10 92

November 30, December 3, 4, 9, 10, 11, 12, 17, 18, 19,

20, 21, 23, 24, 27, 28, 30, 31, 1935, and

January 2, 4, 6, 8, 9, 10, 11, 13, 14, 15, 16,

17, 18, 20, and 21, 1936 1/24 204

January 22 1/28 224

December 26, 1935, and January 24, 27, 28, 29, 1936 1/31 251

January 30 and 31 1/31 284

February 5, 6 and 7 approved 2/17 358

February 10, 11 (two), 12, 13, 14 and 17 2/28 453

February 18, 19, 20 (two), 21, 24, 25, 26, 27, 28, 29,

March 2, 3 (two), 4, 5, 6, 7, 9, 10, 11 and 12 3/20 617

March 13, 14, 16 (two), 18, 20, 21, 23, 24, 25, 26, 27,

28, 31, and April 1, 2, 3 (two), 'and 4 4/20 831

April 6, 7, 8, 9, 10, 13, and 14, and actions ratified 4/20 831

April 15 and 16, and actions ratified 4/21 836

April 17, and actions ratified 4/24 868

April 18 and 20 4/24 867

April 21, 22 (two), 23, 24, 28, 30 (two), and May 1 5/11 991

April 24, 25, 27, 29, May 2, 4, 5, and 6, and actions

ratified 5/11 991

May 7 and 8, and actions ratified 5/12 1003

May 11 and 12 5/15 1026

May 13 and 14, and actions ratified 5/15 1026

May 15 5/16 1029

May 16 5/18 1040

May 18 5/19 1051

May 19 5/25 1074


24 Pages

Board of Governors of FRSystem: (Continued)Minutes: (Continued)

Meetings of Board, approved: (Continued)May 20, 21 and 23, and actions ratified 5/25 1074May 25 5/26 1085May 26 6/ 1 1105May 27, and actions ratified 6/ 1 1105June 1 6/ 2 1119June 2 6/ 3 1136June 3 6/22 1202June 4, 5, 6, 8, 10, 11, 12, 13, 15, /6, 17, 18, and 19,

and actions ratified 6/22 1202June 22 6/23 1220June 23 6/24 1225June 24 6/25 1244June 25 6/29 1265June 26 and 27, and actions ratified 6/29 1265June 29 6/30 1283June 50 7/ 1 1288July 1 7/ 2 1293July 2 7/ 7 1323July 3, and actions iatified 7/ 7 1323July 7 7/ 8 1324July 8 7/ 9 1331July 9 7/10 1334July 10 7/11 1339July 11 7/13 1344July 13 7/14 1358July 14 7/15 1370July 15 7/16 1373July 16 7/17 1378July 17 7/28 1440July 18, 20, 21, 22, 23, 24, and 27, and actions ratified 7/28 1440July 28 7/30 1451July 29, and actions ratified 7/30 1451July 30 7/31 1464July 31 8/ 4 1483August 1, and actions ratified 8/ 4 1483August 4 a/ 5 1489August 6 8/ 7 1497August 7 8/11 1512August 11 8/12 1516August 12 8/13 1518August 13 8/14 1526August 14 8/17 1532August 15, and actions ratified 8/17 1532August 17 8/18 1534August 18 8/19 1550August 19 8/20 1552August 20 8/21 1564August 21 8/24 1572August 22, and actions ratified 8/24 1572August 24 8/27 1600August 25 and 26, and actions ratified 8/27 1601


Board of Governors of FRSystem: (Continued)Minutes: (Continued)

Meetings of Board, approved: (Continued)

25

Pages

August 27 8/28 1604

August 28 8/29 1612

August 29 8/31 1624

August 31 9/ 1 1628

September 1 9/ 2 1633





September 9 9/10 1671


September 10, with Federal Advisory Council 9/11 1689


September 12, 14, 16, 17, 18 and 19 9/21 1737



September 24, 25, 26, 28, 29, 30 and October 1, 2,

and 6

3, 5,10/ 8 1848

October 8 10/ 9 1862

October 10 and 12 (two) 10/13 1876

October 13 10/14 1878

October 14 10/15 1886

October 15 10/16 1899

October 16 10/19 1903

October 19 and 20 10/23 1936

October 22 10/23 1937

October 23 10/26 1942

October 26 10/27 1946

October 27 10/28 1955

October 28 10/29 1961

October 29 10/30 1981

October 30 (two) and November 2 11/ 4 1994

November 4 11/ 5 2000

November 5 11/ 6 2008

November 6, 7 and 9 11/10 2031

November 10 (two) 11/11 2034

November 11 11/12 2047

November 12 11/13 2058

November 13 11/16 2064

November 16 11/17 2080

November 17, with Federal Advisory Council 11/18 2091

November 17 11/18 2092

November 18 11/20 2105

November 18 and 19, with Presidents' Conference 11/20 2105

November 20 11/23 2109

November 23 11/24 2117

November 24 11/25 2135

November 25, and 28 12/ 1 2151

December 1 12/ 2 2153

December 2 12/ 3 2162


26

Board of Governors of FRSystem:Minutes: (Continued)

Meetings of Board, approved:December 3December 4December 7, 8, 9, 10December 11, 12, 15, 16,December 19December 21December 22December 23December 24December 28December 29December 50

Meetings of Board with:Federal Advisory CouncilFederal Advisory CouncilFederal Advisory CouncilFederal Advisory CouncilFederal Advisory Council

(Continued)

(Continued)

17 and 18

on November 21, 1935,on February 11 and 12,on May 19, approvedon September 10, approvedon November 17, approved

Federal Open Market Committee on December 17 and 18,1935, approved

Presidents of ERBanks on March 17, approvedPresidents of FRBanks on November 18 and 19

Newspapers for Board members and staff, cost of, referred to,and to increase that would be caused by addi-tional papers requested, Mr. Thurston asked toreport on necessity for continuance of expendi-ture 2/14 354

Report of 'Mr. Thurston re expenditure for, no further actionto be taken 3/ 6 524

Offices to be closed December 26 and all employees who can bespared, to be excused at 1:00 p.m. on December 24 12/4 2175

be closed January 2, 1937 12/29 2299and functions, Mr. Broderick appointed to supervise

survey of 3/ 6 523Organization, statement of Chairman Eccles at first meeting of

reorganized Board re certain questions of 2/ 4 285Charts distributed to new Board members showing principal

functions and duties of various divisions ofBoard's staff and distribution of duties amongmembers of staff

Personnel, survey of, Mr. Broderick appointed to conduct 3/ 6 524Policy matters, statement of Mr. McKee that leakage of informa-

tion re action was occurring and that considera-tion should be given to situation, Chairman totake up with tfti. Thurston, Mr. Goldenweiser andMr. Parry 6/30 1281

Pages

12/ 4 217712/ 7 218312/11 2205-612/19 224412/21 224812/22 225112/23 226312/24 226512/28 229512/29 230812/30 233512/31 2351

Offices toOperations

approved 1/10 92approved 2/28 453

5/25 10749/11 168911/18 2091

1/24 2044/20 83111/20 2105

2/4 291

Policy record:Advances against gold to Bank for International Settlements,

question of inclusion, statement of Mr. Morrillthat President Harrison had indicated that hefelt such loans were not different in principlefrom loans to domestic banks 9/28 1781


27

Pages

Board of Governors of FRSystem: (Continued)Policy record: (Continued)

Approval of record of actions from August 23 to December 31voted subject to such changes as may be made byChairman

Draft for February 1 to May 31 submitted by Mr. Morrill,action deferred until meeting at which all mem-bers are present, to be reviewed by members inmeantime

1/30

8/27

240

1595Items, question of inclusion of certain, statement of Mr.

Miller that Senator Glass confirmed opinion thatonly matters of important nature be included,omission of certain items and others included 1/24 199

Membership of banks in Puerto Rico, question as to inclusionin record of exclusion of, action deferred 6/23 1217

Memoranda of reasons in connection with policy matters,Divisions to be requested to submit in future 3/25 660

Organization and personnel of FRBanks, objection by Presi-dents' Conference to policy statement re, ques-tion left open for later consideration 7/ 7 1312-5

Advice to President Harrison of action 7/11 1341Personnel and organization at FRBanks, restatement of policy

re, for inclusion in 2/29 466Procedure in preparation, question raised by Mr. McKee of

decision by committee or Board as to matters tobe included in, no change to be made 2/20 389

Regulation U, discussion of entry to be made in, Divisionsto be requested in future for memorandum ofreasons in connection with policy matters 3/25 660

Procedure under Sec. 30 of Banking Act of 1933: (See Removalof officers, etc.)

Responsibility under recent legislation, statement of ChairmanEccles re, at meeting with presidents 3/16 590

Retirement of seven employees, further consideration of recom-mendation re, action deferred pending Chairman'sreturn as he had suggested that it be consideredin connection with position to be taken on re-tirement of FRBank employees of 65 4/3 735

Extension of service to be requested for and to be retiredas of July 1 4/28 908

Salaries, survey of, Mr. Broderick appointed to conduct 3/6 524Seal, designs presented and one submitted by Bureau of Engrav-

ing and Printing with slight modifications, orderfor two sets of dies authorized 1/7 65

Sample of impression presented to Board, adopted by Boardand impressed in minutes 1/30 232

Soldiers' bonus, attitude of Board toward financing methodsproposed for, requested, members present favoralternate procedure 2/12 335

Special studies, recommendation of Mr. Broderick that reportbe made weekly on status of, but not routinestudies, action deferred and present weeklyreport to be prepared bi-weekly 11/24 2115


28 Pages

Board of Governors of .niSystem: (Continued)Stationery for members, to be printed with name on letterhead if

desiredStatus of matters referred to committees, Board members, divi-

sions, motion of Mr. Broderick that statement besubmitted to Board members each week, carried

Suit to enjoin members from further exercise of power to coinmoney and regulate value thereof, attorney forMr. Montgomery requested Mr. Wyatt to acceptservice for Board members, Board unwilling toauthorize

Usual procedure is to refer such cases to Department ofJustice, Mr. Wyatt to prepare letter for useunder such procedure

Report of Mr. Wyatt that members had been served, that hehad discussed with Messrs. Barse and Bernsteinand all were agreed that it should be referredto Department of Justice

Mr. Wyatt believes dismissal on technical grounds should besought, Comptroller believes it should be madetest case, Board agrees with Mr. Wyatt, ChairmanEccles to discuss with Mr. Oliphant, Mr. Wyattauthorized to accompany Comptroller on call onAttorney General or to call on him separately, tobe referred to Department of Justice

Report of Mr. Wyatt that he informed Mr. Bernstein ofBoard's position, that after consultation withComptroller, Secretary of Treasury referred mat-ter to Attorney General, basis for reply, notto include argument re constitutionality

Chairman Eccles, in view of developments, found no need toconsult with Mr. Oliphant

Survey of operations and functions of divisions, preliminaryreport prepared by Mr. Broderick

Travel regulations:

Draft authorized to be prepared and basis determined upon forcontrolling travel expenditures

Draft submitted and adoptedChanges suggested covering reimbursement for expenses of

traveling on official business, draft to be pre-pared embodying

Useless records, destruction of, letter to Committee on Disposi-tion of Executive Papers advising of destructionrather than sale, to be transmitted when papershave been destroyed

Vouchers and purchase orders requiring approval of member ofExecutive Committee, recommendation being pre-pared to eliminate

Memo recommending new procedure and reviewing old, approvedAdditional items, expenditures for printing FRnotes, leased

wire system and other items reimbursable toBoard from FRBanks included

2/14 352-5

3/ 4 500

10/ 6 1844

10/ 6 1845

10/ 9 1856

10/ 9 1857

10/20 1923-4

10/20 1925

7/ 7 1321

2/ 4 2973/14 581

10/20 1922

7/ 8 1329

2/ 4 2912/ 5 301

2/14 355


Bonds:

Bath Iron Works, holding of, by Depositors Trust Co., Augusta,

Me., nor violation of regulation re

Convertible into stock only at option of holder, reply to Mr.6/17

29

Pages

1188

Young and advice to FRAgents of effect of Comp-

troller's speech before California Bankers Asso-

ciation on right of member banks to purchase,

under investment securities regulation 6/ 5 1148

Reply to Mr. Swanson on inquiry of First State Bank of Rush-

more, Minn., re 6/ 5 1149

Joint stock land bank, fiscal agency functions performed in con-

nection with, by Louisville Branch at request

of Farm Credit Administration, Board of opinion

Secretary of Treasury should make request 5/13 1015

Copy of letter re to be sent to all FRBanks

Soldiers bonus, attitude of Board requested re financing methods

of Treasury for redemption of, alternate proce-

dure favored

5/13

2/12

1016

335

Surety:Barnett, Mrs. Genevieve, as Alternate Assistant FRAgent at

Atlanta 8/31 1624

Burke, Edmund S., as FRAgent at Cleveland 3/ 6 528

Carlander, John, as Alternate Acting Assistant FRAgent at

Minneapolis 7/18 1401

Cash:Classification of deposit of fidelity company as col-

lateral for individual as savings account 9/22 1749

Employee to employer under California law, reply to

FRBank of San Francisco that such deposit may be

classified as savings deposit 9/22 1750

Cooper, Norman C., as Alternate Assistant FRAgent at New

York 10/29 1962

Delano, Frederic A., as FRAgent at Richmond 3/20 617

Diercks, W. R., Alternate Assistant FRAgent at Chicago, ap-

proved, and letter to Fidelity and Casualty Co.,

requesting confirmation of acceptability of

description of appointment 8/ 5 1489

Evans, W. J., Assistant FRAgent at Dallas, renewal 3/31 711

Fry, J. G., Assistant FRAgent at Richmond, bond of November

20, 1934, request if there is any objection to

advising bonding company of termination of lia-

bility on 8/12 1516

Geery, W. B., as FRAgent at Minneapolis 3/ 5 507

Gibson, T. C., Alternate Assistant FRAgent at Richmond 8/12 1516

Hagedorn, Wm. J., Jr., as Alternate Assistant FRAgent at

St. Louis 10/19 1905

Henk, Lester, as Alternate Assistant FRAgent at Cleveland,

and request that Mr. Burke advise definitely of

appointment by him 8/ 7 1499

Hudson, Alfred J., FRBank of New York, to be released because

of termination of authority to act for FRAgent in

issuance and retirement of Ilinotes 12/ 8 2190


30

Bonds: (Continued)Surety: (Continued)

Lawhon, D. S., Acting Assistant FRAgent at Houston, cancela-tion, request if there is any objection to

Martin, H. Warner, as FRAgent at AtlantaMatter, N. R., as Assistant FRAgent at Cleveland, request

that Mr. Burke advise definitely of appointmentby him

8/203/ 5

8/ 7

Pages

1560507

1499McConnell, H. G., as Assistant FRAgent at Minneapolis 7/18 1401McCravey, J. R., Jr., as Assistant FRAgent at Atlanta 8/31 1624Mills, Albert W., as alternate for FRAgent or Assistant

FRAgents at Minneapolis 1/ 9 86Moore, Walton N., as FRAgent at San Francisco 7/22 1417Nolte, William H., renewal, as Acting Assistant FRAgent at

Pittsburgh 5/25 1074Page, Grover Cleveland:

Approved as Acting Assistant FRAgent at El Paso 1/28 224Assumed that present bond will be continued after re-

appointment 6/26 1256Parker, Frank, as Assistant FRAgent at St. Louis 10/19 1905Phinney, Robert H., as Alternate Assistant FRAgent at New

York 10/29 1962Raether, Bernard, Assistant FRAgent at Detroit, approved,

and letter to Fidelity and Casualty Co., request-ing confirmation of acceptability of descriptionof appointment 8/ 5 1489

Reed, I. J., as Acting Assistant FRAgent at Houston 8/24 1572Retroactive coverage, letter to FRAgent Moore that Board has

taken position that upon approval, bond becomeseffective as of date principal took office 10/22 1929

Rhodes, H. H., as Assistant FRAgent at Kansas City 9/10 1671Sanders, T. Gordon, FRBank of Kansas City, release of, as

Acting Assistant FRAgent, request advice from Mr.Thomas as to any objection to 10/10 1865

Sargent, S. G., Assistant FRAgent at San Francisco, cancela-tion of, request if there is any objection to 9/ 1 1631

Schelling, Carl, as Assistant FRAgent at Chicago, and letterto Fidelity and Casualty Co. requesting confir-mation of acceptability of description of ap-pointment 8/ 5 1489

Shepherd, R. L., as Assistant FRAgent at Richmond, and re-quest if there is any objection to notifyingbonding company of termination of liability onbond as Acting Assistant FRAgent 8/12 1516

Shortt, W. D., as Assistant FRAgent at San Francisco, memoof Mr. Wingfield that because of designation asassistant examiner, appointment may conflict withFRAct 9/21 1737

Sonne, H. A.Approved as Alternate Assistant FRAgent at FRBank of

San Francisco 10/15 1886Bond executed as "Assistant FRAgent", request re-execu-

tion, and memo of Mr. Wingfield re possible con-flict with FRAct, not clear what payroll he is on 9/21 1737


Bonds: (Continued)Surety: (Continued)

Sonne, H. A.: (Continued)Retroactive coverage, reply to Mr. Moore that Board has

taken position that upon approval by Board, bond

becomes effective as of date principal took of-

fice 10/22

Stryker, Jere V. D., as Assistant FRAgent at New York 10/29

Thaxton, Emmett Albert, as Acting Assistant FRAgent at Dallas 8/17

Thomas, J. J., as FRAgent at Kansas City 2/14

Thornton, Ira A., as Acting Assistant FRAgent at Kansas City 10/26

Timberlake, H. C., as Alternate Acting Assistant FRAgent

at MinneapolisWheeler, 0. P., Assistant FRAgent at San

tion of, request if there isWoolley, D. IN.:

Approved as Acting Assistant FRAgent at KansasNew bond should be executed in connection with

of title from Acting Assistant FRAgent

Approved as Alternate Assistant FRAgentYoung, William R., as Acting Assistant FRAgent

CityZehner, E. A as Alternate Assistant FRAgent at St. Louis

Bone, Senator Hamer T.,., reply re reasons of FRBank of San Francisco

for refusing industrial advance application to

Birchfield Boiler Company of Tacoma, Wash.Bonus: (See Soldiers' Bonus)Borneman, Bernard J., reply that Board interprets law only as actual

cases present themselves in reply to request

for interpretation of provision re change in re-

serve requirementsClearing House, indirect payment of interest on demand de-

posits, memo of Mr. Owens re effect of suspen-

sion of provision of Regulation Q on furnishing

articles and services, reply that questions of

committee of, cannot be answered until Board

adopts definition of interestB°Yns City Exchange, reply to FRBank of Chicago that it is not branch

of First State Bank of Petoskey, Mich. 10/ 8 1849il!I'adY, L. S., present at meeting of Board to discuss Regulation U 4/22 839'ranch, Group and Chain Banking Report, bank suspensions study,

data obtained in, to be used in bringing report

up to dateBrahch banking, Federal and State laws relating to, memo of Mr. Vest

recommending publication in FRBulletin of cam-

Biation of, approved

ranch banks, domestic:American Trust Co., San Francisco, Calif.:

Burlingame, removal of branch from 1201 Broadway to 1399

Broadway, reply to Mr. Sargent that it does not

constitute establishment of new branch and ap-

proval not required

Menlo Park, discontinuance of, and establishment of branch

at Redwood City approved

Boston

Francisco, cancels-any objection to

31

Pages

192919621532354

1943

7/27 1433

9/ 1 1631

City 5/26 1085

change9/ 3 16409/25 1760

at Kansas10/26 194310/26 1942

2/21 412

12/ 8 2192

3/5 512

6/17 1192

10/22 1933

9/26 1772

8/ 6 1495


32 Pages

Branch banks, domestic: (Continued)American Trust Co., San Francisco, Calif.: (Continued)

Redwood City, establishment of branch approved upon discon-tinuance of branch at Menlo Park 8/ 6 1495

Bar Harbor Banking and Trust Co., Bar Harbor, Me., absorptionof Lubec Trust and Banking Co., Lubec, Me., andestablishment of branch approved 6/ 1 1107

Capital requirements:Advice to FRBanks that Board will follow Comptroller's inter-

pretation of law re, where there is more than onebranch in a place other than head office town 12/ 2 2154

Amendment to FRAct tentatively proposed to modify 12/18 2234Citizens and Southern Bank, Charleston, S. C., reply to FRBank

of Richmond that in entering IRSystem, bank needonly to comply with statutory requirements to re-tain branches established subsequent to Feb. 25,1927 12/24 2273

Citizens Commercial and Savings Bank of the City of Flint, Mich.,establishment of branch at Mount Morris author-ized 4/15 806

Citizens State Bank of Sheboygan, Wis., Plymouth, no objectionto absorption of State Bank of Plymouth andPlymouth Exchange Bank and establishment ofbranch at Plymouth 2/19 384

Columbus Trust Co., Newark, N. J., no objection to establishmentof branch in Newark in connection with absorp-tion of Central Bank and Trust Co. 4/25 890

Commonwealth Trust Company of Pittsburgh, Pa.:Aspinwall, Pa., authorized to absorb Bank of Aspinwall and

establish branch 12/30 2341M. Lebanon, Pa., authorized to absorb Mt. Lebanon Bank and

establish branch 12/30 2341County Trust Co., White Plains, N. Y., no objection to consoli-

dation of Caleb Heathcote Trust Co. and estab-lishment of branch at Scarsdale, N. Y. 7/24 1430

Dollar Savings Bank and Trust Co., Youngstown, Ohio, FRAgent re-quested to verify legality of operation of branchat Struthers in connection with approval ofmembership application 2/17 360

Farmers and Merchants Bank of Long Beach, Calif., no objectionto absorption of Citizens State Bank and estab-lishment of branch, Board's approval not re-quired for establishment of branch within citylimits 2/20 396

First State Bank of Petoskey, Mich., reply to FRBank of Chicagothat Boyne City Exchange is not branch 10/ 8 1849

Geo. D. Harter Bank, Canton, Ohio, branches at North Canton andLouisville, operation approved in connectionwith approval of membership application 5/ 5 967

Lorain Street Bank, Cleveland, Ohio, no objection to moving lo-cation of branch in Lakewood in connection withabsorption of Peoples National Bank of Lakewood 2/20 398


33

Pages

Branch banks, domestic: (Continued)Marine Midland Trust Company of New York, N. Y., no objection

to establishment on site of consolidated Na-

tional Bank of Yorkville in New York 5/ 1 951

Monongahela Trust Co., Homestead, Pa., national bank stock

owned to be disposed of, or banks converted

into branches 12/29 2300

Montclair Trust Co., Montclair, N. J., absorption of Montclair

National Bank and establishment of branch, no

objection 2/27 443

Monterey County Trust & Savings Bank, Salinas, Calif., establish-

ment and operation of branch at Greenfield ap-

proved 2/18 374

Pan American Trust Co., New York, N. Y., retention of Harbor

State Bank as branch 12/ 4 2173

Removal from one location to another, but within same business

district, ruled not to be establishment of new

branch, and Board's approval not required 9/26 1772

South Carolina, retention of branches established subsequent to

February 25, 1927 by bank becoming member of

ERSystem, reply to FRBank of Richmond that such

bank need only to meet statutory requirements 12/24 2273

State Street Trust Co., Boston, Mass., establishment of branch

within city, approval not required 6/12 1173

Statistics re, reply to Iowa Bankers Association that in publish-

ing in future, explanatory note will be added

re offices maintained to receive deposits and

cash checks 5/16 1036

Tompkins County Trust Co., Ithaca, N. Y., consolidation of First

National Bank of Trumansburg and establishment

of branch 7/27 1435

Question of capital sufficiency for continued operation of

branch, plan noted for revision of capital to re-

move deficiency 10/22 1929

Trust Company of Wyoming County, Warsaw, N. Y.:

North java, N. Y., establishment authorized, North Java

Company to be merged 12/24 2268

Wyoming, N. Y., establishment authorized, National Bank of

Wyoming to be merged 12/24 2268

Union and New Haven Trust Company, New Haven, Conn., establish-

ment of branch at Hamden approved 11/23 2112Branch banks, FRSystem:

Baltimore:Bylaws:

Amendment changing day of directors' meeting from

second to first Wednesday in each month, ap-

proved 6/ 1 1113

Revision of, approved, subject to interpretation of

Board re supervision of branch and tenure and

appointment and compensation of officers 11/17 2084

Personnel classification plan, changes approved, changes in

RFC division to be made effective December 1,

the remainder on January 1 1/ 4 28


34 Pages

Branch banks, ERSystem: (Continued)

Baltimore: (Continued)Staff:

Anderson, Lee E., Acting Assistant FRAgent, transfer toanother department and replacement by Mr. Baugher,approved with advice that if desirable Mr. Ander-son could be assigned to work in other depart-ment when not performing duties as 5/ 7

Baugher, Joseph C., appointment as Acting AssistantFRAgent approved 5/ 7

Milford, William Robert, appointment and salary as

983

983

Managing Director 4/18 826Visit of Mr. Broderick, report re 12/ 4 2166

Birmingham:Charge off on bank premises, reply to FRBank of Atlanta re

procedure to be followed in basing allocationsof Government securities on extraordinary chargeoffs, action deferred until end of year 6/30 1286

Buffalo:Visit of Mr. Broderick, report re, inclined to view that

business does not justify continuance 9/22 1748Bylaws, Board to review 8/27 1601Charlotte:

bylaws, revision of, approved, subject to interpretation ofBoard regarding supervision of branch, and ap-pointment, tenure and compensation of officers 11/17 2084

Visit of Mr. Broderick, report re 12/ 4 2166Cincinnati:

Bylaws, revision of, County of Clark, Ohio, omitted, numberof directors reduced, Board prepared to approve,branch bylaws to be reviewed 9/17 1720

Revision approved, subject to understandings set out inBoard's letter of September 17 12/ 8 2193

FRnotes, discontinuance of Acting Assistant FRAgent andadoption of plan whereby notes are held intriple control, approved and copies of author-ization and agreement requested 7/13 1344

Staff:Acting Assistant FRAgent, position discontinued in plan

for holding .elinotes in triple control 7/13 1344Harrel, Clyde, Acting Assistant FRAgent, resignation

accepted effective July 31 7/29 1443-Ostendorf, Harry, extension for three months of tem-

porary assignment to position of lower pay grade 6/ 1 1106Continuation of assignment to lower salaried posi-

tion approved 9/10 1672Continuance of temporary assignment to lower sal-

aried grade approved for further six months 12/18 2237Territory, County of Clark, Ohio, omitted from revised by-

laws, presumably by inadvertence 9/17 1720Visit of Mr. Broderick, report re, business justifies con-

tinuance 9/22 1748


Branch banks, FRSystem: (Continued)

Continuance, necessity for, RBanks making study and suggestion

that member of staff of Division of Examinations

should make such a study

Continuance and scope of functions, study of Helena Branch,

action to be held in abeyance until completion

7/ 7

35

Pages

1322

of study 11/25 2120-2

Denver:

Staff:Jones, J. W., Assistant Cashier, salary increase ap-

proved 2/18 371

Young, W. R., appointment as Acting Assistant FRAgent,

instructions re bond and duties 10/10 1864

Visit of Mr. Broderick to, report re 8/14 1525

Detroit:

Bylaws, amended copy, as of June 26, approved subject to

Board's interpretation, and advice that Board

is making review of branch bylaws 9/10 1672

Inglis, James, Director, reply to letter re matters at, and

continuance as director of branch and of con-

tinuance of Mr. Buss as managing director 2/26 434

Personnel classification plan, changes approved 3/26 676

Salaries, officers, recommendations effective March 1, ac-

tion deferred on increases pending survey and

approved at previous rates 3/ 6 524-6

Staff:Buss, Ralph H., Managing Director:

Continuance in capacity, reply to Mr. Inglis that

Board has no voice in, but that it is glad to

have information he stated 2/26 434

Salary increased 6/25 1243

Diehl, H. L., Assistant Cashier, salary approved, retro-

active to January 1 7/ 3 1300

Martin, J. H., Assistant FRAgent:

Salary approved for 1936 1/31 281

Resignation to be accepted upon appointment of new

Assistant FRAgent at Chicago 7/20 1407

To be accepted when appointment of Mr. Raether be-

comes effective 7/29 1444

Resignation accepted 8/ 5 1489

Raether, Bernard L.:

Appointment as Assistant FRAgent, to resign position

in operating department before appointment is

effective 7/29 1444

Bond approved, and letter to Fidelity and Casualty

Co., requesting confirmation of acceptability

of description of appointment 8/ 5 1489

Duties assumed by, on August 6 9/ 1 1630

Visit of Mr. Broderick, report re, business justifies con-

tinuance 9/22 1748


36 Pages

Branch banks, FRSystea: (Continued)Directors:

Number of, discussion of recaunendation of FRBank of Clevelandre reduction to five and exclusion of manager,Board approves former but not exclusion of manager

Reduction from 7 to 5 at discretion of individual FRBanks,reply to President McKinney that Board has nottaken action on recommendation of Presidents'Conference

El Paso:Staff:

Allen, G. M., Acting Assistant FRAgent, temporary ap-pointment of Mr. Page to succeed Mr. Odom whohas been acting during illness of

Odom, L. M., Acting Assistant FRAgent, temporary appoint-ment of Mr. Page to succeed, has been acting inillness of Mr. Allen

Page, Grover Cleveland, temporary appointment as ActingAssistant FRAgent to succeed Mr. Odom

Bond ofAppointment and salary as Acting Assistant FRAgent,

assumed that bond will be continuedReappointment

FRBank of Atlanta:Vacation periods for officers and employees

FRBank of Kansas City:Bylaws, revision of, reply to FRAgent Thomas suggesting cer-

tain changesRevision approved

Mail confirmations of telegrams sent by, no objection todiscontinuance

FRBank of San Francisco:

Bylaws, amendments approved, Board to review branch bylawsBoard opposed to proposed substitution of rules and

regulations

Visit of Mr. Broderick to, report re, and feeling that twoof northwestern branches are not necessary

Helena:Bylaws, revision of, approvedDiscontinuance, President Peyton present at Board meeting,

desirous of erecting new building, question ofcontinuance or conversion into agency, presentbuilding to be repaired pending completion ofstudy by Board

Decision on, and letter on deferring of action and onrepairs to present quarters

Personnel classification plan, changes approvedQuarters:

Erection of new building recommended by Mr. Peyton, ac-tion deferred upon recommendation of Mr. Broderick

Repairs to be made, reply in accordance with action onNovember 25

6/23 1216-7

10/27 1947

1/25 213

1/25 213

1/25 2131/28 224

6/26 125612/31 2350

3/24 653

3/28 7014/20 832

10/19 1916

8/27 1601

12/24 2278

8/14 1525

4/15 812

11/25 2120-2

12/ 2 21591/15 130

5/ 1 940

12/ 2 2159


Branch banks, FRSystem: (Continued)Helena: (Continued)

Salaries, fixed for 1937 at present rates, Board will not

take action until recommendations of directors

37

Pages

at first meeting in January 11/13 2058

Salary advance to be made to employee upon separation fromservice Dec. 31, reply to FRBank of Minneapolis

that it should not be included in report re-

quested November 22, X-9366 1/ 4 29

Staff:Hoerr, A. A., Cashier, salary increase recommended in

reorganization plan 5/ 1 939

Salary approved 6/29 1266

Larson, C. T., Assistant Cashier, salary increase recom-mended in reorganization plan 5/ 1 939


Towle, R. E., Managing Director, salary increase recom-

mended in reorganization plan 5/ 1 939


Visit of Mr. Broderick to, report re, feeling that branch isnot necessary but that if continued, new quartersshould be provided 8/14 1525

Houston:Staff:

Lawhon, D. S., Acting Assistant FRAgent, retirement of,request if there is any objection to cancelation

of bond and noting correspondence with Congress-man Maverick re 8/20 1560

Reed, I. J.:Appointment as Acting Assistant FRAgent approved, ap-

proval of salary not necessary 8/20 1559Bond of 8/24 1572Reappointment 12/31 2350

Jacksonville:Charge off on bank premises, reply to FRBank of Atlanta re

procedure to be followed in basing allocationsof Government securities on extraordinarycharge offs, action deferred until end of year 6/30 1286

Visit of Mr. Broderick, report re 12/ 4 2166Los Angeles:

Staff:Designation of four additional employees temporarily as

assistant examiners 5/13 1008Jones, M. A., indebtedness to member bank, has not and

will not assist in examination of such bank,not to be reported to Attorney General butshould be eliminated 10/19 1906

Swengel, H. D., Acting Assistant FRAgent, appointmentwas previously approved and no further actionnecessary 8/29 1618

Reappointment 12/31 2350


38 Pages

Branch banks, FRSystem: (Continued)

Los Angeles: (Continued)

Staff: (Continued)Szevery, A. R., indebtedness to member bank, has not and

will not assist in examination of such bank, notto be reported to Attorney General, but shouldbe eliminated

Louisville:Fiscal agency functions in connection with bonds of Louis-

ville Joint Stock Land Bank and Union Joint StockLand Bank of Louisville performed at request ofFarm Credit Administration, Board is of opinionthat Secretary of Treasury should make request

Copy of letter re to be sent to all FRBanksStaff:

Summers, A. K., continuance of assignment to lower sal-aried position for six months approved

Extension of assignment to lower salaried positionapproved

10/19 1906

5/13 10155/13 1016

3/11 551

9/16 1711New Orleans:

Staff:Walker, Marcus, Managing Director, outside business affil-

iations, no objection to connection with hospitalbut that with Dibert, Bancroft, & Ross Co. comeswithin prohibition 4/ 7 770

Oklahoma City:Personnel classification plan, change approved

Staff:Engineer, reply to Congressman Rogers that Board has no

jurisdiction over possible affiliation with In-ternational Union of Operating Engineers

1/20 164

5/19 1054Omaha:

Staff:Thornton, I. A., appointment as Acting Assistant FRAgent,

instructions re bond and duties 10/10 1864Pittsburgh:

Bylaws, revision of, to be in accordance with revision ofbylaws of Cincinnati Branch, Board prepared toapprove 9/17 1720

Revision approved, subject to understandings set out inBoard's letter of September 17 12/ 8 2193

FRnotes, discontinuance of Acting Assistant FRAgent andadoption of plan whereby notes are held intriple control, approved and copies of author-ization and agreement requested 7/13 1344

Razing of old building authorized, charge off of book valueapproved 4/25 894

Staff:Acting Assistant FRAgent, position discontinued in plan

for holding FRnotes in triple control 7/13 1344Nolte, William H., Acting Assistant FRAgent:

Renewal bond 5/25 1074Resignation accepted effective July 31 7/29 1443-4

Visit of Mr. Broderick, report re, business justifies con-tinuance 9/22 1748


39

Pages

Branch banks, FRSystem: (Continued)Salt Lake City:

Staff:Scott, W. M., Assistant Cashier, salary increase approved 2/18 371

San Antonio:Staff:

Gowland, C. P., Acting Assistant FRAgent, reappointment 12/31 2350

Seattle:Reserve accounts carried by Spokane Branch for out-of-town

banks transferred to, and discontinuance by lat-

ter of all services except check clearance and

currency service for Spokane banks 12/17 2229

Spokane:Discontinuance, opposition to discontinuance of Helena

Branch would be less if Spokane Branch were also

discontinued, opinion of President Peyton in

proposal for new cuarters for Helena Branch 11/25 2121

Reserve accounts of out-of-town banks, transfer to Seattle

Branch and discontinuance of all services ex-

cept check clearance and currency service for

Spokane banks 12/17 2229

Branch banks, foreign:National City Bank of New York:

Havana:Vaults of Havana Agency, use of compartments for storage

of surplus silver coin, no objection providing

AiBank of Atlanta is released from responsibil-

ity and at any time may resume use of 2/20 399Branches of foreign banks:

Banco Nacional de Mexico:

New York Agency, to be absorbed by Harbor State Bank and lat-

ter to convert into trust company under title of

Pan American Trust Co. 12/ 4 2173

British American Tobacco Co., Ltd.:

Case against FRBank of New York: (See Court cases)

Broad, S. J.: (See American Institute of Accountants)

Brock, Malcolm C.: (See Malcolm C. Brock and Co.)

Broome, R. F., present at meeting of Board to discuss Regulation U 4/22 839

Brown, Adelbert, special counsel for FRBank of Chicago in contest-

ing illegal part of assessment on building 8/22 16.9

Brown & Shipley, reply as to procedure necessary in discontinuance

by Farmers and Mechanics National Bank, West-

minster, Md., of trust department and letter to

Comptroller re 11/17 2082

Brownlow Committee: (See Committees, Administrative Management)

Bruce, B. A.: (See Foreign banking corporations, International

Discount Corporation)

Budget:Board of Governors:

Board members--Repairs to equipment, addition authorized 9/11 1690

Budget for 1937, consideration to be given to, by Personnel

Committee 11/25 2133


40 Pages

Budget: (Continued)

Board of Governors: (Continued)

Budget for 1937: (Continued)ApprovedDiscussion of item providing for retirement contribu-

tions and particularly discharge of prior ser-vice liability, should be explained in annualreport, question of making in smaller amounts inyears when earnings are low

Counsel's Office, increase for subsistence and travelDivision of Research and Statistics, additions approved

Additional sum for equipment approved

Fiscal Agent's Office, budget increased for additional Print-ing

"Special and Miscellaneous - General", addition to itemauthorized to reimburse Cleveland FRBank audi-tors for expense of auditing Board's accounts

Subsistence Expenses - Board Members, addition recommendedby Mr. Morrill, approved

IRBanks:Copies of, and of branches, for 1937, request that they be

sent to Board and that they be prepared alongfunctional lines in accordance with formsX-9739-a,b, and c

Examination function, to be subject to approval of BoardResearch and statistical function, to be subject to approval

of Board

Uniform basis, suggestion that FRBanks should prepare on,worked out by Division of Bank Operations

Building and loan associations:

Competition with member banks, especially as to Federal Savingsand Loan Associations, advice requested ofPresidents' Conference as to

Opinion that there is no substantial competitionStatement re

New Jersey, deposits of, may not be classified as savings ac-counts

Reply to Farmers and Mechanics National Bank, Woodbury, N.J.,

Bureau of Engraving and Printing:

Order for FRnotes for fiscal year ending June 30, 1937, letterto Comptroller requesting placing with Bureau

Bureau of Internal Revenue:

Holding company affiliate exemption on income tax in connectionwith holding of general voting permits, those notholding may desire to obtain before end of year,letter to be prepared by Counsel requestingFRBanks to call attention to regulations of

National banks ruled to be instrumentalities of U. S. withinmeaning of Social Security Act and neither banksnor employees are subject to taxes thereunder,advice to all presidents

Social security act, three rulings re applicability of taxes un-der, to national banks, State member banks andnonmember banks, to be published in FRBulletin

12/30 2329

12/30 23324/15 8127/ 1 129110/29 1965

4/30 937

10/ 2 1821

10/26 1943

11/17 20856/ 3 1126

6/ 3 1132

7/ 7 1322

3/17 6053/17 6083/17 608

6/10 11616/10 1162

6/18 1197

10/30 1980

7/13 1348

10/27 1953Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

41

Pages

Business affiliations of directors: (See Directors, FRBanks)Business conditions:

Federal Advisory Council re-port re, "mild boom" in some sectionsof country 9/10 1670

.Reports re, by members of Federal Advisory Council 5/19 1049Business Finance Co., reply that Board cannot furnish names of

liquidating national banks in New Jersey and thatno action will be taken in connection with no-tices of appearance in case of two national banks 5/25 1079

Bylaws:

Baltimore Branch:Amendment changing day of directors' meeting from second to

first Wednesday in each month, approved 6/ 1 1113Revision of, approved, subject to interpretation of Board

re supervision of branch and tenure and appoint-ment and compensation of officers 11/17 2084

Board of Governors:Amendments proposed re signing of checks on RAgents' fund,

Article IX, and re requisitions for Ainotes, Ar-ticle X, approved subject to approval of GeneralCounsel 2/25 420

Article IX, Counsel not able to approve amendment resignature of orders on Interdistrict SettlementFund, Board may resolve question, proposed pro-cedure would be satisfactory to Treasurer, tobe resubmitted with further amendment 3/21 632

Article X, approved by Counsel, in accordance with actionof Board on February 25 3/21 632

Revision being prepared, at request of Chairman 2/25 421Branches of FRBank of Kansas City, revision of, approved 4/20 832Branches of FRBank of San Francisco:

Amendments approved, Board to review branch bylaws 8/27 1601Board opposed to proposed substitution of rules and regula-

tions at present 12/24 2278Branches of FRBanks:

Managing director, Board unwilling to approve any amendmentseliminating from board of directors 6/23 1216

Review to be made by Board 8/27 1601Review of procedure for adoption and amendment to be made 9/10 1673

Charlotte Branch, revision of, approved, subject to interpreta-tion of Board regarding supervision of branch,and appointment, tenure and compensation ofofficers 11/17 2084

Cincinnati Branch, revision of, County of Clark, Ohio, omitted,number of directors reduced, Board prepared toapprove, all branch bylaws to be reviewed 9/17 1720

Approved subject to understandings set out in Board's let-ter of September 17 12/ 8 2193

Denver Branch, revision of, reply to FRAgent Thomas suggestingcertain changes 3/28 701

Detroit Branch, amended copy, as of June 26, approved subject toBoard's interpretation and advice that Board ismaking review of branch bylaws 9/10 1672


42 Pages

Bylaws: (Continued)

Federal Open Market Committee, tentative draft of, to be sent toERBanks for study prior to organization meeting

Discussion ofFurther discussion

FRBank of Atlanta, revision of, reply to Mr. Clark that Boardhas no suggestions to make re, except those inletter of February 14, X-9493

Copies may be sent to directors with advice that Boarddoes not object to revision of

FRBank of Boston, amendments in accordance with Board's sugges-tions of February 14, letter to Mr. Curtiss re-questing what action has been taken re

FRBank of Chicago, revised copy, submitted with memo of Mr. VestLetter to MBank advising of receipt of and commenting on

copies

MBank of Cleveland, amendment providing for officers' terms torun from directors meeting preceding first dayof March, reply that Board does not wish to makeany changes in procedure for approving salaries,approved

FRBank of Dallas:Amendments in accordance with Board's suggestions of Febru

14, letter to Mr. Walsh requesting what actionhas been taken re

Rates of discount, no objection to inclusion of provisionthorizing executive committee to establish

FRBank of Kansas City, amendments in accordance with Board'ssuggestions of February 14, letter to Mr. Thomrequesting what action has been taken

FRBank of Minneapolis, amendment to eliminate requirement thatFRBank stock certificates be countersigned byFRAgent or an assistant FRAgent

FRBank of Philadelphia:

Amendment eliminating provision for Comptroller in chargeaudit department

Executive committee, revision providing that president sha- be member and chairman of, memo of Mr. Vest re,

action deferred until receipt of all FRBanks'bylaws

FRBank of St. Louis:Amendments in accordance with Board's

14, letter to Mr. Dillard requehas been taken re

Revision of, memo of Mr. Vest that as theywith Board's suggestions theirmerely acknowledged, approved

FRBank of San Francisco, revision of, giving exauthority to reestablish ratesfixed by board of directors, letter re, to berevised

ary

as

of

ll

sting what action

ecutive committeeonly at figures

3/10 547

3/13 5673/13 569

2/24 416

5/25 1078

5/25 10782/27 451

9/10 1672

3/4 502

5/25 1078811-

2/24 414

5/25 1078

8/15 1531

3/ 6 529

3/6 519

suggestions of February

5/25 1078

are in accordancereceipt should be

11/12 2049

12/28 2288FRBanks:

Revisions of, counsel to be requested to prepare memorandumshowing differences with Board's suggestions of

February 14 and any other matters 3/ 6 520Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

43

Pages

BYlaws: (Continued)FRBanks: (Continued)

Uniformity, statement of Chairman re opportunity to make sug-

gestions tending toward, points presented (1)

meeting of directors each 14 days, (2) executive

committee not to be authorized to fix rates,

(3) that executive committee consist only of

directors, and (4) that its chairman be chairman

of board, only (3) to be suggested to FRBanks

and transmission of letters authorized 2/11 329

First State Bank of Purcell, Okla., attention to be called to

desirability of amending re number of directors 3/31 714

-Ielena Branch, revision of, approved 4/15 812

Oklahoma City Branch, revision of, reply to FRAgent Thomas sug-

gesting certain changes 3/28 701

Omaha Branch, revision of, reply to FRAgent Thomas suggesting

certain changes 3/28 701

Pittsburgh Branch, revision of, to be in accordance with re-

vision of bylaws of Cincinnati branch, Board

prepared to approve 9/17 1720

Approved subject to understandings set out in Board's letter

of September 17 12/ 8 2193

Seattle Branch, directors, no objection to temporary amendment

to eliminate requirement that one reside outside

branch city 1/17 155

BYrd, Senator Harry:Information furnished by Board to public, letter re 11/20 2108

(See also Committees, Senate Committee on Federal Organization)

"C"

California:Fiduciary powers of national banks, refusal to grant license to

First National Bank of Santa Ana because of

legal prohibition against examination RF trust

department, bank may agree to permit examination,

but license is not necessary under Board's au-

thorization

California Bankers Association:

Address of Comptroller before, reply to Mr. Young and advice to

FRAgents re effect on right of member banks

under investment securities regulation to pur-

chase bonds convertible into stock only at op-

tion of holderCalifornia Security Dealers Association:

"Investment quality" securities, reply to Mr. Wheeler on sugges-tion of, that Regulation U be amended to permithigher loan values

Callaway, Merrell P.: (See American Bankers Association)Capital and surplus:

FREanks, Sec. 13b surplus, reply to request of Governor Sony forreconsideration of inclusion in, for purposes ofassessment by Board

1/20 165

6/ 5 1148

6/22 1209

4/s4 '755•


44 Pages

Capital and surplus: (Continued)Second FRDistrict, report of Mr. Case that all except two banks

subject to membership condition requiring main-tenance of adequate ratio to deposits meet re-quirements, no action to be taken as total capi-tal structure of two banks is adequate

Capital impairments:Del Rio Bank and Trust Co., Del Rio, Texas, failure to eliminate

losses and doubtful assets resulting inCarey, John L.: (See American Institute of Accountants)Carroll, F. A.: (See Voting permits, National Shawmut Bank)Cashier's checks, FRBanks, pledge against deposits of Treasurer of

Montana by Union Bank and Trust Co., Helena,Mont., no objection, and instructions for show-ing in condition reports

Cassel, Howard N.: (See National banks, Citizens National Bank,Wellsville, N.Y.)

Cavalier, William and Co.: (See William Cavalier and Co.)Certificates of beneficial interest: (See Membership in FRSystem,

Eligibility)Certificates of FRBank stocic: (See Stock, FRBank)Certificates which came into the hands of the Public at time of the

fire in the Post Office Building, one returnedto Treasurer which was received from GovernorSeay having been found in front of Western Na-tional Bank, Baltimore, suggestion that they bedestroyed

Certification to Federal Deposit Insurance Corporation:Ann Arbor Savings and Commercial Bank, Ann Arbor, Mich., cer-

tified to now be a member of FRSystemGlen Rock Bank, Glen Rock, N. J., certified to now be a member

of FRSystem

Pomeroy State Bank, Pomeroy, Wash., that it is now member ofFRSystem

Chalfant, Paul S.: (See Purse Co.)

Chapin, L. A.: (See Denver Post Employees Credit Union)Charge offs:

/RBank of Atlanta, bank premises at Atlanta, Birmingham andJacksonville, request for approval of, actiondeferred as earnings will not meet expenses

FRBank of Chicago, authorized to charge off settlement ofFletcher American National Bank claim

FRBank of Cleveland:Pittsburgh branch building, old, book value charge off ap-

provedPrior service liability, Board desires procedure followed at

other FRBanks to be followedFRBank of Dallas, site of head office building and San Antonio

branch, authorized to make special charge offFRBank of Minneapolis, Prior service liability under retirement

system, reply that authorization to charge 1/48of amount off monthly was not intended to re-voke authority to set up reserves against

2/11 333

9/25 1761

2/27 450

1/10 100

2/17 360

2/13 346

1/22 183

6/30 1286

12/28 2285

4/25 894

1/29 229

12/28 228:1

1/13 120


Charge offs: (Continued)FRBank of New York, authorized to charge off assessed valuation

of Montauk Building, and incidental costs of

45

Pages

purchase of property 12/28 2284

FRBank of St. Louis, charge of loss on commitment to profit and

loss, reply to Mr. Attebury that if at end of

year industrial loan expenses exceed earnings,

amount should be charged to surplus (Sec. 13b) 7/30 1454

FRBanks:Allotments of securities in System Open Market Account,

quarterly report to be secured re unusual charge

offs, in connection with formula retained by

Famc for, and uniform policy to be striven for 6/ 3 1135

Board's new building, authorized to charge off assessments

for, during 1936 12/28 2285

Furniture and equipment, authorized to charge off amount

purchased during 1936 12/28 2284

Industrial loans, authorized to set up reserves or make

charge offs against losses 12/28 2285

Recommendations for year end, discussion of memo of Mr.

Smead re and views of Chairman Eccles re policy,

also suggestion that brief statement of results

of operations of FRBanks be released to press 12/23 2262

Feeling of Chairman that uniform policy should be

adopted for future, recommendations approved,

press statements re earnings and expenses to be

withheld until Board issues statement covering

entire System 12/28 2283-6

Advice to FRBanks to withhold press statements 12/30 2342

Check protectograph, Purchase for use of Board's Fiscal Agent 8/20 1562

,dueckmaster -Plan", used by National Safety Bank and Trust Company

in New York, N. Y., reply to Mr. Vogt that

Board does not know that plan violates any laws

which came within jurisdiction of Board 5/21 1067Cheston, James, 3rd: (See State member banks, Pennsylvania Company

for Insurances on Lives and Granting Annuities)

Chicago Daily News, bank debits statement, release time changed at

request of, from "Sunday morning" to "immediate

Chicago Stock Exchange, meeting of Mr. Parry with representatives

of, at FRBank of Chicago re proposed amendment

7/29 1449

to Regulation T 12/ 1 2150

Circulars:Board of Governors:

Advances under Sec. 10(b) of FRAct, advice to all FRBanks

that such loan may be made even though member

bank has assets eligible for rediscount or ad-

vance under other sections of FRAct 7/ 8 1328

Annual reports of FRBanks, views of FRBanks requested in

connection with desire of one FRBank to discon-

tinue, would send summary annual statement to

stockholders 12/17 2229


46 Pages

Circulars: (Continued)Board of Governors: (Continued)

Assistant FRAgents, status as officers, telegram to allFRAgents that they should be provided for inpersonnel classification plans and assignedother duties in FRBanks 6/23 1222

Bank relations report, Mr. Szymczak requested to draft letterto FRBanks calling for 8/ 4 1473

Letter requesting reports and also reports covering in-formation gathered during trips through districts 8/25 1582

Biographical data of directors and officers, forms approved114

1148

2154

505

definite provision barring directors from re-appointment who have served six or more con-secutive years 12/28 2289

Budgets of FRBanks, letter to all FRBanks containing instruc-tions for submission for 1937 11/17 2085

Building of Board, letter to FRBanks and to Mr. Leach call-ing for part of unpaid assessment for 4/23 858

Bylaws, FRBanks, one of four suggestions re amendmentsvoted to be made to FRBanks by Board in re se-curing uniformity, that executive committeesconsist solely of directors, transmission ofletters authorized 2/11 330

Capital requirements of State member banks, letter toFRAgents that where banks in towns of 3000 orless, reduce capital through retirement ofpreferred stock or capital debentures below00,000 but not below 25,000, Board will notconsider violation of FRAct 1/31 256

Reply to Mr. Case that instructions do not apply to re-ductions of capital notes or debentures sold toothers than R.F.C., but does apply to preferredstock 2/13 347

Capital of State member banks, maintenance of adequate,letter to FRAgents that condition 2 of revisedRegulation H and footnote 8 may be applied to,subject to old condition 15, request for annualreview of banks in connection with requirement 2/28 454-7

for, and letter to FRBanks reBonds convertible into stock only at option of holder, re-

ply to Mr. Young and advice to FRAgents of ef-fect of Comptroller's speech before CaliforniaBankers Association on right of member banks to

1/11

purchase, under investment securities regulation 6/ 5Branch banks, capital requirements, advice to FRBanks that

Board will follow Comptroller's interpretationof law re, where there is more than one branchin a place other than head office town 12/ 2

Branch clearing balances, classification of, in computingdaily deposit liabilities for reserve reportsand preparation of condition reports, reply toMr. Bale and copy to all FRAgents 3/ 4

Branch regulations re directors, amendment making more


47

Pages


Capital stock reductions of State member banks, letter to

FRAgents making provision in revised Regulation

H permitting, where capital is correspondingly

increased or a specific reserve set up, appli-

cable to banks subject to membership condition

requiring prior approval of Board

Reply to Mr. Fletcher that letter (X-9480) does not

modify X-9048 authorizing FRAgents to approve

certain reductions

Certificates of deposit, letter to FRAgents re forms of,

printed in 1933 November FRBulletin, calling at-

tention to fact that rates of interest shown

have been superseded

Condition reports:

Forms and instructions for next call transmitted to

FRBanks

Forms and instructions for next call forwarded to pres-

identsForms distributed for Fall call, which was not made, to

be used on year end call, information called

for in form 105-f to be submitted at mid-year

and year-end calls

Publication, telegram to FRAgents that where items re-

quired by Board are also required by State one

publication will suffice if additional State

entries are shown under appropriate heading

Conditions imposed on nonmember insured banks by F.D.I.C.,

letter to FRAgents re desirability in cases of

membership applications, of Board and F.D.I.C.

supplementing each other's efforts to build up

sound banking system

Conference of examiners, letter to FRBanks advising of, and

requesting convenient dates, topics and program

forAdvice to all FRBanks that meeting will be held October

26 and tentative program will be forwarded

Correspondence with FRBanks re policy and salaries, letter

to FRBanks to be prepared to bring to attention

of directors

Letter to all FRBanks requesting that communications re

policy matters, salary and of other importance

be brought to attention of directors

Credit allowed holding company affiliates by Revenue Act,

letter to all FRBanks re, in accordance with

action of October 30

Deposits, study of activity of, letter to FRAgents and let-

ter to be sent to selected banks, approved

Directors meetings at FRBanks, reply to Mr. Walsh that

Board has taken no action looking toward uniform

dates for, and that there is no objection to au-

thorizing executive committee by provision in by-

laws to establish discount rates, copy to all

FRBanks

2/ 6 306

2/13 348

5/27 1096

3/ 7 534

8/28 1609

12/ 1 2147

1/11 112

7/10 1336

8/27 1602

9/25 1764

9/22 1745-6

10/16 1900

11/16 2067

1/16 148

2/24 414


48 Pages


Disability retirement allowance, authorization to all FRBanksto make lump sum contributions to retirementsystem for purpose of supplementing 9/28 1784

Discounts for individuals, partnerships and corporations un-der Sec. 13 of RAct, extension of authority forfurther six months, until July 31, circular re,revised to conform to Banking Act of 1935 1/24 205-9

Dismissal wage, letter to FRAgents authorizing payment topersons under age 55 with 10 years or more ofservice, six months' salary in lump sum or sixmonthly installments 4/ 6 762

Distribution of X letters to member banks, reply to FRBankof Cleveland re policy of Board with respect to 3/ 3 492

Division of Issue and Redemption, advice to all FRBanks oftransfer of employees to Payroll of Comptroller,method of payment of expenses of, to be proratedamong FRBanks 11/25 2131

Earnings and dividend reports, form 107, changes in, forDecember 31, copies forwarded to all FRBanks andinstructions re 12/21 2250

Earnings and expenses of FRBanks for 1936, advice to FRBanksto withhold press statements re until Board canissue statement covering system as a whole 12/30 2342

Editorial Research Reports pamphlet re operations of ERSys-tem, copies furnished to FRBanks 11/ 7 2022

Examination procedure in connection with bank loans on se-curities, letter to FRAgents 5/ 6 979

Examination reports of State member banks, letter to FRAgentsrequesting forwarding to Board as soon as avail-able, and in case of serious condition to referto Board the question of action 4/24 870

Examinations of member banks, .liAgents to be advised tosend copies of all reports to Board as soon asavailable, and to submit any serious conditionto Board for determination of action 1/ 4 15

Executive Officers:Reports of indebtedness, advice to FRAgents to circularize

member banks re ruling (X-9483, Feb. 6) that theyshould be made to Board of Directors under Reg-ulation 0 2/19 385

Reports of indebtedness made subsequent to Banking Actof 1935 and prior to effective date of Regula-tion 0, need not be remade if in substantialcompliance with regulation 2/28 458

Federal Advisory Council, FRBanks requested to submit forapproval amount of compensation and allowancesfixed for each member and request for report ofamount to cover payment of expenses of Secre-tary's office 2/11 332

"Federal Laws Affecting National Banks", recommendation ofMr. Vest that ERBanks be advised of depletionof stock of publication, approved 9/25 1764


49

Pages


Federal Open Market Committee:Members, letter to Mr. Stevens advising that selection

should be from officials of FRBanks, copy to all

FRAgentsReply to be prepared to FRBank of Minneapolis oppos-

ing FRBank representation by outside personsand copy to be sent to other FRAgents

Federal Advisory Council informed as to proposedaction

Copy of letter to Mr. Strater sent to all FRBanks,re election of Governor Norris who has not beenappointed President of FRBank of Philadelphiaand re proposed attendance of alternate at meet-ings in advisory capacity

Election of, memo of Mr. Dreibelbis that eachFRBank director is entitled to case a vote andsuggested form of procedure for, to be sent toMr. Peyton and other ERBanks

Memo of Mr. Dreibelbis ruling that they may not beelected by RBanks under limited authority, tobe sent to all FRBanks

Scope of authority over open market operations, foreignexchange transactions and relations of /EBankswith foreign banks

FRBank stock:Adjustments because of temporary deficit in surplus, no

need for immediate, reply to Mr. McAdams andcopy to other FRAgents

Amendment of form of, letter to all FRAgents re needfor, because of changes made by Banking Act of1935, and re reconcilement of different formsused

Changes, advice to presidents that after transfer ofnonstatutory duties of FRAgent to bank, anyofficer may sign certificate of

New uniform form, letter to all FRBanks except SanFrancisco re, changes to be made for variousbanks having different forms of counter-sig-nature

FRnotes:Advice to all presidents of increase in cost of print-

ing1928 series, instructions to FRAgents for discontin-

uance of issuance ofShipments to be made in even thousands of dollars ef-

fective December 1 and clearing through Inter-district Settlement Fund to be in thousands

First Vice Presidents of FRBanks, advice to all FRBanksthat "First" should be included as part of offi-cial title

1/ 2 7

2/11 322-4

2/11 326

2/19 379

2/20 404-5

2/25 419

5/15 1027

6/ 4 1138

3/ 7 535

9/ 3 1643

5/27 1101

8/20 1562

1/20 175

11/28 2143

3/6 531


50 Pages

Circulars: (Continued


Fiscal agency functions in connection with bonds of jointstock land banks at request of Farm Credit Ad-ministration, advice to FRBanks re opinion ofBoard that request should be made through Secre-tary of Treasury

Foreign bank relationships of FRBanks, statement of proce-dure sent to all ERBanks

Form B-13, forwarded to FRBanks for submitting semi-monthlyreports of member bank deposits

Form B-23 revised

Form 34, changes proposed to be made in, for 1937, adviceto FRBanks re

Government securities as collateral for FRnotes, formula asto amounts pledged no longer necessary, andFRBanks authorized to pledge in such amounts asmay avoid frequent interchange of, and gold cer-tificates

Graduate School of Banking, letter to all presidents thatadditional annual leave may be granted to FRBankemployees for attendance and transportation ex-penses assumed

Holding company affiliates, credit under revenue act, replyto FRBank of San Francisco and copy to allFRBanks, re procedure in submission of factsand information relating to

Income tax exemption allowed holding company affiliatesholding general voting permits, counsel to pre-pare letter to FRBanks requesting that they callattention to regulations of Bureau of InternalRevenue to

Indebtedness reports of personnel of FRAgents' departments,reply to Mr. Walsh and copy to other FRAgentsthat all should be reported

Individuals, partnerships and corporations, authority to re-discount for, advice to presidents that Boarddoes not contemplate renewal of, and request forany necessity

Industrial advances, volume of, letter to governors re indi-cations that .MBanks could do more to expand,and form of letter for transmission to memberbanks

Reply to Governor Martin re proposed amendment to let-ter to be sent to banks

Reply to Governor Schaller re amendment proposed to let-ter to banks

Text of letter proposed by FRBank of Dallas satisfactoryInsured deposits, letter to FRBanks re request of FDIC for

report re, in order to make estimate ofInterdistrict time schedules, changes in, recommended by

FRBank of Chicago, approved

5/13 1015-6

12/29 2313

7/ 2 129711/13 2061

11/13 2061

7/20 1409

6/ 4 1140

12/30 2341

10/30 1980

6/24 1232

9/ 3 1642

1/ 4 44

1/ 9 89

1/10 1001/11 112

5/ 4 963

9/18 1732


51

Pages


Interest payment on time deposits when renewed within ten

days after maturity, letter to Mr. Young re

differences in Board's and F.D.I.C. regulations,

Board will not object to practice, copies to

other FRAgents 4/13 793

Interlocking directorates, review and reports re permits,

telegram to all FRAgents that sec. 4 of Regula-

tion L supersedes instructions in X-7426 and

Trans. 2225 1/29 231

Investment securities:

Purchase by State members, September 11, 1935 (X-9322),

interpretation of, draft of reply to ilEBank of

Chicago, should be revised, referred back to

Counsel's Office 2/13 373

Regulation of Comptroller re, letter to FRAgents inclos-

ing statements of Comptroller's views re ques-

tions raised under, and reply to Mr. Sargent that

gradual liquidation of excess investments is per-

missible 4/ 4 754

Sec. 5136, R.S., limit of 1Oe imposed by, on amount a

bank may hold of one "obligor or maker", advice

to all FRBanks and to Mr. Evans re conclusion

of Comptroller as to inclusion in term of

another corporation which has guaranteed obli-

gations, a parent corporation or lessor corpora-

tion 7/13 1348-9

Leased wire system:Recommendations of leased wire committee approved, re

payment by Board for its messages, transfer of

Washington operators to Board's payroll, account-

ing, etc. 3/26 681

Treasury telegrams, advice to 1RBanks that assurances

have been received from Treasury of reimburse-

ment for, beginning January 1, 1937 and that

Board has agreed that costs be absorbed until7that time /31 1468

Leave of FRBank personnel, modification of Board's circular

of Dec. 5, 1932, authorizing granting in excess

of annual to attend Graduate School of Banking

or as delegate to conference of American Insti-

tute of Banking, without securing Board's ad-

vance permission 4/16 815

Advice to FRBank of New York that authorization fully

covers additional leave with pay granted to

three employees 4/28 905

Library of RBank of Minneapolis, advice to other FRBanks

of FRBank's action in making available to member

and nonmember banks 10/16 1902

Licenses for newly admitted State member banks, advice to

presidents that they, or vice presidents should

sign reco[umendations to Secretary of Treasury for 8/25 1579


52 Pages


Loan to Banco de Venezuela by MBank of New York on securityof gold, advice to all FRBanks of approval andauthorization for participation

Mail confirmations of telegrams from Board to FRBanks andbranches discontinued

Membership in FRSystem:Eligibility of State banks which have issued certificates

of beneficial interest, advice to FRAgents thatBoard has reconsidered position and outliningterms under which such banks will be admitted

Organizing bank, reply to Mr. Sargent andpresidents re eligibility of

National Archives proposed survey of FRBanks'and FRAgents' department records,.bliBanks re

banks exempt from taxes under Social Security Act,advice to all presidents re ruling of Bureau ofInternal Revenue

Nonmember banks filing agreements under Securities ExchangeAct of 1934, lists to be prepared in Board'soffices in future and FRBanks not to prepare

Officers and employees, request for number and salaries asof December 31 for use in Annual Report

Organization surveys of FRBanks, letter re, to all FRAgentsPar list, mailing of, telegram to FRBanks suggesting pro-

cedure for mailing all copies from WashingtonPersonnel classification plans of FRBanks, letter to

FRBanks advising of approval of revised form ofPublic Health Service study of Morbidity and Mortality, let-

ter to governors requesting cooperation ofFRBanks

Public Utility Bolding Company Act, letter to FRBanks reapplicability to State member banks, advisingof Securities and Exchange Commission's Rule re

Publication of condition reports, advice to FRAgents not toinform State member banks of Board's decisionsre single publication to satisfy Board and Staterequirements pending outcome of certain negotia-tions with State authorities for acceptance ofsingle publication

No objection to insertion of item to satisfy State re-quirements and thus make only single publication,advice to FRAgents

National

copies to

fiscal agencyletter to

Rates:Interest and discount charged by member banks, letter to

FRBanks requesting reports reRediscount, establishment every 14 days, copy of letter

to Mr. Sargent re failure of FRBank of San Fran-cisco to reestablish because of lack of quorum,sent to all FRBanks

7/30 1454

10/ 9 1863

1/6 52

9/12 1693

4/18 829

7/13 1348

4/4 757

11/23 21123/25 670

1/22 187

3/24 656-7

1/4 50

4/2? 900

3/11 556

3/12 563

8/ 4 1484

1/13 11?


53

Pages


Rates: (Continued)

Rediscount: (Continued)Establishment by FRBanks, reply to Mr. Walsh that

there is no objection to authorizing executive

committee by provision in bylaws to establish,

copy to other FRAgents 2/24 414

Regulation H, telegram to FRBanks that Board is willing,

if desirable, to furnish sufficient copies for

distribution to member banks and nonmember banks

interested 1/ 4 43

Regulation P, telegram to RBanks that Board is willing,

if desirable, to furnish sufficient copies for

distribution to member banks and nonmember banks

interested 1/ 4 43

Regulation Q., advice to RAgents of indefinite suspension

of sec. l(f) entitled "Interest" in accordance

with action of January 24

Reply to Mr. McAdams re, that member banks should be

further advised

Regulation U, letter to FRBanks transmitting draft of, for

consideration and comment

of officers and directors under Sec. 30 of Banking

Act of 1933, letter to presidents and FRAgents re

procedure, copy to Comptroller 8/29

deficiencies of FRBanks, advice to all .bRBanks that

Assistant Secretary of Treasury Taylor has

agreed that monthly reports be discontinued and

such reports submitted annually 10/12

position of member banks, data re requested to form

basis for analysis of 11/25

ratios of FRBanks, advice to all presidents re

elimination of item from weekly statement ofYRBankssystem reports on B-23, advice to governors to

report full amounts of contributions, but not ad-

ditional contributions at end of yeardeposits for purposes of reserves, letter to Mr.Wood and copies to other FRAgents re banks notshowing allowable deductions and advising that

reports should be submitted showing informationcalled forofficers of FRBanks, informal consideration, let-ter to FRBanks advising that Board believes itdesirable to adopt procedure for, in advance offormal action on recommendationsofficers and employees of FRBanks, formsX-9746-a-b-c for submitting lists of officers,employees and salary changes during 1936 oflatter

Removal

Reserve

Reserve

Reserve

Retirement

Reports of

Salaries of

Salaries of

219

259

111

1620

1868

2139

7/ 2 1295

1/2 11

1/31 263

11/23 2111

11/23 2112


54 Pages


Sick leave, letter to Governors re recommendation of Gover-nors' Conference for formulation of definitepolicy re, by FRBanks, and stating that it willbe satisfactory to Board if cases involving ex-tended leave with pay are approved by executivecomuittee and reported to Board of Directors 2/11 333

Time certificates of deposit renewed within ten days aftermaturity, Board waives requirement for paymentof interest for intervening period that certifi-cates be postdated to maturity date 5/18 1041

Transit clearing through Interdistrict Settlement Fund ineven thousands of dollars, advice to FRBanks thatPresidents' Conference will consider 11/28 2143

Trust funds, uninvested, acceptance of deposits of, byFRBanks, letter to all presidents re action ofGovernors' Conference and requesting views ofFRBanks 4/15 810

Letter to 1RBanks authorizing them to accept deposits of,under special safeguards, not authorized to re-ceive from nonmember banks 9/29 1789

"Verification of Financial Statements", advice to FRAgentsthat Board will not distribute any longer, aspamphlet has been revised by American Instituteof Accountants under title of "Examination ofFinancial Statements by Independent Public Ac-countants" and will be distributed by Institute 3/10 550

Violations of Clayton Act and Sec. 32 of Banking Act of 1933,letter to FRBanks that Comptroller of the Cur-rency has ceased practice of reporting in nation-al banks 4/18 829

Violations of criminal provisions of banking laws, letter toFRAgents re procedure in reporting, and thatState member banks should be impressed with im-portance of reporting Promptly 1/22 186

Voting permits:Agreements of national banks, amendment to eliminate

requirement that Board's approval be secured forinvestment changes 4/ 4 751

General, amendment to standard agreement, advice toFRBanks re 12/ 7 2187

General and limited, procedure in issuance of, advice toall presidents that no change will be made atpresent 12/21 2248

Vouchers covering telegrams sent over branch wires for Trea-sury Department, advice to FRBanks that GeneralAccounting Office refused to approve, procedureto be followed in future 11/25 2139.

Wire transfers, recommendation of Standing Committee on Col-lections re making for nonmember banks, theirinclusion in par list and revision of rules andregulations re, letter to Governors approvingand transmitting revised rules and regulations 1/ 4 45-9


55

Pages


Works Progress Administration project, study of closed

banks, letter to governors re supervision of,

at expense of FRBanksX-letters, new procedure adopted for identification of

FRBank of Atlanta:Interest payable on time and savings deposits in Mississippi,

copy sent to ComptrollerReserves of member banks, reply to Governor Newton re de-

cision not to revise and reissue circular re, in

view of scope of Regulation D

FRBank of Dallas:Transfers, wire and mail, reply to Governor McKinney that

regulations of Board of January 3 (X-8411) re-

lated only to wire transfers, but if circular

relates also to mail, no objection to changing

liability clauseFRBank of Minneapolis:

Digest of rulings of Board and opinions of Counsel forFRBank, contemplated distribution of, opposed by

Board424, Collection of non-cash items, request as to action

taken on recommendation of Presidents' Conference

that it be withdrawn pending report of Commit-

tee on Free ServicesReply to Mr. Peyton that in view of saving of expenses

and of no complaints, that there is no objection

to continuing procedure pending further consid-

eration by Presidents' Conference

FRBank of Richmond:Membership of County Trust Company of Maryland, Cambridge,

letter to Mr. Leach that FRBank should avoid

circularizing any statement which would give im-

pression that bank was operating as member prior

to date of authorization of license

FRBank of St. Louis:Interest payable on time and savings deposits in Mississippi,

copy sent to ComptrollerCivil Service Commission:

Attorneys employed by Board, reply to Mr. Moyer on request for

list of, to be held until return of Mr. Wyatt

and sent if he has no objection

Leave regulations under Sick and Annual Leave Acts of March 14,

1936, request that Board designate representa-

tive to attend meeting of Council of Personnel

Administration for purpose of drawing up, to

attend as observer only

Sutton, Mrs. Blanche L., employee of Board, letter to, re resig-

nation as precedent to reinstating her husband

in Government service, suggesting acceptance of,

as of June 1

Advice to Commission of acceptance of her resignation fromBoard's staff, in connection with reinstatement

of her husband in National Park Service

1/17 1588/18 1539

1/14 126

2/13 348

2/ 6 309

3/ 3 493

7/ 2 1297

7/17 1399

8/13 1520

1/14 126

8/27 1594

3/25 669

3/26 675


56 Pages

Claypool, B. E.: (See National banks, Merchants National Bank,Montgomery, W. Va.)

Clearing and collection:Branch clearing balances, classification of, in computing daily

deposit liabilities for reserve reports andpreparation of condition reports, reply to Mr.Hale and copy to all FRAgents 3/ 4 505

Cashier's checks, FRBanks, pledge against deposits of Treasurerof Montana by Union Bank & Trust Co., Helena,Mont., no objection, and instructions for show-ing in condition reports 2/27 450

Charges imposed by Austin banks for collecting out-of-townchecks, reply to President McKinney and letterto Mr. Riley, that such charges were made bystore and Board has no jurisdiction 8/20 1560-

Reply to Mr. Riley that legality of such charges is being 1

investigated 10/ 2 1820

Circular 424 of FRBank of Minneapolis on collection of noncashitems, request for action on recommendation ofPresidents' Conference that it be withdrawnpending report of Committee on Free Services 7/ 2 1297

Reply to Mr. Peyton that in view of saving of expenses andof no complaints, that there is no objection tocontinuing procedure pending further considera-tion by Presidents' Conference 7/17 1399

Collection items received by FRBank of Atlanta from Californiaconcerns, reply to Mr. Parker that Board willappreciate advice of arrangements made, and sug-gestion that copies of correspondence be furnishedto Collection Committee 9/10 1673

Commodity drafts, reply to Mr. Walsh on treatment of, in memberbank condition reports and in reports of de-posits subject to reserves 4/ 3 738

Documentary drafts drawn upon purchasers in Puerto Rico, questionof classification as cash items in process ofcollection, reply to First National Bank of LakeCharles, La. 6/24 1234

"Drafts...to charge member bank's reserve accounts," reply toMr. Helm re interpretation of, as used in Regu-lation D 1/14 126

Call report schedule item, reply to Mr. Stewart that itmeans same thing 1/14 127

Exchange and collection charges, absorption of, reply to SenatorBarkley re provision of Regulation Q prohibitingand stating that it has been suspended 1/ 9 88

"In process of collection", interpretation of provision of Re-vised Statutes, in connection with practice ofCleveland Trust Co. 12/11 2204

Letter to FRBank of Cleveland re 12/18 2241.Interdistrict time schedules, changes in, recommended by FRBank

of Chicago, approved 9/18 1732Interdistrict settlement fund, FRnote clearing to be made in

thousands of dollars but question of transitclearing to be considered by Presidents' Con-ference 11/28 2143Digitized for FRASER

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

57

Pages

Clearing and collection: (Continued)Liquor drafts, collection by FRBanks, reply to FRBank of San

Francisco that facts in particular case should

be decided by FRBank and stating status of re-

peal of criminal provisions of law re 5/27 1099

Administration of Sec. 239 of Criminal Code rests with De-

partment of Justice, reply to National Wholesale

Wine and Liquor Dealers Association 6/13 1176

Noncash collections, committee of American Bankers Association

studying resolution requesting FRSystem to cease

handling, suggestion of Mr. Allendoerfer that it

cooperate with similar committee of Presidents'

Conference 8/11 1512

Information desired by Mr. Cook should be secured from

President Young, Presidents' Committee on Free

Services, previously discussed with Mr. Allen-

doerfer 10/16 1897-8

Nonmember clearing accounts, par list, recommendation of Stand-

ing Committee on Collections that nonmember

clearing institutions be included in, certain

organizations not banks also to be included,

approved 1/ 4 45-6

Letter to governors re 1/ 4 46

Par remittance for checks by all banks doing commercial banking

business, reply to Mr. Moore, Indiana National185

45

46-9

509

Work relief checks, report of Mr. Barnes re cost of handling by

FRBanks and calling attention to variation be-

tween maximum and minimum, referred.to Mr. Har-

rison as Chairman of Presidents' Conference with

suggestion that it be discussed at Transit Con-

ference 11/13 2062

Closed banks, study of, as W. P. A. project, letter to governors re

supervision of, at FRBanks' expense 1/17 158

Code words, Chismate, covering deposits covering expenses of Issue

and Redemption Division 11/25 2133

Cohn, Maurice M.: (See National banks, First National Bank in

Bedford, Pa.)Coles, Blaine B., President, Trust Division of American Bankers Asso-

ciation: (See American Bankers Association)

Collins, James W.: (See State member banks, Tracy Loan & Trust Co.)

Bank, re his suggestion to require

Time schedules: (See Time schedules)

Wire transfers, report of Standing Committee on Collections

recommending inclusion of nonmember banks in par

list and revision of rules and regulations cover-

1/22

ing, approved 1/ 4

Letter to all governors re, and revising rules and regula-

tions re wire transfers 1/ 4

Regulations of Board, reply to Governor McKinney that they

related only to wire transfers, but if circular

relates also to mail transfers, there is no ob-

jection to changing liability clause 2/ 6


58 .Pages

Commercial banks, Government lending agencies, statement of Mr.Ransom at meeting with Presidents that he wasinterested in reducing activities of, and re-storing field to commercial banks

Commission for Financial Institutions of Indiana, regulations ofBoard, F.D.I.C. and State authorities re in-terest, reply to Chairman Batton re suggestionfor conference to reconcile differences, thatconference has been arranged with F.D.I.C. endsuggesting sending specific information andrepresentative

Commissioner of Banks of Massachusetts:Exchange Trust Co., Boston, Mass., credit investigation report,

letter to Mr. McRae on request of Commissionerfor copy of "audit", suggesting that copy of re-port be furnished

Commissioner of Internal Revenue:

Regulation re credit to holding company affiliates, reply to Mr.Helvering commenting upon and making suggestionsas to draft of

Social Security Act:National banks, ruling that they are instrumentalities of U.

S. and exempt from provisions ofState member banks, proposed letter to, requesting ruling

as to applicability of act to, sending deferredRequest of Indiana Bankers Association for ruling re

voluntary subjection to terms ofCommittee on Direct Loans of the Associated Business Papers: (See

Committees, Direct Loans)

3/16 596

5/6 974

8/ 7 1504

10/19 1912

7/13 1348

7/31 1463

12/ 9 2196

Committees:Administrative Law of American Bar Association, Federal adminis-

trative court, recommended by, objections to,Mr. Wyatt authorized to attend annual meetingof association and prepare memo re status andeffect of proposal

Administrative management, information relative to Board's or-ganization, legislative history, etc., to bemade available to representative of, at discre-tion of Dr. Goldenweiser

American Bankers Association:Noncash collection items, committee studying question of re-

questing FRSystem to cease handling, end sug-gestion that committee cooperate with similarcommittee of Presidents' Conference

Regulation U, memo prepared by subcommittee, to appear beforeBoard on April 22

Board of Governors:Calkins, J. U., charges of Mr. Giannini that he discriminated

in performance of duties, Messrs. Ransom, McKeeand Broderick appointed to review files re

Report exonerating Governor Calkins(See also FRBank of San Francisco, Staff)

8/ 4 l474-

9/11 1685

8/11 1512

4/17 819

2/20 3922/20 405-6


59

Pages

Committees: (Continued)Board of Governors: (Continued)

District, supplanted by organization of Personnel Com-

mittee 2/ 4 292

Personnel:Appointment of, suggested by Chairman Eccles, to consider

appointments at RBanks and branches, Board's

budget and expenditures, to replace District com-

mittees, two members to serve in rotation with

Chairman, approved 2/ 4 292

Broderick, X. A., to continue to serve during April,

May and June 5/25 1075

Consideration to be given to appointments of directors

at RBanks and branches and to Board's budget,Mr. McKee designated alternate to serve when

Mr. Broderick is absent 11/25 2133

Suggestions for such appointees to be submitted toCommittee promptly 11/25 217:4

Davis, Chester, appointed for 197 and charged with

primary responsibility in developing informationre persons to be considered for appointment asClass C or branch directors 12/29 2307

McKee, John, appointed to serve in place of Mr. Broderick

when latter is absent 11/25 2133

Appointed for 1937 12/29 2307

Members, statement of Chairman Eccles that it would be

preferable to have appointed for year, approved

and Messrs. Broderick and Szymczak designated to

serve for remainder of year 7/31 1458

Recommendations re approval of appointments of Presi-

dents, First Vice Presidents, FRAgents and

deputy chairmen, transfer of certain duties of

FRAgents to operating departments, employment

of agents on honorarium basis, etc. 2/18 365

Chairman authorized to arrange for meeting of Presi-

dents to discuss transfer of agents' non-re-

quired functions to FRBanks 2/18 372

Agreed that transfer of agents' functions not re-

quired by law to operating side of FRBanks is

important element in more economical and effi-cient coordination at RBanks, and that positionshould be placed on honorarium basis as soon aspossible 2/26 430

Szymczak, M. S., to continue to serve during April, May

and June 5/25 1075

Brownlow: (See supra Administrative management)

Direct Loans of the Associated Business Papers, study indicated

that FRBanks have not entered into industrialloan field as effectively as possible 1/ 4 44

Federal Open Market:Account of FRBank of New 'York with Bank for International

Settlements, approval of reduction requested 5/ 1 947


60 Pages

Committees: (Continued)Federal Open Market: (Continued)

Allotment of securities, statement re decision of committeeto retain formula for, quarterly reports to besecured from FRBanks re unusual charge offs andBoard to endeavor to bring about uniform chargeoff policy 6/ 3 1135

Formula adopted difficult to apply, adjustments deferred,to be made to equalize earnings for last half ofyear 6/23 1218

Bylaws, tentative draft of, to be sent to FRBanks for studyprior to organization meeting of 3/10 547

Discussion of 3/13 567Further discussion 3/13 569

Chairman, consensus of members of Board that committee asreconstituted March 1, should have a chairmanwho should be the Chairman of the Board 2/4 290

Economist, consensus of members of Board that committee, asreconstituted March 1 should have Director ofDivision of Research and Statistics as 2/4 291

Election of representatives of FRBanks, question raised byMr.. Peyton as to voting, memo of Mr. Dreibelbisthat each director of FRBank is entitled to casta vote and form of procedure suggested, to besent to Mr. Peyton and to other FRBanks 2/20 404-5

Executive Committee:Organization of, under reconstitution of Committee as of

March 1, discussion of 2/4 291Replacement of April 15 maturities recommended, com-

mittee has authority but transactions will takeplace after March 1, will increase FRBank earn-ings, approved 2/26 432

Letter to Governor Harrison re action 2/28 457FRBank representation on, as reconstituted March 1, discus-

sion of 2/? 311Maturities of securities, shifts authorized at meeting on

January 21, approved 1/31 262Meeting scheduled for April 30, to be postponed until May 4/21 835Meeting to be called May 25 5/12 998Meeting on November 19 tentatively agreed upon and Chairman

to ascertain if meeting of Presidents' Confer-ence on following day is desirable 10/23 1936

Members:Alternates, reply to Mr. Strater and copy to other

FRBanks, re resolution of FRBank of Clevelandthat alternate attend meetings in advisorycapacity, that there is no legal provision forattendance except in absence of principal 2/19 379

Amendment to FRAct tentatively proposed to changemethod of selection of representatives and torequire that they all be Presidents of FRBanks 12/18 2235

Election of, Counsel requested to submit to Boardopinion re validity of election of each, priorto first meeting of reorganized Committee 3/ 4 502


61

Pages


Members: (Continued)Election of: (Continued)

Advice that all four members so far elected are

presidents of FRBanks, request for opinion re

validity of election withdrawn 3/13 571

Election under limited authority, question raised by

FRBank of New York, memo of Mr. Dreibelbis

rulins. that representatives may not be elected

under limited authority, copies to be sent to

all FRBanks 2/25 419

FRBank representation, statement of Chairman Eccles re

continued efforts to have selected from outside

FRBanks, memo of Mr. Dreibelbis re, Board should

make known opposition to, committee of FRBank

of Minneapolis had requested statement, letter

to be prepared 2/11 322-4

Statement before Federal Advisory Council of Board's

opposition and report of opposition of Senator

Glass 2/11 326

Election, procedure to be followed, opinion of Mr.

Dreibelbis, memo of procedure, to be sent to

Mr. Peyton And copies sent to other FRBanks 2/20 404

FRBank of Boston, proposed selection subject to condi-

tions imposed in resolution, and predicated on

adoption of similar resolution by FRBank of

New York, Board holds such member must be un-

restricted 2/27 442

FRBank of Minneapolis, committee of Messrs. Clark,

Grangaard and O'Connell to meet representatives

of FRBanks of Kansas City and San Francisco re

selection of 2/ 6 308

Report of Chairman of meeting with and desire to

elect member from outside FRBanks, memo stating

position of Board to be revised and sent to Mr.

Clark with a letter to be drafted along lines

suggested by Chairman 2/11 323

FRBanks of St. Louis and Chicago, letter to Mr. Stevens

in accordance with action of Board on December

28, stating that selection should be from offi-

cial ranks of one of IREenks, copy to other

FRAgents 1/ 2 7

First Group, election, another should be held, in view

of attempted restrictions on such member 2/27 443

Fifth Group, selection of, letter from Mr. McIntosh,

Director of FRBank of San Francisco, re unsat-

isfactory results of meeting of directors of

other FRBanks in group at Denver 2/20 391

Fleming, M. I., reply to Mr. Strater re election of,

by FRBank of Cleveland as alternate and resolu-

tion that alternate attend meetings in advisory

capacity 2/19 379


62 Pages


Members: (Continued)Fleming, M. J.: (Continued)

Advice from Mr. Wayne that FRBank of Cleveland hadelected but that FRBank of Philadelphia desiredto defer election until after meeting of commit-tee, necessary for formal action to be takenprior to meeting

Norris, George W., reply to Mr. Strater that electionby FRBank of Cleveland is premature as he hasnot been appointed President by FRBank of Phila-delphia

Copy to all other FRBanksSelection subject to conditions imposed in resolution of

FRBank of Boston and predicated on adoption ofsimilar resolution by FRBank of New York, Boardholds such member must be unrestricted

Minutes, tentative draft of, for executive committee meet-ing on February 26, forwarded by PresidentHarrison

Open market policy, question of advising presidents not mem-bers of committee of, question is one to be con-sidered by committee

Organization of, inquiry of Mr. Broderick re holding meetingof, after Presidents' Conference, determined tohold latter March 16 and to have committee meet-ing in connection with

Policy record, adequacy of reasons in draft of record forMarch 19 meeting questioned by Mr. Wyatt, opin-ion that it should not be enlarged, entry ap-proved

Procedure for interim between expiration of old committeeand organization of new, letter from PresidentHarrison re, proposing continuance of routineoperations, Board in agreement and PresidentHarrison to be so advised

Regulations, tentative draft of, to be sent to FRBanks forstudy prior to organization meeting of


Relations with foreign banks and bankers, section re author-ity of, eliminated from statement re, to be pre-pared in separate form and referred to

Reorganization as of March 1, officers, consensus of membersof Board that Chairman should be Chairman ofBoard and that there should be a vice chairmanand that Secretary and Economist should be fromBoard

Representatives of FRBanks, discussion of policy in connec-tion with selection of

rz/ 6 518

2/19 3782/19 379

2/27 442

3/10 546

11/18 2098

3/4 501

5/26 1080-2

3/10 545

3/10 5473/13 5675/13 569

10/30 1970-4

2/ 4 290

2/20 389


63

Pages

Coltnnittees: (Continued)Federal Open Market: (Continued)

Reserve requirements, increase in, resolution renewing

recommendation of December 18, no action

Advice to Committee of actionResolution adopted at December meeting, reply to Governor

Harrison approving resolution authorizingshifts in maturities of government securities

Resolution adopted January 21, stating belief that action

should be taken to effect reduction in excess

reserves, no action to be taken and letter tobe prepared to Chairman of Committee

Advice to Committee of no actionScope of authority over open market operations, including

dealings in bills payable in foreign currency,

and accounts and transactions with foreignbanks and bankers, reply to FRBank of Bostonand copy to other ERBanks

Secretary, consensus of members of Board that committee as

reconstituted March 1 should have, who should

be Secretary of the Board

Vice Chairman, consensus of members of Board that Committee

as reconstituted March 1, should have

FRBank of Minneapolis:Federal Open Market Committee member, appointment of Messrs.

Clark, Grangaard and O'Connell to meet withrepresentatives of nBanks of Kansas City and

San Francisco re selection ofPolicies of FRBank, appointment of Messrs. Clark and Gran-

gaard to visit Washington to discuss, with mem-bers of Board

FRBank representation on Federal Open Market Committee,discussed by Messrs. Clark and Grangaard withChairman Eccles and request for statement reselection from outside FRBanks, reply to be

1/24 2021/31 260

1/20 174

1/24 2021/31 260

5/15 1027

2/ 4 290

2/ 4 290

2/ 6 308

2/ 6 308

prepared opposing and copies sent with counsel's

memo to FRAgents 2/11 322-4

FRBank of New York:Salaries of officers, special contributions to Retirement

System and increase in maximum salary from$12,000 to $18,000, committee to visit Board

to discuss 12/23 2263

FRBank of Philadelphia:Appointment of President and First Vice President, meeting

with Board, memo of Mr. Morris re appointmentof Mr. Norris as President, review of Board'spolicy as to appointments of men over 70 years,

re effect of Retirement System and discussionof qualifications 3/ 3 477

Mr. Butt had been groomed to succeed Mr. Norris 3/ 3 482

Board determines to adhere to policy, as no facts werepresented to warrant change in general policy,

committee advised, Qualifications and status of

Mr. Hutt and Mr. Sinclair 3/ 3 482-5Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

64 Pages

Committees: (Continued)FRBanks:

Executive:Personnel of, proposal that Board suggest amendment to

by-laws (1) that committee shall consist solelyof directors and (2) that chairman of boardshall be chairman of, voted that only (1) besuggested

Rates, rediscount, proposal that Board suggest toFRBanks the elimination of provision from bylawsauthorizing fixing of such rates by committees,voted that it not be suggested

Reply to Mr. Walsh that there is no objection tomaking provision in bylaws for establishment by,copy to other FRBanks

.MSystem:Bank Reserves, reserve accounts of savings departments where

assets are required to be segregated from assetsof other departments, recommendation that FRBankscarry separate accounts for, tabled

Governors' Conference:Sick leave of employees of FRBanks, suggestion of committee

of Messrs. Hamilton and Martin that FRBank execu-tive committee might approve, and report atnext directors' meeting, procedure will be sat-isfactory to Board

Standing Committee on Collections, report re making wiretransfers for nonmember banks, inclusion ofnonmember banks in par list and revision ofrules and regulations covering wire transfers,approved, institutions maintaining nonmemberclearing accounts which are not banks

Letter to all governors re and revising rules and regu-lations re wire transfers

House of Representatives:Disposition of Executive Papers, authorization permitting

Board to dispose of certain papers, letter toMr. Golden re method of disposition

Industrial Advisory:

ERBsnk of Atlanta:Forsyth, A. R., reappointment for one year termLockett, A. M., reappointment for one year termMilner, I. C., reappointment for one year termSanford, John E., reappointment for one year termWinship, George, reappointment for one year term

FRBank of Boston:Amory, Robert, reappointment as member for one year termCarter, Winthrop, reappointment as member for one year

termCreighton, Albert M., reappointment as member for one

year term, advice requested as to continuationas chairman

Dennett, Carl P., reappointment as member for one yearterm

Graham, Edward M., reappointment as member for one yearterm

2/11 330

2/11 330

2/24 414

2/18 376

2/11 333

1/4 45

1/ 4 46-9

7/ 8 1329

2/19 3812/19 3812/19 3812/19 3812/19 381

1/15 130

1/15 130

1/15 130

1/15 130


Committees: (Continued)Industrial Advisory: (Continued)

FRBank of Chicago:Epstein, Max, reappointment for one year term

Greene, Howard, reappointment for one year term

Monroe, R. R., reappointed for one year term

Moxley, George B., appointment to succeed Mr. Odell

Odell, Wm. R., Jr., noted that _MBank will elect member

to succeed on March 1Young, George W., reappointment for one year term

2/112/112/112/13

2/112/11

65

Pages

332332332344

332332

FRBank of Cleveland:Brainard, Geo. C., appointment for one year term 2/19 380

Davies, Daniel R., reappointment for one year term 2/19 380

Folsom, Edward C., reappointment for one year term 2/19 380

Smythe, F. A., reappointment for one year term 2/19 380

Swander, Dan C., appointment for one year term 2/19 380

FRBank of Dallas:Cullum, T. M., reappointment for one year term 2/19 381

Ferguson, Lewis R., reappointment for one year term 2/19 381

Marsh, Will B., reappointment for one year term 2/19 381

Moore, Charles R., reappointment for one year term 2/19 381

Ousley, Clarence, reappointment for one year term 2/19 381

FRBank of Kansas City:Berkowitz, Walter J., reappointment for one year 2/17 359

Forrester, D. Bruce, reappointment for one year 2/17 359

Gray, R. L., reappointed for one year 2/17 359

Miller, Ed S., reappointment for one year 2/17 359

Rooney, L. F., reappointment for one year 2/17 359

FRBank of Minneapolis:Bush, John M., reappointment for one year term 2/17 442

Follett, C. O., reappointment for one year term 2/27 442

Jewett, Harvey C., reappointment for one year term 2/27 442

Miller, Albert L., reappointment for one year term 2/27 442

Wood, Sheldon V., reappointment for one year term 2/27 442

FRBank of New York:Beach, Herman K., reappointment for one year term 2/19 380

Nelson, Arthur Cr. , reappointment for one year term 2/19 380

Noble, Edward J., reappointment for one year term 2/19 380

Pouch, William H. , reappointment for one year term 2/19 380

Reynolds, Francis B., appointed for unexpired term of

Mr. Clark and for further term of one year from

March 1 2/19 380

FRBank of Philadelphia:Butterworth, J. Ebert, reappointment for year term 2/26 435

Chipman, John S., reappointment for one year term 2/26 435

McDade, John T., reappointment for one year term 2/26 435

Mechling, B. F., reappointment for one year term 2/26 435

Prentis, H. W., Jr., reappointment for one year term 2/26 435

FRBank of Richmond:Dennis, Overton D., reappointed for one year term 2/19 381

Holtzclaw, J. G., reappointed for one year term 2/19 381

Manning, William L., reappointment for one year term 2/19 381


1 66 Pages

Committees: (Continued)Industrial Advisory: (Continued)

FRBank of Richmond: (Continued)Probest, George E., Jr., reappointment for one year term 2/19 381Stuart, Walker D., reappointment for one year term 2/19 381

FRBank of St. Louis:Finch, M. E., reappointment for one year term 2/19 381Gray, Henry S., reappointment for one year term 2/19 381Norris, Wm. K., reappointment for one year term 2/19 381VanDyke, Jacob, reappointment for one year tern 2/19 381Weil, Maurice, reappointment for one year term 2/19 381

FRBank of San Francisco:Burnside, Ralph, reappointment for one year term 2/19 382Crandall, Shannon, reappointment for one year term 2/19 382Nichols, Henry D., reappointment for one year term 2/19 382Rawlings, Stuart L., reappointment for one year term 2/19 382Volkwann, William G., reappointment for one year term 2/19 382

Leased wire:Recommendations of, approved, re payment by Board for its

messages, transfer of Washington operators toBoard's payroll, etc. 3/26 681

National Bureau of Economic Research exploratory committee, re-quest that Dr. Goldenweiser serve on, to attendmeetings informally 9/18 1723-6

Personnel, Board, to supplant district committees 2/ 4 292Personnel classification plan, revised personnel classification

plan recommended by sub-committee, approved 3/24 656Presidents' Conference:

Collection, items received from California concerns byFRBank of Atlanta for collection, suggestion ofBoard that copies of correspondence re, be fur-nished to

9/10 1673Destruction of Records of FRBanks, report, final, received,

recommendation of Mr. Smead that action be de-ferred pending consideration by Presidents'Conference, approved

7/ 9 1333Free Services:

Noncash collection items, resolution of A. B. A. recom-mending discontinuance of handling by FRBanks,information requested by Mr. Cook to be securedfrom President Young 10/16 1897-6

Report by Mr. Broderick that cammittee is consideringfree services, assisted by Mr. Smead 7/ 7 1321

Snead, E. L., resolution recommending assignment toassist committee, noted with approval 7/ 2 1297

Leased Wire, teletype machine test, letter to PresidentSchaller as chairman, referring recommendationof A. T. & T. re use of page machine in prefer-ence to tape machine 11/11 2035

Services of FRBanks rendered free of charge, committee ap-pointed to review with view to possible cur-tailment of 3/17 601

Standing cannittees of Governors' Conference reappointedas committees of 3/17 600


67

Pages

Committees: (Continued)

Senate:

Interstate Commerce:Folsan, George H., Assistant Examiner, detail to, ex-

tended for six months at request of Senator

Wheeler 3/ 4 497

Reply to Mr. Lowenthal that Board cannot extend

loan of services as requested but will request

that he hold himself available for consultation

with his successor 9/18 1730

Report of Mr. Ransom re insistence of Mr. Lowenthal

and Mr. McConnaughey re extension of arrangement

for services of, question of necessity, part

time arrangement authorized 10/ 6 1831-4

Mr. Lowenthal agrees to arrangement, Mr. Folsom

will not participate in any way in hearings con-

ducted by Committee 10/ 6 1847

Malone, C. T., FRExaminer, letter to Mr. Lowenthal re-

fusing to extend period of loan of services to

committee 6/27 1262

Investigating Munitions Industry, release of documents

copied from Board's records, approved 1/ 9 85

Select, on Investigation of Executive Agencies, letter to

Chairman Byrd furnishing data re information

furnished by Board to public 11/20 2108

Special Committee on Federal Organization, chart of func-

tions and activities of Board and annual ex-

penditures for 1935 sent to Senator Byrd under

S. R. 217 7/ 2 1295

Standardization of Bank Report Forms:

Uniform condition report form, request from Mr. Harr for

attendance of Mr. Smead at meeting, Messrs.

McKee and Davis to discuss with Mr. Crowley

the formation of a committee by Board,Camptrol-

ler and F.D.I.C. 11/12 2044-6

Report of Mr. Davis re Mr. Crowley's position, indica-

tion that failure of Board to participate would

be interpreted as unwillingness to cooperatewith F.D.I.C., Board not willing for Mr. amead

to attend for reasons of established policy 11/13 2054-5

Trust investment, appointment by president, with advice and con-sent of directors, reply to Riggs NationalBank, Washington, D. C., that method complieswith Regulation F 9/ 9 1665

Commodity drafts, treatment of, for purposes of member bank condi-

tion reports and reports of deposits subject

to reserve, reply to Mr. Walsh re 4/ 3 738

Competition of Government lending agencies in western farm States,

desire of Federal Advisory Council to discuss,Mr. Davis to be prepared to discuss and to ar-

range to invite Mr. Myers if desirable 10/30 1968


68 Pages

Comptroller of the Currency:Address before California Bankers Association, reply to Mr. Young

and advice to FRAgents re effect on right of mem-ber banks under investment securities regula-tion to purchase bonds convertible into stockonly at option of holder

Barse, George P., suit to enjoin Board members and others fromfurther exercise of right to coin money andregulate value thereof, consulted by Mr. Wyattin connection therewith

Branch banks, capital requirements, advice to FRBanks thatBoard will follow Comptroller's interpretationof law re, where there is more than one branchin a place other than head office town

Condition reports of national banks, new policy adopted of fur-nishing forms for, well in advance of call,Board adopts similar policy

Division of Issue and Redemption, transfer of employees of, tohis payrolls, letter re

Reimbursement for expenses of, letter to, calling attentionto temporary appointment of Mr. Rusch as Chiefand requesting early advice re proposal as to

Payment to become effective at close of November 30, ap-pointment of Mr. Rusch extended to that date

Resolution effecting transfer, letters to Comptroller, toemployees of division, and to all FRBanks reprocedure, expenses to be prorated

"Federal Laws Affecting National Banks," memo of Mr. Vestrecommending publication of statement re, inFRBulletin and that FRBanks be advised of de-pletion of stock, approved

ninotes, request that he place order for printing with Bureauof Engraving and Printing, for fiscal year end-ing June 50, 1937

Fiduciary powers for small national banks in competitive situa-tion, not willing to grant application of FirstNational Bank of Christiansburg, Va., Board toadhere to original position, to confer further

Report of Mr. Ransom re position of, file to be recirculatedand considered again

Guarantee of signatures on stock certificates authorizing trans-fer of stock by member banks, suggestion thatBoard consider what effort might be made to stoppractice

Investment securities, limit of 10% imposed by Sec. 5136, R.S.,on amount a bank may hold of one "obligor ormaker", advice to 11RBanks and Mr. Evans re con-clusion of, as to inclusion in term of anothercorporation which has guaranteed obligations,a parent corporation or lessor corporation

Johnson, H. S., proceedings for removal as officer of PointPleasant National Bank: (See Removal of offi-cers and directors)

6/ 5 1146

10/ 9 1857

12/ 2 2154

8/ 1 1470

4/14 800

11/ 5 2004

11/16 2064

11/25 2127

9/25 1764

6/18 1197

8/11 1508

8/27 1596

8/11 1511

7/13 1348-9


69

Pages

Comptroller of the Currency: (Continued)

Kelly, L. A., Attorney, present at hearing of Mr. Johnson by

Board re removal as officer of Point Pleasant

National Bank 12/29 2298

Loans on government securities, letter of Mr. Von Windegger

referring to illogical restriction of limita-

tion on, referred to 1/28 225

Regulations, investment securities, reply to Comptroller giving

comments and suggested changes in connection

with proposed revision of 1/27 220

Removal of officers and directors:

Johnson, H. S., Point Pleasant National Bank, Point

Pleasant, W. Va., certified to Board for re-

moval under Sec. 30 of Banking Act of 1933,

Board to consider sending notice by Sept. 22 9/18 1727

Advice to Comptroller that Board has accepted certifi-

cate in case of, and notifying of hearing to be

held October 22 9/21 1739

Proceedings under Sec. 30, feeling of, that procedure

lies with Board after certification of facts to

Board, hearing of Mr. Johnson postponed pending

return of Comptroller and definite settlement of

procedure 11/ 2 1988

Suit to enjoin, and Board members from further exercise of right

to coin money and regulate value thereof, be-

lief that it should be made test case of consti-

tutionality of FRAct 10/ 9 1857

Summary of Board's rulings, Board unwilling to permit prepara-

tion and distribution of 6/18 1196

Trust funds deposited in banking department, general question of

waiver of requirement for deposit of security

for, to extent to which such funds are subject

to insurance referred to, with suggestion re ad-

visability of amendment to Sec. 11(k) of FRAct 4/ 8 775

Uniform condition report form, advice that representation had

been withdrawn from Permanent Committee on

Standardization of Bank Report Forms, Messrs.

McKee and Davis to discuss with Mr. Crowley the

formation of a committee by Board, Comptroller

and F.D.I.C. to consider 11/12 2044-6

Mr. Crowley had agreed to suggest to committee that invita-

tion be extended to, to participate. 11/13 2054

Violations of Clayton Act and Sec. 32 of Banking Act of 1933,

letter to FRAgents that Comptroller has ceased

practice of reporting, in national banks 4/18 829

Condition reports:Affiliate in liquidation, reply to FRBank of Minneapolis that as

liabilities of First National Bank of Princeton

are practically discharged, Metals Bank and

Trust Co. of Butte, Mont., need not report as 5/21 1065


70 Pages

Condition reports: (Continued)Affiliates of State member banks:

Arrow Coal Corporation, publication not to be required asof November 1 by Colonial Trust Co., Pittsburgh,due to misinterpretation of terms of waiver 1/27 220

B. M. C. Durfee Trust Co., Fall River, Mass., failure to submit, and statement that it will withdraw frommembership rather than publish, not required topublish under terms of waiver, certain figuresshould be reported 10/22 1931

Badger State BAnk, Milwaukee, Wis., extension of time granted for filing 2/ 7 316

Consolidated Land Co., report not subject to waiver, Bankof Hartsville, S. C., will not be required tosubmit report as of November 1 1/ 4 42

Hutchinson Oil and Gas Co., Hutchinson State Bank, Hutchin-son, Kansas not to be required to publish reportof, as it was unaware of affiliation and it hasnow been terminated 3/ 7 534

Meadow River Coal and Lumber Co., submission of report byBank of Rainelle subject to terms of waiver 1/ 4 42

New England Trust Co., Boston, Mass., reply to FRhank ofBoston on question of waiver of reports of cer-tain business trusts 12/29 2311

New York Trust Co., New York, N.Y., reply to Mr. Gidneythat reports may not be waived under provisionre holding of stock in fiduciary capacity 6/ 1 1110

Realty Investors, Inc., report from Bank of Hartsville, S. C., not received until after date of Board'sletter, submissipn of report as of November Inot to be required 1/ 4 42

Toledo Trust Co., Toledo, Ohio, reports of three, reply to Mr. Fletcher re failure to make, but as affilia-tion has been terminated, no further questionwill be raised re 2/18 375

Tracy Corporation, reply to Tracy Loan and Trust Co. that organization is an affiliate and question ofpublication of reports depends upon applicabil-ity of terms of waiver 1/20 166

1,1aiver of, ruling proposed to be issued by Board re, letterto Comptroller asking his concurrence 5/21 1064

Branch clearing balances, classification of, in preparing re-ports, reply to Mr. Hale and copy to FRAgents 3/ 4 505

Cashier's checks, FRBanks, instructions re showing by UnionBank and Trust Co., helena, Mont. of thosepledged for deposits of Treasurer of Montana 2/27 450

Chase Bank, New York, N. Y., foreign branch figures obtainedfrom reports submitted by branches 2/28 454

Commodity drafts, reply to Mr. VJalsh on treatment of, in memberbank condition reports 4/ 3 738

Dividends, unpaid, request of state btreet Trust Co., Boston,Mass., for change in item re, Board will con-sider and has no objection to inclusion of ex-planation 4/10 787


71

Condition reports: (Continued)

Drafizon FRBanks outstanding, reply to Mr. McAdams re method

of First St. Joseph Stock Yards Bank, South

St. Joseph, Mo. of reporting, not in agreement

with booksFarmers and Merchants Bank, Provo, Utah, failure to show General

Assets Co. properly as affiliate, brought within

general terms of waiver

to real estate subsidiary, wholly owned, request of Union

Trust Company of Maryland for amendment to mem-

bership condition requiring publication of,

as separate item, referred to Mr. McKee

Member banks, "branch clearing" accounts, classification in,

ruling to be published in FRBulletin

Mercantile-Commerce Bank and Trust Co., St. Louis, "Foreign

and domestic bills maturing" included in "other

assets" in December report, reply to Mr.

Stewart re

Loans

National banks:

Call as of December 31

Call as of March 4

Call as of June 30

Form for next call, changes to be contained in

Nonmember banks:

Bank suspensions study, Mr. Smead authorized to negotiate

with F.D.I.C. for use of records of, in connec-

tion withand Southern Bank of South Carolina, item in pub-

lished statement "Corporate stock including

FRBank stock", likelihood of creating erroneous

impressionfunds shown by some banks under time classification

whereas State law prohibits depositing in time

accounts, reply to Mr. Fletcher re

Citizens

Ohio public

Publication:Citizens State Bank of Westbrook, Minn., to be advised that

single publication will be accepted by State

and Board in future, one of reasons given for

withdrawal from FRSystem

Farmers Savings and Trust Company of Mansfield, Ohio, report

showed uninvested trust funds under miscellaneous

rather than deposit liabilities, resubmission

not to be required

Newark Trust Company of Newark, Ohio, report showed unin-

vested trust funds under miscellaneous rather

than deposit liabilities, resubmission not to be

required

Newspapers not conforming to definition in Regulation H,

proposed reply to Mr. Sargent re, referred to

Mr. Szymczak for discussion with former

Papers which do not conform to requirements of disseminating

news of general interest, letter to Mr. Clerk re

publication in specializing Daily Commercial News 1/31

Pages

9/17 1719

8/28 1608

3/25 666

3/26 679

4/3 739

1/6 51

3/16 5857/ 3 12992/10 319

6/17 1191

7/29 1447-8

1/15 139

2/12 337

1/30 248

1/30 248

6/ 2 1116-8

264


72 Pages

Condition reports: (Continued)Publication: (Continued)

Papers not having circulation required by Regulation H,question raised in 12th District, action de-ferred and matter referred to Mr. Ransom

Mr. Ransom to discuss with representatives of F.D.I.C.and the Comptroller of the Currency, no furtheraction by Board at this time

State banking departments of Montana, Minnesota and SouthDakota have agreed to accept reports on Board'sform, Wisconsin and Michigan cannot accept, replyto Mr. Peyton re, and re his suggestions forsecuring uniform report formcopies of form 105e to be furnished State bank-ing department of, to bring about single publi-cation

revision of, to require showing of indirect owner-ship of other real estate, advice to Mr. Fry

banks:due to FRBank (transit account)" in December call

report, reply to Mr. Stewart that it is sameas "drafts.. .to charge member bank's reservecount" under Regulation D

of December 31of March 4of June 30of time forareas

and real estate owned, replies to Secretary ofAgriculture and Farm Credit Administration thatBoard will call for, in next report, considera-tion to be given to inclusion of items in pro-posed standardized call report form

memo from Mr. Smead proposing chances innext call, to be made also on nationalports, 105e to be revised similarly ifapproved

Forms and instructions:Forwarded to FRBanks for next callForwarded to FRBanks for next callRecommendation of Mr. Smead that they be furnished

banks well in advance of call, in accordancewith new policy of Comptroller, and that formsbe reprinted without change except as to elimi-nation of items for Department of Agricultureand Farm Credit Administration, approved

Forwarded to bliBanks for next callForwarded for use in Fall call, which was not made, to

be used on year-end call, information called forin form 105-f to be submitted at mid-year andend of year calls

stock, with different retirable value from parvalue, showing of, F.D.I.C. provides for memo-randum item on, and proposed revised uniformcall report has similar provision

Utah, extra

Report form,

State member"Amounts

CallCallCall

asasas

Extension

Farm loans

Form 105,

Preferred

completion of, by banks in flooded

forbank re-approved,

to

ac-

7/ 7 1311

7/15 1364

1/30 248

6/ 1 1110

1/7 69

1/14 1271/6 513/16 5657/ 3 1299

3/24 654

5/19 1053

2/10 318

3/7 534

6/ 5 1143

8/ 1 14708/28 1609

12/ 1 2147


73

Pages

Conferences:Auditors:

Meeting

Condition reports: (Continued)State member banks: (Continued)

Publication:Papers which do not conform to requirements of dissem-

inating news of general interest, letter to Mr.

Clerk re publication in specializing Daily Com-

mercial NewsState requirements, advice to FRAgents that where items

required by Board are also included in, one pub-

lication will sufficeAdvice to FRAgents not to inform State member banks

of Board's decisions re single publication to

satisfy Board and State requirementsState Commissioner of New Jersey desirous of a

rangement whereby single publication may be made

for both Board and StateReal estate loans, reply to National Bureau of Economic Re-

search giving reasons Board is not willing to

call for commercial and residential urban cles-sifications

Reserves for dividends payable in common stock, manner of

showingUniform printed form:

Permanent CommitteerequestMessrs.

on Form 105

on Standardization of Bank Report Forms,

for attendance of Mr. Snead at meeting,McKee and Davis to discuss with Mr.

Crowley the formation of a committee by the

Board, Comptroller and F.D.I.C.

Report of Mr. Davis re Mr. Crowley's position, indica-tion that failure of Board to participate would

be interpreted as unwillingness of Board tocooperate with F.D.I.C., Board not milling forMr. Smead to attend for reasons of established

policyWeekly FRBank statement, national bank note liability assumed

by Treasury, item changed to "Treasury Currency"

1/31 264

1/11 112

3/11 556

3/12 563

10/ 3 1828

9/12 1695

11/12 2044-6

11/13 2054-5

8/ 6 1495

of, letter to President Harrison agreeing with rec-ommendation re calling and suggesting date, re-quest for preliminary program 7/ 2 1296

Surveys proposed to be made of auditing function of eachFRBank and inter-exchanged prior to meetingwhich should be postponed until November, let-ter to President Harrison re 8/18 1537

Board of Governors, insurance writing by member banks, Board toconfer with Mr. Wood re applications of St.Louis banks for fiduciary powers in order tocontinue 11/12 2040

To be held November 30 11/25 2124Counsel of FRBanks, recommendation of Mr. Wyatt that one be cal-

led to consider legal questions and particularlythose arising out of case of Fletcher-AmericanNational Bank v /RBEink of Chicago, approved 6/23 1220


74 Pages

Conferences: (Continued)Exminers, statement by Mr. Broderick of belief that conference

should be held in Fall 7/ 7 1321Letters to FREanks re calling of, and re persons to attend,

tentative program to be drawn up and submittedto FRBanks, trust exminers to meet separatelymost of time 8/27 1602

Meeting to be held October 26, advice to all FRBanks, tenta-tive progrm to be forwarded 9/25 1764

Governors:Postage surcharge on currency and securities shipments,

letter to Governor Calkins re recommendationthat Board endeavor to have Postal authoritiesdiscontinueletter to Governors re recommendation for formu-lation of definite policy re, and stating thatit will be satisfactory to Board in cases ofextended leave with pay if approved by ExecutiveCommittee and reported to Board of Directors

trust funds, acceptance of deposits of, byFRBanks, letter to all presidents re action ofconference, and requesting views of FRBanks

regulations of Board and F.D.I.C., reply to Commissionfor Financial Institutions of Indiana that con-ference has been arranged to reconcile dif-ferences, memo of Mr. Viyatt rebe held December 22 in office of Secretary ofTreasury, of representatives of Treasury, F.D.I.C., R.F.C., Comptroller and Board, tentativesuggestions for

transit departments of nBanks, statement by Mr.Broderick of belief that conference should beheld in fall

Negotiations with foreign banks and bankers, to be held withofficers of FRBank of New York to work outcedure to comply with Sec. 14(g) of FRAct

for, Mr. Ransom to arrange for President Harrisoncame to Washington with Messrs. Sproul andKnoke the week of October 12

agreement on date between October 14 and 17 re-ported by Mr. Ransom, and suggestion that firstconference be held with Secretary of Treasuryre procedure to govern relations between latterand Board

of Chairman on conference with Secretary of Treasuryand proposed procedures, Chairman to conferagain with Secretary on October 13 and outlineto be prepared for conference

with Messrs. Harrison, Sproul and Knoke re properprocedure under Sec. 14(g) of FRAct, postponeduntil October 27

procedure, to be sent to Mr. Sproul in absence ofPresident Harrison in advance of meeting, tomeet October 30

Sick leave,

Uninvested

Interest

Legislative, to

Managers of

Date

Tentative

Report

Meeting

Memo re

pro-

to

2/20 401

2/11 333

4/15 610

5/ 6 974-5

12/18 2233-5

7/ 7 1321

9/11 1660

9/22 1747

10/ 6 1834

10/ 9 1857

10/13 1874-

10/27 1946


Conferences: (Continued)

Negotiations with foreign banks and bankers: (Continued)

Meeting of Messrs. Harrison, Sproul and Loan with Board,

discussion of memo re procedure, changes agreed

upon, section re authority of F.O.M.C. elimi-

nated and to be prepared separately and re-ferred to F.O.M.C., statement to be referred

to Presidents' ConferencePadding subscriptions to Government securities, called by

Treasury for representatives of FRBanks to

discuss practice, Kr. Broderick and Mr. Cagle

to attend on May 12Perth Amboy, N. J. banks, Mr. McKee authorized to call confer-

ence of representatives of Board, F.D.I.C.,

R.F.C. and New Jersey banking authorities to

consider situation resulting from unsafe

practicesRecapitalization of Perth Amboy Trust Co. and Raritan

Trust Co., Perth Amboy, N. J., report of Mr.

McKee on meeting with representatives of State,

FRBank of New York, Board, F.D.I.C. and R.F.C.

75

Pages

10/30 1967

5/1 945

9/ 4 1651-2

9/11 1682

Presidents:American Institute of Banking, statement of Mr. Szymczak

relative to participation in, and support of

activities of, referred to 10/30 1983

Bank relations reports of RBanks, question of continuation

of tabulation by Mr. Strater, memo of Mr.

Szymczak re, requested to prepare draft of form

and letter to FRBanks calling for such infor-

mation 8/ 4 1473

Letter requesting reports, and also reports covering

information gathered during trips through dis-

tricts 8/25 1582

Building and loan associations, particularly Federal sav-

ings and loan associations, advice requested

from conference if they are substantial com-

petitors of member banks 3/17 605

Opinion that there is no substantial competition 3/17 608

Statement re 3/17 608

Coin and currency shipments to nonmember banks, reply to Mr.

Strater that Board notes with approval action

of Governors' Conference on October 23, 1935 6/23 1223

Collection of non-cash items, circular 424 of RBank of

Minneapolis, letter to Mr. Peyton requesting

action on recommendation that it be withdrawn

pending report of Committee on Free Services 7/ 2 1297

Reply to Mr. Peyton that in view of saving of expenses

and of no complaints, that there is no objection

to continuing procedure pending further con-

sideration by Conference 7/17 1399

Conference of auditors, letter to President Harrison agree-

ing with recommendation re calling and suggest-

ing date, request for preliminary program 7/ 2 1296


Pages76

Conferences: (Continued)Presidents: (Continued)

Confidence of Board in officers of FRBanks expressed byChairman Eccles and statement that Board de-sired to do everything in its power to retainconfidence of officers and directors of FRBanks 11/18 2097

Cooperation of FRBanks and branches with Board, state-ment of Mr. Broderick expressing appreciationat treatment accorded him on visits and thatthere was spirit of 11/18 2097

Counsel of _FRBanks, statement of Chairman Eccles re secur-ing full time for all FRBanks, that such coun-sel could be also an administrative officer 3/16 592

Credit unions, suggestion that FRBanks organize, alonglines of Board's credit union, to be referredto, officer of Board's union night be asked topresent information re 10/20 1925

Deposits created by deficit financing, gold inflow andsilver purchases of Government, discussion ofproblems created by and whether further increasein reserve requirements should be made 11/19 2102

Destruction of Records of FRBanks, report of Committee on,recommendation of Mr. Smead that action be de-ferred pending consideration by Presidents'Conference, approved 7/ 9 1333

Directors of FRBanks and branches, memoranda of Mr. Smeadre frequency of meetings of, and compensationand travel expenses, sent to FRBanks with sug-gestion that consideration be given by 10/20 1921

Memoranda on fees, compensation and travel allowancesfor attending meetings, referred to conference 11/ 7 2021

Directors' responsibilities, statement of President Harri-son that Board should watch, feeling thatthey are of little use under present conditionssnd ought to have information on open marketpolicy in acting on discount rates 11/18 2097

Economies, discussion of earning position of FRBanks andstatement of Chaiman Eccles that dismissalsand salary reductions should be all along line,retirements at 65 will aid 3/16 591

Examinations of State member banks, request of Mr. Szym-czak for consideration of uniform policy forabsorption of expenses of 3/16 596

Expenses of Board, question of Mr. -Fleming if Board hasmade any change re, statement of Mr. Ecclesre expanded activities 11/18 2099

Federal agencies having supervision over banks, statementof Chairman Eccles that one of important tasksof future was unification of 11/18 2097

FRAgents, Chairman Eccles authorized to arrange for meeting,to discuss plan to transfer all functions ofIRAgents not required by law, to operating de-partment of FRBanks with view to reduction inexpenses and increase in efficiency 2/18 372Digitized for FRASER


77

Pages


FRAgents, transfer of duties: (Continued)Agreed that transfer of functions was important element

in more economical operation and efficientcoordination at FRBanks, and that positionshould be placed on honorarium basis as soonas possible 2/26 430

Statement of policy re transfer to operating depart-ments of FRBanks, if not satisfactory, functions

could be returned to agents, approval of ex-aminers would still rest with Board 3/16 593-4

Reply of Chairman Eccles to inquiry re date of, that nodefinite time could be fixed but should be assoon as possible 3/17 604

Statement of Chairman Eccles that results of transferto FRBanks had justified position of Board and

that Presidents had been brought into closercontact with Board 11/18 2096

FRBanks' relations with Board, inquiry of Mr. Morrison as

to state of and any steps that migbt be taken toimprove, 17 points presented by Presidents as

basis for improved relationships, statement by

Chairman Eccles re proposed visits of Board

members to FRBanks 3/17 609

FRSystem, statement of Chairman Eccles that future was more

secure than for several years and while stock

was owned by member banks, the banks were

created for public benefit and they had oppor-

tunity to enhance prestige by acting in public

interest 11/18 2097

Gold imports, question raised as to possibility of steriliza-

tion of, difficulties pointed out 11/19 2103

Government securities, sale of snail amount of suggested byPresident Newton if reserve requirements are

further increased, to offset theory that systemholdings represent "frozen assets" 11/19 2103

Inflation, query of Chairman Eccles as to continued fearof, opinion that feeling is more quiescent,there is some hedging but funds available formortgage financing and no lack of long termcredit 3/17 609

Interest rate, maximum, under Regulation Q, advice requested

from conference as to desirability of lowering,

and as establishing differential in different

parts of country and as to advisability if F.D.

I.C. does not take similar action 3/17 605

Opinions expressed re 3/17 608Statement re 3/17 608

Leave, sick and annual, of employees of FRBanks, question offollowing practice of government 3/17 603


78 Pages


Meetings:To be held as soon as practicable after March 1Inquiry of Mr. Broderick re calling, to be called March

16Meeting heldTo be held soon to review results of surveys of FRBanks'

organizationsTo be called to consider reorganization surveys and

transfer of FRAgents' non-statutory duties afterF.O.M.C. meeting on May 25

November 20, Chairman to ascertain if Presidents desire,as it is day following that tentatively agreedupon for meeting of Open Market Committee

Board meeting adjourned to meet withMembership in FRSystem, inquiry of Mr. Morrison if Board

is making it difficult for State banks to enterand if so, how obstacles may be removed, feelingexpressed that reasons for failure to apply arebeyond Board's control

Open market policy, question of advising presidents notmembers of F.O.M.C. or only alternates re, oneto be considered by F.O.M.C.

Organization of, along lines of Governors' Conference, sug-gestion of Chairman Eccles that presidents mightwish to hold a separate meeting for purpose of

Reported by President Harrison, along lines of old Gov-ernors' Conference, his election as Chairmanand Mr. Strater as Secretary reported, allstanding committees of Governors' Conference re-appointed

Organization and personnel of FRBanks, letter from Presi-dent Harrison re action in requesting Board toalter policy statement intimating that FRBanksare not operated economically and efficiently,and reviewing considerations involved

Advice to President Harrison of actionPolicy statement of Board re economy and efficiency at

FRBanks, statement of President Harrison thatthere was contained implication that FRBankswere not economically and efficiently operated

Conference to be given opportunity to review statementand address letter to Board if desirable

Presidents and First Vice Presidents of FRBanks, statementof Board's policy re appointments

Statement of :Mr. Broderick reProgram for March 16 meeting, topics to be submitted to Mr •

Clayton for preparation ofProgram for November meeting completed, report of, and ad-

vice of actions to be transmitted to Board inminutes

2/29 469

3/4 5413/16 590

3/17 601

5/12 998

10/23 1936

11/18 2095

3/17 609

11/18 2098

3/16 598

3/17 600

7/ 7 13127/11 1341

3/17 602

3/17 604

3/16 5933/16 595

3/ 4 502

11/18 2096


79


Regulation U, Board desires advice as to desirability of

issuing and as to margin formula, feeling of no

need for issuance at present, should be in

simple form with simple formula for margin re-

quirements, exemption of small accounts sug-

gestedStatement re, and review by Mr. Wyatt of whether Board

is required to issue Regulation U

Issuance of, feeling of Mr. Morrison that it should not

be issued until absolutely necessary

Relations with foreign banks and bankers, procedure adopted

at conference with Messrs. Harrison, Sprouland Logan referred to

Research activities of FRBanks, to be reviewed to eliminate

duplications, Board's Division of Research and

Statistics will have to be enlarged

Reserve requirements of member banks, Board desires advice

from conference as to possible increase in,

and as to class of banks to which it should ap-

plyOpinions expressed re, and as to possible amount of any

increase, statement of President Harrison re

situation and that action should be preventive,

not corrective, favors reduction in discount

rate in conjunction with

Statement reDiscussion of further increase in requirements and effect

of August increase, Presidents not members of

F.O.M.C. asked opinions as to form of further

actionDistribution of reserves such as to meet further sub-

stantial increase in requirements, Board study-

ingResponsibility of Board and FRBanks resulting from recent

legislation, statement of Chairman Eccles re,

transfer of FRAgents' nonstatutory duties to

presidents and that Board will request survey

of FRBanks' organizationsEarning position of FRBanks and possible economies,

dismissals and wage reductions should be all

along line and retirements at 65, suggestion of

classification plan for officers, policy re

salaries

Retirements of employees, request of FRBank of Cleveland for

establishment of uniform policy whereby each

FRBank would be authorized to expend up to $100

for a remembrance, referred to

Reply to President Fleming and copy to Chairman of Pres-idents' Conference

Pages

3/17 605

3/17 608

3/16 598

10/30 1974

3/16 594

3/17 605

3/17 606-73/17 608

11/19 2103

11/19 2103

3/16 590-1

3/16 591-2

12/ 4 2165

12/11 2210


80 PageS


Review by Mr. Goldenweiser of recovery movement, credit con-ditions, inflow of foreign funds, excess reservesituation and question of reversing easy moneypolicy

Review of present situation by John H. Williams, statingthat further stimulation of recovery is now un-necessary, easy money policy should not be re-versed, but care should be tsken not to causeany maladjustments in economic structure

Salaries of employees of FRBanks, query of Mr. Fleming asto proceeding to fix in accordance with new per-sonnel classification plans, banks should con-sider independent of, as Board has not takenaction re

Salaries of officers and employees of FRBanks, review byPresident Harrison of previous considerationof, reply of Chairman Eccles that policy state-ment of Board had not been indictment of salarypolicies of FRBanks

Services rendered free of charge by FRBanks, committee ap-pointed to review, with view to possible curtail-ment of

Snead, E. L., resolution recommending assignment to assistCommittee on Free Services, noted with approval

Statement of Mr. Broderick re appointments of presidents andfirst vice presidents, cooperation betweenBoard and FRBanks, and that he will visit FRBanksin connection with reorganization surveys

Statement of Mr. McKee re membership of State banks, re-questing consideration of increasing, and requestthat Presidents go over with him and Mr. Paulgerthe examining functions of the FRBanks

Suggestion of Mr. Morrison that cooperation and appre-ciation be developed among State banks and±RSystem

Statement of Mr. Ransom re decreasing Government activityin banking field and re increasing earnings ofmember banks

of Mr. Szymczak re relations between nBanks andpublic and reference to items for considerationby Presidents

_bRBanks to determine means to economy and effi-ciency, reported by President Harrison that bankswould institute and statement re expected re-sults, feeling that there should be another con-ference soon re

Response to inquiry of President Schaller that surveysshould be undertaken immediately

Board would like to receive surveys as soon as completed,President Harrison would like to see them com-pleted in time for a conference in April

Statement

Surveys of

11/19 2101

11/19 2102

11/18 2100

3/17 602

3/17 601

7/ 2 1297

3/16 595

3/16 597

3/15 598

3/16 595

3/16 596

3/17 601

3/17 603

3/17 604


81

Pages


Transit clearings through Interdistrict Settlement Fund in

even thousands of dollars, to be considered by

Visits of Board members to ERBanks, statement of President

Harrison that nothing would be more conducive

to good relations between FRBanks and Board

Regulation U, between staffs of Board and F.D.I.C., may be de-

sirable on carrying out purposes of

Transit, letter to President Harrison suggesting calling of and

outline of procedureSnead, E. L., designated to attend meeting in New York to

prepare program forWork relief checks, report of Mr. Barnes re cost of handl-

ing by FRBanks and variation, referred to Mr.

Harrison, Chairman of Presidents' Conference,

with suggestion that it be considered byC°nfirmations of telegrams, mailing to FRBanks to be discontinued

No objection to FRBank of Dallas discontinuing mailing confirma-

tions to BoardReply to FRBank of Kansas City that Board has no objection to

/RBanks and branches discontinuing mailing con-

firmationsConnecticut:

Advisory Council on Banking, reply to FRAgent Curtiss that Class

A nominee at FRBank of Boston may continue to

serve if elected

Fiduciary powers of national banks, capital requirements, letter

to Mr. Case re, in connection with application

of Byram National Bank of East Port Chester,

Conn.Pledge of collateral for trust funds in commercial department,

Board refuses to waive membership condition re-

quiringReply to Mr. McRae that although Attorney General is con-

sidering questions re valid pledge and State

law may be amended, Board does not feel that

membership condition requiring should be held

in abeyanceConsolidated Engineering Co., Baltimore, to be invited to bid on

Board's new buildingBid submitted by

C°11solidations:Ann Arbor Savings and Commercial Bank, Ann Arbor, Mich., consol-

idation of Farmers and Mechanics Bank, First Na-

tional Bank and Trust Company of Ann Arbor and

Ann Arbor Savings Bank, membership applicationapproved

Bar Harbor Banking and Trust Co., Bar Harbor, Me., absorption

of Lubec Trust and Banking Co., Lubec, Me., and

establishment of branch, approved

11/28

11/18

4/ 2

2143

2099

727

8/29 1619

10/28 1956

11/13 206210/ 9 1863

10/10 1866

10/19 1916

9/ 3 1640

1/14 124

10/ 8 1852

12/18 2239

1/ 2 31/30 233

2/ 7 313

6/ 1 1107


82

Consolidations: (Continued)Citizens Bank and Trust Co., Carthage, Tenn., absorption of

Bank of Pleasant Shade, Tenn., no objectionCitizens State Bank of Sheboygan, Wis., no objection to absorp-

tion of State Bank of Plymouth and Plymouth Ex-change Bank, and establishment of branch at

7/23

pages

1422

Plymouth 2/19 384Columbus Trust Co., Newark, N. J., reply to F.D.I.C. that there

is no objection to absorption of Central Bankand Trust Co. and establishment of branch 4/25 89°

Commonwealth Trust Company of Pittsburgh, Pa., no objection toabsorption of Bank of Aspinwall and Mt. LebanonBank, authorized to establish branches at twolatter locations 12/30 2341

County Trust Co., White Plains, N. Y., with Caleb HeathcoteTrust Co., Scarsdale, N. Y., no objection andpermission to establish branch at latter place 7/24 1450

Documents to be furnished to Board in connection with, replyto Mr. McRae as to, and re those which need notbe furnished 11/17 2080

Easton Trust Co., Easton, Pa., merger with Easton Dollar Savingsand Trust Co. in 1932, approved 1/14 122

Farmers and Merchants Bank of Long Beach, Calif., no objectionto absorption of Citizens State Bank of LongBeach and establishment of branch 2/20 596

First State Bank of King City, 11.0., no objection to absorption2/21 412of Ford City State Bank, Ford City, Mo.

First State Bank, Spearman, Texas, with First State Bank,Gruver, no objection 8/13 1521

Absorption of First State Bank, Gruver, no objection 10/10 1885Glen Rock Bank, Glen Rock, N.Y., assumption of liabilities and

purchase of assets of Glen Rock National Bank 1/4 30Holland City State Bank, Holland, Mich., no objection to absorp-

tion of First State Bank of Holland, requestclarification of details and of right of substi-tution of assets under reorganization plan 12/11 2207

Lincoln-Alliance Bank and Trust Co., Rochester, N. Y., with FirstNational Bank and Trust Co., no objection 11/13 2059

Lorain Street Bank, Cleveland, Ohio, no objection to absorp-tion of Peoples National Bank of Lakewood 2/20 398

Marine Midland Trust Company of New York, N. Y., absorption ofNational Bank of Yorkville in New York and es-tablishment of branch, no objection 5/ 1 951

Montclair Trust Co., Montclair, N. J., absorption of MontclairNational Bank and establishment of branch, noobjection 2/27 445

State Street Trust Co., Boston, Mass., and Union Trust Co.,Boston, no objection to merger, Board's approvalnot required for establishment of branch withincity limits 6/12 1173

Mr. Amory may serve under Clayton Act until February 1,1939 6/25 1252


83

Pages

Consolidations: (Continued)State Street Trust Co.: (Continued)

Legal status of State Street Trust Co. was not affected,

reply to Mr. McRae on documents which should

be furnished, and those which need not beTompkins County Trust Co., Ithaca, N. Y., with First National

Bank of Trumansburg, and establishment of branchTraders Bank, Toppenish, Wash., no objection to absorption of

First National Bank of ToppenishTrust Company of Georgia, Atlanta, Ga., no objection to absorp-

tion of affiliate, Trust Company of GeorgiaAssociates

Trust Company of Wyoming County, Warsaw, N. Y., membership ap-plication approved if and when Wyoming CountyNational Bank, National Bank of Wyoming andNorth Java Company are merged

Valley National Bank, Des Moines, Iowa, absorbed by ValleySavings Bank, nonmember

CoUversions:First National

Pan American

Coombs, E. S.:

e°°Per, K. A.:

Bank and Trust Company of 1st Pittsburgh, Pa.,fiduciary power application of East PittsburghSavings and Trust Co. approved upon conversioninto

Trust Co., New York, N. Y., Harbor State Bank toconvert into trust company under above title,

absorb New York Agency of Banco Nacional de

Mexico, increase capital and exercise fiduciary

powers, approvedUpper Avenue National Bank, Chicago, Ill., from. Upper Avenue

BankCow,

H. E.: (See National banks,Ohio)

Morris L.: (See Rural Electrification Administration)'dc/c/leY and Co., Hartford, Conn., reply to Mr. Moran re hypothetical

case presented in connection with RegulationT as to credit extended being credit extended

altogether on registered securities, that ques-tion is outside Board's province

See National banks, Telegraphers National Bank, St.Louis, Mo.)

See National banks, First National Bank at Gallitzin,

Second National Bank, Bucyrus,

11/17 2080

7/27 1435

4/24 868

9/14 1709

12/24 2268

7/ 3 1303

6/23 1221-2

12/ 1 2173

7/20 1410

7/30 1455

e Pa.)

n 1.-1'uY, Karl IN.: (See District of Columbia Bankers Association)Cn-raell, F. Shepard, reply to letter addressed to Securities and Ex-

change Commission, stating that question relates

to brokerage business as affected by presentmargin requirements and is receiving carefulstudy 7/16 1375

C°11nci1 of Personnel Administration, leave regulations under Sick andAnnual Leave Acts of March 14, 1936, request ofCivil Service Cammission that Board designaterepresentative to attend meeting of Council forpurpose of drawing up, to attend as observer only 3/25 669


84 Pages

Counsel, FRBanks:Conference to

Counsel, General,Assistant and

Banco Central

Bylaws:FRBank of

be heldMemoranda of:Alternate Assistant FRAgents at San Francisco,memo of Mr. Wingfield re possible with FRActin appointments as both have been desixznatedexaminers

de la Republica Argentina, memo of Mr. Dreibelbisthat inclusion of arbitrage transactions wasnegotiated in accordance with authority pre-viously granted, approved

Chicago, revision of, submitted with memo of Mr.Vest

Philadelphia, memo of Mr. Vest re revision pro-viding that president shall be chairman ofexecutive committee and that Board cannot re-quire FRBanks to adopt provisions of bylaws 3/ 6 519

St. Louis, memo of Mr. Vest that as revised, arein accordance with Board's suggestions, theirreceipt should be merely acknowledged, approved 11/12 2049

to be requested to prepare memo comparing differ-ences of, and Board's suggestions of February14 and any other matters 3/ 6 519

Conference with F.D.I.C. re differences in interest regulations 5/ 6Distribution of bills and securities, memo of Mr. Owens question-

ing adequacy of table in weekly condition state-ment of iRBanks, approved and to be submitted toMr. McKee before becoming effective

Executive officers:Schalk, Oscar, Comptroller of Mercantile-Commerce Bank and

Trust Company of St. Louis, opinion holding himwithin classification, voted not to be

"Federal Laws Affecting National Banks", memo of Mr. Vest recom-mending that statement re, be published inFRBulletin and that FRBanks be advised of deple-tion of stock of, approved

Federal Open Market Committee, memo of Mr. Dreibelbis outlininglegislative history of FRBank representation on,and indicating that law intends to be from

6/23 1220

9/21 1738

9/16 1715

.bRBank of

FRBank of

FRBanks,

Memo

FRBank personnel and not fromto be revised by Chairman andcopies sent to FRAgents

read before Federal Advisory Councilformed as to proposed action

Federal Open Market Committee members, election of, memo of Mr.Dreibelbis that each FRBank director is entitledto cast a vote and suggested procedure for, tobe sent to Mr. Peyton and other FRBanks

Election under limited authority, question raised by FRBankof New York, memo of Mr. Dreibelbis ruling thatrepresentatives may not be elected under limitedauthority, copies to be sent to all ERBanks

outside of FRBanks,Mr. Ransom and

and Council in-

2/27 451

975

9/29 1792

10/30 1975

9/25 1764

2/11 322-k

2/11 325

2/20 404'S

2/25 419


85

Counsel, General, Memoranda of: (Continued)Foreign account negotiations of MBank of New York with Banco

Central de Reserve de El Salvador, memo of Mr.

Dreibelbis re violation of Sec. 14(g) of FRActby FRBank in not securing permission of Boardto conduct, letter to FRBank re

Holding company affiliate status of Shawmut Corporation and Na-tional Shawmut Bank, memo of Mr. Bauman recom-mending that Board decline to rule that theyare not

Indirect payment of interest on demand deposits, memo of Mr.Owens re effect of suspension of provision ofRegulation Q on furnishing articles and services,reply that questions of Boston Clearing HouseCommittee cannot be answered until Board adoptsdefinition of interest

Limited voting permit granted to First Bank Stock Corporationto effect capital reductions, memo of Mr. Wing-field that action did not modify Board's policyof not granting limited permits when generalpermits had been authorized

Membership condition prohibiting exercise of unusual powers,memo of Mr. Seitz recommending that Board ceaseprescribing, suggestion of Mr. Wyatt that atten-tion be called to necessity for securing Board's

permission to exercise such powersOaths of office of directors of FRBanks and branches and

FRAgents and their Assistants, new forms recom-mended by Mr. Vest, approved and to be printed

Pledge of collateral for trust funds, memo of Mr. Seitz recom-mending that enforcement be no longer delayedin Illinois, approved

Policy record entry covering meeting of Federal Open MarketCommittee on March 19, memo questioning adequacyof statement of reasons, opinion that entryshould not be enlarged

Regulation L, memo of Mr. Chase re revision ofRegulation R, memo of Mr. Chase re revision ofRegulations re hours of duty of employees and record of over

time with report thereof to Civil Service Com-mission, memo of Mr. Vest re, no action

Removal of officers and directors:Johnson, H. S., memo of Mr. Wingfield recommending that Board

serve notice to appear on October 22 for hearingre removal as president and director of PointPleasant National Bank, Point Pleasant, W. Va.

Memo of Mr. Dreibelbis presenting form of statement tobe read by Chairman Eccles at hearing of Mr.Johnson

Reports on proposed legislation, memo submitting suggestion ofMr. Ransom that Board adhere to practice agreedupon on Feb. 27, 1935 re not making

Pages

9/ 4

3/25

1647

667-8

3/ 5 512

1/ 4 40

11/ 3 1992-3

10/16 1901

9/11 1686-7

5/26 10801/ 4 161/ 4 23

6/11 1165

9/21 1739

12/29 2297

4/10 790


86 pages

Counsel, General, Memoranda of: (Continued)Reserves against uninvested trust funds, memo that they should

be required, overruled, not to be requiredRulings, memo of counsel recommending publication in FRBulletin

of certainRulings to be published in FRBulletinSocial Security Act, memo of Mr. Vest re effect on member banks

and FRBanks of proposed amendment to bring allbanks under

Trust funds, uninvested, deposits of, with FRBanks, memo of Mr.Vest re

Trusteeship of Mr. Beavers, Assistant Cashier of MBank of At-lanta, memo of Mr. Vest re circumstances of ap-pointment, Board opposed, he should resign

Violations of Sec. 7(c) of Securities Exchange Act of 1934 andSec. 5(a) of Regulation T by Manheim, Dibbernand Co., memo re, recommending report to At-torney General and Securities and Exchange Com-mission, approved

Counsel, special:Cole, Judge, payment of fee, which had not previously been sub-

mitted to Board, in case of FRBank of Philadel-phia against Ocean City, N.J., on tax anticipa-tion note

Mayer, Meyer, Austrian and Platt and Mr. Adelbert Brown, em-ployment by FRBank of Chicago as special counselin connection with illegal part of assessment onbuilding

Retained by _MBank of Chicago in contesting illegal part oftax assessment on building

Pitney, Hardin and Skinner:Indebtedness of Passaic Print Works, payment by FRBank of

New York of fee and expenses in connection with,approved

Industrial advance toby FRBankproved

Taylor, Miller, Busch andChicago in claim of liquidating trustees ofFletcher American National Bank of Indianapolis

Payment by FRBank of Chicago for services in connectionwith claim of liquidating trustees of FletcherAmerican National Bank, approved

Townsend Lawn Mower Co., employmentof New York in connection with, ap-

Boyden, employment by FRBank of

1/24 203

2/26 436

3/26 679

11/25 2125

9/29 1789

11/25 2126

3/11 556

12/ 2 2160

5/6 982

8/22 1569

12/ 2 2160

11/10 2032

5/6 982

11/10 2032Court cases:

Barrett v Reuter, Illinois, reply to FRBank of Chicago re ap-peal to be taken in, that Board does not under-stand that case will affect membership conditionrequiring pledge of security for trust fundsin commercial department 5/27 1092

British American Tobacco Co., Ltd. v FRBank of New York, Coving-ton, Burling, Rublee, Acheson and Shorb employedto defend, fees to be submitted to Board forapproval, no objection to handling on system basis 1/10 101


87

Co

Pages

Urt cases: (Continued)Claim of liquidating trustees of Fletcher American National

Bank of Indianapolis against FRBank of Chicago,

employment or special counsel authorized 5/ 6 982

Edwin Bennett Pottery Co., employment by hBank of Richmond of

Hinkley, Hiskey and Berger as special counsel

in case of, authorized 4/ 2 728

FRBank of Philadelphia v Ocean City, N. J., FRBank has not com-

plied with Board's instructions re prior ap-

proval of fee for Judge Cole in connection with,

approved 12/ 2 2160

Fletcher-American National Bank v FRBank of Chicago, recom-

mendation of Mr. Wyatt that conference of

FRBank Counsel be called to consider legal

questions presented, approved 6/23 1220

Claim of liquidating trustees against FRBank of Chicago,

to be considered at meeting of Board tomorrow 7/28 1440

Report of Mr. Wyatt re conferences with attorneys for

liquidating trustees, authorized to continue

negotiations 8/ 4 1478

Payment of Taylor, Miller, Busch and Boyden by FRBank of

Chicago for services in connection with, approved 11/10 2032

Settlement of claim approved 11/11 2035

Litigation arising from liquidation of First National Bank of

West New York, reply to Mr. Milberg that Board

cannot comment on merits of questions involved

in 5/21 1066

Macklin v Federal Intermediate Credit Bank of Columbia, Mr.

Cagle to be available for trial 1/17 160

Nordskog v FRBank of San Francisco, FRBank to be requested to

keep Board advised of all developments 8/19 1549

Suit against Board members brought by Mr. Montgomery to enjoin

further exercise of power to coin money and reg-

ulate value thereof, Board unwilling for Mr.

Wyatt to accept service for members, and to

prepare letter to Department of Justice refer-

ring matter under usual procedure 10/ 6 1844

Report of Mr. Wyatt that members of Board had been served,

that he had discussed with Messrs. Barse and

Bernstein and all were agreed that it should

be referred to Department of Justice 10/ 9 1856

Mr. Wyatt believes dismissal on technical grounds should

be sought, Comptroller believes it should be

made test case, Board agrees with Mr. Wyatt,

Chairman Eccles to discuss with Mr. Oliphant,

to be referred to Department of Justice 10/ 9 1857

Report of Mr. Wyatt that he informed Mr. Bernstein of

Board's position, that after consultation with

Comptroller, Secretary of Treasury referred

matter to Attorney General, basis for answer,

not to include argument re constitutionality 10/20 1923-4

Chairman Eccles, in view of developments, found no need to

consult with Mr. Oliphant 10/20 1925


88 pages

Courtney, H. W.: (See National banks, First National Bank, Conawa,Okla.)

Covington, Burling, Rublee, Acheson and Shorb, employed by IEBankof New York to defend suit brought by BritishAmerican Tobacco Co., fees of

(See also Court cases)

Credit conditions, review of, before Presidents' Conference by Mr.Goldenweiser

Credit policy, reversal of easy money policy, question raised as to,in review of Dr. Goldenweiser before Presidents'Conference, opinion of Mr. Williams that timehas not arrived for such action

1/10 101

11/19 2101

11/19 21014Credit unions:

FRBanks, suggestion that they organize and eliminate employees'loan funds, to be referred to Presidents con-ference and officer of Board's credit union mightbe asked to present information re 10/20 1925

(See also Federal Credit Unions)

Cuba:Silver pesos, payment for, and delivery through Havana Agency

.of sum of, to be coined by Philadelphia Mint,no objection to transaction to be arrangedthrough Export-Import Bank

(See Public Health Service) 8/18 1538

Cumming, Dr. Hugh S.:Currency:

Backing of, reply to Mr. Yeager on article by Dr. Willisof French franc, report of Mr. Ransom of gentlemen's

10/14 1885Devaluation

agreement negotiated by Treasuries of France,England and U. S., President Harrison "swornto secrecy" on aid rendered by Messrs. Williamsand Knoke 9/26 1767

Secretary of Treasury Morgenthau present at meeting, advis-ing Board of steps relative to developments inmonetary agreement between England, riance, andU. S. 9/29 1787

Balance of FRBanks with Bank of France, advice from President Harrison of problem re, in view of possibilityof, he had determined to take no action

Mr. Harrison advised of nothing to add to advice, told of 9/24 1755

views of Board and staff, reports no new develop-ments in French situation 9/25 1759

Gold coin and certificates held by Dallas Bank and Trust Co.,for licensed dealer, later turned over to FRBankof Dallas, reported to Secretary of Treasury 5/13 1016

Government securities, reply to American National Bank, Santa, Monica, Calif., re editorial in Los AngelesTimes that bank may secure 10010 face value forbonds at FRBank, advising of methods of secur-ing currency from FRBanks and various types ofloans for which bonds are eligible as collateral 8/ 7 1505

Greece , acknowledgment of advice from Governor Tsouderos ofBank of Greece that drachmae has been attachedto the pound, advice to niBank of New York 9/30 1810


89

Currency: (Continued)Insurance on shipments of registered for account of Treasury

and other agencies, letter to Mr. McReynolds

that discontinuance of, would place risk of

loss on TreasuryNational bank notes, liability of outstanding, assumed by Trea-

sury and item in weekly RBank statement changed

to Treasury CurrencyShipments:

Nonmember banks, reply to Mr. Strater that Board notes with

approval action of Governors' Conference ofOctober 23, 1935

Postal surcharge on, letter to Chairman of Governors' Con-

ference re recommendation that Board endeavor

to have Postal authorities discontinueStabilization:

Gold, purchase and sale of, between stabilization funds of

U. S., England and France, report of ChairmanEccles of action of Treasury and press release

re, statement of Mr. GoldenweiserConference of Chairman Eccles and Mr. Goldenweiser and Mr.

Gardner with Secretary of Treasury called for

this evening

Daily Commercial News, reply to Mr. Clerk that publication of condi-

tion reports in, does not meet requirements of

Regulation H, as it is a specializing paper

and does not disseminate news of general in-terest

n irYmen's League Co-operative Association, reply to Citizens Na-

tional Bank, Wellsville, N. Y., that funds of,

may not be classified as savings accountsDaniel, Thomas H., Chief Bank Examiner, South Carolina, published

condition report of Citizens and Southern Bank

of South Carolina showed item "Corporate stockincluding FIRBank stock," letter to, and one toMr. Leach re erroneous impression likely to becaused

114n1els, Horace: (See National banks, Clark County National Bank,Vancouver, Wash.)

ghton, Dr. A. D.: (See Staff of Board, Examining Physician)u'Autremont, Hubert H.: (See State member banks, Southern Arizona

Bank and Trust Co.)Dalri, R. L.: (See New York State Bankers Association, Group 1)141Y, Edmond E.: (See Rockefeller Foundation)1)ebentures and capital notes:

Bank of Rosalie, Wash., reduction of capital through retirementof debentures below organization requirementof national bank, membership could be forfeited,

no action

Pages

5/13 1017

8/ 6 1495

6/23 1223

2/20 401

10/12 1870-2

10/12 1872

1/31 264

3/21 626

7/29 1447-8

1/ 4 32-4


90 Pages

Debentures and capital notes: (Continued)Citizens State Bank, Puyallup, Wash., retirement of capital de-

bentures, no objection 7/30 1451Cowlitz Valley Bank, Kelso, Wash., Board not willing to approve

retirement of capital debentures 8/19 1551First State Bank, Kosse, Texas, permission to retire, FRAgent ad-

vised to follow instructions in circular re re-ductions by banks in towns of 3000 or less tobelow 00,000 1/31 257

Floral Park Bank, Floral Park, N. Y., retirement of notes wouldreduce capital below requirement, letter to_MBank of New York re 11/25 2137

Ohio Citizens Trust Co., Toledo, Ohio, permission granted to re-tire portion of capital debentures, and advice toR.F.C. 7/27 1434

Peoples Bank and Trust Co., Seattle, Wash., action deferred onretirement of capital debentures 8/21 1565

No objection to retirement of debentures in view of program 11/12 2048

Reductions:to conserve earnings and recoveries

Authority granted to FRAgent at Minneapolis to approve, trans-ferred to President 8/29 1618

State member banks in towns of 3000 or less, reply to Mr. Case that instructions in letter X-9475 does nothave reference to reductions in, sold to others

2/13 347Retirement by State member banks:

than R.F.C., but does apply to preferred stock

Capital, letter to all HRAgents that banks in towns of 3000or less, where capital is brought below 00,000but is 425,000 or more, Board will not considerviolation of FRAct 1/31 256

First State Bank, Kosse, Texas, FRAgent advised to handle application for retirement of debentures in ac-cordance with policy

Permission is not required where capital is correspondingly 1/31 257

increased, reply to Mr. Fletcher that X-9480makes applicable to all banks, and does notmodify X-9048 authorizing FRAgents to approvecertain reductions 2/13 348

Security Bank and Trust Company of Owatonna, Minn., retirement of debentures issued to R.F.C., approved 5/16 1033

Debts:"In process of collection", letter to Comptroller re interpreta-

tion of Sec. 5204, R.S., where Cleveland TrustCo. places past due debt in hands of committeefor constant and active attention, requestingviews 12/11 2204

Letter to FRBank of Cleveland re 12/18 2241Deferred certificates of deposit: (See Membership in FRSystem,

Eligibility, Certificates of beneficial in-terest)


Definitions:

Executive officers, protest against inclusion of inactive of-

ficers in, under Regulation 0, Mr. Morrison not

in agreement with definition, matter referred

to himInterest, subsection l(f) of Regulation (.4:

3/ 4

91

Pages

498-9

Federal Advisory Council, discussion of 9/10 1669

Mr. Ransom to recommend that it be placed in effect 10/ 6 1843

Federal Advisory Council to be asked for advice re, asused in 10/20 1926

Letter and memoranda sent to Mr. Lichtenstein in accordancewith 10/27 1948

Statement of Mr. Broderick of hope that Board will make ef-fective, regardless of what effect it mighthave on membership in System 11/12 2041

Recommendation of Mr. Ransom that it be made effective, dis-cussion of inclusion of prohibition against ab-sorption of out-of-pocket expenses, to be madeeffective February 1, 1937, letter to F.D.I.C. 12/11 2201-3

(See also Regulation COSavings deposits, discussion of question of altering, in view

of situation as to funds of labor unions, Coun-sel to prepare definitions permitting classi-fication (1) only of individuals' savings and(2) funds of organizations not operated forprofit, Counsel also requested to consult F.D.I.C. and Board's staff 7/28 1437

Consideration suggested by Mr. Ransom before departure ofChairman, no urgency and Chairman willing to beconsidered as concurring in any decision 7/31 1461

FederaLAdvisory Council, discussion of 9/10 1669Revision of, advice to F.D.I.C. that Board is considering 9/12 1694Liberalization of, in Regulation C6 Mr. Ransom to recommend 10/ 6 1844Regulation Q, Federal Advisory Council to be asked for ad-

vice re, as used in 10/20 1926Letter and memoranda sent to Mr. Lichtenstein in accordance

with 10/27 1948Federal Advisory Council recommendation preferring retention

of present form, or failing that, liberalizationof provision, discussion of 11/17 2070

(See also Regulation 0"Suitable audit", Regulation F, Sec. 8, reply to Prentice-Hall

that Board cannot define precisely, but giving

De general principlenver Post Employees Credit Union, reply to Mr. Chapin that de-

posits of may not be classified as savings ac-counts

LePartnent

11/10

3/21

2033

628of Agriculture:

Condition reports of State member banks, items for informationof, to be omitted from fall call

bepartment of Financial Institutions of Indiana, certificates of de-posit, reply to Mr. McKinley re forms of, sub-mitted

8/ 1

5/27

1471

1093


92 Pages

Department of Justice:Loan to examiner of F.D.I.C. by bank under Title II of Federal

Housing Act, reply to FRBank of Cleveland thatDepartment has not ruled on applicability of Sec.22(a) of FRAct

Suit brought to enjoin Board from exercise of currency powers tobe referred to

Discussed by Mr. Wyatt with counsel for Secretary of Trea-sury and Comptroller, agreed that it should bereferred to, letter to be prepared to AttorneyGeneral

Violations of criminal provisions of banking laws, letter toFRAgents re procedure in reporting, and thatState member banks should be impressed with im-portance of reporting promptly

Department of State:League of Nations financial committee, cablegram of Secretary

Hull transmitted by Mr. Livesey re desire ofLeague secretariat for American representation,suggestion of Mr. Riefler, Board not willing forMr. Williams to serve while connected with FRSys-tem

Mr. Williams not to be considered further, Kr. Riefler to beproposed as alternate to Mr. Norman Davis, re-port of Chairman re discussion with PresidentHarrison re

Depositaries:Rural Electrification Administration, reply to Mr. Cooke that

Board cannot release confidential informationre financial responsibility of member banks des-ignated as, outline of assistance Board mayrender

Deposits:Borrowers in "Installment Plan Account" in Homewood Bank at

Pittsburgh, Pa., reply to Mr. Anderson that suchdeposits constitute deposit liability and aresubject to reserves

"Branch clearing" balances, reply to FRBank of San Franciscore classification in call reports and in comput-ing reserves

Ruling to be published in FRBulletinCashier's checks, pledge of ERBank's against funds of Treasurer

of Montana by Union Bank and Trust Co., Helena,Mont., no objection and instructions for showingin condition reports

Certificates of, forms, reply to Department of Financial Insti-tutions of Indiana re those submitted and letterto all ERAgents re rates of interest noted informs published in November, 1933, 1RBulletin

Certificates payable after claims of depositors and creditorsbut before payment of dividends or distributionof assets, letter to FRBanks re effect to begiven to in determining eligibility for member-ship

9/29 1799

10/ 6 1845

10/ 9 1856

1/22 186

12/18 2231

12/29 2298

11/ 6 2015

7/11 1340

3/4 5063/26 679

2/27 450

5/27 1093-6

1/ 6 52


Deposits: (Continued)"Checkmaster Plan", used by National Safety Bank and Trust

Company in New York, N.Y., reply to Mr. Vogt

that Board does not know that plan violates

any laws which came within jurisdiction of

BoardChristmas club accounts, Union Bank and Trust Company of Los

Angeles, Calif., reply to NEI-. Neary that they

are not savings accounts

Citrus growers associations, may not be classified as savings

accounts, ruling to be published in FRBulletinCourt funds, in New York, demand deposits, reply to Department

of Audit and Control that interest may be paid

upon, under State law, until August 24, 1937

Credit unions, ruling that they are not to be classified as sav-

ings accounts, to be published in FRBulletin

Danand, payment of accrued interest after Aug. 23, 1937, on

Indian funds, Postal savings funds and other

Government funds, reply to First National Bank,

Conawa, Okla., that it may not now be paid

Federal Deposit Insurance Corporation, funds held as receiver

may be deposited with FRBanks, reply to Mr.

LeachReply to President Day re

Gimbel Brothers Foundation accounts with Gimbel Brothers Bank

and Trust Co., do not now comply with require-

ments of savings accounts, but if proposed

changes in bank's rule are made they may be so

classified

Government funds, interest payment, reply to First National Bank

of Conawa, Okla., that it may not now be paid

Government securities, advance payments for, reply to President

Harrison that they are deposits against which

member banks and FRBanks are required to main-

tain reserves

Indian funds, interest payment, reply to First National Bank of

Conawa, Okla., that it may not now be paid

Similar reply to Tradesmens National Bank, Oklahoma City

Insured, reports to be requested by F.D.I.C. from insured banks

as a basis for estimate of insured deposits,

Board will cooperate

Letter to FRBanks re

Interest on time deposits, reply to Farmers and Mechanics Na-

tional Bank, Woodbury, N. J. re limitation on,

by State law, and that no interest may be paid

on deposit of 14 days' duration

International Longshoremens Association, Local 38-82, may not

be classified as savings accounts

"Intrest checks": (See infra "Utility certificates")

Member banks, form B-13 for submitting reports on, forwarded to

FRBanks

93

Pages

5/21 1067

1/ 7 72

1/25 215

5/ 6 975

1/25 215

12/22 2255

8/ 4 14878/26 1591

6/24 1227

12/22 2255

12/22 2257

12/22 2255

12/22 2256

5/ 2 9565/ 4 963

6/10 1163

5/20 1055

7/ 2 1297


94 Pages

Deposits: (Continued)Nicholson Cemetery Association - Permanent Deposit, reply to

Comptroller that First National Bank, Nicholsonmust take im.wediate steps to reduce interestrate from 4% to *A, may be classified as sav-ings account if organization is not operatedfor profit

Participation certificates representing waived deposits, neednot be included in determining limit on amountFayette bank may deposit with nonmember SpitzerRorick Trust and Savings Bank, Toledo

Pass book, use by business corporations for time deposits,open account, reply to Citizens National Bankand Trust Co., Waynesboro, Pa., that there isno objection to

Postal savings funds:Interest payment, reply

Okla., thatInterest rate on, reply

Board knowsreduce

Securities dealers in Third FRDistrict inducing banks toobtain disproportionate amounts of, and sellingto banks bonds as collateral lacking in properinvestment characteristics, no objection to Mr.Sargent informing State authorities in 12thdistrict re

Vermont, maximum interest, reply to President Young agreeingwith position taken in reply to Mr. Ellenberger

to First National Bank of Conawa,it may not now be paidto Markle Banking and Trust Co. thatof no contemplated legislation to

7/20 1411

9/ rz 1641

12/22 2255

Public funds:Iowa Bankers Association, reply to, on interpretation of

Sec. 324 of Banking Act of 1935, which excepts,for two years, from prohibition on payment ofinterest on

Ohio, reply to Mr. Fletcher re such funds in time classifi-cation in condition reports of banks, whereasState law prohibits

Reports for reserve purposes, letter to Mr. Wood and copy toother FRAgents re banks not showing allowabledeductions and advising that reports should besubmitted showing information called for

Sanford Trust Co., Sanford, Me., Town of Sanford "Cemetery"account may be properly classified as savingsaccount, but "Ethan Stone High School Fund" maynot be

Savings accounts:American Retail Federation, Inc., reply to Hamilton National

Bank, Washington, D. C., that funds of, may notbe classified as

Basis of provision in Regulation Q that business corporationsmay not maintain savings deposits, statement re,to be published in FRBulletin

3/24 655

4/24 871

9/25 1764

1/10 99

1/31 263

7/ 3 1301

3/21 627

2/26 436


95

Pages

Deposits: (Continued)Savings accounts: (Continued)

Bicycle Manufacturers Association, deposits may not be

classified as 6/12 1173

Borough of Waynesburg, reply to First National Bank and

Trust Company of Waynesburg that deposit may not

be classified as, and that interest may not be

paid thereon 2/17 362

Building and loan associations in New Jersey, reply to Mr.

Gidney re inquiry of Newark Clearing House Asso-

ciation and after consideration of Mr. I. H.

Harrison's memo that such deposits may not be


Reply to Farmers and Mechanics National Bank, Woodbury,

N. J., re 6/10 1162

Business corporation, reply to Robert E. Ramsay Organiza-

tion, Inc., on letter to Senator Glass, that de-

posit of, may not be classified as savings de-

posit, and copy to Senator Glass 1/30 245

Business groups, such as Rotary Clubs and Kiwanis Clubs, re-

ply to Mr. Geary that funds of, may not be


Cash bonds:Employee to employer under California law, reply to

FRBank of San Francisco that such deposit may be


United States Fidelity and Guaranty Co., deposit in name

of, as collateral for E. L. Westcott, reply to

First National Bank, Pueblo, Colo., that it may

be classified as 9/22 1749

Cemetery lots, reply to F.D.I.C. that funds of organizations

not operated for profit may be classified as, in

connection with inquiry of Savings and Trust Com-

pany of Indiana 6/22 1206-7

Funds given to city or town for perpetual care, reply to

F.D.I.C. that they may be classified as, only if

given in trust 6/22 1207

Certificates of deposit representing, reply to Citizens Na-

tional Bank, Emporia, Va., re continued use 4/13 795

Christmas club accounts, not within classification of, ruling

to be published in FRBulletin 1/25 215

Citrus growers associations, reply to Barnett National Bank

that deposits of, may not be classified as 1/15 138

Classification of number of types of, reply to Mr. Await on

inquiries of Mr. Hoskinson of Riggs National Bank 1/10 97

No objection to copy of letter being sent to member

banks in 12th district 1/21 179

Classification of various types of deposits as, ruling re,

to be published in FRBulletin 1/25 215

Close corporations, Board agrees with Mr. Case that deposits

of, may not be classified as 2/27 445


96


Cooperative fire insurance companies, reply to National Bankof Middlebury, Vt., that deposits of, may not

pages

be so classified 10/ 8 1860Cooperative savings and loan associations, reply to National

Bank of Middlebury, Vt., that deposits of, maynot be so classified 10/8 1850

Corporations operated for profit, withdrawal from FRSystemcontemplated by Peoples Trust Company of BergenCounty and First-Stamford National Bank andTrust Co. because of provision of Regulation Qprohibiting classification of deposits as 1/22 3.84

Credit union deposits, reply to Barnett National Bank thatthey may not be classified as 1/15 138

Dairymen's League Co-operative Association, reply to CitizensNational Bank, tellsville, N. Y., that depositsof, may not be classified as 3/21 626

Definition of, discussion of question of altering, in viewof situation as to funds of labor unions, Counselto prepare definitions permitting classification(1) only of individuals' savings and (2) fundsof organizations not operated for profit, Counselalso to consult F.D.I.C. and Board's staff 7/28 1437

--oiscussed by Federal Advisory Council 9/10 1669(See also Regulation 0

Denver Post Employees Credit Union, reply to Mr. Chapin thatfunds of, may not be classified as 3/21 628

Gallitzin Fire Company Relief Association, reply to FirstNational Bank of Gallitzin that funds of, maybe classified as 5/27 1097

Glenwood Cemetery, reply to FRBank of Richmond that funds of,may be so classified 10/ 3 1824

Individual, deposit of funds used in business, reply toFRBank of Minneapolis that such a deposit cannotbe classified as 1/15 137

Ruling to be published in FRBulletin 1/25 216Industrial Indemnity Exchange, reply to FRBank of San Fran-

cisco that funds of, may not be so classified 11/10 2032Interest on funds withdrawn between interest payment dates,

ruling re, to be published in FRBulletin 2/26 436Labor unions, reply to Mr. Young that funds of, may not be

classified as 4/10 788Question raised by Harris Trust and Savings Bank of

Chicago re ruling that they may not be classi-fied as, action deferred and matter referred toMr. Ransom, to consider also views of FRBank ofNew York 6/30 1276

Discussion of question of altering definition, in viewof situation as to funds of, Counsel to preparedefinitions permitting classification (1) only ofindividual's savings and (2) funds of organiza-tions not operated for profit, also to consultF.D.I.C. and Board's staff 7/28 1437Digitized for FRASER


97

Pages


Library funds, reply to F.D.I.C.

vising that Board is

of possible revision

deposits"Liquidating corporation, reply to Wise, Shepard and Houghton

that deposits of, may not be classified as

Cemetery Association, reply to Citizens National

Bank and Trust Co., Mansfield, Ohio, that funds

of, may be classified as

Coal Field Poor District, reply to Comptroller of

the Currency re query of Hazleton National Bank,

Hazleton, Pa., that Board is reconsidering ques-

tion of classification of such deposits

Law Review, reply to Mr. Geery that question of

classification of funds of, may be determined

from previous ruling of Board

corporation funds, ruling that they may not be so

classified to be published in FRBulletin

Municipal deposits, for sinking funds, education, police and

fire departments, playgrounds and charitable

purposes, may not be classified as

benefit organizations, reply to Mr. Geery that funds

of, may be classified as

Fire Insurance Co., reply to Citizens National Bank,

Ontario, Calif., that its deposits are not

National Fertilizer Association, Inc., reply to Hamilton

National Bank, Washington, D. C., that funds

may not be classified as

Fund Commission of the Police

of the Township of Union,of New York that Board is

cation of such funds

Professional associations, reply to Mr.

may not be classified as

Publications of professional associations, reply to Mr.

Geery that question of classification of funds

of, may be determined from previous rulings of

Boardreply to Mr. Holabird that deposits of, may not

be classified as

Receivers and liquidating trustees of business corporations,

ruling that such funds may not be so classified,

to be published in FRBulletin

Retired Officers Association, reply to Col. Marix that funds

of, may not be classified as

Sanford Trust Co., Sanford, Me., report of improper classi-

fication of funds of cemetery and high school as

School district funds, reply to F.D.I.C. on classification

of, advising that Board is reconsidering ques-

tion and of possible revision of definition of

"savings deposits"

Mansfield

Middle

Minnesota

Municipal

Mutual

Mutual.

Pension

Receiver,

on classification of, ad-

reconsidering aaestion and

of definition of "savings

of,

9/12 1694

1/20 170

7/ 9 1331

10/ 1 1812

7/13 1347

3/26 679

2/27

7/13

1/10

445

1346

99

7/ 3 1302

and Fire Departments

N. J., reply to FRBank

reconsidering classifi-10/ 1

Geery that funds of,1812

7/13 1346

7/13 1347

1/20 172

2/26 436

3/28 699

5/8 989

9/12 1694


98 Pages


Southern Underwriters Corporation, reply to National Bankof Commerce of San Antonio, Texas, that depositof, may not be classified as

Transfers to checking account on telephone order, reply toF.D.I.C. that they are not permitted but thata transfer on written order is permissible andthat Board will consider provision covering innext revision of Regulation Q

Trust funds, reply to Carthage National Exchange Bank re de-posit in savings department under RegulationsQ. and F and re treatment of such deposits inreports

Volunteer fire department and ladies auxiliary affiliatedwith fire department, ruled that deposits of,may be classified as

Withdrawal slip, signed in blank, left with passbook at bankso that cost of securities purchased may becharged, reply to Clark County National Bank,Vancouver, Wash., that practice is permissible

Security Monthly Thrift Plan, reply to Mr. Gidney that pass bookmust contain requirement for written notice ofwithdrawal of not less than 30 days for classi-fication as savings accounts, ruling not to beused for advertising purposes

Social club for children, to be paid as dues and returned at age21 with interest, may violate law

Study of activity of large accounts, memo of Messrs. Golden-weiser and Currie re procedure based on teststudies by National City Bank of New York andBankers Trust Co., letter to FRAgents and letterto selected banks re, approved

Time:Forms of, presented by Iowa Bankers Association, reply that

they conform to requirements of Regulation qInterest payment for monthly periods when deposit is with-

drawn at end of 2 months and prior to maturity,member bank should not deduct interest credited

Interest payment on, when renewed within ten days aftermaturity, reply to FRBank of Minneapolis redifferences between Board's and F.D.I.C. regu-

1/30 247

6/22 1205

11/24 2118

3/24 654

5/16 1034

5/19 1051

9/26 1774

1/16 148

1/ 9 87

2/27 446

lations, Board will not object to practiceSimilar letter to Mr. Young and copies to other FRAgents

1///Letter to Telegraphers National Bank, St. Louis, MD. reRuling to be published in FRBulletin 4/25 893Reply to Mr. Sargent that certificate must be postdated

to maturity date 5/ 5 971Board waives requirement for payment of interest for in-

tervening period that certificates be postdatedto maturity date 5/18 1041


Deposits: (Continued)Time: (Continued)

Open account, agreement covering continuing contract pro-

viding for deposits and withdrawals from time

to time, reply to Mr. Fletcher re, on inquiry

of Union Trust Company of Pittsburgh, that it

complies with RegulationPayable three, six, nine or twelve months from date, reply

to American National Bank of St. Paul, Minn.,

that it complies with Regulation Q

Ruling to be published in FRBulletin

Payable upon six months' written notice by depositor and

callable after thirty days notice, shorter

period governs in determining maximum rate of

interest, reply to Mr. Austin on inquiry of Mr.

Herr, certificate issued by First National Bank

of Gettysburg

Payment before maturity, reply to First National Bank of

Beresford that it is not legal, unless emergency

exists, suit threatened by guardian

Renewal when maturity falls on holiday, reply to FRBank of

Minneapolis re inquiry of Ramsey County National

Bank of Devils Lake, N. Dak., agreeing that it

should be as of date of maturity

Trust funds:Excess of 10% of capital and surplus in nonmember banks, re-

ply to Mr. Curtiss that deposit is not viola-

tion of condition of membership by Union and

New Haven Trust Co., New Haven, Conn., or of

Sec. 19 of FRAct

FRBanks, question of accepting uninvested, memo of Mr. Vest

and letter approved to FRBanks authorizing

acceptance under special safeguards, not author-

ized to receive from nonmember banks

Member banks in uninsured nonmember banks, reply to Mr.

McRae, re case of Union Trust Company of Spring-

field, Mass., that F.D.I.C. has ruled that such

funds are not covered by insurance

Unclaimed in national banks, S. 3727, making subject to escheat

laws of States, no report to be made on

Uninvested trust funds:Pennsylvania Company for Insurances on Lives and Granting

Annuities may pay interest on, under Pennsyl-

vania law

Practice of ERBank of San Francisco of certifying check

against reserve account which is indorsed in

blank to trust department for funds of equal

amount, no objection

"Utility certificates", or "intrest cheks", evidencing demand

deposits upon which interest is payable if out-

standing three months or more, reply to .}Bank

of San Francisco that they may not lawfully be

issued

99

Pages

1/16 147

3/9 5373/26 679

4/25 890

12/ 4 2181

12/29 2312

6/11 1168

9/29 1788

8/18 1536

4/10 790

4/29 923

11/25 2138

4/18 827


100 pages

Deposits: (Continued)

Vermont, maximum interest rate payable by national banks, replyto FRBank of Boston 6/25 1248

Destruction of useless records of Board, list and samples sent toArchivist with request that authority be soughtto destroy, should be destroyed and not sold 12/11 2210

Determination of fair value of assets:

Birmingham Trust and Savings Co., Birmingham, Ala., request for,designation of Mr. Newton to make 7/31 1466

Devaluation of franc: (See Currency)

Devlin and Devlin and Diepenbrock:

American Trust Company of San Francisco, protest against sale ofsecurities in reorganization of, because of suitspending against company, copies of, and Board'sreply sent to Mr. Sargent 2/28 459

Dick, W. H., reply re method of computing 55`p margin under RegulationT, commission not included and requirements areminimum 12/ 8 2191

Digest of Rulings, advice to Mr. Clerk that it is being brought upto date 9/17 1721

Directors:Articles of incorporation, reply to Mr. Thomas in connection with

inquiry of Nebraska Banking Department, thatchange re, recommended for Deuel County StateBank was a suggestion, not a requirement 5/27 1099

Bank for International Settlements:

Desire for American director reported by Chairman Eccles,Board members to study memo re service of Chair-man or his appointee for further consideration 3/14 575

FRSystem representation, memo prepared at request of Chair-man Eccles reviewing situation re, question tobe taken up later 12/ 4 2173

FRBank of Atlanta:

Clay, R. G., Class A, appointment of first vice presidentand other vice presidents to be discussed with 2/18 369

Kettig, W. H., Class C, designation as Deputy Chairman forperiod March 1 to Dec. 31 2/18 369

Designation for 1937 12/28 2290Martin, H. Warner, Class C:

Appointment as, for unexpired term ending December 31,1938, designation as RAgent for remainder ofyear and salary fixed on honorarium basis 2/18 369

Resignation of 12/12 2215Neely, Frank H., appointment as Class C for unexpired por-

tion of term ending December 31, 1938 12/29 2305Reclassification of member banks for electoral purposes not

necessary at present 7/29 1449

FRBank of Boston:

, Chamberlain, Frederick S., Class A, death of 7/29 1442Class A, nominee serving as member of Advisory Council on

Banking of Connecticut, reply to FRAgent Curtissthat if elected he may continue to serve 9/ 3 1640


101

Pages

Directors: (Continued)FRBank of Boston: (Continued)

Dennison, Henry S., Chairman authorized to tender appoint-

ment as Class C for three year term ending

December 31, 1939

Election:Class A, Merchants National Bank of Salem, Mass., reply

to Mr. Curtiss, in connection with eligibility

to vote in, that National Shawmut Bank of Boston

and Shawmut Association are not holding company

affiliates of, although national bank is in-

cluded in their voting permits

12/23

9/16

2294

1712

Special, to be held to fill vacancy caused by death of

Mr. Chamberlain, no reclassification necessary 8/ 7 1499

Hollis, Allen, Class C, redesignated Deputy Chairman for

period March 1 to December 31 2/18 367

FRBank of Chicago:Class C, discussion of selection of, no action 6/ 3 1135

Election of, reply to President Schaller that there is no

necessity for reclassification of banks 8/22 1568

Fees and allowances, resolution fixing, no objection 6/ 3 1137

Leavell, James R., appointments of President and First Vice

President, Chairman authorized to invite to Wash-

ington to discuss, Board would be willing to ap-

prove Mr. Preston as President and appoint Mr.

Schaller L-RAgent and Mr. Stevens Assistant to

FRAgent until April 30 2/18 369

Lewis, Frank J., Chairman Eccles authorized to tender ap-

pointment as Class C 6/30 1272

Report of willingness to accept appointment as Class C

director, appointed for unexpired term 7/ 7 1307-8

Advice of appointment to be withheld temporarily, pend-

ing filling of other vacancies 7/ 7 1309

Advice of appointment sent, not withheld because informa-

tion re Mr. Wood's appointment leaked out in

Chicago 7/ 8 1325

Schaller, George J., Class C, Board would be willing to ap-

point as, and designate as FRAgent for remainder

of 1936, with salary to be fixed on honorarium

basis 2/18 369

Stevens, E. M., Class C and FRAgent, resignation, desire to

submit as of March 31, voted to accept, action

not to affect payment of dismissal allowance 3/27 690

Advice to Mr. Stevens of action 3/31 712

Wood, Robert E., Class C:

Appointment, Chairman Eccles authorized to tender, to

fill vacancy 6/30 1272

Report of willingness to accept appointment as Class

C, appointed Class C for unexpired term and

designated Deputy Chairman for balance of year 7/ 7 1307-8

Advice of appointment to be withheld temporarily

pending filling of other vacancies 7/ 7 1309

Advice of appointment sent, because information re

appointment leaked out in Chicago 7/ 8 1324-5Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

102

Directors: (Continued)_MBank of Chicago: (Continued)

Wood, R. E., Class C: (Continued)

pages

Deputy Chairman, designation for 1937 12/28 2290

Directorship in Atlas Corporation, reply that acceptancewould not conflict with position as FRBank di-rector 9/25 1760

FRBank of Cleveland:Brainard, George C., suggested by Mr. Williams as possible

Class C appointee, action deferred 7/28 1436Recommendation of Mr. McKee that he be appointed Class

C, approvedDesignated Deputy Chairman for 1937

7/31

1 2/28

14 582290

Class C vacancy, Mr. Williams to consider and submit sug-gestions 7/ 7 1306

Names of persons suggested as possible appointees by Mr.L. B. Williams, Messrs. Brainard, Sutphin andSmythe, action deferred to permit Mr. McKee toinvestigate further 7/28 1436

Klages, R. E., Mr. McKee authorized to ascertain availability,and in his discretion to tender appointment asClass C for three year term ending December 31,1939229412/28

Smythe, F. A., report of Chairman Eccles re considerationof, as appointee to Class C vacancy 6/30 1271

Suggested by Mr. Williams as possible Class C appointee,action deferred 7/28 1436

Sutphin, S. B., suggested by Mr. Williams as possible ClassC appointee, action deferred 7/28 1436

HRBank of Dallas:Bennett, J. M., consideration as possible appointee for Class

C vacancy 6/30 120Meetings, reply that Board has taken no action re uniform

meeting date, Board will offer no objection forpresent to meeting once a month and inclusionof provision in bylaws authorizing executivecommittee to establish rates 2/24 414

Merritt, J. H., Board to tender appointment as Class C forunexpired portion of 1938 tern230612/29

Appointment 12/31 2354Perkins, S. B., Class C, reappointed as Deputy Chairman

for period March 1 to Dec. 31 2/18 371Letter to, advising of reappointment, sending had been

deferred pending return of Mr. Morrison, butcould be deferred no longer 2/26 431

Walsh, C. C., Class C and Chairman, retirement of, letter ofappreciation of services1512/12 22

Webb, W. A., consideration as possible appointee to ClassC, Chairman authorized to make further investi-gation and to tender appointment if deemed de-sirable 6/30 1273

President McKinney expressed opinion that his selectionas Class C would be ideal, to investigate avail-ability 7/ 7 1306


Directors: (Continued)FRBank of Kansas City:

Brown, E. P., Class C, reappointed Deputy Chairman

March 1 to December 31

Reappointment as Class C for three year term end as

Deputy Chairman for 1937

Thomas, J. J., appointment as Class C for unexpired term

ending December 31, 1908, and designated Chair-

man and FRAgent for 1936

Press statement toFRBank of Minneapolis:

Clark, Homer P., Classfor period

Geery, W.

be prepared re

C, reappointment asMarch 1 to December

Deputy Chairman

31

B., Class C, appointment as, Chairman Eccles au-

thorized to tender, and appointment as FRAprent

and salary

Appointment and salary approved, to be advised through

Mr. Clark that after this year the position

will be placed on honorarium basis

No objection to FRBank 6dving out announcement of ap-

pointmentPeyton, J. N., Class C, resignation as, and as FRAgent, and

appointment and salary as President

To be advised that there is no objection to FRBank

giving out announcement of

FRBank of New York:Case, J. h., Class C and RAgent, resignation as, not in

position to continue as Chairman on honorary

basis

Class C, desire to obtain well qualified man

Retirement of Mr. Case, reply to FRBank re request for re-

tention of, outlining position of Board

Woolley, Clarence M., Class C, letter from J. B. Cases re

supplementary retirement allowance for

Young, Owen D., appointment as Class C, willing to accept,

Messrs. Broderick, bzymczak and Ransom who are

out of town favorable, approved and designated

Deputy ChairmanRedesignated Deputy Chairman for 1937


Cannon, H. L., Class C, present at meeting of Board re ap-

pointment of President and First Vice President

Committee to meet with Board on March 3 to discuss action of

Board in refusing approval of appointment of

Mr. Norris as President and deferring action on

appointment of Mr. Hutt as First Vice President

Henning, J. B., Class A, present at meeting of Board re ap-

pointment of President and First Vice President

Meeting not held because of lack of quorum, reply to Mr.

Austin inquiring what action had been taken to

establish rates

Stern, J. David, Class C, resignation of

103

Pages

for period2/18 371

12/29 2305

2/7 310

2/7 311

2/18 370

2/18 370

2/26 428

2/27 441

2/24 416

2/27 441

5/1 9446/30 1271

4/17 822

5/1 947

6/17 118412/28 2290

3/3 477

2/29 461

3/3 477

8/20 1552

12/19 2245


104 Pages

Directors: (Continued)FRBank of Philadelphia: (Continued)

Wayne, Joseph, Jr., Class A.:Federal Open Market Committee representative, desire of

FRBank to defer formal action on election of Mr.Fleming until after meeting of committee, neces-sary for formal action to be taken prior to meet-ing 3/ 6 518

Present at meeting of Board re appointment of Presidentand First Vice President 3/ 3 477

President and First Vice President, report of Chairmanthat he advised that consideration was beinggiven to appointments of Mr. Sinclair and Mr.Davis, respectively 3/10 541

Salaries of Messrs. Sinclair and Hutt as President andFirst Vice President respectively, statement re 3/13 568

FRBank of Richmond:Class C vacancy, Board in agreement with Chairman's sugges-

tion of consulting Mr. Delano re appointee 6/30 1212Mr. Delano away and there has been no opportunity to con-

sult him 7/ 7 1306Delano, Frederic A., Class C, Chairman Eccles authorized to

tender designation as FRAgent to, for remainderof year, with salary to be fixed on honorariumbasis, also to accept his recommendations resalary for Mr. Leach if elected President andre appointment of First Vice President 2/18 368

Designation as FRAgent for remainder of year and compen-sation fixed on honorarium basis 3/12 561

Shepherd, Col. B. Morgan, Mr. Davis authorized to ascertainavailability for appointment as Class C for threeyear term and in his discretion to tender ap-pointment 12/29 2304

Sherwood, Donald H., Mr. Szymczak authorized to ascertainavailability for appointment as Class C for un-expired portion of 1938 term and in his discre-tion to tender appointment 12/29 230

FRBank of St. Louis:Dillard, Paul, Class C:

Deputy Chairman, reappointed for period March 1 to Dec.31 2/18 37°

Redesignation for 1937 12/28 2290Resignation tendered, Board's reply expresses desire

that he complete term and advises that policyadopted January 9, 1935 was intended to applyonly to new appointments 7/17 1396

Meissner, Edwin B., consideration as appointee to Class Cvacancy, appointment to be tendered to Mr.Nardin and if he refuses, further investigationto be made of 6/30

Nardin, W. T., consideration as possible appointee to ClassC vacancy, Chairman authorized to tender appoint-ment with understandina that chairmanship mightalso be tendered

127 2•9

6/30 1272"Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

10E,

Pages

Directors: (Continued)FRBank of St. Louis: (Continued)

Nardin, t. T.: (Continued)

Highly recommended by Mr. Tom K. Smith, Chairman inquired

If he would accept appointment as Class C and

FRAgent, requested time to consider

Refusal of appointment as Class C, to be advised that

position will be held open and Chairman Eccles

will discuss with him

Reclassification of member banks for electoral purposes not

necessary, reply to Mr. Stewart

Wood, J. S., Class C and FRAgent, resignation of


7/ 7

7/ 7

9/114/30

1307

1322

1690937

Dohrmann, A. B. C., Class B, death of, letter of regret 12/30 2340

Election of Class A, procedure suggested by Board, in con-

nection with voting of banks affiliated with

holding companies 12/ 7 2184

Fees and allowances for 1936, approved 1/27 218

Fees, resolution authorizing inclusion of FRAgent in payment 8/ 7 1500

McIntosh, C. K., Class A:

Appointment of Mr. Calkins as President, letter request-

ing approval in view of allegations of Mr.

Giannini, and re selection of member of Federal

Open Market Committee to represent Fifth Group 2/20 389

Committee appointed to review files re charges, and

Chairman authorized to reply that Board cannot

approve appointment because of age policy 2/20 392-4

Report of Committee exonerating Governor Calkins 2/20 405-6

Advice of election of Mr. Calkins, Board to adhere

to policy and not approve, advice to ABank 2/20 406-7

Reply to Mr. McIntosh not yet sent, addition made to,

re committee report 2/20 407-8

Meeting on alternate Thursdays, reply to Mr. Sargent that

there will be no objection to lapse of 15 days

between establishments of rates in cases where

holiday falls on Thursday 2/24 415!.t

Moore, Walton N., Class C:

Deputy Chairman, reappointed for period March 1 to De-

cember 31 2/18 372

Designated Chairman for remainder of year on fee basis 7/ 7 1308

Advice of appointment and fees fixed 7/ 8 1325

Quorum, lack of, on December 26, failure to reestbblish

rates within 14 day period 1/13 117

Reclassification of member banks for electoral purposes, not

necessary 9/18 1732

Stewart, A. O., Chairman authorized to tender appointment as

Class C, opinion to be obtained as to eligibility

because of connection with joint stock land

banks 6/30 1273

View of counsel that connection with joint stock land

banks does not make him ineligible for appoint-

ment as Class C, appointed and designated deputy

chairman 7/ 7 1308


106pages

Directors: (Continued)MBank of San Francisco: (Continued)

Stewart, A. O.: (Continued)

Advice of appointment to be withheld temporarily, pend-ing filling of other vacancies

Advice of appointment transmitted, not withheld becauseinformation of Mr. Wood's appointment leaked outin Chicago

Welch, Andrew P., Class C:

Deputy Chairman, appointed for 193?Eligibility to serve as director, reply that Sec. 8A of

Clayton Act has been repealed and there is nofurther question now as to

FRBanks:Appointments for 1936, minute entry of November 29, 1935,

feeling of Mr. Thomas that it should be enlarged,authorized to make changes he desires

Appointments for 1937, consideration to be given by Person-nel Committee

Suggestions as to appointees to be submitted to Commit-tee promptly

Biographical data, forms approved for submission of uniform,and letter to FRBanks re

Business affiliations:Wood, R. E., Class C at Chicago, no objection to accep-

tance of directorship with Atlas CorporationClass C:

Appointments authorized today to be tendered throughBoard members

Suggestion of Mr. Broderick that one member of Per-sonnel Committee be charged with responsibilityof directing development of information for ac-

Board members to furnish likely names to Personnel

ac-tion on, adopted and Mr. Davis charged

Committee and Secretary's Office to furnish re-vised list of vacancies and prospective vacan-cies in, and branch directorships about middleof year

Vacancies, attention called to, by Chairman Eccles andsuggestion adopted that no action be takentoward filling until completion of transfer ofFRAgents' nonstatutory duties to FRBanks

Discussion of question of fillingDiscussion of, and possible appointees

Correspondence of Board with FRBanks re policy and salaries,circular to be prepared directing FRBanks tobring all, to attention of

Letter to all FRBanks requesting that communications re policy matters, salary, and of other importance

7/ 1309

7/ 8 1326

12/29 2306

7/1 1289

1/ 4 28

11/25 2135

11/25 2134

1/11 114

9/25 1759

12/29 230/

12/29 230/

12/30 232°

3/25 661

6/ 2 11166/30 1271

9/22 17e

Election of, procedure suggested for FRBank of San Francisco 190°be brought to attention of 10/16

in cases of voting of banks affiliated withholding companies 12/ 7 2164


107

Paes

Directors: (Continued)FRBanks: (Continued)

Fees, compensation and traveling allowances for attendance

at meetings, committee meetings, etc., two memo-

randa re, referred to Presidents' Conference

pursuant to action of October 20

FRBranch banks:Appointments for 1936, minute entry of November 29, 1935,

feeling of Mr. Thomas that it should be en-

larged, authorized to make changes he desires

Appointments for 1937, consideration to be given by Person-

nel Committee

Suggestions as to appointees to be submitted to Com-

mittee promptly

Directors who have served six years, Board determines

to adhere to position barring reappointment and

amendment to regulations making prohibition

more specificAuthorized today to be tendered, to be tendered through

chairmen or deputy chairmen

Suggestion of Mr. Broderick that one member of Personnel

Committee be charged with responsibility of

directing devolopment of information for action

on, adopted and Mr. Davis charged

Board members to furnish likely names to Personnel Com-

mittee and Secretary's Office to furnish re-

vised list of vacancies and prospective vacan-

cies about middle of year

Meetings:Alternate weeks, on specified day, reply to Mr. Sargent

that there will be no objection to lapse of 15

days between establishments of rates where such

day falls on holiday

Every 14 days, proposal that Board suggest amendment

to bylaws of FRBanks requiring, voted that sug-

gestion not be made

Frequency of meetings and compensation and travel ex-

penses, memo of Mr. Smead re, factual portion

thereof to be sent to FRBanks with suggestion

that consideration be given at next Presidents'

Conference

Uniform date for, FRBank of Minneapolis not in favor of

Reply to Mr. Walsh that Board has taken no action

re, no objection to authorizing executive com-

mittee, by provision in bylaws, to establish

discount rates, copy to all FRBanks

Oaths of office, new forms approved for, and to be printed

Responsibilities of, statement of President Harrison that

Board should watch, they feel that they can

render little service to ivRBanks and that in-

formation re open market policy is essential

to action on discount rates, etc.

11/ 7 2021

2/24 415

2/11 330

10/20 1921

2/ 6 308

2/24 41410/16 1901

11/18 2097

1/ 4 28

11/25 2133

11/25 2134

12/28 2288

12/29 2307

12/29 2307

12/30 2320


108 Pages

Directors: (Continued)FRBranch banks: (Continued)

Fees, compensation and travel allowances for attendance atmeetings, two memoranda re, referred to Presi-dents' Conference pursuant to action of Oct. 20 11/ 7 2021

Frequency of meetings and compensation and travel expenses,memo of Mr. amead re, factual portion thereofto be sent to FRBanks with suggestion that con-sideration be given at next Presidents' Confer-ence 10/20 1921

Number of, discussion of recommendation of FRBank of Cleve-land that it be reduced from 7 to 5 and thatmanaging director be excluded, reply that Boardwill consider amendments to bylaws re number,but it is not willing to approve exclusion ofmanager 6/23 1216

Reply to President McKinney that Board has not taken ac-

-7

tion on recounendation of Presidents' Conference 10/27 1947

Oaths of office, new forms approved for, and to be printed 10/16 '901Regulations:

Amendment making more definite prohibition on appoint-ment of directors who have served six or moreconsecutive years adopted 12/28 2288

Amendment eliminating requirement that at least one director appointed by Board reside outside ofbranch city, considered in connection with ap-pointments at Cincinnati and Pittsburgh branches,adopted 12/28 2294

Six year rule, reply to FRBank of Kansae City, in replyto request for permission to reappoint Mr.Kountze as director of Denver branch, that Boardhas not changed attitude re general policy 12/18 2258

Vacancies, attention called to, by Chairman Eccles and sug-gestion adopted that no action be taken towardfilling until completion of transfer of FRAgente'non-statutory duties to FRBanks 3/25 661

Suggestion of Chairman Eccles that Board members submitnames of prospective appointees to PersonnelCommittee which will make necessary investiga-tions and submit recammendations to Board 8/ 4 1482

Information re possible candidates gathered by Mr.Szymczak, procedure for consideration determinedupon 9/18 1727

Personnel Committee to meet October 2 to consider ap-pointments 9/29 1788

Baltimore: McCormick, Charles P., appointment by Board for three

year term 12/29 2304Appointment 12/31 2351

Roberts, W. Frank, appointment by Board for unexpired 6/ 1 1113Meeting date, amendment to bylaws changing

1937 term 12/29 2304

Appointment 12/31 2352


Directors: (Continued)

FRBranch banks: (Continued)

Baltimore: (Continued)

Thomas, W. Frank, appointment for unexpired 1938 term

AppointmentZimmerman, L. S., reappointment for three year term

Birmingham:

12/2912/313/14

109

Pages

23042351577

Moody, Frank M., reappointment for three year term 3/14 577

Buffalo:Eisenhart, M. Herbert, appointment to be tendered by

Board for three year term ending December 31,

1939 12/28 2294

Henry, Frank F., appointment for three year term 3/11 577

Charlotte:Benet, Christie, appointment by Board for three year

term 12/29 2304


Cobb, C. L., reappointment for three year term 3/14 577

Harris, George S., appointment by Board for unexpired

1938 term 12/29 2304


Wright, George M., appointment by Board for unexpired

1937 term 12/29 2304


Cincinnati:Number of, provision in revised bylaws for reduction,

from 7 to 5, to be accomplished by failure of

FRBank and Board to appoint successors to direc-

tors' whose terms expire 9/17 1720

Rowe, John J., appointment for three year term 3/14 577

Thomson, Alexander, appointment for two year term ending

December 31, 1938 to be tendered by Board 12/28 2295


Denver:Dines, Thos. A., appointment for three year term 3/14 578

Grant, James B., Board to tender appointment for unex-

pired portion of 1938 term 12/29 2306


Kountze, Harold, reappointment, reply to FRBank of

Kansas City that Board cannot sanction as it has

not changed general policy prohibiting service

for more than six consecutive years ' 12/18 2238

McCarthy, Wilson, Board to tender appointment for three

year term 12/29 2305


Detroit:Ballantyne, John, reappointment for three year term 3/14 578

Davidson, James F., appointment for unexpired term 3/14 578

Harper, Harry F., Mr. Szymczak authorized to ascertain

availability and in his discretion to tender ap-

pointment for three year term 12/29 2305


110 Pages


Detroit: (Continued)Inglis, James, reply that Board's rules have no effect

on him as an appointee of FRBank, and thatBoard has no voice in continuance of Mr. Bussas Managing Director but that it is glad tohave information stated

El Paso:Coon, Frank R., appointment for three year termHayner, Frank- M., Board to tender appointment for unex-

pired portion of 1938 termNecessary to resign as officer of national bankAppointment

Martin, Jack B., Board to tender appointment for unex-pired portion of 1937 term

AppointmentFRBank of Kansas City:

Advice of appointmentFRBank of San Francisco:

Fees and allowances for 1936, approvedHelena:

O'Connell, J. E., reappointment by Board for two yearterm

Regulation of Board prohibiting service for more than six consecutive years, reply to Mr. Peyton repossibility of amendment, that regulation is inforce

Houston:Lawder, Sam R., reappointment for three year termRenfert, H., Board to tender appointment for unexpired

portion of 1938 termAppointment

Taub, Sam, reappointed for three year term by BoardJacksonville:

McQuaid, W. P., appointment for three year termLittle Rock:

Barnett, I. N., Jr., Board to tender appointment forunexpired portion of 1937 term

AppointmentDarragh, F. K., reappointed by Board for three year

termTucker, H. H., appointment to be tendered by Board for

unexpired portion of 1938 termAppointment

Wilson, Stuart, desire of FRBank to appoint for unexpiredportion of term which he would have filled ifhe had been eligible for reappointment at end of1935, Board adheres to policy and amends branchregulation to clarify position taken

Los Angeles:Brouse, C. E., appointment for two year term

2/26 434

3/14 578

12/29 230612/30 231912/31 2354

12/29 230612/31 2355

12/18 2238

1/27 218

12/29 2305

2/17 358 I

3/14 578

12/29 2306

12/31 235512/29 2306

3/14 578

12/29 230512/31 2355

12/29 2305

12/29 230512/31 2353

12/28 2288

3/14 576


111


Los Angeles: (Continued)Rosecrans, W. S., Board to tender appointment for two

year termAppointment

Louisville:Bulleit, Walter V., death of

Cobb, Wm. R., reappointment for three year term

Paxton, W. P., reappointed by Board for three year term

Memphis:Pope, Willis, reappointment for.three year term

Pritchard, A. L., Board to tender appointment for three

year termSherard, Holmes, Board to tender appointment for unex-

pired portion of 1938 term

Nashville:Bailey, C. W., reappointment for three year term

New Orleans:Holmes, H., appointment for three year term

Oklahoma City:Hanna, T. S., Board to tender appointment for three

termAppointment

Kennedy, Ed. T., appointment for three year term

Omaha:Dempster, H. L., Board to tender appointment for three

year termAppointment

Schellberg, W. H., Board to tender appointment for un-

expired portion of 1937 term

AppointmentYates, Cr. H., appointment for three year term

Pittsburgh:Ladd, George T., appointment for two year term ending

December 31, 1938, to be tendered by Board

AppointmentMcDowell, Harry B., appointment for three year term

Portland:MacNaughton, E. B., appointment for two year term

Schoenfeld, William A., Mr.. Davis authorized to ascer-

tain availability and in his discretion, to

tender appointment for two year term

Salt Lake City:Auerbach, Herbert S., Board to tender appointment for

unexpired term ending December 31, 1937

AppointmentHalverson, J. E., appointment for two year term

Thomas, John, Board to tender appointment for two year

termAppointment

yea

Pages

12/29 230612/31 2355

5/5 9643/14 578

12/29 2305

3/14 578

12/29 2305

12/29 2305

3/14 578

3/14 578

12/29 230612/31 23533/14 578

12/29 230612/31 2354

12/29 230612/31 23543/14 578

12/28 229512/30 23403/14 577

3/14 578

12/29 2306

12/29 230712/31 23563/14 578

12/29 230712/31 2355

t


112 Pages


San Antonio:Beretta, J. K., appointment for three year termFlato, Edwin F., Board to tender appointment for three

year termSeattle:

Bylaws requiring one, to reside outside of city, noobjection to waiving for this year, but consid-eration should be given next year to compliancewith regulations

Dickey, U. M., Board to tender appointment for two yearterm

AppointmentGreenwood, G. H., reappointment by FRBank, no objection

to waiving bylaws of branch providing that onedirector reside outside of city for 1936, butin 1937 compliance with regulations re, shouldbe considered

Reappointment for two year termSpokane:

McGregor, John M., Board to tender appointment for twoyear term

AppointmentTelyea, N. A., appointment for two year term

Member banks:Farmers and Citizens Bank, Sauk City, Wis.:

Marguardt, A. E., question raised in connection with ap-proval of membership application as to ownershipof sufficient stock to qualify

Farmers Loan and Trust Co., Tipton, Ind., contributions madeby directors in connection with rehabilitationrestored by bank, and demand for return byIndiana authorities

Solvay Bank, Solvay, N. Y., increase in number, request forcopy of documents authorizing

National banks:Johnson, H.

Neale, A.

Pullin, G

Removal of,

Sterret, C.

Removal of:State member banks:

Removal under Sec. 30 of Banking Act of 1933: (See Removalof officers and directors)

A., Point Pleasant National Bank, Point Pleasant,W. Va., to be notified of removal proceedingsagainst President H. S. Johnson

L., Point Pleasant National Bank, Point Pleasant,W. Va., to be advised of removal proceedingsagainst President Johnson

. L., Point Pleasant National Bank, Point Pleasant,W. Va., to be notified of removal proceedingsagainst President Johnsonunder Sec. 30 of Banking Act of 1933: (See Re-moval of officers and directors)W., Point Pleasant National Bank, Point Pleasant,W. Va., to be notified of removal proceedingsagainst President Johnson

(See Removal)

3/14 578

12/29 2306

1/17 154

12/29 2307

12/31 2366

1/17 154

3/14 578

12/29 230712/31 2356

3/14 378

5/25 1076

5/23 1069

10/29 1960

9/21 1742

9/21 1742

9/21 1742

9/21 1742


Disc ount Corporation, par list, inclusion approved, although not

strictly a banking institutiontlaaissal wages:

Buck, Earl D., ilRExaminer, three months' salary authorized

BUsh, Floyd W., Assistant FRExaminer, three months' salary au-

thorizedCalloway, Roger M., FRExaminer, payment of three months salary

authorizedkat rict of Columbia Bankers Association, address by member of

Board's staff requested by Mr. Corby on banking

situation in Europe, Mr. Gardner to makeDividends:

FRBanks:

Amendment

Payment

Payment

to FRAct tentatively proposed to reduce cumulative

dividends to 4% and to permit payment up to 67o

when earned during current year

for June 30, 1936, authorized, although only three

reported net current earnings sufficient to

coverDec. 31, 1936, discussion of memo of Mr. amead re

and suggestion of Chairman Eccles that Board re-

lease to press concurrently with release by

FRBanks of a brief statement of results of oper-

ationsPayment authorized, feeling of Chairman that uniform

policy should be adopted for future whereby

normal expenses and dividends would be provided

for before making charge offs and setting up

reserves

Items in condition report form, manner of showing

Mutual savings banks, effect of Regulation Q on payment in event

of membership in ERSystem

National banks:

Payment

S. 4514,

Reserve for

Union State

of, consideration given by Board to S. 4514 outlined

for Federal Advisory Council, belief that bill

will not pass

relating to payment of, objections to, Chairman au-

thorized in event bill seems likely to became

law, to take such steps as he considers necessary

payment in common stock, reply to Mr. Fletcher re

reporting on Form 105

Bank, Rushville, Nebr., no objection to payment out

of undivided profits, in connection with member-

shipD iv . ision of Bookkeeping and Warrants: (See Treasury Department)

1)J°Imap, Christian: (See American Bankers Association, Trust re-

ceipts)dge Statistical Research Service:

National Emergency Council, request that Board furnish copies of

contracts with F. W. Dodge Corporation, reply to

be made that Board has no written contract and

that reports are confidential

113

Pages

1/4 46

12/19 2244

12/19 2244

12/19 2244

10/13 1875

12/18 2234

6/25 1251

12/23 2262

12/28 2283-64/10 787

5/18 1042

5/19 1048

5/15 1024

9/12 1695

6/24 1226

5/26 1082


114

Dominick, Gayer G., present at meeting of Board re Regulation UDoris, A. L.: (See New York, Department of Audit and Control)Drafts, condition reports, reply to Mr. McAdams re method of First

St. Joseph Stock Yards Bank, South St. Toseph,Mo. of reporting outstanding on FRBank, not in

4/30

Pages

929

agreement with books 9/17 1719

TIE??

Earnings and dividends reports, Form 107:

Amendments to provide reporting of additional items, made toconform to national bank form 4/ 8 781

Further modifications made by Comptroller, form 107 modifiedto conform 4/28 917

Change approved re showing of reserve for dividends payable incommon stock 10/31 1986

Copies forwarded to FRAgents and attention called to new items 6/24 1235Copies of form 107 forwarded 12/21 2250

Earnings and expenses:FRBanks:

Press statements for 1936, to be withheld until Board canissue statement covering entire System 12/28 220-6

Advice to FRBanks 12/30

12/28

2342

2285-6

Reserves and charge offs, feeling of Chairman that uniformpolicy should be adopted for future, wherebynormal expenses and dividends would be providedfor first

State member banks:

Data for 1935 available, reply to State Bank Division ofAmerican Barkers Association re 6/ 1 1111

Fourth FRDistrict, reply to Mr. Fletcher that Board has noobjection to furnishing analysis of, to memberbanks in 5/25 107 9

Easterday, X. E.: (See National banks, Ramsey National Bank, Ramsey,Ill.)

Editorial Research Reports, supply of pamphlet re activities andoperations of FRSystem furnished to Board, copiessent to FRBanks 11/ 7 2020

Reply to FRBank of Minneapolis that additional copies of pam-phlet may be obtained from 11/23 2115

Educational activities:

FRBank of Minneapolis, lectures delivered hi-weekly to officersand staff on Federal reserve operations 10/27 1950

Edwin Bennett Pottery Co., employment by FRBank of Richmond ofHinkley, Hiskey and Berger as special counselin case of 4/ 2 720

Ellenberger, C. B.: (See Post Office Department)Eldridge, Brice A-: (See Bergen County Bankers Association)Electric Home and Farm Authority, paper not eligible for rediscount,

reply to Hamilton National Bank, Chattanooga,Tenn., but that it may be used as collateral forSec. 10(b) loans 7/10 153/


115

Pages

IhPloyees loan funds at FRBanks:FRBank of Richmond, establishment of 9/21 1739

14land:

Devaluation of French franc: (See Currency)

"Stabilization Still Opposed by England", article appearing in

New York Times February 9, attention of Federal

Advisory Council called to, as expressing views

with which Chairman Eccles is in agreement 2/12 342

Evans) Joshua, Jr.: (See National banks, Hamilton National Bank,

Washington, D. C.)Evans,

Peyton R.: (See Farm Credit Administration)1114art, H. Ralph, further correspondence re complaint of manner in

which Equitable Trust Company, Wilmington, Del.

handled trust, and letter to Mr. Austin rezaamination of Financial Statements by Independent Public Ac-

countants": (See Publication)btalninations:

Banco de Peurto Rico, San Juan, Puerto Rico, outline of arrange-

ments made for

Banco Popular de Puerto Rico, San Juan, Puerto Rico, outline of

arrangements for, in connection with membership

Bank of Haines, Ore., permission granted F.D.I.C. to make in

connection with withdrawal from membership and

continuance as insured bank

Bank of Romney, W. Va., report reveals unauthorized exercise of

trust powers, improper investment of trust funds

and violation of Sec. 22(g) thereby, failure of

attorney to hand over proceeds of note collected

which may be violation of Sec. 5209

Brownfield State Bank, Brownfield, Texas, senior examiner to

make next, in view of remumendation of Mr.

Walsh that president and cashier be removed

under Banking Act of 1930 or bank forfeit mem-

bershipChase Bank, New York, N.Y.:

Cost of, advice to bank re, and directing deposit in RBank

of New York to Board's account, letter to FRBank

of New York re

Report of, memo of Division of Examinations reviewing and

letter to Mr. Aldrich re

Continental-American Bank and Trust Company, Shreveport, La.,

holding of own stock as collateral to loans,

has been charged off, applicability of Sec.

5201, R. S., should be disposed of

Dallas Bank and Trust Co., Dallas, Texas, violation of executive

orders re gold revealed by, report re, to

Secretary of Treasury

Del Rio Bank and Trust Co., Del Rio, Texas, report revealing

capital impairment, capital structure has been

subject to criticiam for several years, no ac-

tion until examined again

1/ 8 76-7

1/ 8 76

1/ 8 76

11/16 2066

9/25 1761

3/ 2 473

3/11 551

2/28 454

5/ 2 955

5/13 1016

3/31 716


116

Examinations: (Continued)

Del Rio Bank and Trust Co., Del Rio, Texas: (Continued)

Failure to eliminate losses and doubtful assets resultingin capital impairment, State authorities con-templating requesting resignation of VicePresident Freeman 9/25 1761

Dollar Savings and Trust Co., Youngstown, Ohio, affiliation withThornton Laundry and Dry Cleaning Co. revealed,bank did not realize relationship and will ter-minate 8/24 150

Exchange Trust Co., Boston, Mass., letter to Mr. McRae on re-quest of Bank Commissioner for copy of "audit",suggesting that copy of credit investigation re-port be furnished 8/ 7 1504

Farmers and Merchants State Bank, Turkey, Texas, shares of ownstock held as additional collateral to loan, re-vealed in report of, reply to Mr. Evans that itis not violation of Sec. 5201, R. S., but isundesirable as collateral 6/16 1165

Farmers Loan and Trust Co., Tipton, Ind., report of, demandthat directors return cash covering assets re-admitted to repay them their contribution,Division of Examinations authorized to conferinformally with re condition 4/ 7

Bank, Clifton, Texas, shares of own stock held ascollateral to prevent loss on debt, reply to Mr.Evans re violation of Sec. 5201, R.S.

Bank of Flandreau, S. Dak., shortage discoveredby State authorities, F.D.I.C. authorized toparticipate in

Bank of Winner, S. Dak., permission granted F.D.1.C-to make, in connection with withdrawalfrom F1System

Federal Deposit Insurance Corporation:

Bank of Dawson, Ga., permission granted to examine, in con-nection with withdrawal from FRSystem

Pages

Fanners State

Fanners State

Fanners State

Bank of

Citizens

Citizens

Farmers

/RBankFRBank

Elizabethtown, N. C., corporation granted permissionto examine in connection with withdrawal frommembership in FRSystem

Bank and Trust Co., Carthage, Tenn., Franted per-mission to examine in connection with withdrawalfrom membership

State Bank of Westbrook, Minn., authorized to exam-ine, in connection with withdrawal from member-ship

State Bank of Flandreau, S. bak., authorized to par-ticipate in, in view of shortage discovered byState authorities

of New York, report as of January 4

of Philadelphia, control over securities campartmentsin vault criticized, advice requested as to

any action

768

6/17 1186

55

8/13 150 t

1/ 6

12/31 235

1/ 7 66

3/14 579

2/12 331

1/ 6 554/4 748

12/11 2208


117

Pages

Examinations: (Continued)FRBanks:

Chief of Division of Examinations directed to make one ex-

amination of each FRBank during 1936 1/ 8 76

Mr. Paulger ordered to conduct at least one examina-

tion of each FRBank during 1937 12/12 2219

Chief examiner, memo of Mr. Paulger on transfer of func-

tions to operating side of 6/ 3 1129

Indebtedness reports of officers and employees, recommenda-

tion of Division of Examinations that examiners

be authorized to review in conjunction with ex-

aminations and letter to Mr. Drinnen re, approved 3/27 695

First of Boston International Corporation, Boston, report of,

memo of Division of Examinations reviewing,

and letters to FRAgents Curtiss and Case and

to Mr. Trafford 3/ 3 488

Letter to corporation re cost of, and directing deposit

with FRBank of Boston of amount for Board's

account, and letter to FRBank re 3/13 572-3

First State Bank, Dodsonville, Texas, indebtedness of President

Nisbett to trust company not reported, latter

is not "bank" and report not necessary 11/ 6 2013

Floral Park Bank, Floral Park, N. Y., letter to Mr. Gidney re

report of 6/15 1179

Franklin County Bank, Washington, Mo., account of Bank of Wash-

ington represents pro rata share of Franklin

County funds upon which interest is illegally

paid 7/10 1334

Integrity Trust Co., Philadelphia, Pa., report of, request of

Mr. Austin for authority to withdraw, and make

new examination, question of policy

Mr. Austin to be advised that Board will not authorize

withdrawal and another examination should be

made, all FRAgents to be advised to send copies

of all reports to Board and where serious condi-

tion exists to submit question of action to

Board

1/ 4

1/ 4

13-4

15

Letter to Mr. Austin re 1/15 130

Manufacturers Trust Co., New York, N. Y., report revealing pur-

chase of German corporate stocks as part of plan

of realizing as much as possible on credits in

Germany, under Stand-still agreement, no objec-

tion to 1/15 133

Peoples Bank of Montross, Virginia, Incorporated, increase in

indebtedness to bank of inactive Vice President

Stuart shown by, letter to Mr. Fry re applicabil-

ity of Sec. 22(g) of FRAct and Regulation 0 3/20 620

Report forms, supply to be printed by FRBank of Dallas, to be

similar to tentative draft of revised form 8/26 1592

Sanford Trust Co., Sanford, Me., report of, improper classifica-

tion as savings deposits of funds of cemetery

and high school 5/ 8 989


118 pages

Examinations:Southern

State Bank,

(Continued)Arizona Bank and Trust Co., Tucson, Ariz., trust funds

used in banking department without deposit ofcollateral to cover fully, President McKinneyrequested to seek correction

Winfield, Kansas, report of special investigation ofissuance of bonds against annex, criminal viola-tions by officers revealed, should be reported,bank has been acting as trustee without havingobtained authority

State member banks:

Bank loans on securities, reply to Mr. Sargent on procedurefor examination and copy to other FRAgents

Charges for, FRBank of Dallas to absorb from November 1,1935 to December 31, 1936

Costs of, request of Mr. Szymczak that Presidents consideruniform policy for absorption of, by ERBanks

Form for, FRBanks of New York and Dallas requested to assignChief Examiner Sheehan and Mr. Betts to Boardfor final work on, actual expenses to be paidby Board

Reports of, question of policy raised in connection withwithdrawal of report of Integrity Trust Co. byFRAgent

Relationship of Division of Examinations with FRBank ex-aminations functions, statement of Mr. Millerthat all of FRBank function should be central-ized under Board, Mr. Paulger authorized tostudy

FRAgents to be advised to submit copies of all reportsto Board and to refer any serious condition toBoard for determination of action

Memo from Division of Examinations re letter preparedin accordance with action of Board on Sanuary4 re sending to Board as soon as available,recommending that it not be sent

Letter to all FRAgents requesting forwarding reportsas soon as available, and in case of seriouscondition to refer to Board the question ofaction

Request of Rural Electrification Administration for reportsTransfer of functions at FRBanks to operating sideUnion and New Haven Trust Co., New Haven, Conn., deposit of

trust funds with nonmember bank in excess of10% of capital and surplus, reply to Mr. Curtissthat membership condition and Section 19 ofFRAct are not applicable

Union Trust Company of Boston, Mass., report reveals funds ofagency, safekeeping and corporate accounts re-ceived in trust department used in commercialdepartment without deposit of securities, noobjection if no fiduciary relationship is in-volved

10/ 8 1854

5/27 1100

5/ 6

1/22

3/16

979

184

06

11/23 2110

1/ 4

1/4

1/ 4

4/24 870

4/2411/ 66/ 3

8'702ois1126

6/11 1166

1/17 156


119

Pages

EXEmanations: (Continued)Union Trust Company of Springfield, Mass.:

Switching of participations in single real estate loans

between trusts, and has agency and trust cash

in banking department 6/26 1257

Trust department, ruling secured from F.D.I.C. that deposits

of trust funds in nonmember, uninsured banks

are not covered by insurance 8/18 1536

Wayne State Bank, Wayne, Mich., report reveals purchase of stock

of Wayne County Federal Savings and Loan Associa-

tion, in violation both of membership condition

and Sec. 9 of FRAct 4/ 3 737

Woodlawn Trust Co., Aliquippa, Pa., report of, criticisms, re-

fusal to increase capital 1/30 2414aminers:

Board of Governors:Boysen, John T., Assistant:

Headquarters changed from Chicago to Omaha 7/22 1416


Brien, E. L., salary increased 12/50 2323

Brown, S. L., salary increased and designation changed from

Assistant Examiner 12/30 2324

Brown, W. G., salary increased and designation changed from

Assistant Examiner 12/30 2324

Buck, Earl D., resignation of, three months' salary author-

ized as dismissal wage 12/19 2244

Bush, Floyd W., Assistant, resignation of, dismissal wage

of three months' salary authorized 12/19 2244

Cagle, C. E., Assistant Chief:

Examination of Banco de Puerto Rico and Banco Popular

de Puerto Rico, to participate in, authorized

to travel by plane and to be reimbursed for

actual expenses 1/ 8 76

Macklin v Federal Intermediate Credit Bank of Columbia,

reply to Mr. Evans, Farm Credit Administration

that he will be available for trial, compensa-

tion and expenses to be paid 1/17 160


Calloway, Roger M., resignation of, three months salary

granted as dismissal wage 12/19 2244

Chamberlin, R. B., salary increased 12/30 2323

Conkling, G. M.:Salary increased 12/30 2323

Social Security Board, desire to employ, Board not to

meet salary, referred to Mr. Paulger 7/31 1457

Daniels, Mortimer B., Assistant, transfer to Division of

Bank Operations and designation as Technical

Assistant, no change in salary 2/27 442

Drinnen, F. J.:Accompaniment of Mr. Broderick on latter's visits to

IRBanks in connection with organization surveys,

no objection 3/25 663


120

Examiners: (Continued)Board of Governors: (Continued)

Drinnen, Frank J., Chief of Field Force: (Continued)Appointment as First Vice President of ERBank of

Page

Philadelphia 5/12 999(See also FRBank of Philadelphia, Staff)

Resignation 5/20 1055English, J. F., Assistant, salary increased 12/30 2324Folsom, George H., Assistant:

Senate Committee on Interstate Commerce, detail to, ex-tended for further six months in connection withrailroad investigation, at request of SenatorWheeler 3/ 4 497

Reply to Mr. Lowenthal that Board cannot extend loanof services as requested, but will request thathe hold himself available for consultation withsuccessor 9/18 175°

Part time arrangement for services to, authorizedin view of urgent request of Mr. Lowenthal forextension of services to 10/ 6 1831-4

Mr. Lowenthal agrees to arrangement, Mr. Folsom willnot participate in any way in hearings conductedby Committee 10/ 6 1847

Salary increased and designation changed from AssistantExaminer to Examiner 12/30 2325

Franzoni, J. C., Assistant, salary increased 12/30 2324Goodman, G. M., salary increased 12/30 2325Hopkins, Julia B., Assistant, salary increased 12/30 2324Hostrup, C. C., salary increased 12/30 2325Howard, T. P., Assistant, salary increased 12/30 2324Jones, Laurence H.:

Leave granted with pay for one day, six hours, in addi-tion to regular annual leave 9/ 2 1635

Salary increased 12/30 2325Koppang, H. 0., salary increased 12/30 2325Leonard, R. F., AssistPnt Chief, salary increased 12/30 2325Malone, C. T.:

Senate Committee on Interstate Commerce InvestigatingRailroads, reply to Mr. Lowenthal refusing toextend period of loan of services of, to 6/27 1262

Salary increased 12/30 2325McClelland, W. J., salary increased 12/30 2325Millard, E. R., salary increased 12/30 2324Murff, Gordon R., Assistant:

Leave with pay granted February 6 to September 1, andper diem allowance granted February 6 to March3 on account of illness 3/12 561

Further leave of absence granted with full pay onaccount of illness 8/25 1578

Salary increased and designation changed from AssistantExaminer 12/30 2324

Nelson, F. A., salary increased 12/30 2325


omliners: (Continued)Board of Governors: (Continued)

121

Pages

Newman, H. J., Assistant, salary increased 12/30 2324

O'Donnell, Thomas B., Assistant:Leave of absence on account of illness, granted addi-

tional 30 days 6/13 1176

Two additional weeks granted with pay 7/16 1373


Porter, J. H., designation changed from FRExaminer toTechnical Assistant in Div. of Bank Operations 12/30 2325

Radford, J.R., Jr., salary increased 12/30 2323

Snow, R.T., Assistant, Salary increased 12/30 2325

Strahorn, C. A., Assistant, salary increased 12/30 2324

Troup, F. W., Assistant, salary increased 12/30 2324

Turnbull, J. A., Assistant, salary increased 12/30 2324

Winkler, P. J., salary approved • 12/30 2323

Federal Deposit Insurance Corporation:Loan to, by bank under Title II of Federal Housing Act, re-

ply to FRBank of Cleveland that Board has been

advised that Department of Justice has not ruled

on applicability of Sec. 22(a) of FRAct 9/29 1799

FRBank of Atlanta:Sheffer, George W., Jr., appointment as assistant, approved 1/25 212

FRBank of Boston:McRae, W. D., appointment and salary as Chief Examiner ap-

proved upon transfer of examination department

to FRBank 12/30 2337

Paddock, W. W., Vice President, designation approved 12/30 2337

FRBank of Chicago:Diercks, W. R., salary increased for period during which he

serves as acting chief examiner 5/16 1029

Ford, Frank A., appointment and salary as assistant, ap-

proved 8/28 1606

Johnson, W. H. A., Trust, salary reduced 9/ 4 1653

Pitman, Carol, Chief Examiner, leave of absence for six

months to assist F.D.I.C. 4/30 937

Wilson, A. L., salary reduced 9/ 4 1653

Young, C. S., Vice President, appointment as examiner ap-

proved 9/ 3 1638

FRBank of Cleveland:Cavanaugh, John William, appointment as assistant, approved 12/30 2335

Fletcher, W. H., Vice President, appointment as dxaminerapproved 9/ 3 1637

FRBank of Dallas:Betts, I. F.:

Assignment to Board for final work on State member bank

examination report form requested, Board to pay

actual expenses 11/23 2111

Salary adjustment, request that Board be advised when

determined 12/ 2 2154

Childers, C. L., appointment as assistant approved 12/ 2 2153


122

Examiners: (Continued)FRBank of Dallas: (Continued)

Evans, W. J., Vice President in charge of examinations, ap-

Pageo

pointment as, approved 8/14 1528Hallman, George R., salary adjustment, request that Board be

advised when determined 12/ 2 2154

Neilan, E. P., leave in excess of annual, no objection to.granting to attend Graduate School of Banking 4/16 a6

Services of two examiners to be dispensed with and assistantexaminers to be transferred 8/19 1551

FRBank of Kansas City:Branch employees, use of certain, to lend clerical assistance

to examiners approved 5/21 1062Employees assigned to lend clerical assistance to examiners

approved, with understanding that none will beassigned permanently to examining work withoutapproval of Board 2/19 378

McAdams, A. M., Vice President, appointment as examiner wasapproved previously, reply to FRAgent Thomas 9/ 3 1639

Woolley, D. W., appointment, temporary, as Acting AssistantFRAgent 5/13 1007

FRBank of Minneapolis:

Swanson, E. At., Vice President, appointment as exRminer ap-proved 9/ 3 1638

FRBank of New York:Betts, I. F., temporary appointment 4/25 889Campbell, Frederick W., appointment as assistant 6/25 1245Clifford, Joseph W., appointment as 2/28 454Dillistin, R. M., Assistant Vice President, designated as 9/14 1699Elmer, Parke R., appointment as 2/28 454Gidney, R. M., Vice President, designated as 9/14 1699Neilan, E. P., temporary appointment 4/25 889

Appointment on permanent basis approved 9/30 1807Paul, William L., appointment as assistant 6/25 1245Pond, Charles N., appointment as assistant 6/25 1245Sheehan, W. F., Chief Examiner:

Assignment to Board for final work on State member bankexamination form requested, Board to pay actualexpenses 11/23 2111

Salary approved for 1936 1/31 277Sullivan, Peter F., appointment as assistant 6/25 1245Walton, A. Chester, appointment as, approved with understand-

ing that arrangements will be made to liquidateindebtedness to member bank 2/28 454


Hill, E. C., Vice President, appointment as Examiner approved 9/ 8 1657Special assistants to, Board approves designation of certain

clerical employees as 3/ 3 488Temporary, and temporary assistant examiners, no objection

to retention for balance of year, survey to bemade later to determine need for transfers topermanent position 3/ 3 487


4andners: (Continued)FRBank of Richmond:

Gordon, H. N., continuance as Chief Examiner approved when

123

Pages

Examination Department is shifted to bank 8/ 6 1493

FRBank of St. Louis:Reitz, Ralph Henry, appointment as assistant 4/18 826

Wood, I. S., Vice President, designation as, in connection

with plan to place in charge of examinations 9/14 1705

FRBank of San Francisco:Armstrong, L. B.:

Appointment as temporary assistant for trust department

examination 5/18 1040

Appointment as examiner approved, assumed that there are

no pertinent facts of which Board is not in-

formed 12/19 2245

Muir, George C., appointment as assistant examiner with un-

derstanding that Board's approval will be se-

cured before transferring permanently to exam-

ining work 2/7 312

Reapproval, not necessary to submit names for 12/19 2245

Simmons, Thomas M., appointment as assistant examiner with

understanding that Board's approval will be

secured before transferring permanently to ex-

amining work 2/7 312

Shortt, W. D., Assistant:Appointment as Assistant or Alternate Assistant IRAgent

would be approved by Board in connection with

reorganization plan 8/29 1617

Bond approved as Assistant FRAgent and memo of Mr.

Wingfield re possible conflict with FRAct be-

cause of designation as assistant examiner 9/21 1737

Indebtedness to member bank, was in existence prior to

employment, not to be reported to Attorney

General, but should be eliminated 10/19 1906

Appointment approved 12/19 2245

Sonne, H. A,, Chief, bond executed as Assistant FRAgent

whereas he was appointed Alternate Assistant

FRAgent, re-execution requested, and memo of Mr.

Wingfield re possible conflict with FRAct, not

clear what payroll he is on 9/21 1737

Trust examination work, Board concurs in need of additional

examiners and assistant examiners in connection

with 5/18 .1040Los Angeles Branch:

Designation of four employees as assistant examiners 5/13 1008

Swengel, H. D., appointment as Acting Assistant FRAgent was

previously approved, no further action necessary 8/29 1618

National bank:Chorpening, I. I., present at meeting of Board in connec-

tion with hearing of Mr. Johnson 11/10 2029

Present at hearing of Mr. Johnson re removal as officer

of Point Pleasant National Bank 12/29 2297


124 Pagel

Examiners: (Continued)National bank: (Continued)

Loan to, by State member bank, reply to Tompkins CountyTrust Co., Ithaca, N. Y., re statutes dealingwith

Regulations of Board, D, H, I, 0, P, and q, to be furnishedto

Starr, L. 0., present at Board meeting in connection withhearing of Mr. Johnson

Present at hearing of Mr. Johnson re removal as officerof Point Pleasant National Bank

Exchanges: (See Agencies for depositors)

Executive officers:Accommodation indorsement by, ruling re, to be published in

FREulletin

Appointment as, of person indebted to bank, ruling re, to bepublished in FRBulletin

of Mr. Raike by National Bank of Logan, W. Va. whileindebted to bank, reply to Mr. Await that itwould not be violation of Sec. 22(g) of FRAct

violation of Sec. 22(g) involved in loan by Bankof Romney, W. Va., to, increasing indebtednessto bank beyond statutory limitation

cashiers whose duties are those of tellers and vicepresident (inactive) and director, reply toMerchants National Bank, Montgomery, W. Va.,re applicability of Regulation 0

reply to, that loan made to him by bank whichlater merged with his own bank, insofar as ap-plicability of Sec. 22(g) is involved, is fordetermination of Department of Justice

William, Assistant Cashier, Merchants National Bank,Montgomery, W. Va., additional information notsufficient to determine status

loans, reply to First National Bank of BradleyBeach, N. J. that there is no distinction asto type of loan in exception as to maximumamount officer may borrow

receives salary, and directs policies of nationalbank but has no official title, reply to Comp-troller that he canes within definition of ex-ecutive officer in Regulation u and would do soeven if he received no salary

M., loan made to, by First National Bank of CliftonForge, Va., reply to Mr. Fry as to whether itconstituted violation of Sec. 22(g) of FRAct,copy to Comptroller

Endorsement "without recourse" by bank president of paper ofcompany solely owned by such president, for dis-count with his bank, reply to Comptroller thatRegulation 0 is not applicable to

Appointment

Arnold, G. W.,

Assistant

Bailey, H. C.,

Buchanan,

Collateral

Director who

Emmett, J.

8/24 1573

1/ 6 60

11/10 2028

12/29 2298

3/26 680

1/25 216

1/11 115

9/25 1761

lo/ 1 1814

lo/ 1 1815

10/22 195°

5/16 1035

3/27 695

1/15 14°

6/17 118.9


Executive officers: (Continued)

Exemption of 0500, reply to Mr. O'Connor that it is applicable

to partnership in which individual executive

officer owns majority interest

Extension of loan made to President Cohn by First National Bank

in Bedford, Pa. subsequent to Banking Act of

1933 and prior to Banking Act of 1935, reply to

Mr. Austin re, in connection with Department

of Justice determining if he was an executive

officer at the time

Extension of loan made to executive officer prior to June 16,

1933 where collateral is sufficient to liquidate

loan, reply to Comptroller of the Currency

First State Bank, Dodsonville, Texas, indebtedness of President

Nisbett to trust company, latter is not "bank"

and report to directors is not necessary

Granting of overdrafts or carrying cash items for, ruling re, to

be published in FRBulletin

Inactive chairman of board, reply to First National Bank,

Colorado Springs, Colo, that resolution or

amendment to bylaws would not affect status as

Inactive officers:American National Bank of Kalamazoo, Mich., reply to Mr.

Stevens on service of director as vice president

who is inactive, should be considered executive

officer under .Regulation 0

First National Bank of Bradley Beach, N. J., reply that they

came within definition in Regulation 0

Protest from Mr. Stevenson of Del Rio National Bank, Del

Rio, Texas against inclusion in definition of,

in Regulation 0, Mr. Morrison not in agreement

with, matter referred to him and reply approved

Reply to Mr. Schackelford's letter to Senator Glass re in-

clusion of, in definition of executive officers

in Regulation 0

Report of Mr. Paulger on discussion at conference of ex-

aminersNational Bank, Barker, N. Y., reply to Mr. Smith

that Board cannot make exception in case of

president and cashier who are also directors

of vice president of national bank, reply to Mr.

Wood that it constitutes violation Sec. 22(g),

question of prosecution subject to discretion

of Mr. McQuaid to Mercantile-Commerce Bank and

Trust Co. in its capacity as trustee, Board

rules it should be reported

note for accommodation of third party, reply to

Comptroller that it constitutes liability subject

to provisions of Regulation 0

note of partnership by officer in which he has

less than majority interest, reply to Mr. O'Con-

nor re applicability of Sec. 22(g) and Regula-

tion 0

Somerset

Indebtedness

Indebtedness

Indorsement of

Indorsement of

125

Pages

7 3 1302

4/2 727

4/21 837

11/ 6 2013

1/25 216

1/31 266

1/6 58

4/28 916

3/ 4 498-9

3/28 700

10/30 1976

10/14 1882

1/13 120

7/16 1374

3/3 490

8/24 1575


126

Executive officers: (Continued)Indorsement "without recourse" by bank president of paper of

company solely owned by such president, for dis-count with his bank, reply to Comptroller thatRegulation 0 is not applicable to

Interpretation of term, testimony of Senators Couzens, Gore andGlass cited

Jaeger, A. E., Coffman-Dobson Bank and Trust Co., reply to Mr.Sargent that there is no need to report in-debtedness incurred prior to August 23, 1935,plan to refinance loan

Judy, H. D., Assistant Cashier, Merchants National Bank, Mont-gomery, W. Va., additional information not suf-ficient to determine status

Lamson, Arthur C., reply re applicability of Regulation 0 toservice as inactive executive officer

Liability of executive officer on mortgage loan insured underTitle II of National Housing Act, reply to Mr.O'Connor that it is not exempt from provisionsof Sec. 22(g) of FRAct

Loan to inactive chairman of Phillips National Bank of Helena,Ark. made prior to amendment of Sec. 22(g) byBanking Act of 1935, question for determinationby Department of Justice, letter to Mr. Ross reand one to Mr. Wood

7/7

pages

6/17 1189 I

1319

5/21 1066

10/22 195°

3/18 615

Loans:Corporation in which executive officer of member bank has

substantial interest, reply to Mr. Wood that itis not violation of Subsecs. (d) or (g) of Sec.22 of FRAct

Corporation in which officer is interested, ruling re, tobe published in RBulletin

Heretofore made to, provisions of law which are applicable,to be published in FRBulletin

Individual when not executive officer of bank, question ofextension or renewal when such person has sincebecome an executive officer, reply to Mr. O'Con-nor

National bank to corporation in which executive officer isinterested, reply to First National Bank ofGatesville, Texas that Regulation 0 does notprohibit

Partnership in which executive officers have individuallyor together less than a majority interest, replyto Mr. O'Connor that Sec. 22(g) is not applicableto

Partnerships under Sec. 22(g) of FRAct, ruling re, to bepublished in FRBulletin

Renewal to person who was not officer at time of making loanacQuaid, Craig, indebtedness to bank is intended to be settled

by September 10, permission granted to defer re-port to his board of directors, but settlementdoes not relieve of reporting

3/2a 622'

151-21/16

2/19 385

3/26

2/26 406

3/20

680

621

5/6 911

4/4

3/26 66°

4/25

8/22 1569


127

Pages

clitive officers: (Continued)McCarthy, James F., reply to complaint of First National Bank of

Wallace, Idaho, that he would not accept honorary

vice presidency because of requirements of Sec.

22(g) of FRAct 12/22

Members of boards of managers of branches and members of finance

committees of branches, reply to Mr. Curtiss

re inquiry of Industrial Trust Co., Providence,

2258

R. I., that they are not 5/ 4 961

Merchants National Bank, Montgomery, W. Va., additional informa-

tion furnished not sufficient to determine status

of Assistant Cashiers Judy and Buchanan 10/22 1930

Morris Plan banks, question raised by Hart, Gainer & Carr as to

whether indebtedness to, must be reported to

Board of Directors under Regulation 0 2/20 400

Note given to commercial house which later discounts with bank,

reply to Union National Bank, New Brighton, Pa.,

that such officer should report indebtedness to

his board of directors 7/21 1414

Overdraft not in excess of amount of 30 days' advance salary,

reply to Mr. Peyton that carrying would consti-

tute violation of Sec. 22(g) of FRAct and Regu-

lation 0 1/15 141

Partnership, in which two men have equal interest, reply to Mr.

Wood re case of Sherman P. Houston of Wood &

Huston Bank, that Regulation 0 does not pro-

hibit extension of credit to 1/31 265

Purchase by officer of Citizens National Bank, Wellsville, N.Y.,

of property on which bank had loaned money, and

assumption of mortgage, applicability of Sec.

22(g) depends upon whether transaction was for

protection of bank 9/ 3 1644

Renewal or extension of loans made prior to June 16, 1933,

ruling re, to be published in FRBulletin 5/26 1088

Reports of indebtedness, reply to Mr. Wood re Regulation 0 thatthey should be made to Board of Directors and

that footnote 2 of Sec. 5 relates to renewals

or extensions of credit which has been reported 2/6 307

Advice to FRAgents to circularize member banks re ruling 2/19 385

Indebtedness to other banks, report to boards of directors,

ruling on, to be published in FRBulletin 2/26 436

Indebtedness made subsequent to Banking Act of 1935 and

prior to effective date of Regulation 0, re-

ports required by regulation need not be remade

if in substantial compliance with regulation 2/28 458

Reply to First National Bank of Philadelphia that Regulation

0 should be construed as requiring that they be

made available to board of directors 3/ 5 513

Indebtedness to other banks, ruling on to be published in

FRBulletin 3/26 680

Indebtedness to Morris plan companies, ruling to be pub-

lished in FRBulletin 3/26 680


128 pages

Executive officers: (Continued)Reports of indebtedness: (Continued)

Indebtedness evidenced by note discounted by another bank,ruling to be published in FRBulletin 8/20 156°

Resignation of inactive officer, I. S. Stefanez, in order tocorrect situation arising from loans extended, considered closed 4/ 9 784

Salary advances, reply to Phillips National Bank of Helena, Ark.,that although Regulation 0 prohibits in excessof 30 days, Board will not object to advance formonth where it contains 31 days 1/16 1514

Schalk, Oscar, Comptroller, Mercantile-Commerce Bank and TrustCo., St. Louis, Mo., draft of reply and opinionof Mr. Vest that he is executive officer, discus-sion of, voted not to be 10/30

Advice that Board has ruled not to be executive officer, inaccordance with action of October 30 11/ 5

Secretary of board of directors of Citizens National Bank andTrust Company of Fulton, N. Y. who is alsodirector, reply that he is not executive officerunder Regulation 0 1/ 4

Reply to Citizens National Bank, Wellsville, N. Y. thatsecretary of board of directors should not beconsidered as executive officer as long as heperforms only usual functions of

Ruling that secretary of board of directors of member bankis not an executive officer to be published inITBulletin 3/26

Shove, E. P., question raised as to applicability of definitionin Regulation 0 as his duties as chairman con-sist only in presiding at directors' meetings,Board not willing to alter interpretation,letter to Haney and Jackson 7/ 7 1316

Stuart, Charles E., inactive Vice President of Peoples Bank ofMontross, Virginia, Incorporated, increase inindebtedness to bank, letter to Mr. Fry re ap-plicability of Sec. 22(g) and Regulation 0

Trust funds, loans to officers from funds of his own bank andreports re loans from trust funds from otherbanks, reply to Mr. Austin that Regulation 0is applicable to 3/20 618

1975

2001

3/5 514

3/20 620

Executive orders:Excusing employees from duty on occasion of G.A.R. parade,

Board's employees excused until 1 p.m. Sept. 23 9/22 1746Ransom, Ronald, designating Vice Chairman of Board for four

years 8/ 7 149/Expenditures of Board: (See Board of Governors)Export Import Bank:

Cuban silver pesos, to be minted at Philadelphia Mint, no objec-tion to transaction for delivery and paymentthrough Havana Agency 8/18 1538


F. A. Berry and W. F. Norval', Jr., reply re interpretation of

Regulation U_as expressed to certain Nashville

banks-Lai Credit Administration:Cagle, C. E., Assistant Chief of Division of Examinations, reply

to Ma.. Evans that he will be available in con-

nection with case of Macklin v. Federal Inter-

mediate Credit Bank of Columbia, arrangement for

compensation and expenses

Condition reports of State member banks, reply to Governor Myers

that Board will request information re farm

loans and real estate owned in next call, and

consideration will be given to items in connec-

tion with proposed standard form of report

Items for information of, to be omitted from fall call

Federal credit unions, opinion of, that they may not be classi-

fied as banksFiscal agency functions in connection with joint stock land

banks performed by Louisville Branch at request

of, Board of opinion that Secretary of Trea-

sury should make requestCopy of letter re to be sent to all FRBanks

Myers, W. I., Governor:Federal Advisory Council, to be invited to meet with, by

Mr. Davis if desirable, to discuss competition

of Government lending agencies in western fern

StatesPresent at meeting of Board with Federal Advisory Council,

discussion of competition of Government lending

agencies with banks, particularly production

credit associations, question of editing of ad-

vertising of"Father Coughlin v. FRSystem", reply to FRBank of Minneapolis that

Board's supply is exhausted but additional copies

may be obtained from Editorial Research ReportsFedeliei administrative court recommended by Committee on Adminis-

trative Law of American Bar Association, objec-

tions, Mr. Wyatt authorized to attend annual

meeting of association and prepare memo re

status and effect of proposal

Report of Mr. Wyatt re attendance at meeting of American Bar

Association, and statement that he is preparing

MUDD re status of, in accordance with action of

August 4

4deral Advisory Council:Banking legislation, no likelihood of enactment of any at this

session of Congress, two topics suggested for

meeting not to be discussed

Business conditions, statements by members re, in their dis-

tricts

129

Pages

6/25 1250

1/17 160

5/19 1053

8/ 1 1471

1/23 189

5/13 10155/13 1016

10/30 1976

11/17 2076-8

11/23 2113

8/ 4 1474-7

9/ 1 1628

5/19 1046

5/19 1049


130

Federal Advisory Council: (Continued)Business conditions: (Continued)

Reports of individual members re, conditions better and in

PageS

some sections, a "mild boom" 9/10 1670

Compensation and allowances for members, letter to FRBanks re-questing submission for approval and report ofamount to cover expenses of Secretary 2/11 332

Competition of Government lending agencies in farming sectionsof several western States, desire to discuss atmeeting, Mr. Davis to be prepared to discuss andto arrange to invite Mr. Myers to attend if de-sirable 10/30 1976

Dividend payments by national banks, consideration given byBoard to S. 4514 outlined, belief that bill willnot pass 5/19 1048

Excess reserves of member banks, recommendation that action betaken to reduce through increasing reserve re-quirements, renewal of previous recomiendation 2/12 339

Question of publicity to be given to 2/12 341Chairman Eccles advises councilmen to read letter of S. P.

Gilbert in New York Times on December 18 en-titled "Member Bank Reserves" as expressingviews he is in agreement with 2/12 342

Reply to be prepared and submitted to Board 2/14- 352Reply prepared, but Board desirous of more time to consider,

before publication, Mr. Lichtenstein to be ad-vised 2/18 372

Board not to release recoiumendation but no objection toCouncil releasing 2/26 432

Advice to Council re release 2/28 458Expenses of, authorization of amounts to be paid by each FRBank

for Secretary, and fees and allowances, to beapproved until further notice 3/11 557

Federal Open Market Committee, opposition of Board to outsiderepresentation of /RBanks stated with actionproposed, Governor Harrison reported SenatorGlass strongly opposed 2/11 326

Fees and allowances of members, authorization for payment byeach FRBank, approved until further notice 3/11 50

Inflationary trend in credit and prices, report re feeling on,and request as to possible action to check, dis-cussion of, statement of Chairman Eccles andstatement of Mr. Goldenweiser 11/17 2076'6

Investment securities regulation of Comptroller, statement byPresident Smith that it was not practical inoperation, rulings re, to be published, sugges-ted that Council study and submit report re 5/19 1047

Lichtenstein, Walter, Secretary, member of National Bureau ofEconomic Research exploratory committee 9/18 1720

Meetings:Feb. 11 and 12, to be held, advice to Mr. Lichtenstein that

present Board has no topics to suggest 1/20 176


Federal Advisory Council: (Continued)Meetings: (Continued)

February 11, further meeting to be held in afternoon

Remainder of 1936 fixed for third Tuesday in May and Novem-

ber and fourth Tuesday in September

May 19Fall, dates changed from September 21-22 to September 9-10

because of conflict with annual convention of

2/11

2/125/19

131

Pages

325

3421046

American Bankers Association 5/19 1048

Discussions, statement of Mr. Ransom that he felt less

formality would be helpful 9/10 1667

September 10 9/10 1667-9

November 17 11/17 2069

"Member Bank Reserves", letter written by S. Parker Gilbert to

New York Times under date of December 18, 1935,

Chairman Eccles advises Councilmen that it ex-

presses certain views which he is in agreement

withMembers:

2/12 342

Arnold, M. A., reappointed by YRBank of San Francisco and

compensation and allowance approved 1/17 155

Braun, Arthur E., advice of reappointment by FRBank of

Cleveland for 1936 1/27 218

Brown, Edward E., advice of appointment by ifEBank of Chi-

cago for 1936 1/27 218

Frost, J. H., advice of reappointment by .FRBank of Dallas

for 1936 1/27 219

Gohen, Charles M., advice of reappointment by FRBank of

Richmond for 1936 1/27 218

Kemper, W. T., advice of reappointment by FRBank of Kansas

City for 1936 1/27 219

Loeb, Howard A., advice of reappointment by FRBank of Phila-

delphia for 1936 1/27 218

McLuces, W. S., advice of appointment by FRBank of Chicago

as alternate for 1936 1/27 218

Perkins, Janes H., advice of reappointment by FRBank of New

York for 1936 1/27 218

Rieman, Charles E., advice of reappointment by FRBank of

Richmond as alternate for 1936 1/27 218

Smith, Walter W., reappointed by FRBank of St. Louis for

1936, allowance approved 1/ 9 87

Advice of reappointment by FRBank of St. Louis for 1936 1/27 219

Steele, Thames M., advice of reappointment by FRBank of

Boston for 1936 1/27 218

Wold, Theodore, advice of reappointment by FRBank of Min-

neapolis for 1936 1/27 219

Woodson, W. W., advice of reappointment by FRBank of Dallas

as alternate for 1936 1/27 219

/bung, H. Lane, advice of reappointment by FRBank of Atlanta

for 1936 1/27 218


132 Pages

Federal Advisory Council: (Continued)Officers of FRBanks serving as members or alternates, question

raised by appointment of Mr. Thomas as alternatefor FRBank of Kansas City, reply to be prepared 12/ 1 2147

Letter presented and approved 12/ 7 2185Regulation F, comments re revision of, feeling of difficulty

in getting directors to serve on trust investmentcommittees and reference to questions arisingfrom prohibition on investment of trust funds ininterests of directors, employees, officers,etc. 5/19 /049

Regulation"Interest", discussion of definition of, and of suspension

of, opinion asked if there would be likelihoodof withdrawals from par list if placed in

9ef-

fect 9/10110 1669"Savings deposits", discussion of definition, reasons, dif-

ficulties and basis for 1669Sec. 1(e), recommendation that it be continued in present

form, but if changed that it be made more liberal,discussion of, question as to labor unions, man-ufacturers' associations, etc. 11/17 2089

Sec. l(f), suspension of, because of nonconforming Regula-tion of F.D.S.C., outlined for, Council wouldlike to see prohibition on absorption of ex-change and collection applied to all banks 2/11 327

Status of Sec. l(f) which was suspended because of dif-ference with F.D.I.C. interest regulation 5/19 1047

Recommendation that Sec. l(f) be put into effect imme-diately, answers to questions re effect of, par-ticularly as to effect on par clearing banks,discussion of 11/17

Regulation U, reports not received from all FRBanks and Board2071 'A

not prepared to discuss 2/11 326Statement that Council still believes issuance unnecessary

and feeling that simpler regulation would be moreeffective 2/11 327

Recaumendation reiterating opinion that issuance is unneces-sary 2/12 341

Question of publicity to be given to 2/12 341Reply to be prepared and submitted to Board 2/14 352Reply prepared, but Board desirous of more time to consider,

Mr. Lichtenstein to be advised 2/18 372Board not to release recommendation, but no objection to

Council releasing 2/26 432Advice to Council 2/28 456

Regulations of Board, letter to Mr. Lichtenstein confirming pro-posed procedure for submitting tentative draftsto Council for review and comments 9/19 1733

Submission to Council of drafts for cauments, agreed thatcourse would be desirable, procedure for 9/10 1666


Pede.ral Advisory Council: (Continued)Reserve requirements of member banks, recommendation that action

be taken to increase, to reduce excess reserves,

133

Pages

renewal of previous recommendation 2/12 339

Question of publicity to be given to 2/12 341

Chairman Eccles advises Councilmen to read letter of S.P.

Gilbert in New York Times on December 18 en-

titled "Member Bank Reserves" as expressing

views he is in agreement with 2/12 342

Reply to be prepared and submitted to Board 2/14 352

Reply prepared, but Board desirous of more time to consider,

before publication, Mr. Lichtenstein to be ad-

vised 2/18 372

Board not to release recommendation but no objection to

Council releasing 2/26 432

Advice to Council re release 2/28 458

Request of Mr. McKee for opinion as to any results accom-

plished by, opinions of Messrs. Frost and Per-

kins 11/17 2079

"Stabilization Still Opposed by England", article in New York

Times Feb. 9, attention called to, by Chairman

Eccles stating it expresses certain views he is

in agreement with 2/12 342

Thomas, J. J., designated alternate by RBank of Kansas City,

memo with respect to position taken by Board that

officers should not serve, reply to be prepared 12/ 1 2147

Letter presented and approved 12/ 7 2185

Topics for discussion:Meeting of May 18 and 19, Board has no topics to suggest 4/16 815

Meeting of September 10, hoard has no topics to suggest,

reply to Mr. Lichtenstein 8/14 1529

Request for, to be asked for advice re definitions of

"savings deposits" and "interest" contained in

Regulation Q and question of withdrawal from

par list 10/20 1926

Letter and memoranda sent to Mr. Lichtenstein in ac-

cordance with 10/27 1948

Council desires to discuss competition of government

lending agencies in farming sections

ederal agencies, supervision of banks, statement of Chairman Ec-

cles that one of important tasks of 1RSystem

was unification ofderal Communications Commission:

10/30

11/18

1976

2097

Tariffs for private line service, request that Board be fur-

nished with future notifications re changes inPeri-eral credit unions:

12/11 2211-3

Banks, opinion of Farm Credit Administration that unions may not

be classified as 1/23 189

Blue Ridge Federal Credit Union, Blue Ridge, Texas, cannot be

classified as a bank and may not be placed on

par list 1/23 189

Deposits, classification of 3/21 628


134 pages

Federal Deposit Insurance Corporation:

Bank suspensions study, Mr. 6rnead authorized to negotiate withcorporation for use of nonmember bank condi-tion reports in connection with

Certification of banks:

Mount Clemens Savings Bank, Mount Clemens, Mich., certi-fied to corporation as member of FRSystem

State Bank of Viroqua, Zis., certified to corporation asmember of FRSystem

Columbus Trust Co., Newark, N. J., reply to Mr. Crowley thatthere is no objection to absorption of CentralBank and Trust Co., loan to be made to latterupon assets not taken by consolidated bank

Conditions imposed by, letter to RAgents re desirability ofBoard and F.D.I.C. supplementing each othersefforts to build up sound banking system

Deposit insurance assessment statements:

Bank of Waldron, Ark., failure to file, reported by, letterto Mr. Wood to endeavor to secure compliancewith requirement, and advice to corporation ofaction

Traders Trust and Banking Co., Spencer, w. Va., failure tofile, reported by FDIC, letter to Mr. Fry toendeavor to secure compliance with requirement,and advice to FDIC of action

Deposits of trust funds made by member bank in uninsured non-member bank, ruling that insurance does notcover

6/17 1191

9/ 1 1631

7/21 1414

4/25 890

7/10 1336

1/13 118-9

8/18 1556rxaminations:

Bank of Davison, Ga., permission granted to examine, in con-nection with withdrawal from FRSystem 12/31 235fri

Farmers State Bank of Winner, S. Dak., permission grantedto examine, in connection with withdrawal from1Rsystem 8/13 1522

Farmers Loan and Trust Co., Tipton, Ind., Division of Examina-tions authorized to confer informally with cor-poration re condition of 4/ 7 766

Funds held as receiver may be deposited with FRBanks, reply toMr. Leach 8/ 4 148T

Reply to President Day re 8/26 1591

Hudson Trust Co., Union City, N. J., information on, action onmembership application postponed 12/11 2206

"Insured bank", report by Mr. Ransom that he had abandoned hopeof influencing F.D.I.C. to change term, nofurther action to be taken 7/15 136

Interest definition: (See Regulations, Board, 0

Loan to examiner under provisions of Federal Housing, Act, pos-sible violation of law 9/29 1799

"Wernher", use of term in referring to nonmember insured banks,draft of memo re, statement of Mr. O'Connor thatsolution could be reached, Chairman authorized totake up with 1/30 2'39


135

Pages

l'ederal Deposit Insurance Corporation: (Condition)

"Member", letter on use of, in referring to insured nonmember

banks, and possibility of resulting in confu-

sion with members of 1-RSystem 4/17 824

Membership in RSystem, report of Mr. McKee that he had discuss-

ed with Mr. Crowley the arrangement whereby the

corporation and the Board will consult with

each other in advance of action on applications

for insurance or membership and that he had

agreed 11/10 2028

Permanent Committee on Standardization of Bank Report Forms,

Messrs. McKee and Davis to discuss with Mr.

Crowley the formation of a committee by Board,

Comptroller and F.L.I.C. to consider uniform

condition report form 11/12 2044-6

Report of Mr. Davis re Mr. Crowley's position, indication

that failure of Board to participate would be

interpreted as unwillingness of Board to coop-

erate with F.D.I.C., Board not willing for Mr.

mead to attend meeting for reasons of estab-

lished policy 11/13 2054-5

Pitman, Carol, Chief Examiner of FRBank of Chicago, granted

leave of absence by 1RBank for six months to

assist Corporation 4/30 937

Procedure of obtaining view of Board with respect to insurance

of deposits of new bank applying for membership

in RSystem, not followed in connection with

American Bank and Trust Co., Miami, Fla., Mr.

McKee to tae up with Mr. Crowley 10/20 1919

Regulation U, printed copies sent to, expression of appreciation

for suggestions and of offer to notify insured

banks of provisions, conference may be desirable

between staff and Board's staff on carrying out

purposes of 4/ 2 727

Reports to be requested from insured banks to serve as a basis

for an estimate of insured deposits, Board will

cooperate 5/ 2 956

Letter to FRBanks re 5/ 4 963

Salaries of umploYees of 1RBanks, applicability of Sec. 5, U.S.C. 6/25 1252

savings accounts:Cemetery lots, reply of Board that funds of organizations

not operated for profit may be classified as,

and funds given to city or town for perpetual

care only if given in trust 6/22 1206-7

Transfers to checking account on telephone order, reply of

Board that they are not permitted but that a

transfer on written order is permissible 6/22 1205

Staff:birdzell, L. E., General Counsel, savings deposits, reply on

classification of school district and library

funds, advising of reconsideration and possibil-

ity of revision of definition of 9/12 1694


136 pages

Federal Deposit Insurance Corporation: (Continued)Staff: (Continued)

Crowley, Leo T., Chairman, present at conference re condi-tion of Perth Amboy Trust Co. and Raritan TrustCo., Perth Amboy, N. J. 9/11 1585

McGrath, present at conference re condition of Perth AmboyTrust Co. and Raritan Trust Co., Perth Amboy,N. . 9/11 1663J

Nichols, John, Administrative Assistant, present at confer-ence re condition of Perth Amboy Trust Co. andRaritan Trust Co., Perth Amboy, N. J. 9/11 1683

Unsafe practices of Perth Amboy Trust Co. and Raritan Trust Co.,Perth Amboy, N. J., letter to corporation inquir-ing if it agrees to informal understanding to ef-fect that warning be deferred pending results ofcooperative efforts of representatives of Board,-IDIC and RBank of New York to work out situa-tion 8/11 1513

Williams Savings Bank, Williams, Iowa, letter from Mr. Loefflerre failure to submit correct certified statementof average daily deposit liabilities, referred toFRBank of Chicago 10/19 1907

Federal Home Loan Bank Board:

First Federal Savings and Loan Association of Hollywood, Calif.,letter to Bank Board re use by, of "'Member ofF.R.System" 8/25 1585

Letter to Mr. Clerk re explanation of, no action to be taken 8/29 1619

Federal Housing Administration:

Insured mortgages: (See Mortgages, Insured)Mortgages and modernization loans made under Federal Housing Act,

reply to Mr. McDonald that RBanks may considermember bank notes secured by, for loans underSec. 10(b) of FRAct 6/22 121

Federal Intermediate Credit Bank of Columbia:

Macklin v., Mr. Cagle to be available for trial of case 1/17 160

"Federal Laws Affecting National Banks", memo of Mr. Vest recommend-ing publication of statement re, in FRBulletinand that FRBanks be advised of depletion ofstock, approved 9/25 1764

Federal Register:Citation in regulation re powers of Board, reply to Mr. Kennedy

offering no objection to proposed substitution ofRegulations of Board, letter to Mr. Kennedy furnishinz certain

information in connection with, in order to placein proper form for publication

(See also National Archives)

Federal Register Act, list of documents of Board required to befiled under, letter to Administrative Committee,National Archives

FRAct:Amendments:

Assignment of duties to members of Board, amendment tenta-tively proposed

9/ 9 1666

9/26 1776

1/25 21

12/18 205


137

l'ages

FRAct: (Continued)Amendments: (Continued)

Capital requirements for membership and branch banking,

amendment tentatively proposed to modify 12/18 2234

Chairman and FRAgent, separation of, also authorization

for Assistant liRAeentsto perform duties where

there is vacancy and to eliminate requirement

that latter have tested banking experience,

tentatively proposed 12/18 2233

Dividends of FRBanks, amendment tentatively proposed to re-

duce cumulative dividends to 4c/0 and to permit

payment up to 620 when earned during current year 12/18 2234

iederal Open Market Committee, amendment tentatively pro-

posed to change method of selection of YR.Bank

representatives and to require that they all

be Presidents of FRBanks 12/18 2235

FRnotes, amendment tentatively proposed to repeal penalty

for payment of another FRBank's notes 12/18 2235

Government securities as collateral for iRnotes, amendment

making present authority permanent suggested,

with suggestion that it be taken up with

congress separately in order to secure action

before March 3, 1937 12/18 2239

Governors of FRSystem, amendment tentatively proposed to

permit participation in Retirement System 12/18 2235

Hearings of Board of Governors, amendment tentatively pro-

posed to facilitate 12/18 2235

Membership, waiver of requirements, amendment tentatively

proposed to make effective immediately provision

for, to facilitate entry of banks to continue

insured status 12/18 2234

Bank for International Settlements, amendment tentatively pro-

posed to make clear that a member of the Board

of Governors may serve as a director 12/18 2235

Revised edition, printing of, letter to Public Printer that

Board should not be required to pay for 20(/0

rush, and that no charges should be made in-

cidental to reprinting - 1/18 161

Sale of copies by FRBanks, reply to FRBank of Minneapolis that

there is no objection to, at Price printed on

cover and proposed method of accounting for

proceeds 3/12 565

Sec. 9, 20th paragraph re stock of State member bank evidencing

stock of any other corporation, reply to Mr.

Day interpreting 5/ 6 978

See. 11(k), deposit of collateral for trust funds in commercial

department, letters to F.D.I.C. and Comptroller

re possible request for amendment to relieve

national banks of necessity to extent such

funds are insured by F.D.I.C. 3/10 546


138

FRAct: (Continued)Sec. 11(k): (Continued)

Trust funds in banking department, advisability of amendmentsuggested to Comptroller in connection with ques-tion of waiver of deposit of security for, in

pagee

so far as such funds are insured 4/ 8 7/5Sec. 19, reserve requirements, reply to inquiry of Mr. Borneman

re interpretation as to change in, that Boardonly interprets law in actual cases 12/ 8 2192

IRAgents:Agreements on Form T-2, Board concurs in opinion of FRBank of

New York that execution of certificate of fil-ing should be by, even though non-statutoryduties have been transferred to RBank 12/ 2 2157

Appointments of, for 1936, recommendations of Personnel Commit-tee re, and plan for possible reorganizations atERBanks involving transfer of certain dutiesof, to operating departments, eventual employ-ment of agents on honorarium basis 2/18 365

Chairman authorized to arrange meeting of presidents to dis-cuss transfer of duties, with view to reductionin expenses and increase in efficiency 2/18 372

Agreed that transfer is important element and that positionshould be placed on honorarium basis as soonas possible 2/26 43°

Appointments to serve after March 1, press statement re, approved 3/ 4 498

Assistants:Allen, G. M., Acting at Fl Paso, temporary appointment of

Mr. Page to succeed Mr. Odom, serving in ill-ness of 1/25

Alternate, scope of functions as compared with those ofAssistant FRAgents, reply to Mr. Thomas atKansas City re 9/26 17°

Anderson, J. B., FRBank of Cleveland:Resignation to be accepted upon appointment of new assis-

tant FRAgent 7/17 1585

To be accepted when appointments of Messrs. Matterand Henk become effective 7/24 1428

Resignation accepted, noted he has been appointedManager, Bank and Public Relations Department 7/29 144'41


Anderson, Lee E., Acting, at Baltimore Branch, transfer toanother department and appointment of Mr.Baugher to replace, approved with advice thatif desirable, Mr. Anderson could be assigned towork in other department when not performingduties as 5/ 7

Barnett, Mrs. Genevieve, Alternate at Atlanta:Bond of 8/31 1624Temporary appointment as Alternate at Atlanta approved

until not later than Dec. 31 8/25 1

Baugher, Joseph C., Baltimore branch,, appointment as acting

916,15/ 7


139

Pages

(Continued)Assistants: (Continued)

Carlander, John, ii'RBank of Minneapolis:

Appointment as alternateBond ofReappointment as alternate acting

Cincinnati Branch:

Position of Acting discontinued in plan for holding

7/117/1812/31

133914012349

iiRnotes in triple control 7/13 1344

Clark, L. Y., FRBank of Atlanta:

Leave on account of illness of mother, Mr. McCravey

designated to sign for 1/9 86


Cooper, Norman C., FRBank of New York:

Appointment as alternate, at present salary 9/29 1798

Bond of 10/29 1962

Diercks, W. R., IIRBank of Chicago:

Appointment as alternate 7/29 1444

Bond of, approved, and letter to Fidelity and Casualty

Co., requesting confirmation of acceptability

of description of appointment 8/ 5 1489

Duties as, probably will have none to perform eXcept

during absence of Mr. Schelling 9/ 1 1630

Dillistin, W. H., FRBank of New York:


Appointment and salary as assistant vice president,

aesignated examiner 9/14 1699

Appointment as vice president, salary previously ap-

proved 9/30 1806

Resignation as, in connection with reorganization of

bank 10/30 1982

Downs, H. S., .bRBank of New York:


Appointment as Manager, Bank Relations proposed, salary

approved for 9/14 1703

Duties and responsibilities in connection with placing of

office of FRAgent on honorary basis, advice to

Mr. Peyton in connection with reorganization

of RBank of Minneapolis 6/29 1269

Evans, Howard, FRBank of Cleveland:

Reorganization plan contemplates that he shall be ap-

pointed Chief itxaminer and Assistant FRAgent,

Board does not feel he should be Assistant Agent,

resignation as such to be accepted upon appoint-

ment of new Assistant Agent 7/17 1383

Resignation to be accepted when appointments of

Messrs. Matter and Henk became effective 7/24 1428

Resignation accepted, noted that he has been appoint-

ed Chief Examiner, telegrams to Mr. Burke and

President Fleming

Salary approved for 1936

7/29 1443-41/31 279


140

PRAgents: (Continued)Assistants: (Continued)

Evans, W. j., FRBank of Dallas:

Salary approved. for 1936Renewal bondResignation to be accepted upon transfer of examination

and research- work to operating side of bankResignation of, approval of salary as Vice President

1/313/31

7/178/14

Pages

282711

13961529

FRBank of Atlanta:Alternate, letter to Mr. Martin re desirability of ap-

pointing 8/20 1558FRBank of Boston:

tions for Assistant and Alternate AssistantAnk o

ppointees, request

that Ma-. Curtiss submit recommenda-

FRBR s 12/30 2339

Qualifications of those to be appointed to carry onduties in connection with placing of IRAgent'soffice on honorary basis 6/29 1269

IRBank of New York:Appointment of, and of alternates, advice to Mr. (kidney

to make 9/14 69 9

FRBanY of St. Louis:Appointment of, and alternates, advice to Mr. Stewart

to make 9/1A- 17°8Fenner, Zell G., Acting at RBank of Philadelphia:

Appointment previously approved 9/ 8 166°Reappointment as Acting, Board will advise later 12/31 2349

Fletcher, W. H.., FR.13ank of Cleveland, resignation to be ac-cepted upon appointment of new assistantFRAgent 7/17 1385

To be accepted when appointments of Messrs. Matter andHenk became effective 7/24 140

Resignation accepted and salary as Vice President incharge of examinations approved 7/29 1443'4

Fry, J. G., RBank of Richmond:

Salary for 1936 approved 1/31 279Resignation to be accepted when new assistant agent is

appointed 7/17 1381Vice President, to be elected as, and placed in charge

of Examination Department, board would approveappointment as Vice President in charge of ex-aminations, Research and Statistical Departmentto be placed under, for time being 8/ 6 1495

Bond of Nov. 20, 1934, request if there is any objec-tion to advising bonding company of termina-tion of liability on 8/12 153-6

Resignation accepted and salary approved as Vice Presi-dent 8/15 10?

FUnctions and duties, letter to IRAgent at Kansas City re 9/26 17qzGettemy, C. F., RBank of Boston:

Salary approved for 1936 1/31 21 6Reappointment for period ending January 31, 1937 12/31 2346


141

Pages

1lAgents: (Continued)Assistants: (Continued)

Gibson, T. C., FRBank of Richmond:Appointment as Alternate approved, to act as note custo-

dian for FRAgent 8/ 6 1493-4

Bond of 8/12 1516

Collateral for FRnotes, no objection to continuing to

have, hold single control over paper pledged as 8/28 1610

Gidney, R. W., FRBank of New York:Salary approved for 1936 1/31 277

Appointment and salary as vice president in charge ofexaminations, designated examiner 9/14 1699

Appointment as vice president, salary previously ap-proved, Board opposed to his retaining presenttitle pending appointment of FRAgent 9/30 1806

Resignation as, in connection with reorganization ofbank 10/30 1982

Gowland, C. P., San Antonio Branch, reappointment as Acting 12/31 2350

Hagedorn, William, FRBank of St. Louis:Appointment as Alternate at present salary 9/30 1808

Bond of 10/19 1905

Hall, C. C., FRBank of Dallas:Salary approved for 1936 1/31 282

Salary approved, although Board does not feel occupancyof position coincides with Principles adopted 7/17 1395-6


Harrel, Clyde, Acting Assistant at Cincinnati, resignationaccepted effective July 31 7/29 1443-4

Henk, Lester, FRBank of Cleveland:Appointment as Alternate 7/24 1428

Telegrams to Mr. Burke and President Fleming re ap-pointment becoming effective Sept. 1 7/29 1443

Bond approved and request that Mr. Burke advise defi-nitely of appointment by him 8/ 7 1499


Hill, E. C., FRBank of Philadelphia, salary approved for1936 1/31 278

Hudson, Alfred J., 1JEBank of New York:Appointment to assist FRAgent in issue and retirement

of FRnotes to continue, request advice as to

whether he will remain on RAgent's payroll,should remain solely responsible to agent orBoard 11/ 6 2008

Termination of authority to act for FRAaent in issuance

and retirement of FRnotes, bond to be released 12/ 8 2190Lawhon, D. 6., Acting at Houston, retirement of, request if

there is any objection to cancelation of bondand noting correspondence with CongressmanMaverick re 8/20 1560

Martin, J. H., Detroit Branch:Salary approved for 1936 1/31 281


142

FRAgents: (Continued)Assistants: (Continued)

Martin, J. H., Detroit Branch: (Continued)Resignation to be accepted upon appointment of new assis-

Pages

tant FRAgent at Chicago 7/20 1407To be accepted when appointments of Messrs. Schell-

ing, Diercks and Raether became effective 7/29 1444Resignation accepted 8/ 5 1489

Matter, N. R., FRBank of Cleveland:Appointment of 7/24 1428

Telegrams to Mr. Burke and President Fleming re ap-pointment becoming effective Sept. 1 7/29 1445

Bond approved and telegram to Mr. Burke requestingdefinite advice of appointment by him 8/ 7 1499

Reappointment 12/31 2349McAdams, A. M., FRBank of Kansas City:

Salary approved 2/18 371Leave of absence with pay for six months granted on ac-

count of illness 7/29 140Resignation to be accepted when new assistant agent has

been appointed 7/17 1391Resignation, advice that it should be effective on date

of transfer of FRAgents' nonstatutory duties tobank, to be appointed Vice President and salary 8/14 1521

Appointment as Vice President, reply to FRAgent Thamesthat Board did not request appointment, but ap-proved designation and appointment as examiner,resignation as 9/ 3 1639

McConnell, H. G., RBank of Minneapolis:Appointment and salary of, other duties do not coincide

with Board's view of position, approved untilend of year and to be reviewed in connection with1937 budget 7/11 1359

Bond of 7/18 1401Reappointment 12/31 2349

McCravey, J. R., Jr., Acting at FRBank of Atlanta:Designated to sign for Mr. Clark during latter's ab-

senceAppointment as, and salaryBond of

McRae, W. D., FRBank of Boston, salary approved for 1936Mills, A. W., alternate for FRAgent and Assistants at Min-

neapolis, bond of

1/ 98/208/311/31

1/9

86

1557'6162427 6

86Morrissey, Clifford E., FRBank of Boston, appointment as

alternate 12/31 2348Nolte, William H., Acting, at Pittsburgh Branch:

Renewal bond 5/25 1074Resignation accepted effective July 31 7/29 1445

Oaths of office, new forms approved for, and to be printed 10/16 1901Odom, L. M., Acting at El Paso, temporary appointment of

Mr. Page to succeed, serving in illness of Mr.Allen 1/25 215


143

Pages

IIIAgents: (Continued)

Assistants: (Continued)Page, G. C., El Paso Branch:

Temporary appointment as Acting, at El Paso, to suc-

ceed Mr. Odom

Bond ofAppointment and salary as Acting, assumed bond will be

continued

Reappointment as Acting

Parker, Frank S., Acting at St. Louis:

1/251/28

6/2612/31

213224

12562350

Appointment as Assistant FRAgent at present salary ap-

proved 9/30 1808

Bond of 10/19 1905

Peterson, Willian E., Acting at St. Louis, appointment as

Alternate Assistant FRAgent without change in

salary 9/30 1808

Phinney, Robert H., FRBank of New York:

• Appointment at present salary as Alternate 9/29 1798

Bond of

Pittsburgh branch, position of Acting discontinued in plan

10/29 1962

• for holding FRnotes in triple control 7/13 1344

Post, A. E., ERBank of Philadelphia:


Continuance at present salary not in accordance with

Board's policy, request that satisfactory

arrangement be made 9/ 8 1559

Appointment also as Secretary, with salary for each

position, approved with understanding that it

will be reviewed in connection with budget 9/30 1807


Powell, Oliver S., FRBank of Minneapolis:

Salary and appointment, Board approved for 1936 on

Dec. 3, 1935 3/10 544

Resignation to be accepted when new assistant FRAgent

is appointed, and to be elected vice president 6/29 1269

Resignation accepted and salary as vice president in

charge of research function approved 7/31 1465

Prugh, G. A., IRBRnK of Chicago:


Resignation to be accepted upon appointment of new

assistant FRAgent 7/20 1407

To be accepted when appointments of Messrs. Schell-

ing, Diercks and Raether become effective 7/29 1444


Qualifications and duties of, amendment tentatively proposed

to RAct to permit to perform duties of FRAgents

when there is a vacancy and to eliminate re-

quirement that he be person of tested banking

experience 12/18 2233

Raether, Bernard L., Detroit Branch:

Appointment of, to resign position in operating depart-

ment before appointment becomes effective 7/29 1444


144


Raether, Bernard, Detroit Branch: (Continued)Bond approved, and letter to Fidelity and Casualty Co.,

requesting confirmation of acceptability of

pages

description of appointment 8/ 5 1489

Duties assumed by, on Aug. 6 9/ 1Reed, I. J., Acting at Houston Branch:

Appointment approved, salary approval not necessary 8/20 1559

Bond of 8/24 1592Reappointment as Acting 12/31 2350

Rehfuss, J. Frank, Acting at FRBank of Philadelphia:Appointment previously approved 9/ 8 166°Appointment as Alternate 12/31 2349

Reid, Margaret J., FRBank of Philadelphia, appointment asActing, Board will reply later 12/31 2349

Rhodes, H. H., MBank of Kansas City:Appointment approved 8/27 1601

Appointment and salary were approved previously, replyto FRAgent Thomas

Bond ofReappointment

9/ 39/10

12/31

16391671230

Roelse, H. V., _MBank of New York:Salary approved for 1936Appointment as Assistant Vice President proposed, salary

approved forAppointment as Assistant Vice President, salary pre-

viously approvedResignation as, in connection with reorganization of

bankSalary ranges at FRBanks (except Boston, New York, and

ClevelandSanders, T. Gordon, Acting at Kansas City, bond to be re-

leased if no objectionSargent, S. G., FRBank of San Francisco:

Salary fixed for 1936Transfer to operating side of FRBank suggested as possi-

bility by Mr. Szymczak in connection with con-sideration of salary for Mr. Hale

Vice President, to be appointed as, and salary approved,to resign as

Resignation as, and request if there is any objectionto cancelation of bond

Sawyer, Dana D., FRBank of Boston, appointment as AlternateSchelling, Carl, FRBank of Chicago:

Appointment ofBond of, approved, and letter to Fidelity and Casualty

Co. requesting confirmation of acceptabilityof description of appointment

Duties assumed by, on Aug. 6Shepherd, R. L., FRBank of Richmond:

Bond approved and request if there is any objection tonotifying bonding company of termination ofliability on bond as Acting Assistant FRAgent

1/31

9/14

9/30

10/30

12/24

10/10

2/18

4/3

8/29

9/ 112/31

7/29

8/ 59/ 1

8/12

277

1705

1806

1982

2266

1865

372

736

161)1

16312349

1444

1489

163°

1516Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

N-ents: (Continued)

Assistants: (Continued)Shepherd, Robert L., FRBank of Richmond: (Continued)

Designation as, and salary approved

Resignation as Acting acceptedShortt, W. D., Assistant Examiner at San Francisco:

Appointment as, or Alternate, would be approved by

Board in connection with reorganization plan

Appointment approvedBond of, approved, and memo of Mr. Wingfield that ap-

pointment might conflict with FRAct because of

designation as assistant examiner

Indebtedness to member bank, was in existence prior to

employment, not to be reported to Attorney

General, but should be eliminated

ReappointmentSonne, H. A., Chief Examiner at ban Francisco:

Appointment as, contemplated in reorganization plan,

Board does not approve, but has no objection to

appointment as Alternate Assistant FRAgent

Appointment as AlternateBond of, executed as "Assistant FRAgent", request re-

execution, and memo of Mr. Wingfield re possible

conflict with FRAct, not clear what payroll he

is onBond ofBond, retroactive coverage, reply to Mr. Moore that

Board has taken position that upon approval by

Board, bond becomes effective as of date prin-

cipal took office

Reappointment as Alternate

Status as an officer, telegram to all FRAgents that provi-

sion should be made for position in personnel

classification plan, and that he should be as-

signed other duties in FRBank

Stewart, C. M., FRBank of St. Louis:


Leave on vacation from July 6 to July 31, noted without

objectionAppointment as Assistant Vice President and Secretary

proposed, salary approved

Appointment as Assistant Vice President and Secretary,

reply to, that Board has approved salary if

directors make

Stryker, Jere V. D., FRBank of New York:

Appointment at present salary, Board will make exception

to requirement that such employee handle is-

suance and retirement of FRnotes

Continuance also as Chief of Records and Analysis Divi-

sion of Bank Examination Department

Bond of

145

Pages

8/ 6 14938/12 1516

8/29 1617

9/ 1 1631

9/21 1737

10/19 1906

12/31 2350

8/29 1616

9/ 1 1631

9/21 173710/15 1886

10/22 192912/31 2350

6/23 1222

1/31 282

7/ 3 1301

9/14 1708

9/30 1808

9/29 1798

10/22 192810/29 1962


146 Page°


Stryker, Jere V.D., FRBank of New York: (Continued)

Duties of Note Issues Department assigned to sectionunder direction of, assumed that any duties per-formed by department in connection with issuanceand retirement of Rnotes are assigned to, incapacity as

Duties formerly performed by Note Issues Department, re-quest if any have been assigned to, in capacity

Swanson, E. W., FRBank of Minneapolis:

11/ 6

12/ 8

2009

2193'

Salary, fixed for 1936 3/10 544

Resignation to be accepted when new assistant FRAgentis appointed, and to be elected Vice President 6/29 109

Resignation accepted, and salary as Vice President incharge of examinations approved 7/31 1466

Swengel, H. D., Acting at Los Angeles:Appointment was approved previously, no further action

necessary 8/29 1618

Reappointment as Acting 235812/31Thaxton, E. A., FRBank of Dallas:

Appointment as Acting approved 7/17 1391-6

Appointment as Alternate 23Du12/31Thornton, I. A., Omaha Branch:

45Appointment as ActingBond of

10/1010/26

119846

Timberlake, H. C., 1RBank of Minneapolis:Appointment as Alternate 7/11 1 5!

Bond of 7/27 14$"

Reappointment as Alternate Acting12/31 20

Wheeler, Oliver P., FRBank of San Francisco:Salary fixed for 1936Resignation as, to be accepted in connection with reor-

ganization planResignation of, request if there is any objection to

cancelation of bond

Woolley, D. W., Acting, at FRBank of Kansas City:Appointment, temporary, as ActingBond ofTitle should be changed to Alternate Assistant FRAgent

in interest of System uniformityBond and oath of office, telegram to FRAgent Thames

that he should execute new, in connection withchange of title from Acting Assistant FRAgentand advice requested as to resignation of latteroffice

Bond ofReappointment as Alternate05°

Young, C. S., FRBFInk of Chicago:Salary approved for 1936Salary increased

2/18 372

8/29 1611

9/ 1 1651

5/13 10,

5/26 100d

8/27 1601

9/ 3 164°

9/2512/31

1760

1/31 261

6/25 10


147

Pages

1114:ants: (Continued)Assistants: (Continued)

Young, C. S., FRBank of Chicago: (Continued)


is appointed, to be appointed Vice President,

salary approved 7/20 1405-7


ing, Diercks and Raether became effective 7/29 1444


Young, W. R., Denver Branch:Appointment as Acting 10/10 1864

Bond of 10/26 1943

Zehner, Edward A., FRBank of St. Louis:

Appointment as alternate, approved to be responsible

to FRAgent or to Board of Governors 10/19 1904

Bond of 10/26 1942

Austin, R. L., FRBank of Philadelphia:

Redesignated for period March 1 to April 30 and salary

fixed 2/18 367

Advised that designation will terminate on April 30,

FRBank authorized to pay retirement allowance

of six months' salary to, or to retirement sys-

tem 2/26 429

Redesignated for remainder of year upon honorary basis au-

thorized, fees authorized for, not to affect

payment of six months' salary upon retirement 4/28 907

Redesignation for 1937, on honorarium basis 12/28 2290

Retirement of, method of relieving of liability on account

of FRnotes 4/28 912

Salary approved for period Jan. 1 - Feb. 29 1/31 277

Burke, E. S., Jr., FRBank of Cleveland:Bond of 3/6 528

Designation with salary to be fixed on honorarium basis,

Chairman eccles authorized to tender 2/18 368

Designation for remainder of year, letter confirming, and

advising that Board has fixed no salary for

position 3/3 487


Advice re compensation on uniform basis suggesting that

continuance on present basis rests in own dis-

cretion 12/30 2320

Case, J. if., FRBank of New York:Redesignated March 1 to April 30 and salary fixed 2/18 367

Additional payment to Mr. Case or to retirement

system to be made 2/26 429

Redesignation for remainder of year upon honorary basis

authorized, fees authorized for, not to affect

authorization for payment of six months' salary

upon retirement4/28 907

Resignation as Class C director, not in position to continue

as Chairman on honorary basis5/1 944


148 Pages

FRAgents: (Continued)

Case, J. H., FRBank of New York: (Continued)

Retirement, reply to letter from directors requestingtinuation of services

Retirement allowance, letter from Director Woolley request-

ing authority to increase contribution by bank

to 12 months' salary

Reply to Mr. Woolley refusing authority

Salary approved for period Jan. 1 - Feb. 29

Compensation during 1937, question raised by UT. Broderick inconnection with Messrs. Thomas and Geery, lattertwo to be advised that Board is consideringplacing on honorarium basis

Compensation for 1937 fixed on honorarium basis of aggregateof certain directors' fees

Curtiss, F. H., FRBank of Boston:

Redesignated for period March 1 to April 30, and salaryfixed

Advised that designation will terminate on April 30,FRBank authorized to pay retirement allowanceof six months' salary to, or to retirement sys-tem

Redesignation for remainder of year on honorary basis re-quested by directors, authorized, fees author-ized for, not to affect authorization for pay-ment of six months' salary upon retirement

Redesignation for 1937, on honorarium basis

Salary for period Jan. 1 - Feb. 29 approved

Delano, Frederic A,, FRBank of Richmond:

Bond ofDesignation for remainder of year with salary to be fixed

on honorarium basis, Chairman Eccles authorizedto tender

Designation for remainder of current year, compensationfixed on honorarium basis

Per diem fixed for, with separate allowance for traveling

Duties, reserves of member banks, deficiencies to be reportedby FRBanks instead of

FRBank of Minneapolis, position to be placed on honorarium basisat end of this year

FRBank of San Francisco, advice to directors that it may benecessary to appoint full time chairman, becauseof apparent opposition to Board's policy

Fletcher, W. H., Acting at FRBank of Cleveland:


Vacation, no objection to taking three weeks starting Marchl

Functions of, proposal of Personnel Committee that all notspecified by law be transferred to operatingside of banks, that position be filled by out-standing men on honorarium basis, recommendation

to be made to Congress for separation of officeof Chairman and FRAgent

con-4/17 822

5/1 9415/12 1003

1/31 211

12/ 4 2167

12/28 2294

2/18 367

2/26 429

4/28 90712/28 2290

1/31 215

3/20 617

2/18 369

3/12 561

3/21 624

01/7

2/26 429

4/24 871

1/31 279

2/6 304

2/18 36fr


FNents: (Continued)

Functions of: (Continued)Chairman authorized to arrange meeting of presidents to

discuss, with view to reduction in expenses

149

Pages

and increase in general efficiency 2/18 372

Agreed that transfer is important element and that position

should be placed on honorarium basis as soon

as possible 2/26 430

Functions and duties as honorary, outline of, in reply to query

of Mr. Walsh 6/ 5 1141

Geery, W. B., FRBank of Minneapolis:

Appointment and salary, Chairman Eccles authorized in his

discretion to tender 2/18 370

Appointment and salary approved, to be advised through

Mr. Clark that position after this year will be

placed upon honorarium basis 2/26 428

No objection to FRBank making announcement re appoint-

ment 2/27 441

Bond of 3/5 507

Honorarium basis, to be advised that Board is considering

placing chairmanship upon 12/ 4 2157


Salary, Board advised on Feb. 26 of approval for remainder

of current year 3/10 544

Honorarium compensation, uniform basis adopted for, based on

directors' fees 12/28 2294

Lassiter, Robert, Chairman Eccles authorized to tender designa-

tion, at FRBank of Richmond 12/28 2290

Martin, H. Warner, FEBank of Atlanta:

Appointment as Class C director for unexpired term ending

Dec. 31, 1938, designation as FRAgent for re-

mainder of year and salary fixed on honorarium

basis 2/18 369

Bond of 3/5 507

Resignation of 12/12 2215

Moore, Walton N., FRBank of San Francisco:

Appointment and authorization for payment of directors'

fees 7/ 7 1308

Advice of appointment to be withheld temporarily pending

filling of other vacancies 7/ 7 1309

Advice of appointment transmitted, not withheld because

information re Mr. Wood's appointment leaked out

in Chicago 7/ 8 1325

Bond of 7/22 1417

Nardin, William T., appointment at FRBank of St. Louis, Chairman

Eccles inquired as to willingness to accept,

on recommendation of Mr. Tom K. Smith, re-

quested time to consider 7/ 7 1307

Nonstatutory duties, statement of Chairman Eccles at meeting

with presidents re transfer to presidents and

that Board will request survey of RBanks or-

ganizations 3/16 591


150

FRAgents: (Continued)Nonstatutory duties: (Continued)

Statement of policy re, read at meeting with presidents, if

Pages

unsatisfactory, functions could be restored 3/16 59$3

Reply of Chairman Eccles to inquiry of Presidents' Confer-ence that no definite date could be fixed for,but should be as soon as possible 3/17

604

Oaths of office, new forms approved for, and to be printed 10/16 1901

Peyton, John N., FRBank of Minneapolis:President of FRBank, Board willing to approve appointment

as, and to approve salary up to certain limit 2/18310

Resignation as, and appointment and salary as President 2/24 416

No objection to FRBank giving out announcement re ap-pointment 2/27

441

Salary fixed for period Jan. 1 to Feb. 29 3/10544

Procedure and principles involved in placing office upon honor-ary basis, advice to Mr. Peyton re, in connec-tion with reorganization of FRBank of Min-neapolis 6/29 1266

Reorganization at FRBanks contemplated in plan evolved by Per-sonnel Committee, duties not required by law tobe transferred to operating side of banks, posi-tion eventually to be placed on honorariumbasis and request to be made for legislativeseparation of functions of FRAgent and Chairman 2/18 30-6

Chairman authorized to arrange for meeting of presidentsto discuss, with view to reduction in expensesand increase in efficiency 2/18 32

Agreed that transfer is important element and that positionshould be placed on honorarium basis soon 2/26 4150

Retirement of, method of relieving of liability on FRnotes, etc. 4/28 912

Schaller, George J., FRBank of Chicago, Board would be willingto appoint as Class C director and designateas, with salary to be fixed on honorarium basis 2/18 569

Separation of office from that of Chairman, amendment to FRActtentatively proposed for 12/18 2255

Stevens, Eugene M., NBank of Chicago:Appointment as special assistant to chairman until April 30

at reduced salary, Board would be willing to ap-prove 2/18

310

Redesignated for period March 1 to April 30 and sum author-ized paid to Retirement System or to, on May 1 2/29 464

Resignation, desire to submit as of March 31, voted to ac-cept, action not to affect payment of dismissalallowance 3/27 690

Advice to Mr. Stevens of action 3/31 712


Stewart, A. O., RBank of San Francisco, designation for 1937,on honorarium basis 12/28 2291

Thomas, J. J., FRBank of Kansas City:Appointment and salary as, effective date Mr. Morrison

qualifies as member of Board of Governors 2/ 7 310

Press statement to be prepared re 2/ 7 311


PRAgents: (Continued)Thomas, J. J., FRBank of Kansas City: (Continued)

Bond ofDesignation as alternate member of Federal Advisory Council,

memo re position Board has taken re service of

officers on Council, reply to be prepared

Letter presented and approvedHonorarium basis, to be advised that Board is considering

placing chairmanship uponPresent at Board meetingRedesignation on honorarium basis for 1937 and payment of

six months' salary authorizedTelegram advising of action approved

Welsh, C. C., FRBank of Dallas:Functions and duties as honorary FRAgent, reply to query re

Redesignated for period March 1 to April 30 and salaryfixed


FRBank authorized to pay retirement allowance

of six months' salary to, or to retirement sys-

temExpression of appreciation at continuance of designa-

tion until April 30 and that he will remainfriend of FRSystem, Chairman to make appropriate

replyRedesignation for remainder of year upon honorary basis


payment of six months salary upon retirement

Redesignation for 1937, on honorarium basis

Retirement of, letter of appreciation of services

Salary approved for period Jan. 1 - Feb. 29Williams, L. B., FRBank of Cleveland:

Class C vacancy at Cleveland, suggestion of Messrs. Brainard,

Sutphin and Smythe as possible appointees

Wood, Tohn S., FRBank of St. Louis:Redesignated for period March 1 to April 30 and salary fixed


MBank authorized to pay to retirement system

sufficient to bring allowance to what it would

have been if he were 65 on April 30 and also

to pay to, or to retirement system, retirement

allowance of six months' salaryResignation as Class C directorSalary approved for period Jan. 1 - Feb. 29

11113ank notes:Expenditures covering cost of, procedure for approving payment

Retention of, reply to FRAgent Geery that all should be re-

tained until termination of emergency proclaimed

by PresidentI'lltank of Atlanta:

Bank relations report submitted, reply to Mr. Clark that Board'srequest did not contemplate detailed reports and

outline of information desired

2/14

12/ 112/ 7

12/ 4

151

Pages

354

21472185

21673/31 710

12/28 229212/29 2303

6/ 5 1141

2/18 371

2/26 429

3/10 544

4/28 90712/28 229112/12 22151/31 282

7/28 1436

2/18 370

2/26 4294/30 9371/31 282

2/14 356

3/ 5 515

10/27 1952


152

FRBank of Atlanta: (Continued)

Bylaws, revision of, reply to Mr. Clark that Board has no sug-gestions re, except those in letter of Feb.

_Pages

14, X-9493 2/24 4.16

Copies may be sent to directors with advice that Board doesnot object to, reply to Mr. Clark 5/25 1078

Charge offs, bank premises at Atlanta, Birmingham and Jackson-ville, request for approval of, action deferredas earnings will not meet expenses 6/30 1286

Circular re reserves of member banks, reply to Governor Newtonre decision not to revise and reissue, in viewof scope of Regulation D 2/13 548

Collection items received from California concerns, reply to Mr.Parker that Board will appreciate advice ofarrangement made 9/10 1675

Cuban silver pesos, arrangement with Export-Import Bank for de-livery and payment for 8/18 1558

Georgia Bankers Association, Board authorizing FRBank to supplycertain data in connection with study 7/23 1425

Havana Agency, resolution recommending discontinuance of, orformulation of plan under which agency wouldnot be operated at a loss, action deferred topermit Mr. Ransom to develop certain information 3/31 709

Leased wire to New Orleans Branch to be discontinued and timedwire service to be substituted 10/23 1941

McKay, Withers and Ramsey, payment of sal to, approved, for ser-vices in connection with indebtedness ofFlorida Asphalt Block Paving Co. 1/20 17/

Personnel classification plan, revised plan approved, maximumsalary fixed for Assistant FRAgent 12/24 2265-e

Power of attorney should run from FRAgent at Atlanta to FRAgentat New York to pledge Government obligations ascollateral for ERnotes 3/12 565

Reclassification of member banks for electoral purposes notnecessary at present 7/29 1449

Reorganization:Survey, letter to FRBank re principles of administration

Board desires followed, Mr. Clark to be ap-pointed vice president and Mr. McCravey appointedAssistant FRAgent, relationship between Mr.Conniff and Mr. Schuessler 8/20 155

Statistical and analytical function and Securities Exchangeunit placed under Mr. Clark, approval of formerdeferred until Dr. Goldenweiser visits bank, lat-ter approved 9/21 1759

Reserves, net earnings after payment of dividends, authorized totransfer to losses not elsewhere provided for 12/30

2354

Salaries:Changes recommended, as of Jan. 1, to be considered when

salaries for other FRBanks are taken up 8/20 1557Officers, for 1936, letter to Mr. Kettig approving con-

tinuance and advising that salary policy isbeing left for consideration of new Board 1/31 279


153

11113elak of Atlanta: (Continued)Staff:

Alternate Assistant FRAgent, letter to Mr. Martin re de-

sirability of appointingBarnett, Mrs. Genevieve, Alternate Assistant FRAgent:

Bond ofTemporary appointment as Alternate Assistant FRAgent

approved until not later than Dec. 31Beavers, P. L. T., Assistant Cashier, trustee under trust

indenture, memo of Mr. Vest re circumstances

surrounding appointment, is acting in personal

capacity, Mr. Broderick opposed in principle

to such service, FRBank to be advised he should

resignLetter to Mr. Parker advising, in accordance with ac-

tion of November 25 that Board is opposed to

such serviceBell, M. W., Cashier:

Payment of up to six months' salary in cash upon retire-

ment authorizedRetirement, advice to Mr. Clark that Board previously

authorized cash payment in connection with

Salary approved for 1936 at reduced rateClark, L. M., Assistant FRAgent:

Appointment as Vice President to be made, salary ap-

proved, to be designated as examinerAppointment

Leave on account of illness of mother, Mr. McCravey

designated to sign forResearch and statistical function placed under super-

vision ofSalary approved for 1936

Conniff, H. F., Vice President:Relationship to Mr. Schuessler, change in proposed

working arrangement suggested because of

Salary approved at reduced rate and only until Feb. 29

Salary approvedCounsel, retainer and stenographic allowance approved for

1936First Vice President, Chairman Eccles authorized to discuss

appointment with Mr. Clay, and if Mr., Parker

is appointed, salary Board is willing to ap-

proveHonour, I. W., Assistant Auditor:

Payment of up to six months' salary in cash upon re-

tirement authorizedRetirement, advice to Mr. Clark that Board previously

authorized cash payment in connection with

Johns, W. S., retirement, payment of six months' salary

In cash authorized in connection with

Pages

8/20 1558

8/31 1624

8/25 1578

11/25 2126

12/ 3 2163

6/30 1283

7/ 3 13001/31 280

8/20 15558/26 1586

1/ 9 86

9/21 17391/31 280

8/20 15591/31 2802/26 427

1/31 280

2/18 369

6/30 1283

7/ 3 1300

7/ 3 1300


154 Pages

FRBank of Atlanta: (Continued)

Staff: (Continued)

Martin, B. Vtarner, FRAgent:

Appointment as Class C director for unexpired tern end-

ing Dec. 31, 1938, designation as FRAgent and

salary fixed on honorarium basis for remainderof this year 2/18 369

Bond of 3/ 5 501n,

Resignation of 12/12 221'

Salary approved at reduced rate until Feb. 29 1/31 280

McCravey, J. R., Jr.

Acting Assistant FRAgent, designated to sign for Mr.Clark during latter's absence 1/ 9

86

Appointment as Assistant FRAgent 8/20 1651'8

Bond of 8/31 1624

McLarin, W. S., Jr.Appointment and salary as Vice President 8/26 1586

Salary disapproved, Board will approve at present rate 2/26

Newton, Oscar, President:

Appointment as, approved 2/18 369

Salary approved, March 1 to Dec. 31 2/18 369

Parker, Robert S., appointment as First Vice Presidentapproved and salary approved 2/26 426

Sheffer, George W., Jr., appointment as Assistant Examiner 1/25 212

Sims, R. A., Assistant Cashier:

Payment of up to six months' salary in cash on retire-ment authorized 6/30 1285

Retirement, advice to Mr. Clark that Board previouslyauthorized cash payment in connection with 7/ 3 13°°

Schuessler, S. P., Assistant Cashier, relationship to Mr.Conniff, change in proposed working arrange-ment suggested because of 8/20 1559

Vacation periods for officers and employees at head office,branches and agencies 3/24 665

FRBank of Boston:Bank relations report, letter to President Young re scope of

information desired by Board and requesting suchreport rather than individual reports on banks 11/ 4 1996

Bylaws, amendments in accordance with Board's suggestions ofFeb. 14, letter to Mr. Curtiss requesting whataction has been taken re 5/25 1018

Fees for legal services in connection with industrial loan ap-plications, additional information requestedre practice of charging borrower for 6/ 2 3.121

Personnel classification plan:

Changes approved 1/22 182

1/23 lee

Revised plan not submitted 12/24 2266

Reorganization survey, approved, bank examination department tobe placed under Vice President Paddock, Mr. McRaeappointed Chief Examiner and letter to Mr. Cur-tiss requesting recommendations for Assistant

and Alternate Assistant Agents 12/30 205°


155

Pages

PREenk of Boston: (Continued)Salaries, officers for 1936, letter to Mr. Curtiss approving

continuance of salaries at 1935 rates with

understanding that they are approved for senior

officers only until Feb. 29, and advising that

salary policy is being left for determination

of new Board 1/31 275Staff:

Assistant FRAgent and Alternate Assistant FRAgents, request

that Mr. Curtiss recommend appointees 12/30 2339

Associate counsel, retainer approved for 1936 1/31 276

Curtiss, F. E., FRAgent:Redesignated, March 1 to April 50 and salary fixed 2/18 367

Advised that designation will terminate on April30, FRBank authorized to pay retirement allow-ance of six months' salary to, or to retire-ment system 2/26 429

Redesignation for remainder of year on honorary basisrequested by directors, authorized, fees au-thorized for, not to affect authorization ofpayment of six months' salary upon retirement 4/28 907


Salary fixed for period, Jan. 1 - Feb. 29 1/31 276Eddy, Walter L., temporary employment as bank relations man

at FRBank of Dallas, satisfactory arrangementmade with 1/13 118

Gettemy, Charles F., Assistant FRAgent:Reappointment for period ending January 31, 1937 12/31 2348Salary fixed for 1936 1/31 276

Ketchum, Phillips, Associate Counsel, employment of, letterto President Young re status of 6/ 2 1120

McRae, W. D.:Appointment and salary approved as Chief Examiner

upon transfer of examination department toFRBank 12/30 2337


Morrissey, Clifford E., appointment as Alternate AssistantFRAgent 12/31 2348

Paddock, William W.:Appointment as First Vice President approved 2/18 366

Examination department placed under, in reorganization,designated examiner 12/30 2337

Salary, Board not willing to approve at rate fixed bydirectors, rate stated which Board is willingto approve, for period March 1 to Dec. 31 2/18 367

Sawyer, Dana D., appointment as Alternate Assistant FRAgent 12/31 2348Young, Roy A., President:

Appointment as, approved 2/18 366Salary approved, March 1 to Dec. 31 2/18 367

Stockholders' meeting, reimbursement of one representative ofeach bank for railroad and Pullmitn costs au-thorized 10/ 9 1863


156

FRBank of Chicago:Assessment of bank building for 1934, special counsel authorized

pages

to contest illegal portion of 5/ 6 962

Brown, Adelbert, employment in connection with illegal part ofassessment on FRBank building 5/ 6 982

Bylaws, revised copy, submitted with MO of Mr. Vest 2/27 461

Amended copy, as of June 26, 1936 9/10 1672

Charge offs, Fletcher American National Bank claim, authorizedto charge off settlement of 12/28 220

Dismissal wage, reply to Mr. Preston re question of payment oflump sum to employee dismissed or to RetirementSystem

Fees and allowances to directors, resolution fixing, approved2/176/ 3

365

1131Fletcher-American National Bank of Indianapolis, claim against

FRBank of liquidating trustees, to be consideredat meeting of Board tomorrow 7/28 1440

Memo of Mr. Wyatt re status of case, authorized to continuenegotiations for settlement, and upon conclusionof conferences to submit recommendation afterconsultation with Mr. Ransom 8/ 4 1410

Report by Mr. Wyatt re status of, question of settlement,Mr. Wyatt and Mr. Dreibelbis authorized to dis-cuss as individuals with ERBank directors atnext meeting

Compromise, payment of settlement approved9/11

11/11

16842035

Interdistrict time schedules, changes recommended in, approved 9/18Mayer, Meyer, Austrian ec. Platt and Mr. Adelbert Brown, employ-

ment as special counsel in contesting illegalpart of assessment on FRBank building 5/ 6 982

Employment upon contingent fee basis approved 8/22 1669

Pamphlet descriptive of FRSystem, manuscript returned to Mr.Stevens with suggestions for changes 1/31

210


Changes approved 3/26 696

Changes approved 3/31Revised plan approved, salary range for Assistant FRAgent

approved 12/24 2266-°

Prior service liability, adjustment on account of Washingtonoffice telegraph operators who are being trans-ferred to Board's payroll 3/26 686

Reorganization, plan approved, letter to President Schallersetting forth principles of administration tobe followed, Mr. Young to be appointed VicePresident, resignations of Assistant FRAgentsYoung, Prugh and Martin to be accepted 7/20 1405

Letter to President Schaller approving salary for Mr.Dillard and Mr. McKay until Feb. 28, 1937 7/20 14°1

Reply to President Schaller re functions to be performedby Messrs. Sweet, Dawes, and Coates 7/29 1445

Chart of organization, noted Mr. Olson has been placed incharge of Research Department, assumed it is tem-porary, action deferred on head of securities ex-change unit until visit of representative ofDivision of Security Loans to bank 8/28 16°6


157

Reserves:Board's new building, authorized to set aside sum against

future assessments forConsolidation of several reserve accounts into one approved

Losses, additional sum authorizedSalaries:

Advice of increases sent June 26 and July 3, salary ap-proved for Mr. Dillard, and for Mr. McKay from

Sept. 1 to Feb. 28, 1937Officers for 1936, letter to Mr. Stevens approving con-

tinuance at 1935 rates with understanding that

those of senior officers are approved onlyuntil Feb. 29, and advising that salary policyis being left for consideration of new Board

Officers, effective March 1, involving increases for five

officers, approved where salaries are at same

rate as on Feb. 29, action deferred on in-creases pending survey and approved at previous

rates if fixed thereatBoard unwilling to approve payment of salary to Mr.

McKay for more than six months and payment of

sum to retirement system authorizedMotion of Mr. Morrison to limit salaries of Messrs.

Schaller and Preston, lostRecommendations of bank- with regard to certain officers,

memo of Mr. Paulger to Mr. Broderick transmit-

ting desire of bank to call to Board's atten-

tion that final action had not been taken,

salaries approvedSecurities exchange administration, report of Mr. Parry that

matters are not being properly handled and

that some corrective action should be taken,

to make recommendationsLetter re qualifications of person to handle securities

exchange matters, stating that Mr. Dawes is

not competent and outlining procedure to bring

about satisfactory solution

Of Chicago: (Continued)

Reorganization: (Continued)Nonstatutory duties of FEAgent transferred to operating

side of bank, Assistant and Alternate Assistant

FRAgents have assumed duties, FRBank stock forms

may be signed by any officer of bankPlan of transfer contemplated appointment of vice

president in charge of examinations, Mr. Young's

proposed appointment noted with approval, ap-

pointment as examiner approved

Staff:Black, A. M., Manager, salary increased

Coates, H. E., securities exchange function, noted that he

has been assigned, with Mr. Dawes, to adminis-

ter, should be discussed with representative ofDivision of Security Loans

Pages

9/ 1 1630

9/ 3 1638

12/28 22867/13 1347

12/28 2285

7/20 1407-8

1/31 281

3/ 6 524-5

3/ 6 525

3/ 6 526

6/25 1243

12/ 1 2151

12/24 2277

6/25 1243

7/29 1445


158 Pages

FRBank of Chicago: (Continued)Staff: (Continued)

Dawes, N. B., Assistant Cashier, securities exchange function,noted that he has been assigned, with Mr. Coates,to administer, should be discussed with repre-sentative of Division of Security Loans

Temporary head of, action deferred upon IRBank's recom-mendation until representative of Division ofSecurity Loans visits FRBank

Not qualified to handle, President Schaller requested

Delaney, E. A., former Assistant Deputy Governor, lump sumto work out other arrangement

settlement authorized upon separation from ser-vice rather than payment to Retirement System

Diercks, W. P.:Appointment as Alternate Assistant FRAgentBond of, approved, and letter to Fidelity and Casualty

Co. requesting confirmation of acceptability ofdescription of appointment

Duties as, probably will have none to perform exceptduring absence of Mr. Schelling

Salary increased for period during which he acts asacting chief examiner

Dillard, J. B-, 'nee President:Comments of President Schaller notedSalary approved

Electricians, temporary employment in connection with airconditioning system approved, salaries in excessof personnel classification plan

Endres, J. J., Auditor, salary increasedEnglish, Earle W.:

Recommendation of Mr. Parry that he be transferred from,to Division of Security Loans and salary, ap-proved

Salary increase not approved

Ford, Frank A., appointment and salary as assistant examinerapproved

Hodge, Paul C., salary increase not approvedJohnson, W. H. A., Trust Examiner, salary reduced, approved,

designated as appraised

McKay, C. R., Vice President:Comments of President Schaller notedReconsideration of termination of services as of Sept. 1,

and approval of continuance and salary until Feb.28, 1937, proposed payment to retirement system

Resignation submitted with understanding of retirementallowance equal to that he would receive if heremained with bank until 65, Board not willingto extend authorization or to approve salarybeyond Aug. 31

Retirement, reply to President Schaller re cost toFRBank and allowance for Mr. McKay if he is re-tired now, or retained until 65

7/29

8/28

12/24

1445

1805

207

3/ 5 5°

7/29 1444

8/ 5 1489

9/ 1 165°

5/16 1029

7/29 1445

7/20 1408

4/ 8 775

6/25 1245

7/ 7 1509

1/31 284

8/28 3.606

1/31 284

9/ 4 160

7/29 1445

7/15 1361'6

7/31 3-459

7/29 1445


159

Pages

nk of Chicago: (Continued)Staff: (Continued)

McKay, C. R., Vice President: (Continued)

Retirement, payment by FRBank to Retirement System to

provide allowance equal to that which he would

receive if he were 65, noted without objection 8/ 6 1494

Salary, Board unwilling to approve payment for more than

six months, FRBank authorized to pay amount to

Retirement System to increase benefit to what he

would be entitled to if he were 65 3/ 6 525-6

Salary approved from Sept. 1, 1936 to Feb. 28, 1937,

continuance of services to be considered at lat-

ter time, authorization to make payment to Retire-

ment System if retired before that time 7/20 1408

McLean, William, dismissal wage, no objection to payment of

six months' salary in lump sum or six monthly

installments 4/ 7 770

Olson, A. L., Assistant Vice President:

Research and Statistics Department placed in charge of,

assumed arrangement is temporary 8/28 1605


Pett, H. G., Manager, salary approved for 1936 1/31 281

Pitman, Carol F., Chief Examiner, leave of absence for six

months to assist FDIC 4/30 937

President and First Vice President, Chairman authorized to

discuss informally with Mr. Leavell the appoint-

ment of, Board would approve appointment of Mr.

Preston as President at salary lower than posi-

tion now carries 2/18 369

Preston, H. P.:

Appointment as First Vice President approved, action on

salary deferred 2/29 462-3

President, Board would be willing to approve appointment

as, with understanding that salary must be sub-

stantially lower than that now paid Governor 2/18 370

Salary, motion of Mr. Morrison to limit, lost 3/ 6 526

Prugh, G. A., Assistant RAgent:


is appointed 7/20 1407


in, Diercks and Raether become effective 7/29 1444



Reductions in, reply to Mr. Spencer re reasons and policy

involved 7/29 1446

baltnes, C. M., Assistant Cashier, salary increased 6/25 1243

Schaller, George J., President:

Appointment as, question raised re any agreement to

resign, determined from Mr. Schaller that elec-

tion was unrestricted, approved, action de-

ferred on salary 2/29 462-3


160

FRBank of Chicago: (Continued)

Staff: (Continued)Schaller, G. J.: (Continued)

Class C director and FRAgent, Board milling to appointas, with salary to be fixed on honorarium basis

Salary, motion of Mr. Morrison to limit, lostSchelling, Carl:

Appointment as Assistant 1RAgent

Bond of, approved and letter to Fidelity and CasualtyCo. requesting confirnation of acceptabilityof description of appointment

Duties assumed by, on August 6

Snyder, W. H., Vice President and Cashier, salary increasedStevens, Eugene M., FRAgent:

Appointment as special assistant to chairman untilApril 30 at reduced salary, Board would be mill-ing to approve

Redesignated for period from March 1 to April 30 and sumauthorized paid to, or to Retirement SystemMay 1

Resignation, desire to submit as of March 31, voted toaccept, action not to affect payment of dismis-sal allowance

Advice to Mr. Stevens of actionSalary approved for period Jan. 1 - Feb. 29

Sweet, J. L., noted that he has been in temporary charge ofResearch and Statistical Department, any per-manent appointment should be discussed with Dr.Goldenweiser

Turner, William, transfer from W.P.A. work to Bank Rela-tions Division until end of year without changein salary, with intention of placing in positionat that time warranting salary

Vice presidents granted authority to exercise powers ofbusiness conduct committee under Regulation T

Wilson, A. L., Examiner, salary reduced, approved, desig-nated as appraised

Young, C. S., Assistant FRAgent:Resignation accepted


Salary increased

Vice President, to be appointed as, salary approved,resignation as Assistant FRAgent to be acceptedwhen new assistant Agent is appointed

Resignation to be accepted when appointments ofMessrs. Schelling, Diercks and Raether becameeffective

Appointment was noted with approval, advice toPresident Schaller, appointment as examiner ap-proved

2/183/ 6

7/29

8/ 59/ 16/25

2/18

2/29

3/273/311/31

7/29

8/28

10/23

9/ 4

8/ 51/316/25

7/2o

7/29

9/ 3

Pages

36926

1444

148916501240

370

465

690

2,81

1446

1606

199

1655

14892.91

120

1444

108

Taylor, Miller, Busch & Boyden, employment as special counsel inclaim of liquidating trustees of Fletcher Ameri-can National Bank of Indianapolis authorized 5/6


IIRBeink of Chicago: (Continued)Taylor, Miller, Busch and Boyden: (Continued)

Payment for services in connection with claim of Liquidating

Trustees of Fletcher American National Bank of

Indianapolis, approvedVisit by Mr. Broderick, report re, and re progress in survey

of organizationVisit of Mr. Broderick to, report re

'wank of Cleveland:Assessments for Board's new building, reply to Mr. Strater that

they should be charged to profit and loss, but

no objection to carrying in suspense account

Bank relations reports:until end of year

Extent and scope of information desired, reply to Mr.

StraterOpinions of individuals re FRSystem, reply to Mr. Strater

re desirability of making deliberate effort to

obtainBylaws, amendments, one providing, for election of officers at

meeting preceding March 1, Board does not de-

sire to make any change in procedure of approv-

ing compensation for officers

Charge offs, Pittsburgh branch building which has been author-

ized to be razed, approved

FRnotes, reply to Mr. Brown offering no objection to having

those received by FRBanks of New York and

Philadelphia forwarded to Pittsburgh branch


Changes requested for new positions in Work Relief Check

Dept., approved, no change to be made for

Supervisor in WPA Dept.

Personnel Maintenance Department, creation of two new

positions approved

Revised plan submitted, but returned at request of FRBank

Salary limitations, reply to President Fleming that re-

quest for authority to exceed by 4100 in some

cases is receiving consideration

Work Relief Checks and Works Progress Administration Units,

attention called to failure to cover employees

by changes inReorganization:

Examination and research work, desire to transfer from

FRAgent to bank and in connection therewith

to appoint Mr. Anderson as manager, proposed

maximum salary for position approved

Survey, letter to President Fleming setting forth principles

of administration to be followed, advice that

supervisor of Research Department should report

to President, action deferred on salary changes

requested

161

Pages

11/10 2032

5/12 9978/14 1525

1/31 267

10/19 1911

10/30 1983

3/ 4 502

4/25 894

1/20 176

4/10 786

12/29 230912/24 2266

7/17 1383

1/31 283

7/27 1433

7/17 1378


162pages

/RBank of Cleveland: (Continued)

Reorganization: (Continued)

Survey: (Continued)Letter to FRAgent that Mr. Evans as Chief Examiner

should not be also Assistant FRAgentReply to Mr. Fleming that plan contemplated that vice

president would be in charge of examination de-partment, Board previously noted with approvalappointment of Mr. Fletcher and hereby approvesappointment as examiner

Reserve for prior liability to Retirement System, request forpermission to set up out of reserves for con-tingencies, no objection, but payments to, tobe charged to current expenses

Reserves, depreciation on "other real estate", authorized toset aside usual sum for

Salaries, officers, for 1936, letter to Mr. Burke, approvingcontinuance of, at 1935 rates with understand-ing that those of senior officers are approvedonly until Feb. 29, and advising that salarypolicy is being left for consideration of newBoard

Staff:Anderson, J. B., Assistant FRAgent:

Resignation to be accepted upon appointment of newassistant FRAgent

To be accepted when appointments of Messrs. Matterand Henk become effective

Resignation accepted, noted he has been appointedManager, Bank and Public Relations Department

Salary approved for 1936Salary as Manager, Bank and Public Relations, maximum

for new position, approvedArnold, C. IN., Assistant Vice President, salary approved,

March 1 to Dec. 31Burke, Edmund S., Jr., FRAgent:

Bond ofDesignation as FRAgent, Chairman Eccles authorized to

tender, for remainder of year with salary to befixed on honorarium basis

Letter confirming designation, and advising thatBoard has fixed no salary for position

Redesignation for 1937, on honorarium basisAdvice re compensation on uniform basis suggesting

that continuance on present basis rests in owndiscretion

Cavanaugh, John William, appointment as assistant examinerapproved

Counsel, retainer approved for 1936Employees granted leave with pay for one week to attend

banking lectures at University of ap-

7/17 1 385

9/ 3 1631

1/29 229

12/28 2286

1/31 218

7/17 150

7/24 14213

7/29 14g'4

1/31 219

7/27 14M

2/18 30

3/5 528

2/18

3/ 3 481

12/28200

12/30 232°

12/30 23e,1/31 21-

Michigan,proved 5/18 141


163

Pages

of Cleveland: (Continued)Staff: (Continued)

Evans, Howard, Assistant FRAgent:

Reorganization plan contemplates that he shall be ap-

pointed Chief Examiner and Assistant FRAgent,

Board does not feel he should be Assistant

Agent, resignation as such to be accepted upon

appointment of new Assistant Agent 7/17 1383

Resignation to be accepted when appointments of

Messts. Matter and Henk became effective 7/24 1428

Resignation accepted, noted he has been appointed

Chief Examiner, telegrams to Mr. Burke and

President Fleming 7/29 1443-4


Fleming, M. T., President:

Appointment as, approved2/18 368

Federal Open Market Committee, election as alternate

member and resolution requiring attendance at

committee meetings in advisory capacity, reply

2/19 379to Mr. Strater that law provides for attendance

only in absence of principal

Salary approved March 1 to Dec. 31 2/18 368

Fletcher, Mrs. L. D., Manager, Pay Roll Dept., salary, con-

tinuance of payment in excess of amount fixed

in revised personnel classification plan,

President Fleming advised that Board is con-

sidering 7/17 1383

Fletcher, W. H., Assistant FRAgent:

Resignation to be accepted upon appointment of assistant

FRAgent 7/17 1383

To be accepted when appointments of Messrs. Matter

and Henk became effective 7/24 1428

Resignation accepted and salary as Vice President in

charge of examinations approved 7/29 1443-4


Vacation, no objection to three weeks starting March 1 2/ 6 304

Vice President, appointment as, advice to Mr. Fleming

that Board previously noted with approval, and

appointment as examiner approved 9/ 3 1637

Grayson, F. V., Auditor:Accounts of Fiscal Agent of Board, request that he con-

tinue to audit for another year 5/16 1037

Survey of audit function of ERBanks, outline prepared

by, and Mr. Walden, with Board's staff 8/18 1537

Hays, R. B., Assistant Cashier, salary, Board not willing to

approve at increased rate, no objection to con-

tinuation at present rate2/18 368

Salary increase recommended, action deferred7/17 1382

Henk, Lester:Appointment as Alternate Assistant FRAgent 7/24 1428

Telegrams to Mr. Burke and President Fleming re ap-

pointment becoming effective Sept. 1 7/29 1443


164

FRBank of Cleveland: (Continued)Staff: (Continued)

Henk, Lester, Alternate Assistant FRAgent: (Continued)Bond approved and request that Mr. Burke advise defi-

Pageo

nitely of appointment by him 8/ 7 1499


Konz, Raymond F., continuation for additional six months ofassignment to lower salaried position 7/18 1401

Matter, N. R.Appointment as Assistant FRAgent 7/24 1429

Telegrams to Mr. Burke and President Flering reappointment becoming effective September 1 7/29 1440

Bond approved and telegram to Mr. Burke requestingdefinite advice of appointment by him 8/ 7 1499


Retiring employees, four, request for establishment ofuniform policy whereby FRBanks would be author-ized to expend up to WO for remembrance, tobe referred to Presidents' conference 12/ 4 2166

Reply to President Fleming and copy to Chairman ofPresidents' Conference 12/11 20

Strater, H. F., Vice President and Secretary, salary ap-proved, March 1 to Dec. 31

Williams, L. B., rEAgent, Class C vacancy, suggestion ofMessrs. Brainard, Smythe and Sutphin as possibleappointees

Zurlinden, F. I., First Vice President:Appointment as, approvedSalary approved March 1 to Dec. 31

Visit by Mr. Broderick, report re, and re progress in surveyFRBank of Dallas:

Bank and public

Bylaws:Amendments

relations report, first report may be delayeduntil about Oct. 1

in accordance with Board's suggestions of Feb.14, letter to Mr. Walsh requesting what actionhas been taken re

Rates of discount, no objection to inclusion of provisionauthorizing executive committee to establish

Confirmations of telegrams sent to Board by mail, no objectionto discontinuance by FRBank and its branches

Charge offs, site of head office building and San Antoniobranch, authorized to make special charge off

"Drafts drawn upon or other authorizations to charge memberbank's reserve account", requirement of Regu-lation D that they be included in gross demanddeposits in computing reserves, reply toFRBank re proposed memo for use in answeringquestions re

Examination report forms, no objection to printing limitedsupply in form of tentative draft of revisedform

Examinations of State member banks, to absorb charges for,from Nov. 1, 1935 to Dec. 31, 1936

2/18

7/28

2/182/185/12

9/ 9

5/25

2/24

10/10

12/28

3/21

8/26

1/22

368

1438

368368991

1686

1079

414

3.866

228,

6439

15°


FRBaloa of Dallas: (Continued)Panctional expense report, instructions were not intended to

apply to charges on form B-23, no change to be

required in charging industrial loan expensesIndebtedness of officers and employees, report of FRAgentst

DepartmentPersonnel classification plan:

Revised plan approved, salary range for Assistant FRAgent

Teletype operators, salaries of three in excess of grade,

attention called to

operators, reductions in salaries of three, bring-

ing two within limits of range in plan, and

leaving one salary still in excess

qUarters, air-conditioning equipment, expenditure for, approved

Reorganization:Survey,

Teletype

Transfer

Reserves:Fixed machinery at head office, Houston and San Antonio

branches, special reserve authorized

Losses, authorized to increaseSalaries of officers, for 1936, continuation at 1935 rates ap-

proved with understanding that those of senior

officers are approved only until Feb. 29, let-

ter to Mr. WalshStaff:

Betts, I. F., Exaniner:Assignment to Board for final work on State member

bank examination report form requested, Board

to pay actual expenses

Salary adjustment, request that Board be advised when

determinedTrust examination work to be transferred to, in event

Mr. Neilan is released

Childers, C. L., appointment as assistant examiner approved

Coleman, R. B., Vice President, salary, action deferred

pending return of Mr. Morrison

Action can no longer be delayed, salary approved

Counsel, retainer for 1936 approvedEddy, Walter L., temporary employment as bank relations

man, satisfactory arrangement worked out with

FRBank of Boston

letter to President McKinney setting forth prin-

ciples of administration to be followed, Board

will expect Mr. Evans in charge of bank exami-

nations to report directly to President, per-

sonnel changes, and letter to Mr. Walsh

of nonstatutory duties of FRAgent to bAnk, ap-

proved, approval of salary of Mr. Evans as

Vice President in charge of examinations and

appointment as examiner, other personnel

changes

165

Pages

1/6

6/24

12/24

60

1232

2265-8

1/31 284

2/21 4105/2 957

7/17 1392-6

8/14 1528

12/28 2284

12/28 2285

1/31 282

11/23 2111

12/ 2 2154

8/19 155112/ 2 2153

2/18 3712/26 4271/31 282

1/13 118


166

FRBank of Dallas: (Continued)Staff: (Continued)

Evans, W. J., Assistant FRAgent:

Page°

Bond of, renewal 3/31 711

Resignation to be accepted upon transfer of examinationand research work to banking side of bank 7/17 196

Resignation accepted and salary approved as Vice Presi-dent in charge of examinations, appointment asexaminer approved to also handle securitiesexchange function 8/14 1528


Vice President, appointment as, in charge of ExaminationDepartment to be made 7/17 1595

Elected Vice President and Secretary with no changein salary 10/ 8 1849

Examining force, reply to Mr. Walsh re proposed reorganiza-tion of, approval of transfer of trust examina-tion work from Mr. Neilan to Mr. Betts 8/19 155°

Ford, W. 0., Assistant Vice President, salary, action de-ferred pending return of Mr. Morrison 2/18 57n1,1

Action can no longer be delayed, salary approved 2/26 4'Gilbert, R. R., First Vice President, appointment as, and

salary, action deferred pending return of Mr.Morrison 2/18 371

Action can no longer be delayed, appointment and salaryapproved 2/26 421

Hall, C. C., Assistant FRAgent:Reappointment 12/31 235°Salary approved for 1936 1/31 282

Salary approved, although Board does not feel occupancyof position coincides with principles adopted 7/17 195'

Hallman, G. R., Examiner, salary adjustment, request thatBoard be advised when determined 12/ 2 2154

McKinney, B. A., President, appointment as, and salary,action deferred pending return of Mr. Morrison 2/18 371

Action can no longer be delayed, appointment and salaryapproved 2/26 421

Morton, H. M., Chief Teletype Operator, salary in excess ofgrade, attention called to 1/31 204

Salary reduced to bring within range provided in per-sonnel classification plan 2/21

Neilan, E. P.:Leave in excess of annual, no objection to granting,

to attend Graduate School of Banking 4/16 81Release of, proposed with transfer of work to Mr. Betts 8/19 155'

Rice, MorganB,, appointment as Manager of Research andStatistical Department approved pending furtherconsideration of directors 8/14 1529

Thaxton, E. A.:Appointment as Acting Assistant FRAgent approved '7/17 139°Appointment as Alternate Assistant FRAgent 12/31 250Bond of 7/17 1552


167

Pages

1111Bank of Dallas: (Continued)Staff: (Continued)

True, C. C., salary as Manager of Auditing Department ap-

proved pending approval of revised personnel

classification plan 8/14 1529

Walling, Maudie, salary in excess of grade, attention

called to 1/31 284

Salary reduced to bring within limit provided in per-

sonnel classification plan 2/21 410

Walsh, C. C., FRAgent:Expression of appreciation at continuance of designa-

tion until April 30 and that he will remain

friend of FRSystem, Chairman to make appro-

priate replyFunctions and duties as honorary, reply to query re

3/106/ 5

5441141

Redesignated for period March 1 to April 30 and salary

fixed 2/18 371

Advised that designation will terminate on April

30, /RBank authorized to pay retirement allow-

ance of six months' salary to, or to Retire-

ment System 2/26 429



payment of six months salary upon retirement 4/28 907


Retirement of, letter of appreciation of services 12/12 2215


Wilson, L. R., salary in excess of grade, attention called

to 1/31 284

Salary reduced, still in excess of range provided in

personnel classification plan, approved 2/21 410

Transfers, wire and mail, reply to Governor McKinney that if

proposed circular relates also to latter, there

no objection to changing liability clause 2/6 309FRB :l City:ank of Kansas

!

Bylaws:Amendments in accordance with Board's suggestions of

Feb. 14, letter to Mr. Thames requesting what

action has been taken 5/25 1078

Branch operation, amended bylaws approved 4/20 832

Mail confirmations of telegrams sent by, and by branches, no

objection to discontinuance of 10/19 1916

Personnel classification plan:Changes approved 1/4 29

Revised plan approved, two employees to be continued under

salaries in excess of maximum, salary range

for assistant FRAgent 12/24 2265-8

Reorganization:Appointment of Mr. McAdams as Vice President, reply to

FRAgent Thomas that Board did not request ap-

pointment 9/ 3 1639


168 pages

FRBank of Kansas City: (Continued)

Reorganization: (continued)

Survey, letter to President Hamilton setting forth principlesof administration to be followed, resignation ofAssistant FRAgent McAdams will be accepted whennew assistant FRAgent has been appointed 7/17 1588

Transfer of nonstatutory duties of FRAgent, letter to Mr.Thomas advising that it is desirable for suchtransfer to take place immediately, advice reresignation of Mr. McAdams as Assistant FRAgentand his appointment as vice president, and let-ter to President Hamilton re 8/14 1521

Reserves:Losses, sum authorized for 12/28 2285

Self insurance, authorized to increase and transfer of addi-tional sum to 12/28 2286

Salaries of officers, Chairman Eccles authorized to adviseFRAgent that Board approves, with understandingthat those of Governor and Deputy Governorwere approved until Feb. 29 only 2/18 371

Staff:Alternate Assistant FRAgent, reply to Mr. Thomas re scope of

functions and stating that bylaws seem to re-quire clearly that only the Assistant FRAgentmay serve on executive committee in absence ofFRAgent 9/26 1712

EMployees assigned to lend clerical assistance to examiners,approved, with understanding that none will beassigned permanently to examining work withoutapproval of Board 2/19 378

Examiners, use of certain branch employees to lend clericalassistance approved 5/21 10 62

Hamilton, G. H., President, appointment of, action deferredon, and on salary recommended 2/18

Appointment approved and salary approved 2/26 42/

Helm, J. W., Vice President and Cashier:Leave with pay in addition to annual leave granted,

approved 4/18 821

Salary, action deferred on 2/18 371


Leedy, H. G., Counsel, retainer approved upon understandingthat he will continue to maintain office in bankbuilding and pay rental 2/18

Markey, John P., salary noted with approval, had not pre-viously been approved by Board 1/31

284

McAdams, A. M., Assistant 1RAgent:Leave of absence on account of illness with pay, for six

months, approved 7/29 1441

Resignation to be accepted when new assistant 1RAgenthas been appointed 7/17 1091


PRB

169

Pages

auk of Kansas City: (Continued)

Staff: (Continued)McAdams, A. M.: (Continued)

Resignation, advice that it should be effective on date

of transfer of FIRAgents' nonstatutory duties to

bank, to be appointed vice president and salary

Board will approve, letters to Mr. Thomas and

Mr. Hamilton re 8/14 1527


Vice President, appointment as, reply to FRAgent Thomas

that Board did not request appointment, but

approved designation and appointment as exami-

ner, resignation as Assistant FRAgent 9/ 3 1639

Park, M. W. E., Assistant Cashier:

American Institute of Banking, recommendations re par-

ticipation in, and support of activities of, by

FRSystem 10/30 1983

Rhodes, H. H., Assistant FRAgent:

Appointment as, approved 8/27 1601

Appointment and salary previously approved, reply to

FIRAgent Thomas 9/ 3 1639

Bond of 9/10 1671


Robb, Thomas Bruce, appointment and salary to supervise re-

search and statistical department, memo of

Division of Research and Statistics recommending

approval, approved 10/31 1986

Sanders, T. Gordon, disability retirement allowance, reply

to FRBank of Kansas City authorizing lump sum

contribution by FRBank to Retirement System to

supplement, authorization to all FRBanks 9/28 1784

Thomas, J. J., FRAgent:Appointment and salary as, effective date Mr. Morrison

qualifies as member of Board of Governors 2/ 7 310


Bond of 2/14 354

Designation as alternate member of Federal Advisory

Council, memo re position Board has taken

against service of officers on Council, reply

to be prepared 12/ 1 2147

Letter presented and approved 12/ 7 2185

Honorarium basis, to be advised that Board is consider-

ing placing chairmanship upon 12/ 4 2167

Present at Board meeting 3/31 710

Redesignation on honorarium basis for 1937 and payment

of six months' salary authorized 12/28 2292

Telegram advising of action approved 12/29 2303

Thornton, Ira A., Acting Assistant FRAgent:

Bond of 10/26 1943

Woolley, D. W.:Appointment, temporary, as Acting Assistant FRAgent 5/13 1007


170

ERBank of Kansas City: (Continued)

Staff: (Continued)Woolley, D. W.: (Continued)

Bond ofTelegram to FRAgent Thomas that he should execute

new bond in connection with change of title fromActing Assistant FRAgent to Alternate

Bond ofReappointmentTitle should be changed to Alternate Assistant FRAgent

in interest of Systam uniformityWorthington, C. A,, First Vice President, appointment as,

action deferred, and on salary recommendedAppointment and salary approved

Young, William R., Acting Assistant FRAgent, bond ofFT4Bank of Minneapolis:

Air conditioning system, no objection to entering into contractfor installation of

Bylaws, amendment to eliminate requirement that FRBank stockcertificates be countersigned by FRAgent or anassistant FRAgent

Circular containing digest of Board's rulings and opinions ofFRBank counsel contemplated, opposed by Board

Circular 424 re collection of noncash items, request for actiontaken on recommendation of Presidents' Confer-ence that it be withdrawn pending report ofCommittee on Free Services

Reply to Mr. Peyton that in view of saving of expenses andof no complaints, that there is no objectionto continuing procedure pending further con-sideration by Presidents' Conference

Directors meetings, uniform date for, opposed toEducational program, lectures delivered bi-weekly to officers

and staff on Federal reserve operationsFIRAct, no objection to sale of copies by, and to accounting

method for proceeds, reply to President PeytonGroup life insurance policy, extension for another year noted

with approvalIndebtedness and outside business affiliations, reports of two

new employees submitted, noted that Mr. Mosimancontemplates selling hats to friends, no objec-tion

Leave policy, review to be made of practice of considering allleaves other than annual, as sick leave

Library, reply to Mr. Peyton re action in making available tomember and nonmember banks in district and thatother FRBanks are being advised re

Letter to RBank of Philadelphia on scope of servicePersonnel classification plan:

Changes approvedRevised plan approved, salary range for Assistant FRAgent

5/26

9/ 39/2512/31

8/27

2/182/26

10/26

11/18

8/15

3/3

7/ 2

7/172/ 6

10/27

3/12

4/15

3/24

7/23

10/1611/ 6

2/2112/24

page

1085

16017602560

1601

5114211945

2094

1551

495

1297

1599306

1960566

6°

1421

1900

201/

4090

226fr'


171

tIXik Of Minneapolis: (Continued)

Personnel classification plan: (Continued)

Salary increases for 88 employees, reply to President

Peyton that as some are not in accordance with

personnel classification plan and new plan is

not acted upon yet, they be submitted to

BoardPolicies of, committee of Messrs. Clark,Grangaard appointed to

visit Washington to discuss, with Board

Prior service liability, reply to Mr. Peyton re authorization

for charge off of, over five year period, FRBank

had authority to set aside reserve on liability

on Jan. 1Reorganization plan of, submitted by President Peyton, Mr.

Broderick to take up at Board meeting on

April 28Plan submitted in memo of Ma.. Broderick, recommendations of

Mr. Broderick approved and authorized to advise

directors Board will approve plan upon formal

adoptionContemplated dismissals have been thoroughly investigated

by Mr. Drinnen, suggestion made that employment

of proposed new persons be deferred as long as

practicableSalary adjustments, transfer of examination and research

work to operating side of bank, duties of honor-

ary FRAgent and of Assistant FRAgent

Securities function, advice to Mr. Peyton that Board has de-

termined that work should be transferred to bank-

ing department and outline of principles of ad-

ministrationReductions of capital debentures or preferred stock, author-

ity previously granted FRAgent to approve

transferred to President

Nonstatutory duties of nAgent, plan of transfer contem-

plated appointment of vice president in charge

of examinations, appointment of Mr. Swanson was

noted with approval, appointment as examiner

approvedReserves:

Helena branch building, authorized to set aside Special

reserve to establish 10070 reserve thereon 12/28 2284

Losses, sum authorized for 12/28 2285

Profit on sale of Government securities to System Open Mar-

ket Account, reply to Mr. Peyton on treatment of 7/17 1397

Pages

7/17 1397

2/6 308

1/13 120

4/24 867

5/1 938

5/1 942

6/29 1266

7/20 1408

8/29 1618

9/ 3 1638

Salaries:Changes incident to reorganization, advice to Mr. Peyton

that those within personnel classification plan

do not need prior approval of Board 6/29 1266


172 pages

FRBank of Minneapolis: (Continued)

Salaries: (Continued)Fixed for 1937 at present rate, Board will take no action

until recommendations of first directors' meet-ing in January, in accordance with establishedpractice 11/13 2058

Increases for 88 employees, reply to President Peyton that as some are not in accordance with personnelclassification plan and new plan is not actedupon yet, they be submitted to Board 7/17 1397

Increases for three employees over maximum in old classifi-cation plan, but not in new plan, approved 7/31 1465

Officers, reply to Mr. Peyton that he will be advised shortlyof action on recommendations and approving pay-ment of, at 1935 rates for present 2/ 6 306

Officers, approved where they are same as received at endof 1935 and no objection to payment of othersalaries at 1935 rate 3/10 545

Staff:Assistant FRAgent, to be appointed to carry on duties in

connection with placing of FRAgent's office onhonorary basis, qualifications 6/29 1269

Carlander, John:Appointment as alternate Assistant FRAgent 7/11 13:39Bond of 7/18 141'Reappointment 12/31 234:,

Counsel, retainer approved for 1936 3/10 543Driscoll, R. E, salary increase approved, exceeds maximum

in old personnel classification plan, but notin new plan 7/31 1466

Dunlop, F. C., Auditor, salary decrease recommended in re-organization plan 5/ 1 959


FRAgent, position to be placed on honorarium basis at endof this year 2/26 426

First Vice President, position not filled at directors'544meeting Feb. 24 3/10

Geery, W. B.:Appointment as Class C director and FRAgent, Chairman

authorized in his discretion to tender, salary370

fixed 2/18 428Appointment and salary approved 2/26

No objection to FRBank making announcement re ap-pointment 2/27 441

507Bond of 3/ 5Honorarium basis, to be advised that Board is consider-

ing placing chairmanship upon 12/ 4 2161Redesignation for 1937, on honorarium basis 12/28 220

Salary, Board advised on Feb. 26 of approval of, forremainder of current year 3/10 544


FIRBank Of Minneapolis: (Continued)Staff: (Continued)

Gilbertson, A. E., salary increase approved, exceeds maximum

in old personnel classification plan, but not

173

Pages

in new plan 7/31 1465

Jones, Harry C., payment of six months salary in lump sum

or six monthly installments authorized on in-

voluntary separation 4/2 726

Larson, A. R., Assistant Cashier, salary increase recom-

mended in reorganization plan 5/1 939


Larson, E. B., salary increase exceeds maximum in old per-

sonnel classification plan, but not in new

plan 7/31 1465

McConnel, H. G.:Appointment as Assistant FRAgent in connection with re-

organization plan, recommendation of 5/1 939

Appointment and salary as Assistant 1RAgent, other

duties do not coincide with Board's view of

position, approved until end of year and to be

reviewed in connection with 1937 budget 7/11 1339

Bond of 7/18 1401


Mills, Albert W., alternate for FRAgent, bond of 1/9 86

Mostman, Warren G., noted that he contemplates selling hats

to friends, no objection 3/24 654

Peterson, W. E., Assistant Cashier, salary increase recom-

mended in reorganization plan 5/1 939


Peyton, John C.:Appointment as President, Board willing to approve,

and to approve salary up to certain limit 2/13 370

Appointment, and salary for period March 1 to Dec. 31,

resignation as Class C director and FRAgent 2/24 416

No objection to FRBank giving out announcement of

appointment 2/27 441

Helena Branch, present at meeting of Board to discuss

new building for, question of logical location,

present building to be repaired pending comple-

tion of study of branches by Board 11/25 2120-2

Invitation to speak before National Association of

Supervisors of State Banks, request for sug-

gestions, to be requested to speak on benefits

of membership in IRSystem 8/ 4 1478

Leave for from six weeks to two months to visit Europe,


Resignation as FRAgent and Class C director, and appoint-

ment and salary as President 2/24 416

No objection to FRBank giving out announcement of

appointment 2/27 441

Salary fixed for period Jan. 1 to Feb. 29 3/10 544


174 page'

FRBank of Minneapolis: (Continued)

Staff: (Continued)Peyton, J. N.: (Continued)

Salary, Board advised on Feb. 24 of approval of, forremainder of 1936

Visit to Washington planned, reply suggesting defer-ment until November 10, when Mr. Broderick willbe present

Powell, O. S., Assistant FRAgent:Addresses including discussion of excess reserves, let-

ter to, requesting avoidance of current policyproblems

Resignation accepted and salary as Vice President incharge of research function approved

Salary and appointment, Board approved for 1936 on Dec.3, 1935

Vice President, to be elected, Board will accept resig-nation as Assistant FRAgent when new AssistantFRAgent is appointed

Appointment and salary as First Vice President, ap-proved

Preston, Otis R., Assistant Cashier, salary increase recom-mended in reorganization plan

Salary approved

Rast, L. E., salary advance upon resignation as AssistantCashier, reply to Mr. Larson that it should notbe included in report requested Nov. 22, X-9366

Swenson, E. W.:Resignation as Assistant IRAgent accepted, and salary

as Vice President in charge of examinationsapproved

Salary as Assistant FRAgent fixed for 1936Vice President, to be elected as, Board will accept

resignation as Assistant FRAgent when new Assis-tant FRAgent is appointed

Appointment was noted with approval, appointment asexaminer approved

Timberlake, H. C.:Appointment as Alternate Acting Assistant FRAgentBond ofReappointmentSalary increase recommended and promotion to Statis-

tician, no action until after first directors'meeting in January

Yaeger, Harry, Vice President and Secretary, appointment as,advice of, salary approved for remainder of1936, understood that he is to serve as Secre-tary and request for confirmation of service

Harry I., Vice President and Cashier, appointmentas, advice of, salary approved

Visit by Mr. Broderick, report re, and re progress in survey oforganization

Ziemer,

3/10 544

10/29 1965

5/26

7/31 1465

3/10 544

6/29 1269

11/20 2106

5/ 1939

6/29 1266

1/ 4 29

7/31 1461!3/10 5'

6/29 1269

9/ 3 1659

7/117/27

12/31

3 0 94 5 02 34 9

11/13 200

3/10544

3/10 544

5/12991


114 J1k of Minneapolis: (Continued)Visit of Mr. Broderick to, report re, feeling that Helena

Branch is not necessary, but if continued, new

quarters should be provided11-Bank of New York:

Banco Central de la Republica Argentina, arbitrage transactions,

letter from Mr. Sproul re desire to include in

operations by FRBank, memo of Mr. Dreibelbis

that negotiation was in accordance with author-

ity previously granted, approvedBanco Central de Reserve de El Salvador, loan to, authorized by

directors, memo of Mr. Dreibelbis re failure

of bank to secure permission for negotiations,

letter and telegram approving transaction and

calling attention to violation approved, Mr.

Ransom voting noCopies of correspondence re opening of account of, and

granting of loan on gold, acknowledgement of

receipt by BoardBanco de Mexico, silver earmarked by FRBank of San Francisco

for, reply to Mr. Knoke that Board assumes it

is held as agent for FRBank of New York under

agreement with, request confirmationBanco de Venezuela, loan against gold approved in connection

with exchange control, participation by FRBanks

approved, charge made for custody of gold which

will be removed if account is opened

Advice to FRBanks, approving participationsBank for International Settlements:

Account with, proposed reduction in, approved, IRBank mem-

bers of F.O.M.C. to be circularized for approval

Advances against gold for foreign central bank requested

under authorization of Board of Nov. 28, 1934,

Mr. Sproul requested for further details

Opinions of !ft.. Goldenweiser and Mr. Gardner that trans-

action should be approved, question of Federal

Open Market Committee action need not be con-

sidered, question of entering in policy record

Mr. Eccles and Mr. McKee offer no objection by tele-

phone, transaction approved and to be submitted

to Treasury (which did not object) ,Bank of France, account maintained with, devaluation of franc,

report of Mr. Ransom that President Harrison

advised re problem re balance in account in view

of possibility of, he had determined to take no

actionMr. Harrison has nothing to add re situation, advised of

views of Board and staff, reports no new develop-

ments in French situationBank of Italy, repayment of participation in syndicate credit to

National Bank of Hungary by latter, no objection

to IRBank assenting to

175

Pages

8/14 1525

9/16 1715

9/ 4 1646

9/16 1717

11/ 6 2014

7/22 14187/30 1454

5/1 946

9/28 1777-8

9/28 1779

9/28 1782-4

9/24 1?55

9/25 1759

2/14 355


176 pages

FRBank of New York: (Continued)

Bank of Italy: (Continued)

No objection to confirmation of assent in view of additionalinformation

Bank relations reports, letter to Mr. Gidney re scope of infor-mation desired by Board and requesting such re-ports rather than individual reports on banks

British American Tobacco Co., Ltd., v., employment of Covington,Burling, Rublee, Acheson and Shorb to defend,fees of, may be handled on system basis if de-sirable


Central Bank of China, one-way account opened with, approvedand participation by other FRBanks authorized

Charge offs, Montauk Building, authorized to charge off assessedvaluation of building and incidental costs ofpurchase of property2284

Commonwealth Bank of Australia:

Reading, Sir Claude, visit to, office made available to,question of procedure to comply with Sec. 14(g)of FRAct, conference to be held with officers,letter to FRBank

Covington, Burling, Rublee, Acheson and Shorb engaged to defendsuit brought by British American Tobacco Co.,Ltd., fees to be approved by Board, no objec-tion to handling on System basis


Danmarks Nationalbank, agreement, copy of letter from FRBank ofNew York to, re terms of carrying account, notedthat change in title afforded opportunity tosecure new agreement

Reply to Mr. Knoke noting that correspondent relationshipshave never been established with, although smalldeposit is kept with FRBank of New York

Examinations, report as of Tan. 4

Foreign banks, correspondence with, and correspondence withFRBanks re participations, Board requestscopies of

Foreign banks and bankers, negotiations with, question of pro-cedure raised in connection with visit of SirClaude Reading, conference to be held by Boardto determine procedure to comply with Sec. 14(g)of FRAct

Late for conference, memo to be prepared for Chairman, Mr.Ranson to arrange with President Harrison tocane to Washington week of Oct. 12, with Messrs.Sproul and Knoke

Relations with, statement of procedure, approved by Boardand letter to Mr. Harrison re procedure to befollowed in acquainting foreign central bankswith responsibilities of Board

(See also Foreign banks and bankers)

2/26 456

11/ 4 1991

1/10 1°1

1/31 260

12/28

9/11 1616

1/10 1°3'

8/ 7 15°13

16098/284/ 4

740

8/25 1563

9/11 1616

9/22 1147

12/29 21°'


nk of New York: (Continued)

Insurance, group life policy, reply to Mr. Sailer re increase

in cost to, that there is no objection to con-

tinuing indefinitely

National Bank of Hungary:Second syndicate credit, reply to Mr. Sproul noting letter

from bank and suggestion that bank start to

formulate program for capital repayment

Repayment of full participation in syndicate credit of Bank

of Italy by, no objection to FRBank assenting to

1/20

1/16

2/14

177

Pages

176

148

355

No objection to confirmation of assent in view of addi-

tional information 2/26 435

Renewal of credits to, proposed by Bank for International

Settlement, proposed letter containing views

and terms of FRBank, no action to be taken

until position of other FRBanks is determined 8/19 1546

Letter approved 8/25 1580

Action ratified 8/27 1597

Renewal of credits discussed by Mr. Szynczak with

Sproul 9/11 1680

Renewal of credit, proposal of FRBank to extend for one

month rather than nine so that it may have bene-

fit of comments of other participants on capital

repayments, approved 10/ 6 1837

Renewal of credit, reconsideration by FRBank directors and

authority to renew for nine months, approved 10/16 1890-7

Second syndicate credit, reply to Mr. Sproul approving

proposal for interest payment, FRBank should

make it clear that action in no way impairs

right of requiring further interest payment or

modification of agreements 10/14 1879

National Bank of Nicaragua:

Extension of loan of Nov. 6, 1935, for sixty days on under-

standing that no further extension of this or

any other loan will be considered 2/26 435

Loan on security of gold and participation by other FRBanks

approved 8/31 1625

National Industrial Conference Board, no objection to FRBank

furnishing information requested by, on circu-

lar "Personnel practices covering salaried em-

ployees" 8/13 1522


Changes approved1/27 217

Revision of, separate memo re to be submitted by Mr. amead 12/24 2266

Secretary to President, salary range increased, approved12/29 2308

Wage scale of building personnel, request for approval of

change lowering, to be considered in connection

with a survey of entire organization and per-

sonnel of MBank 3/ 4 503

Letter to FRBank advising of action3/13 571


178 Peg°


Pitney, Hardin and Skinner, reply to Mr. Logan approving feefor, in connection with loan to Passaic PrintWorks, Inc. and retention approved, if neces-sary, to defend title to mortgaged propertysold

Employment approved in connection with loan to TownsendLawn Mower Co. under Sec. 13(b) of RAct

Payment of fee for legal services in connection with in-debtedness of Passaic Print Works approved

Prior service liability under Retirement System, reply toPresident Harrison re request for change inmethod of reporting contributions on ac-count of

Reading, Sir Claude, visit at bank, office made available to,question of procedure to comply with Sec. 14(g)of FRAct, conference to be held with officers,letter to IBBank

Reichsbank:Jaenicke, Reichsbankrat, advice that IRBank intends to

discuss account with, letter to be preparedLetter to Mr. Knoke re

Reorganization:Martin, S. 0., President Harrison desirous of retaining

services of, pending completion of plan of re-organization

Survey, letter to President Harrison re principles to befollowed, salaries for Messrs. Gidney andDillistin as Vice President and Assistant VicePresident approved

Transfer of nonstatutory functions of FRAgent to bank au-thorized effective October 30

Reserves:Depreciation on "other real estate", authorized to set

aside usual sal for

Head office building, authorized to set aside special re-serve toward reducing book value

Losses, authorized to set up additional reserve againstand for self insurance

Retirement of officers, special contributions to RetirementSystem, committee to visit Board to discuss,and increase in maximum salary from q2,000to 4;18,000

Ruling re classification of labor union funds as savings de-posits, views of FRBank to be considered by Mr.Ransom in reconsideration of

Salaries of officers for 1936, letter to Mr. Case approvingcontinuance at 1935 rates with understandingthat they are approved for senior officers onlyuntil Feb. 29, and advising that salary policyis being left for determination of new Board

7/ 9 1V36

11/10 205

12/ 2 216°

5/11 996

9/11.

12/ 1 214512/ 3 2165

3/10 541

9/14 1698

10/30 1982

12/28 2286

12/28 2284

12/28 20

12/23 22°

6/3o

1/31

lob


11Nalk of New York: (Continued)Salaries of officers: (Continued)

Recommendations effective March 1, involving increases for

six officers, motion to approve where at pre-

vious rate and others at same rates if fixed

thereat, substitute motion to limit certain

salaries and retire Mr. Sailer, action deferred

Approved where at same rate as on Feb. 29, action deferred

on increases pending survey of _MBank salaries

and approved at Feb. 29 rates if fixed thereat

Junior officers, letter from Mr. Young recommending cer-

tain increases effective as of Jan. 1, or July

1, approved effective July 1Committee to visit Board to discuss proposed changes

Staff:

Assistant and alternate Assistant FRAgents, advice to Mr.

Gidney to make appointmentsBarnett, Marie A., extension for six months of temporary

assignment to lower salaried positionBetts, I. F., temporary appointment as examinerBurgess, W. Randolph, Vice President:

Graduate School of Banking, no objection to acceptance

of invitation of Mr. Stonier to conduct course

next summerReserve requirements of member banks, to be invited to

meeting of Board on excessPresent at meeting of Board to discuss increase in,

opinion re effect on domestic capital marketSalary, motion to limit to amount received by Mr.

Sproul, action deferredCampbell, Frederick W., appointment as assistant examinerCase, J. H., FRAgent:

Redesignated March 1 to April 30 and salary fixed


30, FRBank authorized to pay to Retirement

System sufficient to bring allowance to amount

it would have been if he were 65 on April 30

and also to pay to, or to Retirement System,

retirement allowance of six months' salary



authorization for payment of six months' salary

upon retirementResignation as Class C director, not in position to con-

tinue as Chairman on honorary basisRetirement, reply to letter from directors requesting

continuation of services ofRetirement allowance, letter from Director Woolley

requesting authority to increase contribution

by bank to 12 months' salaryReply to Mr. Woolley refusing authority

Salary approved for period Jan. 1 - Feb. 29

179

Pages

3/6 527

3/10 542

7/15 136812/23 2263

9/14 1702

8/ 1 14704/25 889

9/11 1682

4/21 835

4/22 846-7

3/6 527

6/25 1245

2/18 367

2/26 429

4/28 907

5/1 944

4/17 822

5/1 9475/12 10031/31 277


180


Staff: (Continued)Clifford, Joseph t., appointment as examinerCooper, Norman C.:

Appointment at present salary as Alternate AssistantIRAgent

Bond of Crosby, W. Edgar, Special Assistant to FRAgent, resigna-

tion ofDavis, Norman P.:

Appointment as Special Assistant to FRAgent recommended,with increase in salary, referred to new Board

Advice to _MBank of actionSuggestion of Mr. Case that appointment be approved

without awaiting final action on salary in-volved, reply that suggestion will receive con-sideration

Present at meeting of Board to discuss Regulation USalary increased

Dempsey, Edward A., extension of temporary assignment tolower salaried position

Dillistin, W. H.:Appointment and salary as Assistant Vice President,

designated examinerAdvice of appointment, salary previously approved

Resignation as Assistant YEAgent in connection with

Salary approved for 1936reorganization of bank

Diringer, Charles E., continuation of temporary assignmentto direct Works Relief Check section for threeadditional months approved

Continuation of temporary assignmentDouglas, Edward 0., Manager, leave with pay for one week in

Downs, F. S., Assistant FRAgent:addition to regular annual leave approved

Appointment as Manager of Bank Relations proposed,salary approved for

Salary approved for 1936Mrs., reply to Mr. Case that there is no objectionDuvernet,to replacement with librarian

Elmer, Parke R., appointment as examinerGidney, R. M.:

Appointment and salary as Vice President in charge ofexaminations, designated examiner

Advice of appointment, salary previously approved,Board opposed to his retaining title of Assis-tant FRAgent pending appointment of FRAgent

Present at conference re condition of Perth Amboy TrustCo. and Raritan Trust Co., Perth Amboy, N. J.

Resignation as Assistant ERAgent in connection with re-organization of bank


page('

2/28 454

9/29 17r,10/29 19'

11/ 3 1991

1/30 239

1/31 276

2/26 435

4/22 859

7/15 1369

8/ 1 147°

9/14 1699A9/30

10/30 196,211/31 27

623/126/27

1263

10/10 18°

9/141/31

-71211

2/25 421

2/28 454

9/14 1699

9/30 18°6

9/11 16°

10/30 198!1/31 277


of New York: (Continued)Staff: (Continued)

Graduate School of Banking, FRBenk to grant leave with pay,

181

Pages

in addition to regular annual leave, covered

by Board's authorization of April 16, also to

pay other basic expenses 4/28 905

Harrison, George L., President:Appointment as, approved 2/18 367

Conference on procedure in negotiations with foreign

banks and bankers, to be held Oct. 30 10/27 1945

Present at conference 10/30 1967

Devaluation of French franc, Secretary Morgenthau re-

quested confidential assistance in connection

with, statement re 9/26 1767

Foreign loans to central banks, feeling that they were

not different in principle to loans to domestic

banks, reported by Mr. Morrill in connection

with policy record entry 9/28 1779

Reserve requirements of member banks, to be invited to

attend meeting of Board on excess 4/21 835

Present at meeting of Board to discuss increase,

feeling that action should be taken 4/22 846-7

Feeling that there is less risk involved in action

at present, and views re anticipated results 4/22 849

Salary approved, March 1 to Dec. 31 2/18 367

Senator Glass opposed to proposed outside representa-

tion on Federal Open Market Committee, report on 2/11 326

Hartley, John H., Chief, salary increase not approved 1/31 283


Hudson, Alfred J.:Appointment to assist FRAgent in issue and retirement

of FRnotes to continue, request advice as to

whether he will remain on FRAgent's payroll,

should remain solely responsible to Agent or

Board 11/ 6 2008

Termination of authority to act for FRAgent in issuance

and retirement of FRnotes, bond to be released 12/ 8 2190

Kimball, Herbert H., Assistant Vice President and Secretary,

salary increased 7/15 1369

Knoke, L. W., Assistant Vice President, devaluation of

French franc, aided Treasury in negotiations 9/26 1768

Librarian, authority to replace one resigned 2/25 421

Logan, Walter, Vice President and General Counsel, present

at conference with Board regarding relations

of RBanks with foreign banks and bankers 10/30 1967

Martin, S. U., continuance of services in connection with

industrial loan program, Chairman Eccles author-

ized to discuss necessity of, with Governor

Harrison 2/18 372

Report of Chairman of discussion of, with President

Harrison, and latter would like to retain pend-

ing completion of plan of reorganization 3/10 541


182pages


Staff: (Continued)

Martin, Seldon 0.: (Continued)

Termination of temporary appointment in connection withindustrial loans, Mr. Broderick to discussfurther with President Harrison 7/15 15°

Employment placed on half-time basis, continuance afterclose of year to be governed by need for ser-vices 9/14

Messengers, payment of salary of Messrs. Coleman, Leonard,McCabe and O'Leary in excess of grade authorized 12/29 2309

Miller, Silas A., Manager, Securities Department, salary in-3691creased 7/15 889

Neilan, E. P., temporary appointment as examiner 4/25Appointment on permanent basis approved 9/30 18°7

285Osterhus, Gustav, salary increase not approved 1/31

1369Salary increased 7/15

Paul, VVillian L., appointment as assistant examiner 6/25 1245

Phelan, Arthur, Assistant Vice President, salary increased 7/15 1369

Phinney, Robert H.:Appointment at present salary as alternate assistant

l'WFRAgent 9/29 - 4

Bond of 10/29 1'9'6

Pond, Charles N., appointment as assistant examiner 6/25 124-

Roelse, H. V.:Appointment as Assistant Vice President propOSed, salary

170approved for 9/14la°Appointment, salary previously approved 9/30

Resignation as Assistant RAgent in connection with re---

organiion of bank 10/30

Salary approved for 1936 1/31Rounds, L. R., Vice President:

Interpretation of Regulation T, letter to Singer, Deanand Scribner re 9/26 1774

Salary, motion of Mr. McKee to limit to amount paid Mr.Sproul, action deferred 3/ 6

Sailer, L. F., Vice President, salary, motion of Mr. McKeethat it be approved only for six months and thatpayment be authorized to be made to RetirementSystem to provide for allowance equal to that hewould receive if he were 65, action deferred 3/ 6 607

Feeling of President Harrison that Board should approvesalary at least until August when he will beeligible for retirement, approved 3/10

Continuation of services and payment of salary requested,until end of year, Board determines to adhereto original position that Mr. Sailer be retiredAug. 31 8/14 1g40,6

Discussion of, letter of Mr. Harrison and statement by 8/19 154/

Motion to adhere to position lost and voted to grantcontinuation of services until Dec. 31 8/19 104

Advice to FRBank of action 8/20 30v


183

ank of New York: (Continued)Staff: (Continued)

Sailer, L. F., Vice President: (Continued)

Continuation of services, President Harrison advised

directors of approval until Dec. 31, and ex-

pressed appreciation, directors surprised at

finality of action, Board not disposed to re-

considerLetter from Mr. Young, discussion of scope of Board's

authority, circular to be prepared re bringing

all correspondence re policy and salaries to

attention of directors, and letter to Mr. Young

to be prepared outlining considerations under-

lying Board's actionLetter to Mr. Young in accordance with above action

Sanford, Horace, Assistant Secretary, salary increased

Sheehan, W. F., Chief Examiner:

Pages

9/11 1675

9/22 1743-6

9/30 1802-5

7/15 1369

Assignment to Board for final work on State member bank

examination report form requested, Board to pay

actual expenses 11/23 2111


Snyder, John, continuance of assignment to lower salaried

position for further six months approved 10/19 1904

Sproul, Allan, First Vice President:Appointment as, approved and salary Board is willing to

approveConference on procedure in negotiations with foreign

banks and bankers, to be held Oct. 30

Present at conference

Stryker, Jere V. D.:Appointment as Assistant FRAgent at present salary,

Board will make exception to requirement that

such employee handle issuance and retirement of

FRnotesBond ofContinuance also as Chief of Records and Analysis Divi-

sion of Bank Examination Department

Duties of Notes Issue Department assigned to section

under direction of, assumed that any duties

performed by department in connection with

issuance and retirement of FRnotes are assigned

to, as Assistant FRAgent, confirmation re-

questedDuties formerly performed by Note Issues Department, re-

quest if any have been assigned to, in capacity

ofSullivan, Peter F., appointment as assistant examiner

Treiber, W. F., Assistant Counsel, salary increased

Van Malder, Mrs. Mae, extension for six months of temporary

assignment to lower salaried position

2/26 426

10/27 1945

10/30 1967

9/29 179810/29 1962

10/22 1928

11/ 6 2009

12/ 8 21916/25 12457/15 1369

8/ 1 1470


184 pave

FRBank of New York: (Continued)Staff: (Continued)

Vice President in charge of examinations, to report directlyto Board of Governors re any violations of lawby officers and directors or any unsound prac-tices, pending appointment of FRAgent

Walton, A. Chester, appointment as examiner, understood thatarrangements will be made to liquidate indebted-ness to member bank

Williams, John H., Vice President:Devaluation of French franc, aided Treasury in negotia-

tionsExcess reserves, to be invited to attend meeting of

Board April 22Present at meeting of Board to discuss increase in

reserve requirements of member banks, analysisof foreign situation in connection with

League of Nations financial committee, Board not willingthat he accept appointment while connectedto,with RSystem

Mr. Williams not to be considered further, report of

E

Chairman re discussion with President HarrisonReview of present economic situation at meeting of

Board with Presidents' Conference, statingfurther stimulation of recovery is now unneces-sary, easy money policy should not be reversed

Willis, Valentine, Assistant Vice President, salary in-creased

Survey of organization, personnel and salaries, wage scale ofbuilding personnel, request for approval ofchange in personnel classification plan lower-ing, to be considered in connection with

Letter to FRBank advising of action

Thrift activities carried on for employees, no objection tofurnishing requested information re, to NationalIndustrial Conference Board, Inc.


Bank acknowledgment of receipt of and

9/30 1°

2/28 454

9/26 1768

4/21 856

4/22 048

12/18 2251

12/29 2296

11/19 2102

7/151369

3/13 51*

4/25 094

10/23

3/6 529

3/ 519

12/11 22°8

12/ 2 210

relations reports, advicethat they are satisfactory194°

Bylaws:Amendment

Executive

Examinations,

Fee for Judge

eliminating provision for Comptroller in chargeof audit department

committee, revision providing that presidentshall be a member and chairman of, memo of Mr.Vest re, action deferred until receipt of allIRBanks' bylaws

control over securities compartments in vaultcriticized, advice requested re any actiontaken

Cole in case in connection with tax anticipationnote of Ocean City, N.J., FRBank did not complywith instractions re prior approval, approved


PRgatik of Philadelphia: (Continued)

Library service, reply to Mr. Austin re discontinuance number

of years ago and re such work recently in-

augurated at FRBank of Minneapolis

Loans outstanding at time of banking holiday, statement of Mr.11/ 6

185

Pages

2017

Wayne re collections as example of Governor

Norris' ability 3/3 483

Operation not noteworthy for economy or efficiency 3/3 484

Personnel classification plan:Changes approved

1/11 102

Revised plan approved, maximum salary was set for position

Staff:

Austin, R. L., FRAgent:Redesignated March 1 to April 30 and salary fixed


30, FRBank authorized to pay retirement allow-

ance of six months' salary to, or to Retirement

SystemRedesignation for remainder of year upon honorary basis


payment of six months salary upon retirement

Redesignated for 1937, on honorarium basis

Salary approved for period Ian. 1 - Feb. 29

Cobb, William D., salary in excess of personnel classifica-

tion plan grade approved

Counsel, retainer approved forDavis, W. J.:

Appointment as First Vice President, advice of con-

sideration being given to, from Mr. Wayne,

Board agreeable toAppointment and salary as Vice President and advice that

when FRBank advises of appointment of Mr.

Drinnen, Board will approve salary

Salary approved for period from March 1 to Dec. 31

Salary approved

of Manager of Transit Department with under-

standing that bank would request Board's ap-

proval of salary over maximum for Mr. Cobb,

maximum salary fixed for Assistant FRAgent

Quarters, building, reply to Mr. Sinclair offering no objection

to expenditure in excess of budget, caused by

N. R. A. program

Reorganization, survey, letter to President Sinclair stating

principles to be followed, appointment of Mr.

Bill as Vice President in charge of examinations

Reserves, authorized to transfer sum to losses and contingencies,

to restore after charging losses in connection

with sale of assets of Guarantee Trust Co.,

Atlantic CitySalaries of officers for 1936, approved at 1935 rates with un-

derstanding that they are approved for senior

officers only until Feb. 29

12/24 2265-8

5/2 957

9/ 8 1655

12/30 2333

1/31 277

2/18 367

2/26 429

4/28 90712/28 22901/31 277

12/29 23091/31 278

3/10 541

5/12 9992/27 4405/14 1020


186

FRBank Of Philadelphia: (Continued)

Staff: (Continued)Donaldson, L. E., Assistant Vice President, salary approved

for period March 1 to Dec. 31Drinnen, Frank J.:

Appointment and salary as First Vice President, dis-cussion of, FRBank to be advised that it mightbe better to appoint as Vice President and re-quest letter asking for release

Appointment and salary as First Vice President approved,letter that appointment was completely on respon-sibility of directors noted

Resignation as FRExaminer

Earl, S. R., Assistant Cashier, salary, advice of approvalcontained in Board's letter of Jan. 31

Examiners and assistant examiners, no objection to retentionof temporary for balance of year, survey to bemade later to determine need for transfers topermanent positions

Examiners, special assistants to, Board approves designationof certain clerical employees as

Fenner, Zell G., Acting Assistant FRAgent, appointment pre-viously approved

Board will reply later on reappointmentHill, E. C.:

Appointment and salary as Vice ?resident in charge ofexaminations approved


Hutt, Wm. H.:Appointment and salary as First Vice President, advice

of, action deferred by BoardCommittee of directors to meet with Board March 3

re, motion by Mr. McKee that appointment be dis-approved, substitute motion to defer actionuntil meeting with directors carried

Committee of directors present at Board meeting,discussion of qualifications as President,approval of Board not necessary for appoint-ment as Vice President

Appointment as Vice President, salary approvedAppointment as :rirst Vice President approved, Board not

willing to approve salary fixed by directors,Chairman Eccles confers with Mr. Wayne by tele-phone, salary which Board will approve, Mr.Morrison and Mr. McKee voting "no"

Reply to Mr. Austin that Board advised of approvalof appointment on March 13 and rate at whichBoard would approve salary

Resignation of, payment of six months' salary to, or toRetirement System authorized

McCreedy, Wm. G., Assistant Vice President, salary approvedfor period March 1 to Dec. 31

Salary approved

2/27

5/12

5/145/20

2/27

3/ 3

3/ 3

9/ 812/31

9/ 81/31

2/27

2/29

3/ 33/ 4

3/13

3/20

5/ 1

2/278/18

Pages

999

1001056

44°

487

16602349

1656ele

461

4,01600

569

950

440

15s


IIREank of Philadelphia: (Continued)

Staff: (Continued)

McIlhenny, C. A., Vice President, salary approved for period

187

Pages

March 1 to Dec. 312/27 440

Moore, Raymond M., General Auditor, appointment and salary

approved3/ 6 529

Morris, Glenn K., Assistant Cashier, salary, advice of ap-

proval contained in Board's letter of Jan. 312/27 440

Salary approved8/18 1535

Norris, Geo. W., President:

Appointment and salary as, Board to adhere to policy

re age limitation and letter to Chairman re-

fusing approval of2/27 438

Committee of directors to meet with Board March 32/29 461

Committee of directors present at Board meeting

re, Board to adhere to policy3/ 3 477

Federal Open Market Committee, election as member of,

by Federal Reserve Bank of Cleveland, reply to

Mr. Strater that action is premature as he has

not been appointed President of IRBank2/19 379

Retirement of, payment of six months' salary authorized,

not clear whether payment is to be to, or to

Retirement System 3/20 618

Post, A. E., Assistant FRAgent:

Appointment also as Secretary, with salary for each

position, approved with understanding that it

will be reviewed in connection with budget 9/30 1807

Continuance at present salary not in accordance with

Board's policy, request that satisfactory

arrangement be made 9/ 8 1659

Reappointment12/31 2349


President and Vice President, Chairman Eccles authorized

to discuss with directors of, appointments for

terms beginning March 1 2/18 367

President, committee of directors present at meeting of Board,

memo re appointment of Mr. Norris, review of

Board's policy re appointment of men over 70

years of age, re effect of Retirement System and

discussion of qualifications3/ 3 477

Mr. Hutt had been groomed to succeed Mr. Norris3/ 3 482

Board to adhere to policy, no facts presented to warrant

change in general policy, committee advised,

qualifications and status of Mr. Hutt and Mr.

Sinclair3/ 3 482-5

Rehfuss, J. Frank, Acting Assistant FRAgent, appointment

previously approved9/ 8 1660

Appointment as Alternate Assistant FRAgent12/31 2349

Reid, Margaret J., appointment as Acting Assistant FRAgent,

Board will reply re later 12/31 2349


188 pages

FRBank of Philadelphia: (Continued)Staff: (Continued)

Sinclair, J. S.:Appointment as President, advice of consideration being

given to, from Mr. Vvayne, Board agreeable toAppointment approved, Board unwilling to approve salary

fixed by directors, Chairman confers with Mr.Wayne by telephone, salary which Board willapprove, Mr. Morrison and Mr. McKee voting "no"

Reply to Mr. Austin that Board advised of approvalof appointment on March 13 and rate at whichBoard would approve salary

Considered as executive officer of FRBank because noappointments as President and First Vice Presi-dent have been approved

Salary approved for period March 1 to Dec. 31Toy, James M., Assistant Cashier, salary, advice of approval

contained in Board's letter of Jan. 31FRBank of Richmond:

Bank relations reports, letter to Mr. Garrett re scope of infor-mation Board desires and advising that it doesnot desire reports on individual banks

Collateral for FRnotes, no objection to continuing to haveAlternate Assistant IRAgent Gibson hold singlecontrol of paper pledged by FRBank as

Edwin Bennett Pottery Co., anployment of Hinkley, Hiskey andBerger as special counsel in case of, author-ized under new conditions for employment ofspecial counsel

Employees' loan fund, establishment approvedHinkley, Hiskey and Berger, employment as special counsel in

Edwin Bennett Pottery Co. authorized under newconditions for employment of special counsel


Accounting and Planning Department, two managers shown insalary list, request advice as to correction

Changes at head office and Baltimore branch approvedChange approved to provide increase in salary range for

"Mechanic", position for which Mr. Davison waspaid in excess of grade

Mechanic, attention called to salary of G. E. Davison shownin excess of salary range

Revised plan approved, maximum salary fixed for AssistantFRAgent

Reorganization:Personnel changes, Mr. fry to be elected Vice President,

Mr. Gordon to continue as Chief Examiner, Re-search and Statistical Department to be trans-ferred to Mr. Fry for time being, designationof Mr. Shepherd and Mr. Gibson as Assistant andAlternate Assistant FRAgents

3/10

3/13

3/20

3/ 32/27

2/27

11/ 6

8/28

4/ 29/21

4/2

1/311/4

2/20

1/31

12/24

8/ 6

541

568

618

484440

440

2015

1610

728•-•7 39

726

28,:,'"

395

265

2266-8

14°


?RBank of Richmond: (Continued)Reorganization: (Continued)

Survey, letter to President Leach setting forth principles

Board desires followed, resignation of Assistant

FRAgent Fry will be accepted when new assistant

FRAgent has been appointed

Staff:Blankenship, W. H., temporary assignment to lower salaried

position pending approval of revised personnel

classification plan approvedBroaddus, R. H., Vice President, appointment as, and salary

Davison, G. E., Mechanic, attention called to salary in ex-

cess of gradeSalary approved and change approved in personnel classi-

fication plan to provide for increased maximum

salaryDelano, Frederic A., FRAgent:

Bond ofDesignation as FRAgent, Chairman Eccles authorized to

tender, for remainder of year and salary to be

fixed on honorarium basisDesignated for remainder of current year, compensation

fixed on honorarium basisPer diem fixed for, with separate allowance for travel

expensesFirst Vice President, recommendation of Personnel Committee

that Board be guided by recommendation of Mr.

Delano as to appointment of, approved

Action deferred until next meeting of directors

Fry, J. G.:Bond of Nov. 20, 1934, request if there is any objec-

tion to advising bonding company of termination

of liabilityResignation as Assistant FRAgent to be accepted upon

appointment of new assistant agent

Resignation accepted and salary approved as Vice Presi-

dent

Reserves:Depreciation on "other real estate", authorized to set aside

usual sum forLosses not elsewhere provided for, authorized to transfer

sum to, and to reserves for losses account of

closed banksSalaries of officers for 1936, approved at 1935 rates with

understanding that those of senior officers

are approved until Feb. 29Special counsel, reply to Mr. Leach authorizing employment under

agreement that fee will be subject to review by

Board and if in excess of 41000 to be submitted

to Board for approval, Counsel to prepare let-

ter to all FRBanks re action, in connection with

employment of Hinkley, Hiskey and Berger in

case of Edwin Bennett Pottery Co.

189

Pages

7/17 1384

12/28 2286

12/28 2285

1/31 279

4/2 728

10/27 19462/29 464-5

1/31 283

2/20 395

3/20 617

2/18 368

3/12 561

3/21 624

2/18 3683/13 566

8/12 1516

7/17 1387

8/15 1530


190page0

1RBank of Richmond: (Continued)

Staff: (Continued)Fry, J. G.: (Continued)


Vice President, to be elected as and placed in charge ofExamination Department, Board would approve ap-pointment as Vice President in charge of exami-nations, Research and Statistical Department to

1/31 279

be placed under, for time being 8/ 6 1495

Gibson, T. C.:Appointment as Alternate Assistant FRAgent approved, to

act as note custodian for IPAgent 8/ 6 -14954

Bond of 8/12 1516

Collateral for ITnotes, no objection to continuing tohave, hold single control over paper pledged as 8/28 160

Gordon, H. Y., Chief Examiner, continuance approved whenExamination Department is shifted to Bank 8/ 6 140

Guthrie, C. L.:Assignment to position of Manager, Planning Department,

not covered in present personnel plan, approved 8/17 10

Continuance of temporary assignment as Manager of samedepartment that Mr. Woodward is assigned to, asManager, understood that arrangement will notcontinue past June 30 2/20 395

Salary list shows as Manager of same department as W.N.Woodward, information as to correction requested 1/31 284

Johnstone, Albert 6., Assistant Cashier, title change noted 8/15Kincaid, Dr. E. A., appointment and salary plus transporta-

tion and subsistence expenses on part time basisas consultant in research and statistics work,

Lassiter, Robert, Chairman Eccles authorized to tender

2231approved 12/18

designation as Chairman and FRAgent for the12/28 2290

Leach, Hugh:year 1937

Appointment as First Vice President and salary approved,ERBank to appoint as President at higher salaryif Board refuses to approve appointment of Mr.Seay 2/29 4"

Appointment as President, contemplated in event Board re-fuses to approve appointment of Mr. Seay, and

465salary contemplated 2/29Appointment as President approved and salary approved

566for remainder of year 3/13Recommendation of Personnel Committee that if direc-

tors appoint as President, Board approve, salaryto be recommended by Mr. Delano 2/18 366

Seay, George J., President, appointment as, with understand-ing that he would serve only one year, allowedto stand by directors, Board refuses to approve,

464)payment of sum to Retirement System by IRBank onbehalf of, approved 2/29


191

Pages

111136dak of Richmond: (Continued)Staff: (Continued)

Shepherd, Robert L., Assistant FRAgent:

Appointment as, approved and salary

Bond approved and request if there is any objection to

notifying bonding company of termination of

liability on bond as Acting Assistant FRAgent

Resignation as Acting Assistant RAgent accepted

Walden, J. S., Jr., Vice President:

Appointment as, and salaryAppointment and salary as lirst Vice President approved

Survey of audit functions of R.Banks, outline prepared

by, and Mr. Grayson, with Board's staff

Woodward, W. N.:Continuance of temporary assignment of Mr. Guthrie as

Manager of same department Mr. Woodward is

assigned to, as Manager, understood that ar-

rangement will not continue past June 30

Salary list shows as Manager of same department as C.

L. Guthrie, information as to correction re-

quested 1/31 284

Surplus, inclusion of Sec. 13b surplus in basis for computing

assessment for expenses of Board, reply to

President Seay that Board has reconsidered and

affirmed inclusion1.1 11k of St. Louis:

Bank relations report, letter to Mr. tood re scope of informa-

tion desired by Board and requesting such re-

port rather than individual reports on banks

Bylaws:Amendments in accordance with Board's

14, letter to Mr. Dillard

tion has been taken re

of, memo of Mr. Vest that as they are in accordance

with Board's suggestions, their receipt should

be merely acknowledged, approved

charge to profit and loss of loss on commitment,

reply to Mr. Attebery that if at end of year

industrial loan expenses exceed earnings, amount

should be charged to surplus (Sec. 13b)

Charges to accounts, Board's letter re was not receiVed until

after last directors meeting in 1935, suggested

that certain items if determined uncollectible

be charged to earnings during 1936

Contributory group life insurance policy, reply to Mr. Stewart

that there is no objection to continuing pro-

viding cost does not materially exceed estimate

Personnel classification plan, revised plan approved, salary

range for Assistant 1RAgent

Iteorganization, survey, letter to President Martin re principles

of administration to be followed, proposal to

place Vice President Wood in charge of examina-

tions approved and designation as examiner

Revision

Charge offs,

suggestions of Feb.

requesting what ac-

8/ 6 1493

8/12 1516

8/12 1516

2/29 464-5

10/16 1899

8/18 1537

2/20 395

4/4 755

11/ 4 1997

5/25 1078

11/12 2049

7/30 1454

1/31 257

7/14 1359

12/24 2265-8

9/14 1704-8


192

FRBank of St. Louis: (Continued)

Salaries of officers for 1936, approved at 1935 rates withunderstanding that those of senior officers areapproved only until Feb. 29 1/31

p ageS

282Staff:

Assistant and alternate assistant .RAgents, advice to Mr.170BStewart to appoint 9/14

Attebery, Olin M., First Vice President: 310Appointment as, approved 2/18

Salary approved for period March 1 to Dec. 31 2/18

Salary, revision of, action deferred pending receipt of706

advice from Chairman Eccles 3/31719

Salary, approved as recommended 4/ 1Hagedorn, William:

Appointment as Alternate Assistant FRAgent at present 1808salary

Bond of

9/30

10/1990

Martin, William McC., President:Appointment as, approved 2/18 Tosalary approved for period March 1 to Dec. 31 2/16

McConkey, J. G., Vice President and General Counsel, salaryapproved for period March 1 to Dec. 31 2/18

Nardin, William T., Chairman inquired as to willingness toaccept appointment as DRAgent, upon recommenda-tion of Mr. Tom K. Smith, requested time to con-sider 7/ 7 197

Parker, Frank 5., Acting Assistant FRAgent:10Appointment as Assistant FRAgent at present salary 9/3019°5Bond of 10/19

Peterson, William E., Acting Assistant FRAgent, appoint-ment as Alternate Assistant FRAgent at present 0salary 9/30

Pfyl, Irank J., continuance in position below salary grade1966for further six months approved 10/28

Reinhard, Saunders, temporary assignment to lower salariedgrade extended for further six months, approved 6/10 11°

Continuance of temporary assignment to lower salariedposition for further six months approved 10/19 19°5

826Reitz, Ralph Henry, appointment as assistant examiner 4/18Stewart, C. M.:

Appointment as Assistant Vice President and Secretaryproposed, salary approved 9/14 103

Reply that Board has approved salary if directorsmake appointment 9/30

1806

Salary as Assistant FRAgent approved for 1936 1/31Vacation, noted without objection, plans to be away from

July 6 to 31 7/ 3 10

Wood, John S., Vice President:

Appointment as and salary suggested for, Board unwillingto approve, but bank to be advised as to salaryBoard will approve and payment at time of retire-ment, with understanding that he will retire 661at 65 3/25


Of St. Louis: (Continued)Staff: (Continued)

Wood, John 6.: (Continued)

Conference to be held with, re applications of St.

Louis banks for fiduciary powers in order to

continue writing insurance

To be held Nov. 30Examiner, designation approved, noted that he is to

be placed in charge of examinations

Redesignated filAgent for period March 1 to April 30

and salary fixed


30, FRBank authorized to pay to Retirement

System sufficient to bring allowance to what

would have been if he were 65 on April 30 and

also to pay to, or to Retirement System, re-

tirement allowance of six months' salary

Resignation as Class C director

Salary as RAgent approved for period Jan. 1 - Feb. 29

Salary as Vice President, set at new figure, action

deferred pending receipt of advice from Chair-

man EcclesChairman telephoned that directors had not known of

proposed transfer of FRAgents' duties to FRBanks

and would have appointed him president

vice president, salary recommended

superseding action of Board in its

Feb. 26Edward A.:

Appointment as Alternate Assistant FRAgent

to be responsible to FRAgent or toGovernors

Bond ofletter to Mr. Martin that Board is

ing additional information

possiblemade by officers and representatives of

keiik and nonmember banks, report toof San Francisco:

Andrae B. Nordskog, et., Plaintiff v., complaint of, ERBank

keep Board advised of developments '

de Mexico, holding of earmarked silver for, advice to

FRBank that although original agreement was

FRBank of New York, Board's approval should

securedrevision of, giving executive committee authority to

reestablish rates only at figures fixed by

Board of Directors, letter re, to be revised

Compensation and allowance for member of Federal Advisory

Council for 1936

pziank

Zehner,

84rVey,

visits

Banco

Bylaws,

or firstapproved,letter of

approved,Board of

desirous ofon,

obtain-as soon as

it

FRBank to memberbe made re

to

withbe

193

Pages

11/12 204011/25 2124

9/14 1705

2/18 370

2/26 4294/30 9371/31 282

3/31 705

4/1 718

10/19 190410/26 1942

8/29 1618

9/19 1734

8/19 1549

12/19 2246

12/28 2288

1/17 155


194pages

FRBank of San Francisco: (Continued)

Directors' fees, resolution authorizing inclusion of IRAgent

in payment of

FRAgent's functions, transfer of, letter from FRBank that thereis no disaffection toward, and survey is beingmade with view to effecting

Letter to FRBank reFRBank stock, issuance of non-negotiable receipts in lieu of

certificates to be continued

Fees and allowances for directors approved

Investigation of Manheim Dibbern & Co. in connection with viola-tions of Securities Exchange Act of 1934 andRegulation T, FRBank may cooperate with Securi-ties and Exchange Commission in

Personnel classification plan, revised plan approved, salaryrange for Assistant FRAgent

Reclassification of member banks for electoral purposes, notnecessary

Regulation Q, permission to send copies of letter relating toquestions arising from revision of, to memberbanks in district

Reorganization, survey being made with view to effecting trans-fer of .eRAgent's functions to operating sideof bank

Letter to FRBank reTransfer of FRAgent's nonstatutory duties, favorable feel-

ing of directors expressed in letter from Mr.Moore

Letter to President Day outlining principles of administra-tion to be followed, Mr. Sargent to be appointedVice President, salary approved, Chief ExaminerSonne should not also be Assistant FRAgent,Board will accept resignations of Messrs.Sargent and Wheeler, and letter to RAgent re

Nonstatutory duties of FRAgent, assumed that transfer takesplace today, telegram to Mr. Moore

Securities exchange function to be handled by Mr. Sargentand Mr. Bonner Brown placed in direct charge,Mr. Wheeler to continue in advisory capacity fora time

8/ 7

5/ 1

5/5

5/271/27

944966

1103

218

3/21

12/24 2281

9/18

1/21 °

944/l 65

5/ 5 9

5/12 1008

8/29

9/1

9/14

1612'

3.0

1109

Reserves:Bank premises at San Francisco, Los Angeles and Salt Lake

City, authorized to set up special reservesagainst 12/28 2°

Net earnings, after payment of dividends, authorized totransfer to losses not elsewhere provided for 12/30 2°

Salaries of officers, approved with understanding that thoseof Governor and Deputy Governors were approvedonly until Feb. 29 2/18

Silver held under earmark for Banco de Mexico, reply to Mr.Knoke that Board assumes it is held as agent forFRBank of New York under agreement with Banco de

2014Mexico, request confirmation 11/ 6


11113ank of San Francisco: (Continued)Staff:

Agnew, A. C., Counsel, retainer approved 2/18

Armstrong, L. B., temporary designation as assistant exami-

ner for trust department examination 5/18

Appointment as examiner approved, assumed thnt there are

no pertinent facts of which Board is not advised 12/19

Brown, Bonnar, placed in direct charge of securities ex-

195

Pages

372

1040

2245

change function 9/14 1709

Calkins, T. U.:

Appointment as special adviser to board and compensation,

March 1 to June 1, approved 3/12 560

Contribution to Retirement System authorized in addition

to that previously authorized to supplement

retirement allowance 4/ 6 762

President, letter from Director McIntosh requesting ap-

proval of appointment as, because of allega-

tions of Mr. Giannini 2/20 389

Committee appointed to review files re charges and

Chairman to reply that Board cannot approve 2/20 392

Committee report exonerating 2/20 405-6

Advice of election as President, Board to adhere to

policy re age, reply to RBank 2/20 406-7

Reply to Mr. McIntosh not yet sent, addition made to,

re committee report 2/20 407-8

Clerk, Ira:Appointment as Vice President approved and salary ap-

proved 2/20 406

Appointment as First Vice President approved for unex-

pired term 4/ 3 733-4

Day, William A.:Appointment as First Vice President approved and salary

approved 2/20 406

Appointment as President approved for unexpired term 4/ 3 733-4

Salary, opinions of Chairman and Mr. Szymczak re rate

fixed by directors, and feeling of latter that

it should not be larger than that paid President

Fleming, FRBank to be advised of rate Board will

approve 4/ 3 733-5

Reconsideration of Board's action in refusing ap-

proval of directors' recommendation requested,

letter to be prepared re 4/21 834


Telegram from Deputy Chairman, reply to be prepared 5/ 1 944

Reply re 5/ 5 965

Position of directors re, and recommending increased

rate, Board will not reconsider but will con-

sider at end of year 5/12 1001

Resolution of directors and receipt of advice that

salary was fixed at rate Board approved, reply

inclosing list of salaries of presidents and

vice presidents 6/ 3 1135


196 page'

FRBank of San Francisco: (Continued)Staff: (Continued)

Earhart, C. E., Cashier, appointment as, and salary approvedExaminers and assistant examiners, Board concurs that addi-

tional are needed in trust examination workExaminers, not necessary to submit names for reapprovalFRAgent, advice to directors that it may be necessary to ap-

point full time chairman, because of apparentopposition to Board's policy

Hale, Wm. M.:Appointment as Vice President, advice ofSalary, feeling of Mr. Szymczak that it should not be

increased to that being received by Mr. Sargent,FRBank to be advised of rate which Board willapprove

Reconsideration of Board's action in refusing ap-proval of directors' recommendation requested,letter to be prepared re

Letter approvedTelegram from Deputy Chairman re, reply to be pre-

paredReply rebalary fixed at rate previously approved by Board

Moore, Walton N.:Appointment as FRAgent and authorization for payment of

directors' feesAdvice of appointment to be withheld temporarily

pending filling of other vacanciesAdvice of appointment transmitted, not withheld

because advice of Mr. Wood's appointment leakedout in Chicago

Bond ofMuir, George C., appointment as assistant examiner with

understanding that Board's approval will be se-cured before transferring Permanently to exam-ining work

Sargent, S. G.:Resignation as Assistant FRAgent, request if there is

any objection to cancelation of bond;Salary fixed for 1936Securities exchange function assigned toTransfer to operating side of FRBank suggested as pos-

sibility by Mr. Szymczak in connection withconsideration of salary for Mr. Hale

Vice President, to be elected as, salary approved andalso appointment as examiner, resignation asAssistant FRAgent to be accepted

Shortt, W. D.:Appointment as Assistant or Alternate FRAgent would be

approved by Board in connection with reorgan-ization plan

4/ 3

5/1812/19

4/24

4/ 3

755'6

104?224'

871

rig

73°4/ 3

4/21 801544/24 —1

5/ 1 96446A5/55/12 100

7/7

7/7

150s

1509

107/ 8 I7/22 14'

51°2/7

9/ 1 - 22/18 009/14 11

7364/ 3

8/29 1°3'1

°8/29 16


197

111841* of San Francisco: (Continued)

Staff: (Continued)

Pages

Shortt, W. D.: (Continued)

Appointment as Assistant FRAgent 9/ 1 1631

Appointment as examiner approved 12/19 2245

Bond approved and memo of Mr. Wingfield that because

of designation as assistant examiner, appoint-

ment may conflict with FRAct 9/21 1737

Indebtedness to member bank, was in existence prior

to employment, not to be reported to Attorney

General, but should be eliminated 10/19 1906


Simmons, Thomas M., appointment as assistant examiner with

understanding that Board's approval will be

secured before transferring permanently to ex-

amining work 2/ 7 312

Sonne, H. A.:Appointment also as Assistant FRAgent contemplated in

reorganization, Board does not approve, but has

no objection to appointment as Alternate

Assistant 1RAgent 8/29 1616-7

Appointment as Alternate Assistant 1RAgent approved 9/ 1 1631

Bond of, executed as "Assistant 1RAgent", request re-

execution, and memo of Mr. Winfield re possible

conflict with FRAct, not clear what payroll he

is on 9/21 1737

Bond of 10/15 1886

Bond, retroactive coverage, reply to Mr. Moore that

Boara has taken position that upon approval by

Board, bond becomes effective as of date prin-

cipal took office 10/22 1929


Stewart, A. 0., designation as .R.Agent for 1937, on honor-

arium basis 12/28 2291

Wheeler, U. P., Assistant 1RAgent:

Resignation as, to be accepted in connection with re-

organization plan

Resignation of, request if there is any objection to

cancelation of bond

Salary fixed for 1936

8/29

9/ 12/18

1617

1631372

Securities exchange function, to remain in advisory

capacity for time being 9/14 1709

Visit of Mr. Broderick to, and to branches, report re, feeling

that two of three northwestern branches are not

necessary 8/14 1525-6

American Institute of Banking, courses on FRSystem, Presidents

requested by Mr. Szymczak to give considera-

tion to 3/16 596

Annual reports, discontinuance, request of one FRBank for, but

to send summary annual statement to stockholders,

views of other FRBanks requested 12/17 2229


198page'

FRBanks: (Continued)

Articles, preparation of, Presidents requested by Mr.Szymczak to give consideration to

Assessment for Board's expenses:

Building, letter to FRBanks and letter to Mr. Leach callingfor part of unpaid assessment

Expenses of Division of Issue and Redemption, method of

makingResolution levying, including sum for Board's new building

Resolution levying, including sum for Board's new building

Sec. 1:3b surplus, reply to request of Governor Seay for re-consideration of inclusion in capital and surplus

for purposes of Board's assessment

Auditing function, surveys proposed to be made of, and inter-exchanged prior to projected Auditors Conference,which should be postponed until November, letterto President harrison re

Bank relations reports, question of continuance of tabulationby Mr. Strater, memo of Mr. Szymczak re, re-quested to prepare draft of form and draftof letter to FRBanks calling for such informa-tion

Letter requesting reports, and also reports covering infor-mation gathered during trips through districts

FRBank of St. Louis, reply to Mr. Wood that instructions

were intended to apply to visits to member and

nonmember banks

FRBank of Cleveland, letter to, re scope of reports Boardcontemplated would be submitted to it, statingthat Board does not desire individual reportson banks

Board of Governors, relations with, inquiry of Mr. Morrisonof Presidents' Conference as to state of, andsteps to improve, 17 points presented by Presi-dents as basis for improvement, statement byChairman Eccles re proposed visits of Boardmembers to FRBanks

Budgets:Annual, to be prepared on uniform basis under supervision

of Division of Bank Operations

Copies of, and of branches for 1937, request that they beprepared along functional lines and in accord-ance with form X-9379-a, b and c

Bylaws, statement of Chairman re opportunity to make sugges-tions re, tending toward uniformity, four pointspresented (1) meeting of directors each 14days, (2) executive committee not to be author-ized to fix rates (3) that executive committeeconsist solely of directors and (4) that itschairman be chairman of board, (3) only to besuggested in letters to FRBanks and theirtransmission authorized

3/16 597

4/23

11/25

6/2212/30

4/4

8/18

8/ 4

8/25

2155120259

765

1657

140

3.50

9/19 lig

lo/19 1911

6093/17

2/11


FRB anks: (Continued)BYlaws: (Continued)

Revisions of, counsel to be requested to prepare memo show-

ing differences with Board's suggestions of

14eb. 14 and any other matters

AdviceCondition stet

Correspondence

re securing full time

such counsel could be

also an administrative officer

Opinion that they should devote time exclusively to

;1'sdit unions, letter prepared suggesting that consideration

be given to organizing, along lines of Board's

credit union, and to eliminate banks'. employees

loan funds, not to be sent, but to be referred

to Presidents' Conferencebelly condition reports on Form 34, revisions and printing ap-

provedL'ePosit of uninvested trust funds by member banks with

psPosits of trust funds awaiting investment, memo of Mr. Vest

and letter approved to RBanks authorizing them

to accept, subject to special safeguards, not

authorized to receive for nonmember banks

Charge offs:Allotment of securities in System open market account,

quarterly report to be secured re unusual charge

offs, in connection with formula retained by

Federal Open Market Committee for, and uniform

policy to be striven for

Board's new building, authorized to charge off assessment

for, during 1936

Furniture and equipment, authorized to charge off amount

purchased during 1936

Industrial loans, authorized to set up reserves or make

charge offs against losses

Recommendations for year end, discussion of memo of Mr.

anead re and views of Chairman Eccles re

policy, also suggestion that brief statement

of results of operations of ERBanks be released

to pressFeeling of Chairman that uniform policy should be


press statements re earnings and expenses to be

withheld until Board issues statement covering

entire systemto RBanks to withhold press statements

anent, form of table showing maturity distribu-

tion of securities

from FRBoard, letter to all FRBanks requesting

that communications re policy matters, salary

and of other importance be brought to attention

of directors

Counsel, statement of Chairman Eccles

for all 114Benks, that

199

Pages

3/6 520

6/ 3

12/28

12/28

12/28

1135

2285

2284

2285

12/23 2262

12/28 2283-612/30 2342

12/28 2287

10/16 1900

3/16 5926/23 1220

10/20 1925

10/23 194011/25 2138

9/29 1788


200p5geB

FRBanks: (Continued)Destruction of Records, report of Committee of Presidents'

Conference re, recommendation of Mr. &meadthat action be deferred pending considerationby Presidents' Conference, approved

Dismissal wages, letter to RAgents authorizing payment to per-sons under age 55 with 10 years or more ofservice, six months' salary in lump sum or sixmonthly installments

Schedule of benefits under Retirement System, reply to Mr.Rounds noting with approval outline of, to befurnished FEBanks

Dividends, payment authorized,.only three banks reported cur-rent net earnings sufficient to cover

Discussion of memo of Mr. Snead re, and suggestion ofChairman Eccles that Board release to pressconcurrently with release by RBanks of a briefstatement of results of operations

Feeling of Chairman that uniform policy should be adoptedfor future whereby normal expenses and dividendswould be provided for before making charge offsand setting up reserves

Drafts drawn by member banks, manner of showing in conditionreports

Earnings:Position of RBanks discussed by Chairman Eccles at meet-

ing with presidents, principal assets are Govern-ment securities which may be later reduced with-out replacement by other assets 3/16of April 15 maturing notes partially with bondswill increase, recommendation of Executive Com-mittee of Federal Open Market Committee ap-proved

Earnings and expenses:

Press statements for 1936, to be withheld until Board canissue statement covering entire System

Advice to ERBanks

Reserves and Charge offs, feeling of Chairman that uniformpolicy should be adopted for future, wherebynormal expenses and dividends would be providedfor first

Education of employees on purposes and functions of FRSystem,Presidents requested by Mr. Szymczak to con-sider

Replacement

7/ 9 159

4/g 762-

4/9 784

6/25 1251

12/23

12/28

9/17

Employees:Graduate School of Banking, letter to all presidents that

additional annual leave may be granted for at-tendance and transportation expenses assumed

List of, form X-9746-b to be used in submitting, and to bechecked against personnel classification plans

Summary statement showing number of and salary changessince January 1, 1936, etc., to be submittedon form X-9746-c

2262

20'

3.719

591

2/26 42

2B 60 fr 12/2812/30

12/28 20-6

5963/16

6/ 4

11/23

114°

210

11/23 2112


(Continued)Examination function, relationship with Board's Division of Ex-

aminations, question raised re, in connection

with withdrawal of report of Integrity Trust

Co., statement of Mr. Miller that examination

function should be centralized under Board

Mr. Paulger authorized to study question and FRAgents

to be advised to submit copies of all reports

to Board and to refer any serious condition to

Board for determination of action

Request of Mr. McKee that presidents go over with him, and

Mr. PaulgerMemo of Mr. Paulger outlining organization on transfer to

operating side of banks, no change contemplated

in method of handling correspondence, vice

president to be chief examiner, approved and

to be used by Messrs. Broderick and Paulger in

discussing with FRBanks

Transfer to operatinF department of bank, procedure and

principles set forth in letter to Mr. Peyton

in connection with reorganization of FRBank of

MinneapolisExaminations:

Chief of Division of Examinations directed to make one ex-

aminwtion of each FRBank during 1936

During: 1937Indebtedness reports of officers and employees, recommenda-

tion of Division of Examinations that examiners

be authorized to review in conjunction with ex-

aminations and letter to Mr. Drinnen re, ap-

provedEXaminations of State member banks, costs of, request of Mr.

Szymczak that Presidents consider uniform policy

for absorption of, by FRBanks

EXpenses, statement by Mr. Broderick that committee of Presidents

Conference is considering free services, study

being made of necessity for present branches

and agencies and that one of Board's examiners

should make such a study, opinion expressed

that bank should submit budgets prepared on

uniform basis

Iederal Advisory Council members, fees and allowances for, and

for Secretary, authorization for payment by

each RBank, approved until further notice

Federal Deposit Insurance Corporation, funds held as receiver

may be deposited with, reply to Mr. Leach

Reply to President DayIll.-Agents, honorarium compensation for, uniform basis adopted,

based on directors' fees

Federal reserve agents' departments, inspection of records by

representatives of National Archivist, telegram

to President Hamilton re

201

Pages

1/ 4

1/ 4

13-4

15

3/16 597

6/ 3 1126-9

6/29 1267-8

1/ 8 7612/12 2219

3/27 695

3/16 596

7/ 7 1321

3/11 557

8/ 4 1487

8/26 1591

12/28 2294

4/16 816


202

ERBanks: (Continued)FRAgents' functions, proposal of Personnel Committee that all

not specified by law be transferred to operatingside of bank, that position be filled by out-standing men on honorarium basis, recommendationto be made to Congress for separation of officeof FRAgent and Chairman 2/18

Chairman authorized to arrange meeting of presidents to dis-cuss, with view to reduction in expenses and

50increase in general efficiency 2/18Agreed that transfer is important element and that position

should be placed on honorarium basis as soon aspossible 2/26

Nonstatutory duties of FRAgent, restatement of policy under-lying transfer to operating departments 2/29

Review by Chairman Eccles of considerations involved, asreason for desiring younger men as presidentsto insure continuity of energetic and efficientmanagement 3/ 3

Transfer to operating side of FRBanks, statement of policyre, read at meeting with Presidents, if unsatis-factory, functions could be restored 3/16

Date for, reply of Chairman Eccles to Presidents' Conferencethat no definite time could be fixed for, butshould be as soon as possible 3/17

Instructions re, to be considered by Presidents' Conferenceat meeting to follow FUIC meeting on May 25 5/12

Examination function, memo of.kr. Paulger outlining organ-ization under operating side of banks, no changein method of handling correspondence contem-plated, vice president to be chief examiner, ap-proved and to be used by Messrs. Broderick andPaulger in discussing with IRBanks

Transfer of statistical and analytical function, memo ofMessrs. Goldenweiser and Blattner re, in con-nection with proposed transfer to operatingside of IIRBanks, and statement of principlesto govern, amended to give Board approval ofbudgets for 6/ 3

Statement of Chairman Eccles to Presidents' Conference thatresults justified Board's position and thatPresidents had been brought into closer contactwith Board 11/18

First Vice Presidents, official title should include "First", advice to all FRBanks 3/ 6

Fiscal agency departments, inspection of records by representa-tive of National Archivist, telegram to Presi-dent Hamilton re

Fiscal agency operations, Treasury Department, question of pro-cedure raised in connection with negotiationswith foreign banks and bankers by monetaryagreement between .I.ance, England and U. S.

Page°

365'6

450

469

go

50-4

604

990

6/ 3 1126'

2096

0

4/16 616

lo/ 6 18°4'


1114111,(Continued)

Fiscal agency operations: (Continued)

Report of Mr. Ransom re consideration by senior staff mem-



tween Treasury, RBanks and Board, Chairman to

take up with Secretary of Treasury

Report of Chairman on conference with Secretary of Treasury

and proposed procedures, Chairman to confer

again with Secretary on Oct. 13 and outline to

be prepared for conference with officers of

IRBank of New York

Chairman and Mr. Ransom to confer tomorrow with Secretary

Morgenthau and Assistant Secretary on procedure

Report of Chairman re conference of himself and Mr. Ransom

with Secretary of Treasury, Assistant Secretary

Taylor and Mr. Upham, agreed that there was

overlapping of responsibility and need for co-

operation

Messrs. Goldenweiser and Gardner to confer with Messrs.

Haas, White and Lochhead and Upham on arrange-

ment for exchange of information, periodic con-

ferences to be held by Chairman and Vice

Chairman with Secretary and Assistant Secretary

of Treasury

Procedure, to be drafted by Messrs. Morrill, Wyatt and

Goldenweiser, conference with Messrs. Harrison,

Sproul and Knoke to be postponed until Jct. 27

Memo of Chairman Eccles, prepared in connection with Bank-

in f: Act of 1935

Memo prepared by Messrs. Morrill, Wyatt and Goldenweiser,

to be considered Oct. 23

Memo of Messrs. Morrill, Wyatt and Goldenweiser, discussion

of, conference with New York officers to be

upon broad grounds of responsibilities of Board,

memo to be revised accordingly

Revised memo of Messrs. Morrill, Wyatt and Goldenweiser

discussed and amended, copies to be sent to Mr.

Sproul, arrangements made for early meeting on

Oct. 30 with Messrs. Harrison, Sproul, and Knoke

Further discussion of memo, reference to purchases of bills

for foreign banks, agreements with latter should

be reviewed

Conference with Messrs. Harrison, Sproul and Logan, changes

in memo agreed upon, to be referred to Presi-

dents' Conference, section re authority of

FOMC eliminated, to be prepared separately

and referred to Famc .Ibreign banks, relations with, statement re procedure sent to all

FRBanks

203

Pages

10/ 6 1835-6

10/ 9 1857

10/12 1872

10/13 1873

10/13 1874

10/13 1874-5

10/16 1893-6

10/20 1922

10/20 1918

10/27 1945-6

10/29 1958

10/30 1967

12/29 2313


204page'

FRBanks: (Continued)Foreign banks: (Continued)

Letter to President Harrison re, and stating that Boardagrees with suggestion that smaller foreignbanks be advised with respect to responsibili-ties of Board in connection with revision ofagreements

Functional expense reports, recommendations of Mr. Peyton,reply re

Graduate School of Banking, selection of employees to attend,Mr. Szymczak to investigate desirability ofadopting a procedure under which merit basiswould determine

Letter to all presidents that additional annual leave maybe granted employees for attendance and trans-portation expenses assumed

Indebtedness of officers and employees, review of reports of, inconnection with examinations, recommendation ofMr. Paulger re, approved and letter of instruc-tions to Mr. Drinnen re

Industrial advances:Procedure, advised to follow same as at end of 1935 re

profits and losses onVolume of, letter to all, re expanding, that study of Com-

mittee on Direct Loans of the Associated Busi-ness Papers indicates more can be done, and formof letter for transmission to member banks

Reply to Governor Martin re proposed amendment to letterto be sent to banks

Reply to Governor Schaller re amendment proposed to letterto banks

Text of letter from FRBank of Dallas satisfactoryInterpretations of law and regulations, inquiries to be re-

ferred to

Leaves of absence:

Annual and sick, question of following practice of govern-ment, raised at Presidents' Conference

Government limitations for sick and annual, suggestion ofChairman that they be requested to conform to,no action, Mr. amead to obtain full informa-tion as to present leave schedules

Modification of Board's circular of Dec. 5, 1932, authoriz-ing granting in excess of annual to attendGraduate School of Banking or as delegates toconference of A.I.B., without securing Board'sadvance permission

Advice to FRBank of New York that authorization fullycovers additional leave with pay granted tothree employees

Policies, memo of Mr. Srnead re, recommending no action toseek conformity with Federal practices, thatFRBanks be requested to advise Board of any

changes, and review of practice at ERBank ofMinneapolis to be made

12/29 2517

10/19 1909

4/28 906

6/ 4 114°

3/27 695

12/28 206

1/ 4

1/9

1/10

8/ 4

3/17

4/28

44

89

100112

4/16 815

4/28 996


FRB allks: (Continued)Loan by FRBank of New -York to Banco de Venezuela on security

of gold, advice to all FRBanks of approval

205Pages

of, and authorization for participation 7/30 1454

National Archives' proposed survey of fiscal agency and FRAgents

department records, letter to br. Hamer re, and

letter to FRBanks 4/18 828-9

Nonstatutory duties of /RAgents, transfer to operating side of

banks, basis of plan reviewed by Mr. Eccles 3/3 483

Review of plan by Chairman Eccles before Presidents' Con-

ference 3/16 591

Statement of Chairman before Presidents that Board ex-

pected plan to be effective 3/16 593

Reply of Chairman to President Harrison at Presidents' Con-

ference meeting that date for transfer would be

as soon as practicable 3/17 604

Note issue function, statement to be prepared re, for use in

replies to questions from individuals, etc. 8/27 1600Officers:

Appointment of, amendment to bylaws of FRBank of Cleveland

providing for terms to run from meeting of

directors preceding first day of March, reply

of Board that it does not wish to change proce-

dure re approving salaries 3/4 502

Classification plan for, suggested by Chairman Eccles at

meeting with presidents 3/16 592

Confidence of Board in, expressed by Chairman Eccles at

Presidents' Conference and statement that Board

desired to do everything in its power to retain

confidence of officers and directors of IRBanks 11/18 2097

Service as trustee, question of principle raised in connec-

tion with appointment of Mr. Beavers, IRBank

of Atlanta as trustee, FRBank to be advised

Board is opposed and that he should resign 11/25 2126

Visits to member banks and attendance at bankers' conven-

tions and group meetings, Presidents requested

by Mr. Szymczak to give consideration to 3/16 596

Visits to nonmember banks, Presidents requested by Mr.

Szymczak to give consideration to 3/16 596

Official personnel, forms for submission of uniform biographical

sketches of all, approved and authorized to be

printed, and letter to RBanks re 1/11 113-4

Organization, study of, to be recommended to new Board by pres-

ent Board, especially as to salaries paid senior

officers 1/24 199

Study to be made of, by directors and by members of Board,

with a view to economy and efficiency, and

meeting of Presidents to be held shortly to

discuss 2/26 425-6

Restatement of policies and procedure re, to be placed in

policy record, approved, Mr. Morrison voting

"no" 2/29 466


206pageS

IRBanks: (Continued)Organization: (Continued)

Letter to all RAgents reviewing salary policy and settingout in detail objectives of survey and request

3/25 61°for reports and data reLetter from President Harrison re action of Presidents'

Conference in requesting Board to alter state-ment of policy intimating that FRbanks are notoperated economically and efficiently, and re-viewing considerations involved, made part ofBoard's records and question of inclusion inpolicy record left open 7/ 7 11

Advice to President Harrison of action 7/11 3.

Personnel:Policies and procedure re, restatement of, to be placed in

policy record, approved, Mr. Morrison voting"no" 2/29 466

Study to be made of, by directors and by members of Board,with view to economy and efficiency and meeting

426-6of Presidents to be held shortly to discuss 2/26Personnel Classification plans:

Employees, lists of, with salaries, checked against and dif-ferences called to attention of 1/31

Plan for officers, suggested by Chairman Eccles at meeting582with presidents 3/16

Mr. Broderick to visit FRBanks in connection with surveyof organi7ation of IRBanks, statement at meeting

06with presidents 3/16Revised draft of, prepared by a sub-committee of representa-

tives of FRBanks, in consultation with Divisionof Bank Operations and letter to IREanks re, ap-

666proved 3/24Assistant FRAgents, question of status as officer, telegram

to all FRAgents that provision should be madein plan for and that he should be assigned otherduties in RBank 6/23 12°

Salaries of employees, query of Mr. Fleming if they shouldbe fixed in accordance with new, should be con-sidered independent of, as Board has not takenaction re 11/18 21(1°

Revised plans at FRBanks, except Boston, New York andCleveland, memo re, recommending approval,description of assistant FRAgents, salary rangefor latter, certain salaries in excess of grades

226to be continued, approved 12/24Policy statement (Feb. 29) re economy and efficiency, Presidents'

Conference, statement of President Harrison thatthere was contained implication that FRBankswere not economically and efficiently operated,review of previous salary consideration, state-ment not intended as indictment of salarypolicies 3/17

,e


111Bariv--s: (Continued)P°1icy statement: (Continued)

Conference to be given opportunity to review statement and

207

Pages

address letter to Board if desirable 3/17 604Presidents:

Policy Board should follow in approving appointments of, to

serve after March 1, discussion of 2/ 7 311

Further discussion of 2/11 324

Agreed not to appoint any persons past age 65 and

reasons therefor 2/14 350

Transfer of nonstetutory duties of agents, review by Chair-

man Eccles of considerations involved, as reason

for desiring younger men as, to insure con-

tinuity of energetic and efficient management 3/ 3 483Presidents and First Vice Presidents:

Appointments, approval of, and salaries for, recommendations

of Personnel Committee re, approved 2/18 365

Policy to be followed in approving appointments, dis-

cussion of 2/20 389

Restatement of policies and procedure to be placed in

policy record, approved, Kr. Morrison voting"no" 2/29 466

No necessity for press statement, should be announced

by ilEBanks 3/ 4 498

Statement of policy read by Chairman Eccles at meeting

with presidents 3/16 593

Statement of Mr. Broderick re character and responsi-

bility of 3/16 595

Salaries of, Board to approve from March 1 to Dec. 31 with

understanding that directors of FRBanks will

make survey of operations and personnel, that

meeting will be held with Presidents shortly

to discuss, Board members also to study organ-

izations of IRBanks 2/26 425-6

Press statements of, Presidents requested by Mr. Szymczak to

give consideration to 3/16 596

Public Health Service study of occupational Morbidity and

Mortality, letter to, requesting cooperation

of, at request of Dr. Cumming 1/ 4 50

Public Utility Holding Company Act, applicability of rules of

SEC under 4/10 789

Publications, Presidentsrequested by Mr. Szymczak to (Ave con-

sideration to 3/16 596

Reimbarsenent by Treausry for replacement of 1928 series of

FRnotes with 1934 series, memo of Mr. Smead re,

feeling of Treasury that time is not appro-

priate to request appropriation for 4/17 817

Relations with schools, colleges, libraries, etc., Presidents

requested to give consideration to 3/16 597

Relations with State banking authorities, Presidents requested

by Mr. Szymczak to give consideration to 3/16 596


208

Ts-RBanks: (Continued)Reorganization Proposed by Personnel Committee involving plan

whereby functions of FRAgents not specified bylaw will be transferred to operating side ofbanks and RAgent's position to be filled byoutstanding men on honorarium basis

Chairman authorized to arrange meeting of presidents to dis-cuss, with view to reduction in expenses andincrease in general efficiency

Agreed that transfer is important element and that positionbe placed on honorarium basis as soon as possible

Dismissals as result of, report of Mr. Broderick thatFRBanks of Minneapolis, Chicago and Clevelandcontemplated making over a period and that ef-forts would be made to find emplo-pnent for dis-missed employees

Consideration by Board of surveys made, and of instructionsin connection with transfer of FRAgents' non-statutory duties, Conference of Presidents tobe called following EOMC meeting on May 25, inconnection with

Review by Mr. Broderick of progress being made in considera-tion with officers of 1RBanks

Research activities, survey should be made with view to eliminat-ing duplications, B9ard's Division of Researchand statistics will have to be enlarged

Research and statistical function, memo of Messrs. Goldenweiserand Blattner stating principles for, Board toapprove budgets, to be used in discussing andconsidering reorganization plans

Outline of procedure and principles governing transfer fromIRAgent's department to bank and operation,set forth in letter to Mr. Peyton in connectionwith reorganization of FRBank of Minneapolis

Memo of Dr. Goldenweiser outlining program for work and per-sonnel of Board's division and relation to, ap-proved in principle, to be submitted to Mr.Broderick and Mr. McKee for determination oftheir positions

Mr. Broderick agrees and Mr. McKee has no objection

Reserve ratios, question of eliminating from weekly statements,Messrs. Goldenweiser and Smead to prepare memofor consideration prior to June 30

Memo presented and elimination approved, explanatory para-graph to be published, with slight change due toretention by FRBank of Boston of small amount ofbonds for resale to employees

Advice to all kRBanks of action

Reserves:Bank buildings and fixed machinery, authorized to set aside

usual 2V0 reserve against

pages

2/18 "fr'

2/18

2/26

5/12

5/12

7/ 7

372

430

991

991'6

1321

5943/16

6/ 3 11°

6/29 1266

8/ 4 11;94

8/18 lj

6/25 12°

6/307/ 2

12/28

1211,°1296

2264


209

Pages

nks: (Continued)Reserves: (Continued)

Deficiencies in, letter to Mr. bmith requesting if per-

missible to report to Treasury Department an-

nually rather than monthly 2/27 450

Advice to rRBanks that Assistant Secretary of Treasury

Taylor has agreed that monthly reports may be

discontinued and such reports submitted annually 10/12 1868

Recannendations for end of year, discussion of memo of Mr.

amead re ana views of Chairman Eccles re policy,

also suggestion that brief statement of results

of operations of IRBanks be released to press 12/23 2262



press statements re earnings and expenses to

be withheld until Board issues statement cover-

ing entire System 12/28 2283-6

Advice to rRBanks to withhold press statements 12/30 2342

Responsibility under recent legislation, statement of Chairman

Eccles re, at meeting with Presidents 3/15 590Retirements, at 65 will aid in economy movement and possibility

of retirement of persons near 65 with sufficient

contribution to increase retirement allowance to

what it would be at 65, statement of Chairman

Eccles at meeting with Presidents 3/16 591

Recommendation re retirement of seven of Board's employees

to be considered in connection with position to

be taken re, at suggestion of Chairman Eccles 4/ 3 735

Remembrance, request of FRBank of Cleveland for establish-

ment of uniform policy whereby RBanks would be

authorized to expend up to 4100, to be referred

to Presidents' Conference 12/ 4 2165

Reply to President Fleming and copy to Chairman of Presi-

dents' Conference 12/11 2210

Salaries:Adjustments to be made for 1937, proposals submitted by all

1RBanks except Boston, to be considered Jan. 4 12/30 2334

Employees, lists checked against Personnel classification

plans and differences called to attention of

FRBanks and noting with approval 1/31 283

Celery of Mr. rleming if they should be fixed in accord-

ance with new personnel classification plans,

should be considered independent of, 'as Board

has not taken action re 11/18 2100

Informal consideration, letter to rRBanks advising that

Board believes it desirable to adopt procedure

for, in advance of formal action on recommenda-

tions 11/23 2111

Officers, memoranda of Mr. James re, statement of Mr.

Eccles that classification of official positions

was solution to problem of "out-of-line" sal-

aries 1/24 197-8


210?age°

PRBanks: (Continued)Salaries: (Continued)

Officers: (Continued)Discussion of procedure of informal conferences re sal-

aries, suggestion of Mr. O'Connor, outline by

Mr. Miller of letter to FRBanks, Mr. Smead toprepare, Board to recommend to new Board that itappoint committee to study organization of eachFRBank especially as to salaries of senior offi-cers 1/24

06Advice to individual FRBanks of actions re 1/31

Form X-9746-a for submitting lists of, in January 11/23 211.2

Officers and employees:

Power of Board in approving 9/22 17°

Review by President Harrison of previous considerationof, referring to Senate Document 75, 67thCongress 1st session, reply of Chairman Ecclesthat Board's policy statement had not been in- 602dictment of salary policies of FRBanks 3/17

Summary statement of number and salaries requested for1936, to be published in Board's annual report 11/23

Policy of Board reviewed in letter to all FRAgents re organi-

zation surveys 3/25

Presidents and Vice Presidents, to be approved March 1 -Dec. 31 with understanding that directors ofFRBanks will make survey of personnel, thatmeeting will be held shortly with Presidentsto discuss, Board members also to stuay organi-zations of banks 2/26

1136List sent to IRBank of San Francisco at its request 6/ 3

Reductions should be made all along line, statement ofChairman Eccles to presidents in connection 591with economy movement at FRBanks 3/15

Statement of Mr. Broderick that upon receipt of reor-ganization surveys he would visit FRBanks in 595connection with 3/16

Senior officers, restatement of policies re, to be placedin policy record, approved, Mr. Morrison vot- 466ing "no" 2/29

Securities exchange function, question raised as to control of,suggestion that selection of person to directbe made subject to approval of Board or Directorof Division of Security Loans, adopted and Mr. ,0Parry to prepare statement embodying 7/ 7

Statement presented and approved 7/13

Services rendered free of charge by FRBanks, committee appointedby Presidents' Conference to review, with view to 601Possible curtailment of 3/17

Sick leave, letter to Governors re recommendation of Governors'Conference for formulation of definite policy,and stating that it will be satisfactory toBoard in cases of extended leave with pay if

approved by Executive Committee and reported toBoard of Directors 2/11


'4s: (Continued)8Pedal counsel, reply to Mr. Leach authorizing employment of

under agreement that fee will be subject to

review of Board and if in excess of 0.000, to

be submitted to Board for approval, Counsel to

prepare letter to all IRBanks re

Security Act, proposed amendment might make provisions

applicable to

employees may also receive salary from Government even

though they exceed 42000, Sec. 58, Title 5,

USCA not applicable

13b, reply to request of Governor Seay for recon-

sideration of inclusion in capital and surplus

for purposes of assessment by Board

811rveY of organization:

Request for, will be made, statement of Chairman Eccles be-

fore presidents

Statement of Mr. Broderick that upon receipt of reor-

ganization surveys he planned to visit IRBanks

to review with executive officers

Presidents' Conference report that FRidanks would institute,

statement re expected results, feeling that

another conference should be held on, soon

Response to inquiry of President Schaller that surveys

should be undertaken immediately

Board would like to receive surveys as soon as com-

pleted, President Harrison desires completion

in time for conference in AprilUninvested trust finds, acceptance of deposits of, letter to all

presidents re action of Governors' Conference,

So ci al

Staffs,

SUrplus, Sec.

Vice

Work

N),„aletin:Advances

and requesting views of FRBanks re

Presidents, appointments of, Board not to approve any, of

persons past age 65, and reasons therefor

relief checks, report of Mr. Barnes re cost of handling

and calling attention to variation between

maximum and minimum, referred to President

Harrison as Chairman of Presidents' Conference

with suggestion that it be discussed at Transit

Conference

under Sec. 10(b) of FRAct to member banks which have

not exhausted their eligible paper, riling to

be published inAmendment to Federal Income Tax Regulations to be published in

APPlicability to collateral for loans made prior to May 1,

1936, of provisions in Regulation U governing

withdrawal or substitution of collateral, ruling

to be published inAPPlicability of Sec. 2(c) of Regulation U to security dealers

"making a market" in registered stocks or pur-

chasing an inventory of such stocks for resale,

ruling to be published in

211

Pages

4/2 728

11/25 2125

6/25 1252

4/4 755

3/16 591

3/16 595

3/17 601

3/17 603

3/17 604

4/15 810

2/14 350

11/13 2062

7/23 14255/26 1089

6/22 1213

6/22 1212


212

MBulletin: (Continued)Applicability of Sec. 2(f) of Regulation J to a loan to a dealer

to purchase securities to comply with ordersfrom customers, ruling to be published

Applicability of Sec. 22(g) of RAct to indorsement by execu-tive officer of note of partnership in which hehas less than a majority interest

Branch banking, Federal and State laws relating to, recommenda-tion of Mr. Vest of publication of compilationof, approved

"Branch clearing" accounts, classification in call reports andin computing reserves, to be published in

Christmas club accounts not within classification of savingsdeposits, ruling to be published in FRBulletin

Classification of funds of canetery organizations and ofmunicipalities held for maintenance of cemeterylots as savings deposits, ruling to be publishedin

Deposit of collateral with trust department for use of trustfunds in bank's business, ruling to be publishedin

Deposits of municipal corporations not classifiable as savingsdeposits, to be published in

Distribution of bills and securities table, substitution of twotables showing separately, recommended, Mr.McKee feels time inopportune, action deferreduntil meeting at which he is present

Distribution of bills and maturities, memo of Mr. Owens reproposal of Mr. Thomas to substitute two newtables for old, raising question as to adequacyof report in weekly condition statement, newtables and memo approved, to be submitted toMr. McKee before becoming effective

Drafts drawn upon FRBanks included in gross demand deposits incomputing reserves, ruling re, to be published

Executive officers:Accommodation indorsement by, as extension of credit, to

be published inAppointment of, indebted to bank, ruling re to be pub-

lished inGranting of overdrafts to and carrying of cash items, ruling

re, to be published inLoans to corporation in which interested, to be published inLoans to partnerships under Sec. 22(g) of FRAct, to be

published inRenewal or extension of loans made prior to June 16, 1933,

ruling re, to be published inReports of indebtedness to Morris Plan companies, to be

published inReports of indebtedness to other banks, ruling to be pub-

lished in

Pages

6/22 12''

9/19 1755

lo/223/26 679

1/25 21•5

7/23

8/20

3/26

140

156°

8/27 1598

9/29 17°

2/26

3/26

1/25

1/253/26

3/26

5/26

3/26

2/263/26

06

60

21660

60

1095

60

60


11 I Alletin: (Continued)EXecutive Officer: (Continued)

Secretary of board of directors ruled not to be, to be

213

Pages

printed in 3/26 680

Statement re provisions of law applicable to loans heretofore

made to, to be published in 2/26 436

Federal Laws Affecting National Banks, memo of Mr. Vest recom-

mending publication of notice re, approved 9/25 1764Indebtedness of affiliate on assets acquired from member bank,

ruling re exception to Sec. 23A to be published 4/25 893Interest payment after maturity on time certificate of deposit

renewed within ten days after maturity, ruling

to be published in 4/25 893

Lending of trust funds by bani within provisions of Sec. 22(g)

of 3.RAct to executive officer, ruling to be

published in 4/25 893Loans to partnerships under Sec. 22(g) of RAct, ruling to be

published in 7/23 1425Mailing, equipment for, purchase of addressograph, .s.raphotype,

plates, cabinet, authorized 1/21 180

Maximum rate of interest payable on time certificate of deposit

callable by bank on 30 days' written notice,

ruling to be published in 5/26 1088

Maximum rates of interest payable on time deposits under Regula-

tion Q, ruling to be published in 6/22 1212

National bank not permitted to invest trust funds in obligations

executed by officer of such bank as receiver,


National bank not permitted to invest trust funds in securi ties

purchased from any affiliate of such bank, ml-

ing to be published in 9/19 1735

National securities exchanges, 17, and "Associated Stock Ex-

changes", which are not subscribers, to be sent

free of charge 6/18 1197

PaYment of interest after maturity on time certificate of de-

posit renewed within ten days after maturity,


Policy has been to publish regulations etc., of official nature,

statement of Mr. Szymczak re, in connection with

previous omission of Regulations III and IV

of FDIC, publication approved 2/11 321

Printing, binding and mailing, to be awarded to Judd and Det-

weiler, Inc., Board to furnish paper stock and

franked, addressed wrappers 4/25 894

Practice adopted to be followed and contract with Judd

and Detweiler, Inc., authorized to be executed 12/18 2242

Public Utility Holding Company Act and SEC Rule 3A3-1, recom-

mendation of Mr. Vest that letter of SEC re

applicability to banks be published in, ap-

proved 5/2 958

Record of pending litigation required by Regulation F, ruling

to be published in 8/20 1560


214 pages

FRBulletin: (Continued)Regulation U, rulings re interpretations of, to be published inRegulations III and IV of FDIC, statement of Mr. Szymczalf: of

reasons for not publishing previously, that ithas been policy of Board to publish all officialinformation, publication approved

Renewal of loan to person who was not executive officer at timeof making loan, ruling to be published in

Report by executive officer of member bank of indebtedness toanother bank in its capacity as trustee, rulingto be published in

Report by

Review of

executive officer of member bank of indebtednessevidenced by note discounted by another bank,ruling to be published in

the month, draft for January, question raised by Mr.McKee re possible implication in statement ongold import sterilization and reserve situationthat Board intended to increase reserve require-ments

Publication planned to correct impression that excess re-serves are concentrated in New York, to be re-read and taken up further if any questionexists

Statement discussed further, to be published with minorchanges

Rulings of Comptroller re investment securities under Sec.5136, R. S., no objection to publication in

Savings deposits:Business corporations may not maintain, ruling based on

Regulation q, to be published inClassification of funds of individual used in his business

as not being, ruling to be published inClassification of various types of deposits as, to be pub-

lished inCredit unions and citrus growers associations, ruling that

they may not be classified as, to be publishedInterest on deposit withdrawn between interest payment dates

ruling to be published inReceivers and liquidating trustees of business corporations

may not be classified as, ruling to be publishedSecurities and Exchange Commission rules under Sec. 17(c) of

Public Utility Holding Company Act of 1935, tobe published in

Social security act, three rulings of Bureau of Internal Revenuere applicability of taxes under, to nationalbanks, State member banks and nonmember banks,to be published in

Stock certificates of State member bank representing stock ofcorporation holding bank premises, ruling tobe published in

Time certificates of deposit payable in 3, 6, 9 or 12 monthsfrom date, to be published in

ithdrawal from savings deposit upon telephone or other oralorder by depositor, ruling to be published in

5/26

2/11

4/25

1056

320'i

895

8/20 156°

8/20 1560

12/28 220

12/28 2263

12/29 2298

6/13 1196

2/26 456

1/25215

1/25215

1/25 215

2/26 436

2/26 436

7/23 1426

10/27 1953

5/26 1°88

3/26 619

7/23 1426


kotes:Cincinnati Branch, discontinuance of Acting Assistant FRAgent

and adoption of plan whereby notes are held in

triple control, approved and copies of authoriza-

tion and agreement requestedClearing through Interdistrict Settlement Fund to be in thousands

of dollars effective Dec. 1Collateral, FRBank of Richmond, no objection to continuing to

have Alternate Assistant FRAgent Gibson hold

single control over paper pledged asExpenditures covering cost of, procedure for approving payment

FRBank of Cleveland, reply to Mr. Brown offering no objection

to having those received by FRBanks of New York

and Philadelphia forwarded to Pittsburgh BranchGovernment securities as collateral:

Amendment proposed to FRAct making Present authority per-

manent, with suggestion that it be taken up with

Congress separately in order to secure action

before March 3, 1937

I'ormula as to amounts pledged no longer necessary, and

FRBanks authorized to pledge in such amounts as

may avoid frequent interchange of, and gold cer-

tificatesIssue function of FRBanks, statement to be prepared re, for use

in replies to individuals, etc.Liability of retiring FRAgentOrder, request that Comptroller place with Bureau of Engraving

and Printing, for fiscal year ending June 30,

1937Penalty for payment of another FRBank's notes by a FRBank, amend-

ment to FRAct tentatively proposed to repeal

Pittsburgh Branch, discontinuance of Acting Assistant FRAgent

and adoption of plan whereby notes are held in

triple control, approved and copies of author-

ization and agreement requested

Power of attorney should run from FRAgent at Atlanta to FRAgent

at New York to pledge Government obligations as

collateral for, reply to FRAgent Martin

Printing, cost of, letter to all FRBanks advising of increase in

Requisitions to be signed by Chief or Assistant Chief of Divi-

sion of Bank Operations, amendment to bylaws

providing for, approved subject to approval of

counselSeries of 1928, discontinuance of issuance by iqtBanks and re-

placement by 1934 series, letter to FRBanks

giving instructions re

Letter to Secretary of Treasury suggesting changes in form

of resolution to authori ze reimbursement to

FRBanks for replacement with series of 1934

Reimbursement for replacement with 1934 series, question

to be held in abeyance until next session of

Congress

215

Pages

7/13 1344

11/28 2143

8/28 16102/14 356

1/20 176

12/18 2236

7/20 1409

8/27 16004/28 912

6/13 1197

12/13 2236

7/13 1344

3/12 5658/20 1562

2/25 421

1/20 175

4/ 7 771

4/28 909


216rage'

FRnotes: (Continued)Series of 1934, memo of Mr. Snead re reimbursement by Treasury

for replacement of 1928 series with, Treasuryfelt that time was not appropriate to secureappropriation for

Shipments:Even thousands of dollars, advice to FRBanks approving, ef-

fective Dec. 1, FRnote clearing through Inter-district Settlement Fund also to be in eventhousands, transit clearing in thousands to beconsidered by Presidents' Conference

Registry of each package in pouch when 40 or higher de-nomination, letter to Mr. Ellenberger requestingdiscontinuance of practice

4/17 811

11/17 2086

FRSystem:American Institute of Banking, participation in, and support of

activities of, statement prepared by Mr. Szym-czak on which recommendations of Mr. Park werereceived, referred to Presidents' Conference 10/30 19°

Bank for International Settlements, memo re representation,attention called to, by Chairman Eccles, to be

4taken up before end of year 12/ 21°Changed position of, resulting from recent legislation, dis-

cussed by Chairman Eccles at meeting with presi-dents 3/16

Education of FRBank employees as to purposes and functions ofsystem, Presidents requested by Mr. Szymczak

596to give consideration to 3/16

Future more secure than in past years, statement of ChairmanEccles to Presidents' Conference, and that whilestock was owned by member banks, the FRBanks werecreated for the public benefit and they hadopportunity to enhance prestige by acting inpublic interest 11/13 2°

Opinions of individuals re, reply to Mr. Strater in connectionwith bank relations reports re desirability ofmaking deliberate effort to obtain 10/30 105

Pamphlet descriptive of, manuscript returned to Mr. Stevenswith suggestions for changes 1/31 210

Policies and operations, request for summary of, by NationalEmergency Council, Mr. McKee opposed, statementreferred to Messrs. Morrill, Goldenweiser andThurston for revision to conform to materialpreviously released 12/ 1 2148

Research and statistical function, enlargement of, memo of Dr.Goldenweiser outlining program for work and per-sonnel of Board's division and /RBanks' function,approved in principle, to be submitted to Mr.Broderick and Mr. McKee for determination of

109their positions 8/ 4 --54

Mr. Broderick agrees and Mr. McKee has no objection 8/18 15


Wayne County

Perla, Robert D.,

et

PRS

zer, Fran

;itachtner, C.-elity and

Pid

"ten: (Continued)Unfavorable comments which had come to Mr. McKee while with

RFC, statement before presidents re importance

of taking steps to overcame attitude of cer-

tain banksPederA:14. savings and loan associations:

41gona, Iowa, purchase of stock of, in violation of Sec. 9

of FRAct by Iowa State Bank, Algona, no objec-

tion to retention until Dec. 31CanPetition with member banks, advice requested of Presidents'

Conference as to

Opinion that there is no substantial competition

Statement rePirst Federal Savings and Loan Association of Hollywwod, Calif.,

letter to Federal Home Loan Bank Board re use

of term "member of F.R.System"

Letter to Mr. Clerk re explanation of, no action to be

takenFederal Savings and Loan Association, purchase of

stock of, by Wayne State Bank, Wayne, Mich.,

in violation both of membership condition and

Sec. 9 of FRActproposed as intern on Board's staff by National

Institute of Public Affairs

cis G.: (See International Longshoremens Association

Local 38-82)

C.: (See University of Arkansas)

Casualty Co., bonds of Messrs. Schelling and Diercks

as Assistant and Alternate Assistant FRAgents

at Chicago and Raether as Assistant FRAgent

at Detroit, letter to, advising of approval by

Board and requesting confirmation of accepta-

bility of description

ary powers:BYram National Bank of East Port Chester, Conn., application re-

fused because of insufficient capital, review

of requirements of State and attention called

to requirement that capital be common stock,

while Board holds that as applicable to na-

tional banks, Sec. 11(k) of FRAct may be con-

sidered to include preferred stock

California, refusal to grant license to First National Bank of

Santa Ana because of legal prohibition against

examination of trust department, bank may agree

to permit examination, but license is not neces-

sary under Board's authorization

Callicoon National Bank, Callicoon, New York, surrender approved

Carthage National Exchange Bank, Carthage, N. Y., application

approved

Central National Bank of Green Castle, Greencastle, Ind., ap-

plication approved

217

Pages

3/16 597

8/11 1513

3/17 6053/17 6083/17 608

8/25 1583

8/29 1619

4/3 737

9/29 1795

8/ 5 1490

1/14 123

1/20 1659/ a 1661

1/17 155

2/19 384


218 pages

Fiduciary powers: (Continued)Central National Bank and Trust Company of Battle Creek, Mich.,

certificate of surrender of, and letters toComptroller and FRBank of Chicago that as bankis in liquidation, Board will not require changein title to eliminate "and Trust Company"

Charleston National Bank, Charleston, W. Va., loan betweentrusts contemplated where trust instrumentstates trustee is not to be restricted, wouldviolate Regulation F, but may be made undercourt order

Citizens National Bank of Marshfield, Wis., action deferred onapplication because of limited recommendation ofFRAgent, uncertain quality of trust officer anddubious prospects of earnings, letter to Comp-troller re

City National Bank of Philadelphia, Pa., deposit of funds re-ceived as trustee under corporate trust in-denture in banking department with provisionfor such deposit, reply to Mr. Hill that re-quirement for deposit of security in trust de-partment applies

12/ 2 2165

10/19 19°8

4/8

7/17 1598Connecticut:

Membership condition requiring pledge of collateral fortrust funds deposited on banking side, Boardrefuses to waive 10/ 8 1852

State member banks, pledge of collateral for trust fundsin banking department, reply to Mr. McRae thatmembership condition requiring should not be

229held in abeyance 12/13

County National Bank at Clearfield, Pa., trust funds, investmentin assets acquired from commercial department,

511reply disapproving 3/ 5Dealings between trusts, reply to First National Bank of 7/out-

gomery, Ala., re provisions of Regulation Fconcerning, and re duties of trustee in connec-tion with

5/23 100

Deposit of collateral for trust funds in commercial department,consideration of waiving membership conditionto extent such funds are insured by FDIC, lettersto FDIC and Comptroller re possible amendment toFRAct to exempt national banks from requirement,opposed by Messrs. McKee and Ransom, referred to

546latter 3/10

Funds received under corporate trust indenture providing fordeposit in banking department, reply to FRBankof Philadelphia that requirement of Regulation

,F nevertheless appl 1598ies 7/17 10vDepositors National Bank of Durham, N.C., applicetion approved 5/14

Farmers and Mechanics National Bank, Westminster, Md., procedurenecessary for discontinuance of trust department,letter to Comptroller that bank desires to knowif continued exercise of one power will subjectit to examination 11/17


'kick

219

Pages

eillzY powers: (Continued)Feraers National Bank of Waseca, Minn., certificate of surrender 1/11 104First and Merchants National Bank, Richmond, Vs., record of

litigation, reply to FRBank of Richmond ES to

extent of, required to be kept by Regulation F 7/ 2 1294First National Bank of Albert Lea, Minr., surrender of 2/ 7 314

Bank of Christiensburg, Va., application nct ap-

proved by Comptroller because of likelihood of

poor earnings, Board to adhere to position taken

re all national banks in competitive situations

but first to confer further with Comptroller

recirculated and considered again in light of Mr.

Ransom's report re position of Comptroller

previous consideration and position of Comptroller,

application approved, Messrs. Broderick and

Ransom voting "no"bank advising of approval of application

Bank of Henderson, Ky., application approved

Bank of Idaho, Boise, Idaho, application approved

Bank in Meridian, Miss., application approved

Bank of Pomona, Calif., supplementary applica-

tion approvedBank of Pullman, Wash., application approved

Bank in Santa Ana, Calif., State refuses license

because of legal prohibition on examination by,

of trust department, bank may agree to permit

examination, license not needed under Board's

authorizationBank of Selins Grove, Pa., surrender ofBank of Spring Valley, Minn., certificate of

surrender ofReply to Mr. Fuller advising of procedure for surrender of

First National Bank of West New York, N. J., litigation pending,

reply to Mr. Milberg that Board cannot express

any view concerning right of bank to issue

participation certificates in fiduciary capa-

cityFirst National Bank and Trust Company of East Pittsburgh, Pa.,

application of East Pittsburgh Savings and Trust

Co. approved upon conversion into, letter to

Comptroller, and one to YEAgent re omission of

ninth power from applicationFirst National Bank and Trust Co., Oklahoma City, sale of trust

assets to officers, reply to FRBank of Kansas

City re inquiry of, that Regulation F prohibits,

Board will consider effect of authorization of

such sales by trust instrument

First National Bank and Trust Company in Sioux Falls, S. Dak.,

application denied because of criticisms of

management and policies

Supplementary application approved

First National

File to be

Review of

Letter toFirst NationalFirst NationalFirst NationalFirst National

First NationalFirst National

FirstFirst

NationalNational

8/11 1508

8/27 1596

9/11 16889/17 17188/21 15E44/15 807

6/19 1199

5/27 10925/16 1033

1/20 1651/15 132

5/11 9949/25 1762

5/21 1066

6/23 1221-2

5/27 1093

4/4 74711/ 5 2001


220 pages

Fiduciary powers: (Continued)Fountain State Bank, Fountain, Mich., application approved con-

ditionallyFranklin County National Bank of Brookville, Ind., supplementary

application approvedIllinois, pledge of collateral for trust funds, letter from Mr.

Young and memo of Mr. Seitz recommending thatBoard delay no longer enforcement of membershipcondition requiring, approved and letter to Mr.Young

Insurance, applications of St. Louis banks in order to continuewriting, granting would establish precedent, Mr.Ransom opposed, action deferred pending consid-eration of principles involved with Mr. Wood,statement of Mr. Broderick that likelihood ofbanks withdrawing from membership should notbar refusal

Conference with Mr. Wood to be held Nov. 30Investment of

Lorain Street

4/28

7/18

9/11

915

1402

1666'1

058`11/12 4 0

11/25 21"trust funds by national bank in obligations ex-

ecuted by officer of bank as Federal receiver,applicability of Sec. 11(a) of Regulation F 7/22

Bank, Cleveland, Ohio, extension of time to complywith membership condition requiring releasefrom responsibility on trust accounts from whichit had not been previously discharged

Manchester Bank of St. Louis, Mo., application filed, in orderto continue writing insurance, action deferredpending consideration of principles involvedwith Mr. Wood

Conference with Mr. Wood to be held Nov. 30(See also supra Insurance)

Mechanicks National Ban:: of Concord, N. H., supplemental appli-cation approved

Mechanics Bank and Trust Co., Moberly, Mo., permission grantedto exercise powers granted by State Commis-sioner of Finance

National banks:Pennsylvania, question of making exception re investment of

trust funds in mortgages purchased from owncommercial department to extent permitted byPennsylvania Banking Code

Small banks in competitive situations, Comptroller not will-ing to grant application of First National bankof Christiansburg, Va., Board to adhere tooriginal position, to confer further with Comp-troller

Report of Mr. Ransom on Comptroller's position, file tobe recirculated and considered again

Review of Previous consideration and position of Comp-troller, application approved

Northern National Bank of Presque Isle, Me., application ap-proved

2/20

1411

398

, 203911/1K, 0411/25 21'

9/1

8/11

8/27

9/11

1/30

1621

1506


221

%4ciary powers: (Continued)Overland National Bank of Grand Island, Nebr., application

approvedPan American Trust Co., New York, N. Y., Harbor State Bank to

convert into trust company under above title,



powers, approvedPeoples Bank, Pratt, Kansas, application approved conditionallyPilgrim Trust Co., Boston, Mass., application approvedRed Wirg National Bank and Trust Co., Red Wing, Minn., cer-

tificate of surrender, letters to Comptroller

and FRBank of Minneapolis re waiver of re-

quirement that "and Trust Company" be elim-

inatedSale of trust assets to officers, reply to FRBank of Kansas

City that Regulation F prohibits, Board will

consider effect of authorization for such sales

in trust instrumentSecurity State Bank, Algona, Iowa, noted, in connection with ap-

proval of membership application that bank is

authorized to exercise, Board's permission would

be necessary for actual exerciseSouthwest Bank of St. Louis, Mo., application, in order to con-

tinue writing insurance, would establish prece-

dent, Mr. Ransom opposed to granting, action

deferred pending consideration of principles

with Mr. WoodConference with Mr. Wood to be held Nov. 30

(See also supra Insurance)

SPringvale National Bank, Springvale, Me., application approved

State Bank of Mayville, Wis., to dispose of trusts and discon-

tinue exercise of trust powers as membership

conditionState member banks, Regulation 1, reply to FRBank of San Fran-

cisco agreeing that it is desirable for banks

to comply with and advising of reasons for not

prescribing as condition of membership

Stock of corporations held by Springfield Safe Deposit Co.,

Springfield, Mass., under, reply to Mr. Gettemy

re question of affiliationStock of trustee bank received as part of trust estate, reten-

tion ofSurrender, title will not be required to be changed to elimirate

"and Trust Company" from Central National Bank

and Trust Company of Battle Creek, Mich., as

bank is in licuidation

Transfer agent, advice to First National Eank of Pomona, Calif.,

that Board has no authority to grant power but

that if not prohibited to State banks, comes

within general power

Pages

1/23 189

12/ 4 21734/22 8506/ 2 1123

12/ 4 2177

5/27 1093

4/27 897

11/12 203811/25 2114

6/ 1 1108

11/ 6 2011

6/24 1232

9/16 1714

6/ 2 1124

12/ 2 2155

5/27 1093


222 Page

Fiduciary powers: (Continued)Trust investment committee, appointment by president, with advice

and consent of directors, reply to Riggs Na-tional Bank, Washington, D. C., that methodcomplies with Regulation F

Trustees of bond issues, Securities and Exchange Commissionstudying legislation to control, AmericanBankers Association believes Board should con-trol through Regulation F, Chairman Eccles toconfer with Mr. Landis

Mr. Ransom to confer with Mr. Douglas, copies of ABA state-ment and SEC digest to be referred to counselfor summarization and comment, Mr. Ransom mayinvite Mr. Douglas to meet with Board

Unauthorized exercise, Bank of Romney, W. Va., revealed by ex-amination report, steps have been taken to havetrustee appointed to relieve bank

Williamstown National Bank, Williamstown, Mass., application ap-proved

Fleming, R. V.: (See American Bankers Association)Fletcher, Senator Duncan U., indebtedness of officers to State member

banks, reply re amount of, as of Dec. 31, 1934Flohr, M. J.: (See National banks, First National Bank of 'Wallace,

Idaho)Flood conditions:

Condition reports of State member banks in flooded areas, ex-tension of time for completion of

Hartford, Conn., letter from Conzressman Kopplemenn requestingfinancial aid, letter to be prepared to GovernorYoung re, and suggesting liberal attitude towardindustrial loan applications, possibility ofaid from other Government agencies to be sug-gested

Reference to telegram sent to FRBanks in flood territory re-questing number of industrial loan applicationsand survey of conditions, and replies thereto,11r. Daiger and Mr. Hammond to appear unoffi-cially before House Ways and Means Committee

Florida Asphalt Block Paving Co., fee to McKay, Withers and Ramseyby FRBank of Atlanta approved, for services inconnection with indebtedness of

Foreign banking corporations:Chase Bank, New York, N. Y., examination, memo of Division of

Examinations re review of and letter to Mr.Aldrich

Cost of, advice to bank of, and directing deposit in FRBankof New York to Board's account and letter toFRBank of New York re

First of Boston International Corporation, Boston, examinationreport, memo of Division of Examinations re-viewing and letters to FRAgents Curtiss andCase and to Mr. Trafford

9/ 9 1665

11/13 2063.-

11/25

9/25

6/1

1/14

1761

1108

3/24 664

6653/25

4/1

2/28

3/3

454


223

Pages

1)Ibeign banking corporations: (Continued)First of Boston International Corporation: (Continued)

Examination: (Continued)

Cost of, letter to corporation re, and directing de-

posit with FRBank of Boston for Board's ac-

count, and letter to FRBank of BostonFrench-American Banking Corporation, inclusion in par list ap-

provad, although not strictly a banking insti-

tutionInternational Discount Corporation, application of Messrs.

Gillespie, O'Hare, Symons, Bruce and Gillespie

for reservation of title, Board suggests

another title be found, advice to FRBank

Funding Corporation, organization papers for-

warded to Board, sent to FRBank of New York

for investigation and advice to organizers of

action

International

cll'Elign banks:Agreements:

Review agreed to be desirable, in connection with projected

procedure for relations with foreign banks

Revision of, FRBank of New York to advise, in connection

with, re responsibilities of Board

Commerciale Italiana, certificate of filing of agreement

on form T-2 should be executed by FRAgent or

Assistant FRAgent, Board agrees with FRBank

Central de la Republica Argentina, arbitrage transactions,

letter from Mr. Sproul re desire to include in

operations by FRBank of New York, Counsel's

opinion that negotiation was in accordance with

authority previously granted, approved

Central de Reserva de El Salvador, loan by FRBank of New

York authorized by directors, memo of Mr.

Dreibelbis re failure of bank to secure per-

mission for negotiations, letter and telegram

approving transaction and calling attention

to violation approved, Mr. Ransom voting no

Copies of correspondence re opening of account with FRBank

of New York and granting of loan on gold,

acknowledgement of receipt by Board

de Mexico, silver held under earmark for, by FRBank of

San Francisco, reply to Mr. Knoke that Board

assumes it is held as agent for FRBank of New

York under agreement with, request confirma-

tionAdvice to MBank that although original agreement was

between Banco de Mexico and FRBank of New

York, Board's approval should be secured

Banco de Venezuela, loan on security of gold authorized for use

in exchange control, renewal to be considered if

requested, noted that usual charge is being

made for safekeeping of gold

Advice to all FRBanks of loan and authorization for partici-

pation

Banca

Banco

Banco

Ballco

3/13 572-3

1/4 46

10/ 2 1819

10/23 1937

10/29 1959

12/29 2317

12/ 2 2157

9/16 1715

9/ 4 1646

9/16 1717

11/ 6 2014

12/19 2246

7/22 1418


224 Page°

Foreign banks: (Continued)Banco Nacional de Mexico, Mexico City, determined not to be

holding company affiliate of Harbor State Bank,New York, N. Y.

New York Agency to be absorbed by Harbor State Bank, whichBanco controls and title to be changed to PanAmerican Trust Co., to exercise fiduciary powersand increase capital, approved

Bank of England:Skinner, E.H.D., Assistant to Governors, courtesy call at

FRBank of New York, reported by Mr. SproulBank of France, account maintained by FRBank of New York, views

of President Harrison re withdrawal, in connec-tion with likelihood of devaluation of franc

Bank of Greece:Drachmae, advice from Governor Tsouderos acknowledged that

it has been attached to the pound and adviceto FRBank of New York

Tsouderos, ann., reply acknowledging receipt or advice ofreappointment as Governor of, and extending con-gratulations

Bank of Italy, repayment of full participation in syndicatecredit of Bank of Italy by, no objection toFRBank of New York assenting to

No objection to confirmation of assent in view of additionalinformation

Central Bank of China, one-way account opened with, by RBankof New York, approved and participation by otherFRBanks authorized

Commonwealth Bank of Australia:Reading, Sir Claude, Chairman, advice of call at FRBank of

New York and office made available to, questionof procedure to comply with Sec. 14(g) ofFRAct, conference to be held with FRBank of NewYork officers, letter to FRBank

Correspondence with, by FRBank of New York, and correspondencewith FRBanks re participations, Board requestscopies of

Danmarks Nationelbank, agreement, copy of letter from FRBankof New York to, re terms of carrying account,noted that change in title afforded opportunityto secure new agreement

Reply to Mr. Knoke noting that correspondent relationshipshave never been established with, although emaildeposit is kept with FRBank of New York

De Nederlandsche Bank, foreign exchange transactions, reply toDr. Holstign that copy of official request thatprivate banks refrain from certain, will betreated with confidence

Federal Open Market Committee, scope of authority over relationsof FRBanks with

FRBanks, relations with, procedure, statement sent to FRBanksLetter to President Harrison, suggestion that smaller

foreign banks be advised on responsibilities ofBoard in revision of agreements

12/ 4 21°

9/29 1°8

9/24 1156

9/30 181°

4/13

2/14

2/26

1/31

9/11

8/25

8/7

8/28

8/26

5/1512/29

12/29

796

556

455

260

3.616


Po r

225

Pages

eign banks: (Continued)National Bank of Hungary:

Second syndicate credit, reply to Mr. Sproul noting letter

from bank and suggestion that bank start to

formulate program for capital repayment 1/16 148

Repayment of full participation in syndicate credit of

Bank of Italy by, no objection to FRBank of

New York assenting to 2/14 355

No objection to confirmation of assent in view of addi-

tional information 2/26 435

Renewal of credits to, proposed by B.I.S., proposed letter

to B.I.S. containing views and terms of FRBank

of New York, no action to be taken until posi-

tion of other 1RBanks is determined 8/19 1546-8


Action ratified 8/27 1597

Renewal of credits discussed by Mr. Szymczak with Mr.

Sproul 9/11 1680

Renewal of credit, proposal of FRBank of New York to suggest

extension for one month rather than nine, so

that FRBank may have benefit of comments of

other participants on capital repayments, ap-

proved 10/ 6 1837

Second syndicate credit, reply to Mr. Sproul approving

proposal for interest payment, FRBank should

make it clear that action in no way impairs

right of requiring further interest payment

or modification of agreements 10/14 1379

Renewal of credit, reconsideration by FRBank directors and

authority to renew for nine months, approved 10/16 1390

National Bank of Nicaragua:

Extension of loan of Nov. 6, 1935 for sixty days on under-

standing tnat FRBank of New York will not con-

sider any further extension of this loan or of

the other loans 2/26 435

Loan by FRBank of New York on security of gold and par-

ticipation by other RBanks approved 8/31 1625

Negotiations of FRBank of New York with Banco Central de Re-

serve de El Salvador for loan, memo of Mr.

Dreibelbis re failure to secure permission

for 9/ 4 1546

Copies of correspondence re opening of account and grant-

ing of loan on gold, acknowledgement of re-

ceipt by Board 9/16 1717

Negotiations with, question of procedure raised in connection

with visit of Sir Claude Reading to FRBank of

New York, conference to be held by Board with

officers of FRBank to determine procedure to

comply with Sec. 14(g) of FRAct 9/11 1676

Date for conference, memo to be prepared for Chairman, Mr.

Ransom to arrange for President Harrison to

came to Washington week of Oct. 12, with Messrs.

Sproul and Knoke 9/22 1747


226 page'

Foreign banks: (Continued)Reichsbank:

Jaenicke, Reichsbnnkrat, advice that FRBank of New York in-tends to discuss account with, letter to be pre-pared 12/ eared 12/ 1

210Letter to Mr. Knoke re 12/ 3Reports under Sec. 14(g) of FRAct and Regulation N, reply to

Mr. Arac that they are mostly confidential butthat FRBank of New York might be able to be ofsome assistance 7/15 152

Swiss National Bank, loan requested by Bank for InternationalSettlements believed to be on behalf of, for sup-port of Swiss franc 9/28 1178

Foreign banks and bnnkers:Procedure, question raised in connection with monetary agreement

between France, England and U.S., as to relationsbetween Board, Treasury and YRBanks, review byChairman Eccles of procedure in reserve increase 10/ 6 10-6

Report of Mr. Ransom re consideration by senior staff mem-bers, and his memo re cooperation between Trea-sury and Board, discussion of arrangement be-tween Treasury and Board and FRBanks, Chairmanto take up with Secretary of Treasury 10/ 6 185-6

Report of Chairman re conference with Secretary of Treasuryand proposed procedures, Chairman to conferagain with Secretary on Oct. 13 and outline tobe prepared for conference with officers ofFRBank of New York 10/ 9 1557

Chairman and Mr. Ransom to confer tomorrow with SecretaryMorgenthau and Assistant Secretary Taylor reprocedure 10/12 1°

Draft of arrangement for relations with Treasury to be pre-pared by Messrs. Morrill, Wyatt and Goldenweiser,conference with Messrs. Harrison, Sproul andKnoke to be postponed until Oct. 2710/13 1814'5

Memo of Chairman Eccles, prepared in connection with Banking Act of 1935

Memo prepared by Messrs. Morrill, Wyatt and Goldenweiser,to be considered Oct. 23

10/16 :

Memo

98:6

Mo of Messrs. Morrill, Wyatt and Goldenweiser, discussionof, conference with New York officers to be upon

10/20

broad grounds of responsibilities of Board, tobe revised accordingly 10/23 193S

Revised memo discussed and amended, copies to be sent to Mr.Sproul, arrangements made for early meeting on

105Oct. 50 with Messrs. Harrison, Sproul and Knoke 10/27Memo further discussed, reference to purchases of bills for

foreign banks, foreign bank agreements should bereviewed

Conference with Messrs. Harrison, Sproul and Logan, changes 10/29 1956

in memo agreed upon, to be referred to Presi-dents' Conference, section re authority ofFgAc eliminated, to be prepared separately and 1961referred to Famc 10/30


P(Drei6r1 exchange:De NederlEndsche Bank, reply to Dr. Bolstigr that copy of offi-

cial request that private banks refrain from

certain transactions will be treated with con-

227

Pages

fidence 8/26 1591

Federel Open Market Committee, scope of authority over open mar-

ket transactions in 5/15 1027Pat-1nu,, suspension of loan service, letter from President Harri-

son reviewing situetior, and likelihood of dis-

criminatory treatment of American creditors,

Mr. Gardner to take up with State Department 10/ 6 1839

Memo of Mr. Gardner reporting result of conference with

Messrs. Fels and Livesey and probable action

of Department, copy of letter to be furnished

informally to State Department and Mr. Harrison

to be informed 10/ 9 1860Letter to Mr. Harrison advising of furnishing of his letter

to State Department and requesting any other

information which might became available for

tranemission to Department 10/14 1878

PUrchase and sale by iliBank of New York for account of Banco

Central de la Republica Argentina under agree-

mentel.gn financial situation, analysis of, by Mr. Williams in connec-

tion with consideration of increase in reserve

9/16 1716

Porms: reeuirements of member banks 4/22 848

418rd of Governors:Agreement executed by holding company affiliates in connec-

tion with general voting permits, modification 11/25 2.134

Biographical data of directors and officers of FRBanks,

forms approved for, authorized to be printed,

end letter approved to FRBanks re 1/11 113-4

B-6, mailing instructions 7/ 2 1298

B-13, copies of revision forwarded to FRAgents with instruc-

tions 7/ 2 1297

B-23, Retirement System contributions, advice to governors

that reports for 1975 should be at full rate,

but should not include additional contributions

at end of year 1/ 2 11

Revision of 11/13 2061

Condition reports:Sent with instructions to all FRBanks 3/ 7 534

Transmitted to FRAgents with instructions 6/ 5 1143

Transmitted to presidents for next call 8/28 1609

Uniform, request of Permanent Committee on Standardiza-

tion of Bank Report Forms for attendance of Mr.

Smead at meeting, Messrs. McKee and Davis to

discuss with Mr. Crowley the formation of a

committee by the Board, Comptroller and FDIC,

to consider 11/12 2044-6


228 page'

Forms: (Continued)Board of Governors: (Continued)

Condition reports: (Continued)Uniform: (Continued)

Report of Mr. Davis re Mr. Crowley's position, indica-tion that failure of Board to be representedwould be interpreted as unwillingness of Boardto cooperate with FDIC, Board not willing for Mr.amead to attend for reasons of establishedpolicy 11/13 2v

Deposits, demand and time, in connection with study of de-posits activity being conducted by Division ofResearch and Statistics 1/16 151

Examination report form of State member banks, FRBanks ofNew York and Dallas requested to assign ChiefExaminer Sheehan and Mr. Betts to Board forfinal work on, actual expenses to be paid byBoard

Interest rates of member banks, copies of forms sent toFRBanks for transmittal to member banks re-questing 8/ 4

Oaths of office, memo of Mr. Vest recommending changes in,and for printing forms for directors, FRAgents 101and Assistant FRAgents, approved 10/16 ;Poe

34, Balance sheet of FRBanks, changes for 1937, approved 10/23 t;,61Advice to FRBanks 11/13

105, condition report:Changes in, contemplated, to require showing of indirect

ownership of other real estate, advice to Mr.Fry 1/7

Changes in, for next call proposed in memo from Mr.Snead, national bank reports to contain samechanges and 105e to be revised accordingly ifapproved, approved

Dividends, unpaid, request of State Street Trust Co.,Boston, Mass. for change in item re, Board willconsider and has no objection to inclusion ofexplanation

Recommendation of Mr. Snead that they be furnished tobanks well in advance of call, in accordancewith new policy of Comptroller, and that formsbe reprinted without change except as to elimi-nation of items for Department of Agricultureand Farm Credit Administration, approved 8/ 1

Reserve for dividends payable in common stock, reply toMr. Fletcher re reporting 9/12 16°

105e,Utah,extra copies to be furnished Mr. Sargent for useof State banking department of, to bring aboutsingle publication 6/ 1 111°

105-f, information required by, agricultural loans and farmreal estate, to be submitted at midyear andyear-end calls 12/ 1 2.41

11/23 20

51,82/10

7874/10


PO44 ( Continued )Board of Governors: (Continued)

107, Earnings and Dividends Reports:

Amendments re rent received, fees to directors and

committee members and real estate taxes, in

accordance Ihith changes made by Comptroller,

approved 4/ 8 781

Changes made in, to conform to changes in Comptrollers

form, approved 4/28 917

Copies forwarded to FRAgents and attention called to

new items 6/24 1233

Change approved re showing of reserve for dividends

payable in cormon stock 10/31 1986

Changes in form to be used by State member banks Dec. 22,

copies forwarded to all FRBanks and instructions 12/21 2250

T-2, filing with FRAgent to be continued although nonstatu-

tory duties of Agents have been transferred to

FRBanks 12/ 2 2158

X-9739-a, b and c, budgets for FRBanks and branches and

statistical and analytical function and exami-

nation function 11/17 2085

X-9746-a-b-c, for submitting lists of officers of FRBanks

with their salaries, employees, and salary

changes during 1936 of latter 11/23 2112

F'RBank of Dallas, examination report, no objection to printing

limited supply in form of tentative draft of

revised form 8/26 1592

11110e.

evaluation of franc, balance of iiiiBanks with Bank of France,

advice from President Harrison of problem re,

in view of possibility of, he had determined

to take no action 9/24 1755

Mr. Harrison advised of nothing to add to advice, told of

views of Board and staff, reports of no new

developments in French situation 9/25 1759

Report of Mr. Ransom of gentlemen's agreement negotiated by

Treasuries of France, England and U. S., Presi-

dent Harrison "sworn to secrecy" on aid rendered

by Messrs. Williams and Knoke 9/26 1767

Secretary of Treasury Morgenthau present at meeting, advis-

ing Board of steps relative to developments in

Ntet

_, monetary agreement between England, France and U.S. 9/29 1787

McLanahan & Rouzer, agreements by nonmember banks under

Regulation T, reply re questions asked in con-

nection with, and advice that Board has not re-

quested amendment to Securities Exchange Act

of 1934 to permit voluntary cancelation of

Fr„ agreement by bank 5/ 5 971

-8er, Leon:Bank for International Settlements, report of Chairmen re call

In. connection with American directors on, which

President Trip desires, suggesting that Chairman,

his nominee or another member of Board be ap-

pointed, to be considered later 3/14 575

229

Pages


230

Friday, David:National Bureau of Economic Research exploratory committee, mem-

ber ofFaller, Bert C.: (See National banks, First National Bank of Spring

Valley, N. Y.)Fulton, R. I.: (See National barks, County National Bank at Clear-

field, Pa.)Functional expense reports, methods, suggestions of Mr. Peyton for

improvement in, reply outlining steps now beingtaken

F. W. Dodge Corporation:National Emergency Council, request that Board furnish copies

of contracts with, reply to be made that Boardhas no written contract and that reports areconfidential

Gandy, N. S.: (See National banks, American National Bank, SantaMonica, Calif.)

Gay, Charles R.:Present at meeting of Board re Regulation U(See also New York Stock Exchange)

George A. Fuller Co., Washington, D. C., to be invited to bid onBoard's new building

Bid submitted by, is low, contract awarded to, and Mr. Morrillauthorized to execute, and to give formal noticeto proceed with construction

Georgia Bankers Association, study, reply to Mr. McFadden that Boardis authorizing RBank of Atlanta to make dataavailable for

Co., Nelson, Ga., approved as sub-contractor forBoard's new building

., allegations against Governor Calkins, letter fromDirector McIntosh requesting approval of appoint-ment as President in view of

appointed to review files re charges, and Chairmanauthorized to reply that Board cannot approvebecause of age policy

report exonerating Governor Calkinselection of Mr. Calkins as President of FRBank,

Board to adhere to policy and not approve,advice to FRBank, and addition to reply toMr. McIntosh re Committee report

Giegengack, A. E., Public Printer: (See Government Printing Office)Gifts to employees retiring from FRBanks, request of FRBank of

Cleveland that Board consider uniform policy asto amount which may be expended, referred toPresidents' Conference

Reply to FRBank, advising of action taken

Gilbert, S. Parker:"Wernher Bank Reserves", Federal Advisory Council advised to read

letter entitled, appearing in New York Times asexpressing views of Chairman Eccles

Georgia Marble

Giannini, A. P

Committee

CommitteeAdvice of

page,

9/18 1423

109 1909

5/26 1°82

4/30 929

1/ 2

1/30

7/23

2/18

2/20

2g-5

140

369

42/20 5/.62/20 `.`.

2/20400

12/ 4 91615 7,0

12/11

2/12342


.5

6

231

Pages

411"Piel 'Tames P.: (See Foreign banking corporations, Interna-

tional Discount Corporation)

411esPie, Wm. J.: (See Foreign banking corporations, International

G1 Discount Corporation)

-'81 Senator Carter:Federal Open Market Committee, report of Governor Harrison of

strong opposition to proposed outside repre-

sentation of FRBanks on

Interest rates, reply to protest re fixing of maximum rates,

Board members to consider draft and take up

at later meetingPoli c.),- record required to be kept by Board, statement of Mr.

Miller of confirmation of opinion that only

matters of important nature affecting the public

interest should be included

Savings accounts, reply to Robert E. Ramsay Organization, Inc.,

on letter to, that deposit of business corpora-

tion may not be classified as, and copy to

Caetwood Cemetery, reply to FRBank of Richmond that deposits of,

0101d: may be classified as savings deposits

Imports:Deposits created by, and deficit financing and silver pur-

chases of Government, discussion at meeting with

Presidents' Conference of problems created by,

and whether further increase in reserve require-

ments should be made

Sterilization of, question raised as to possibility of, at

meeting with Presidents' Conference, difficul-

ties pointed out

Informal discussion of methods

Review of the month, question raised by Mr. McKee re

possible implication in statement on, that

Board intended to increase reserve requirements,

to be re-read and taken up further if any ques-

tion still exists

Statement discussed further, to be published with minor

changes

Stabilization of currencies, action of Secretary of Treasury

in releasing information re purchase and sale of,

between stabilization funds of U.S., England, and

France reported by Chairman, statement of Mr.

Goldenweiser

Withdrawals from this country, possibility of, discussed by

Mr. Williams in connection with consideration of

Gold increase in reserve requirements of member banks 4/22 848

coin and certificates:

Dallas Bank and Trust Co., Dallas, Texas, coin and certificates

held by, reported to Secretary of Treasury, was

held for licensed dealer and later turned over

to FRBank of Dallas 5/13 1016

0dbar, Joseph E.: (See Society for Stability in Money and Bank-

ing)

2/11 326

1/ 9 85

1/24 199

1/30 245

10/ 3 1824

11/19 2102

11/19 210312/11 2201

12/28 2282

12/29 2298

10/12 1870-2


232

Government accounting office:Vouchers for telegrams sent over branchllines, rejection of,

because method of computation not shown, vouchersto be prepared by FRBanks on uniform basis in

Iwo

future 11/25 219Government financing:

Deficit, discussion of problems arising out of deposits created 21.02by, at meeting with Presidents' Conference 11/19

Soldiers' bonus, plans for, statement of Mr. Goldenweiser show-ing estimate of Treasury requirements up to June30, Board members present favor alternate pro-cedure 2/12 355

Government lending agencies:Competition with banks, Mr. Myers present at meeting with Federal

Advisory Council to discuss, particularly produc-tion credit associations and question raised as

ri 01 6'8to advertising of latter 11/1fStatement of Mr. Ransom before presidents that he was interested

in reducing activity of, and restoring field to 596commercial banks 3/16

Government Printing Office:FRAct, printing of, voucher returned to Mr. Giegengack, stating

that as work was improperly done, Board shouldnot be required to pay for 20% rush 1/18 161

Government securities:Advance payments on, reply to President Harrison that they are

deposits against which member banks and FRBanksare required to maintain reserves 12/22 2261

Allotments of those in System Open Market Account: (See OpenMarket Operations, System Open Market Account)

Collateral for FRnotes, formula as to amounts pledged no longernecessary and FRBanks authorized to pledge insuch amounts as may avoid frequent interchangeof, and gold certificates 7/20 10

Currency, reply to American National Bank, Santa Monica, Calif.,re editorial in Los Angeles Times that bank maysecure 100% value for bonds at FRBank, advisingof methods of securing currency from FRBanks andvarious types of loans for which bonds areeligible as collateral 8/ 7

Earnings assets of FRBanks are principally invested in, statementof Chairman Eccles at meeting with presidents,and such holdings might be reduced in future

591without replacement 3/16kRnotes as collateral for, amendment proposed to FRAct making

present authority permanent, with suggestion thatit be taken up with Congress separately in orderto secure action before March 3, 1937 12/18 206

Loans on security of, by member banks, question raised as tototal permitted, by Mr. Von Windegger, PlazaBank of St. Louis, referred to Comptroller 1/28

Padding of subscriptions for, conference of FRBank representa-tives called by Treasury for May 12 to discusspractice, Mr. Broderick and Mr. Cagle to attend 5/ 1


Greece:

Currency, acknowledgment of advice from Governor Tsouderos

of Bank of Greece that drachmae has been at-

tached to the pound, advice to FRBank of New

Yorkreply re proposed organization of corporation

to lend on registered securities that Board has

authority to regulate extension and maintenance

of credit by organizations not DOW included in

scope of Regulations T and U

°IllbseY, Albert J.,

aa, Harry J.

P. M.:Ilates, R.

411ey and Jack

"H"

: (See National banks, First National Bank of Phila-

delphia, Pa.)

(See National Archives)

(See American Bankers Association, State Bank Divi-

sion)son: (See Executive officers, Shove, E. P.)

(See National banks, Citizens National Bank, Em-

poria, Va.)

233

Pages

Gov ernment securities: (Continued)Power of attorney should run from FRAgent at Atlanta to FRAgent

at New York to pledge, as collateral for FRnotes,

reply to FRAgent Martin 3/12 565

Profit realized by FRBank of Minneapolis on sale to System Open

Market Account to be transferred to reserve for

other losses 7/17 1397

Readily marketable assets", within meaning of Sec. 5144, R.S.

and Sec. 26(d) of Revenue Act of 1936, ruled that

all governments including securities guaranteed

both as to principal and interest cane under,

reply to FRBank of Atlanta 12/29 2301

SYstem open market account: (See Open market operations)

-rsduate School of Banking:BUrgess, W. Randolph, Vice President, FRBank of New York, no

objection to acceptance of invitation of Mr.

Stonier to conduct course next swnner 9/11 1682

PRBank employees, letter to all presidents that additional an-

nual leave may be granted for and transportation

expenses assumed 6/ 4 1140

Leaves of absence with pay in addition to regular annual leave

authorized for employees of FRBanks attending 4/16 815

Provision made for Board's employees attending 4/28 903

Leave for members of Board's staff to attend, granted in addi-

tion to regular annual leave and transportation

expenses assumed, attendants to make written

report re 4/28 903-5

Selection of FRBank employees on merit basis for attendance,

Mr. Szymczak to investigate desirability of 4/28 906

9/30 1810

6/22 1209


234Page°

Harr, Luther A.Permanent Committee on Standardization of Bank Report Forms,

for working out of uniform condition report

form, request for attendance of Mr. Smead,

Messrs. McKee and Davis to discuss with Mr.

Crowley the formation of a committee by Board,11/12 2°1'6Comptroller and FDIC

(See also Condition reports, Uniform form)

Time certificate payable upon six months' notice by depositorand callable after 30 days' notice by First Na-

tional Bank of Gettysburg, shorter period gov-69°erns in determining maximum interest rate 4/25

Harris, D. B.: (See National banks, Hamilton National Bank, Chatta-

nooga, Tenn.)

Harrison, I. H.: (See Newark Clearing House Association) 839Harrison, J. L., present at meeting of Board to discuss Regulation U 4/22

Hart, Henry M.: (See National banks, National Bank of Commerce ofSan Antonio, Texas)

Hart and Dice:Macpherson, Gregor:

Hearing of Marine Midland Corporation re general votingpermit, to be employed to make stenographicrecord 1/ 7 65

Present at hearing of Mr. Johnson to make stenographicrecord 12/16 22135

Hart, Gainer and Carr, reply re question as to whether an executiveofficer of a member bank must under Regulation

0 report to board of directors indebtedness to 400Morris Plan bank in Rhode Island 2/20

Hartford, Conn., letter from Congressman Kopplemann requestingfinancial aid, letter to be prepared to GovernorYoung re, and suggesting liberal attitude toward

industrial loan applications, possibility of 666aid from other Government agencies suggested 3/25

Haskins and Sells:Regulation T, postponement of subdivision (2) of supplement,

position taken by Mr. Stewart of, that situationpresented no emergency

Renewal of arrangement with, on adjusted basis and increase incompensation for May, recommended by Mr. Parry,approved

4/ 3

5/1Hearings:

Board of Governors:Amendment to FRAct tentatively proposed to facilitate 12/18

American Bankers Association subcommittee, to be held on

April 22 re memo on Regulation U 4/17

Meeting with Board 4/22

Forney State Bark, Forney, Texas, to be held as part of

proceedings of forfeiture of membership 4/29

Authorization to change date of hearing from June 2 to

June 16 5/ 4

Reply to Mr. Evans that it would be appropriate for Mr.

Walsh, as FRAgent, to conduct 5/12

94

looS


235

Ifearings: (Continued)Board of Governors: (Continued)

Forney State Bank of Forney, Texas: (Continued)

Advice that bank waives right to appear before Board,

and telegram from FRAgent that hearing before

him has startedGay, Charles R., April 30 set as date for hearing of New

York Stock Exchange representatives

Meeting with Board

Johnson, H. S., Point Pleasant National Bank, Point Pleasant,

W. Va., statement of Mr. Wyatt that file is in

circulation with certificate of Comptroller for

determination of Board re proceedings for re-

moval under Sec. 30 of Banking Act of 1933

Memo of Mr. Wingfield, notice to Mr. Johnson of hearing,

advice to Comptroller and letters to be sent to

directors of bank

Letter to Comptroller and one to Mr. Johnson that Board

is not willing to postpone hearing until about

Dec. 1, but willing to postpone until Nov. 5

Agreement to appear before Board on Nov. 5, Mr. Wyatt to

furnish Board with procedure prior to that date

Procedure for, memo of Mr. Chase, Comptroller's counsel

to present evidence, agreement on details

Postponement of, pending settlement with Comptroller of

procedure for conduct of hearing

Recommendation of Mr. Ransom that hearing be postponed

in order to determine participation by Comp-

troller, suggestion that hearing be preliminary

one, not to be postponed and Counsel to prepare

outline of procedure

Question of further consideration with Comptroller re

procedure to be taken up by Mr. Ransom and Mr.

Wyatt, Board would not be willing to postpone,

to be in nature of preliminary hearing, Mr.

McKee voting "no"

Mr. Ransom with Mr. Wyatt and Mr. Dreibelbis called on

Mr. O'Connor, agreement on proposed procedure,

but not to be precedent, national bank examiner

to be presentMr. Johnson present at hearing, Mr. L. 0. Starr, Na-

tional bank examiner, present and stenographic

record made by Mr. MacphersonAdditional information, question of, such information

as examiners desire to submit to be requested

and to be sent to Mr. Johnson

Stenographic record and copies of documents submitted,

sent to, with extension of time until Nov. 23

to make any further answer desired

Reply that extension of time has been granted to Nov.

23 and request for definite advice as to whether

he desires to question Messrs. Starr and Chorpen-ing personally, Board desires to close recordby Nov. 23

Pages

6/ 8 1156

4/28 9064/30 929

9/18 1727

9/21 1739

10/15 1887

10/20 1922

10/29 1959

11/ 2 1988-9

11/ 6 2005-7

11/ 9 2023-5

11/10 2026-7

11/10 2028-9

11/10 2029

11/16 2066


236 pages

Hearings: (Continued)Board of Governors: (Continued)

Johnson, H. S.: (Continued)Request for opportunity to question Messrs. Starr and

Chorpening before Board, Dec. 2 fixed as datefor

Postponement of questioning of Messrs. Chorpening andStarr, because of illness of Mr. Johnson,untilDec. 16

Present to question Messrs. Starr and Chorpening, onlytwo Board members present, questions to be sub-mitted in writing and further hearing to becalled if necessary

Letter from, with questions to be presented to Messrs.Starr and Chorpening, hearing to be resumedDec. 29

Procedure for, statement prepared by Mr. Dreibelbis,to be read by Chairman, Messrs. Chorpening,Starr and Kelly present, stenographic recordmade by Mr. Macpherson

Marine Midland Corporation, requested re action of Boardon general voting permit, by Mr. Pope, to beheld by Mr. Hamlin and Mr. Macpherson to beemployed to make stenographic transcript

Report on hearing, opinion that Board has no right torequire agreement, desired modifications, tele-gram to Mr. Case that Board is not willing tomodify agreement and advice for corporation rerequirements under agreement

Pell, Williamson, to be granted in connection with questionof service of Mr. Thatcher Brown under ClaytonAct

Removal proceedings under Sec. 50, procedure, Comptrollerfeels that it lies with Board after certifica-tion of facts by his office, hearing of Mr.Johnson postponed pending return of Comptrollerand definite settlement of procedure

Securities and Exchange Commission:Investment trust officers, Liberty Share Corporation, are

also officers of Liberty Bank of Buffalo, ad-vice re, Division of Examinations to send ob-server

Hegeman-Harris Co., Inc., New York, N. Y., to be invited to bid onBoard's new building

Bid submitted byHelvering, Guy T.: (See Commissioner of Internal Revenue)Bersee, D. E.: (See State member banks, State Street Trust Co.,

Boston)Heydon, Thomas A., reply to questions re flexibility of Board's

margin requirementsHildreth, W. S.: (See National banks, Peoples National Bank,

Charlottesville, Va.)Hilgartner Marble Co., Baltimore, Md., approved as sub-contractor

for Board's new building

11/24 2116

12/ 1 2146

12/16 2225

12/23 2263t2

12/29 2291

1/765

1/11 1°

9/ 2 1636

11/ 2 190#9

12/28 2291

1/2 041/30

5/27 1098

2/18 3'11Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

237

Pages

"el Peter J.: (See National banks, National Bank of Middlebury,

Rink" Vt.)eY, Hiskey and Berger:Edwin Bennett Pottery Co., employment by FRBank of Richmond as

special counsel in case of, approved 4/ 2 728ts chler, Charles W., reply that payment from securities account

constitutes "net withdrawal" and is prohibited

unless Sale causes account to become unre-

11 011, stricted 6/17 1189

4 n) Representative Sam:Anniston Soil Pipe Co., Anniston, Ala., reply re refusal of

FRBank of Atlanta to make industrial advance to 3/23 638liqabi1101,, r-, Harry G.: (See North American Associated Companies)

"irig company affiliates:American Holding Corporation, Chicago, Ill., reply to Mr.

Stevens re position of Board as to determina-

tions of organizations as not being, but if he

feels it undesirable to not contact corpora-

tion, Board will not object 3/12 564

Anglo National Corporation, San Francisco, Calif., interpreta-

tion of "per centum of aggregate par value of

all bank stocks controlled", reply to Mr. Sargent

extending that furnished by counsel for FRBenk 10/22 1932

Associates of Morris County, Inc., Morristown, N. J., ruled not

to be, of First National Bank in Rockaway, N.Y. 12/17 2228Atlas Corporation, Jersey City, N. J., determined not to be 1/50 245-5

Ballots of affiliated banks, counting in election of Class A

directors of RBanks 12/ 7 2184

Banco Nacional de Mexico, Mexico City, determined not to be,

of Harbor State Bank, New York, N. Y. 7/ 1 1289

Bank of San Rafael, Calif., determined not to be holding com-

pany affiliate and general voting permit hereto-

fore issued is void 3/11 552-3

Barnett National Securities Corporation, Jacksonville, United

States Savings Bonds as readily marketable

assets 12/29 2301

C. M. N. Investment Company, ruled not to be holding company

affiliate of First National Bank of Snohomish,

Wash. 12/11 2209

Citizens Shareholders of Arcade, Inc., Arcade, N. Y., deter-

mined not to be holding company affiliate of

Citizens Bank of Arcade and general voting per-

mit is no longer effective 10/ 2 1816-7

City certificates Corporation, Baltimore, Md., determined not

to be, of Union Trust Company of Maryland,

voting permit void 4/27 898-9

Consolidated Investment Trust, Boston, Mass., determined not to

be, of Union Trust Company of Boston and general

voting permit is void 4/15 807-8

Credit allowance by Revenue Act, regulations to be procurred

from Bureau of Internal Revenue when issued and

letter to be prepared to FRBanks transmitting 10/30 1980


238pegeS

Holding company affiliates: (Continued)

Credit allowance by Revenue Act: (Continued)

Barnett National Bank of Jacksonville, Fla., reply to Mr.McQuaid relative to procedure in connection

with 11/1`..4 2°6°

Letter to all FRBanks re, in accordance with action ofOct. 50 11/16 2067

Mr. McKee opposed to granting general voting permits with-out limitation on effective time, possible re-vision of standard agreement to be consideredby Board on Dec. 4 11/25

Certification, reply to FRBank of San Francisco and copy toall FRBanks, re procedure in submission of factsand information relating to 12/30

Determination of organizations not to be, Board states to Mr.Sargent that it does not feel that it shouldmake determination in absence of request fromorganimition concerned 3/11

Position of Board re technical construction of holdinRcompany affiliates, expressed in letter to Mr.Stevens

Financial Institutions, Inc., Warsaw, N. Y., termination of re-lationship with Wyoming County National Bank ofWarsaw, N. Y. 1/ 4

May be technical affiliate of Trust Company of WyomingCounty, Warsaw, N. Y., but relationship willsoon be terminated 12/24 22°

First Bank Stock Corporation, interest payment by member bankon deposits which may no longer be classifiedas savings accounts, may not be paid for periodsucceeding Jan. 1, reply to Mr. Peyton on in- 904quiry of 3/ 4

First National Bank of Everett, Wash., ruled holding companyaffiliate of First National Bank of Snohomish,Wash., and may be, of First National Bank ofMonroe 12/11 2°9

First National Bank of Snohanish, Wash., reply to Mr. Day thatShareholders Fund is holding company affiliateof and so also is First National Bank of Ever-ett, C.M.N. Investment Co. is not 12/11 22°9

First National Company of Bradenton, Fla., determined not tobe, of First National Bank of Bradenton, generalvoting permit previously granted is void 1/31

First Securities Corporation of Syracuse, N. Y., termination ofrelationship with North Syracuse National Bank,

stock was voted while still holding company af-

filiate without voting permit, copies of corres-pondence furnished Comptroller 3/ 2

First Security Corporation of Ogden,Utah:

Determined not to be, of First National Bank of Salt Lake5 1°City /23

as

554

3/12 °AI

26°


liqding company affiliates: (Continued)First Security Corporation, Ogden, Utah: (Continued)

Investments in stock of affiliates, reply to FRBank of

San Francisco re inquiry of, that voting per-

mit agreement applies to present and futurepurchases

Purchase of additional shares of stock of First National

Bank of Salt Lake City, Utah, makes organiza-

tion again holding company affiliate, reply

to Mr. Sargent that it must file new voting

1/2

permit application 10/ 8

General voting permits, standard agreement, amendment, report

of Mr. McKee re discussions with representa-

tives, to meet with other members of the Board

if desired 12/ 1

Report of Mr. McKee re further discussions, and reconnenda-

tion that agreement be amended, approved, FRBanks

to be advised 12/ 4

Advice to FRBanks of action 12/ 7

(See also Voting permits)

Mellbank Corporation, voting permit application withdrawn, cor-

poration declared liquidating dividend of all

bank stocks, to be considered as withdrawn

without giving consideration to termination of

status as, papers may not be returned 2/27

Mercer County State Bank, Sandy Lake, Pa., determined not to be,

of First National Bank of Stoneboro, Pa. 6/22

Morristown Trust Co., Morristown, N. J., determined not to be,

of First National Bank of Morristown, 1/16National Shawmut Bank, Boston, request that Board determine it,

and Shawmut Corporation not to be, and also

that the standard form of agreement for voting

permits be amended as to requirement that Board

approve changes in investments, memo of Mr.

Baumann recommending disapproval 3/25 667

Board unwilling to make determination, but agreement

amended as requested, as to national banks, all

FRAgents to be advised of amendment 3/25 668

Determination, Board refuses to make that it is not holding

company affiliate, but agrees to emend agreement

re securing Board's permission to make changes

in investments

239

Pages

11

1851

2150

21672187

1/7 701/7 70

4/6 760

Hershey Industrial School, Hershey, Pa., determined not to be,

of banksHershey Trust Co., Hershey, Pa., determined not to be, of banks

Howard County Liquidating Corporation, Ellicott City, Md., de-

termined not to be, voting permit previouslyissued is void

Income tax exemption allowed by Revenue Act of 1936 to holders

of general voting permits, those not holding

may desire to obtain before year end, letter to

be prepared by Counsel requesting FRBanks to

cell attention to regulations of Bureau of In-

ternal Revenue 10/30 1980

446

1203-4

146


240

Holding company affiliates: (Continued)

National Shawmut Bank of Boston: (Continued)Merchants National Bank of Salem, Mass., reply to Mr.

Curtiss that former is not, in connection withelection of Class A director, although latter

1712was included in voting permit 9/16

Norfolk Corporation of Braintree, Mass., determined not tobe, of Braintree National Bank and voting permit

760heretofore issued is void 4/ 7

North Berwick Company, North Berwick, Me., determined not to 16°6-1be, of North Berwick National Bank 8/28

Northwest Bancorporation, Minneapolis, Minn.:First National Bank of Napoleon, N. Dak., held not to be,

and permit unnecessary 10/23 19:58

Security Bank and Trust Company of Owatonna, Minn., Bancor-poration should execute agreement with respectto, before issued 3/ 6 525

Pacific Eastern Corporation, Jersey City, N. J., determined not 245to be 1/30

Peoples Trust Company of Rock Hill, S. C., reply to Peoples Na-tional Bank that former is not 11/25 2141

Ranborough Corporation, reply to Citizens National Bank ofFreeport, N. Y., that Board has determined cor-poration not to be, and no action is necessaryto permit to vote stock of bank 7/14 1368

Readily marketable assets, riled that Government securities are,under Sec. 5144, R.S. and Sec. 26(d) of Revenue

23°1Act of 1936 12/29

Regulation of Commissioner of Internal Revenue re credit to,reply to Mr. Helvering commenting upon and mak-ing suggestions as to draft of 10/19 1912

Revenue Act of 1936, amendment suggested to exempt from tax onthat part of earnings Sec. 5144 of RevisedStatutes requires them to set aside, request tobe drafted 5/15 102!

Letter to Senator Harrison ra, approved 5/161031'

Robert Moody, L. L. Crosby and J. A. Norway, Trustees, Share-holders Fund of The First National Bank ofEverett, ruled holding company affiliate ofFirst National Bank of Snohomish, Wash. 12/11 22°9

Savannah Corporation, Savannah, Ga., determined not to be, ofSavannah Bank and Trust Company of Savannah,and voting permit void 4/29

Shawmut Association:Amendments proposed to declaration of trust to terminate re-

lationship with National Shawmut Bank of Boston,further amendment needed and letter to assistant 1055nAgent 6/27

Determination, Board refuses to make, that it is not holding 748company affiliate 4/ 4

Merchants National Bank of Salem, Mass., reply to Mr. Curtissthat former is not, in connection with electionof Class A director, although latter was in-

9/16 1°eluded in voting permitDigitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Rold ing company affiliates: (Continued)Sha-nut Corporation, Boston, request that Board determine it,

and National Shawmut Bank not to be, and alsothat the standard form of agreement for votingpermits be amended as to requirement that Boardapprove changes in investments, memo of Mr.Baumann recommending disapproval 3/25 667

Board unwilling to make determination, but agreement amendedas requested, as to national banks, all FRAentsto be advised of amendment 3/25 668

Tax on earnings, suggestion of Board that exemption be made inRevenue Act of 1936 to extent of investment inassets required by law adopted 6/ 3 1125

Trust Company of Georgia Associates:Plan Whereby common stock of Liberty National Bank and Trust

Co. will be purchased by, and preferred stockretired and sum will be transferred to, fromnonbook assets of Trust Company of Georgia 1/31 255

Trust Company of Georgia, Atlanta, Ga.:Plan whereby Trust Company of Georgia Associates will pur-

chase common stock of Liberty National Bank andTrust Co. and retire preferred stock and trustcompany will transfer sum from nonbook assets toassociates, no objection 1/31 255

United States National Bank of Portland, Ore., may be holdingcompany affiliate of Clark County National Bank

of Vancouver, attention of bank to be directed

to 3/11 555

Determined not to be 6/24 1228United States National Corporation, Portland, Ore., letter to

Mr. Sargent that Board does not feel it should

determine organization not to be, in absence of

request, that it may be holding company affil-

iate of national bank in which case determina-

tion may be desired 3/11 554Board believes it might determine not to be, but organiza-

tion is satisfied with present status 6/24 1228

Vollmer Security Co., Lewiston, Idaho, determined not to be,

of First National Bank of Lewiston 9/22 1751

"William P. Murray, E. B. McNeer, and A. C. Latno, As Trus-

tees***", determined not to be 3/11 552-3

Woodlawn Trust Co., Aliquippa, Pa., determination that it is not

holding company affiliate, reply to Mr. Fletcher

noting his desire to withhold advice until re-

habilitation plan is complete and stating that

advice should be delivered 1/ 2 10

473 Broadway Holding Corporation, Saratoga Springs, N. Y., de-

termined not to be, and advised that general

voting permit heretofore granted is void 3/10 548

11°11days:Christmas, offices of Board to be closed at one p.m. on Dec. 24

and all day Dec. 26 12/ 4 2175

241

Pages


242 Pages

Holidays: (Continued)Discount rates, effect on compliance with law requiring rees-

tablishment every 14 daysJanuary 2, 1937, offices of Board to be closed

Holstign, Dr. T. Westermann: (See Foreign banks, De NederlandscheBank)

Homer, A. P.: (See QuartersHonker, Harry A., reply that

at thispayable

Honnor, Jahu W., jr., replyproposedassessed

Hoskinson, H. G., present at

(See also National banks, Riggs National Bank)Houston, Sherman P: (See L. N. & S. P. Houston)Howbert, Wm. I.: (See National banks, First National Bank, Colorado

Springs, Colo.)

of Board)Board does not have under considerationtime decreasing maximum rate of intereston time and savings depositsre legality of social club for childrento be organized whereby dues would beand returned at age 21 with interestmeeting of Board to discuss Regulation

"I"

Illinois:Membership in FRSystem, banks applying should furnish copy of

application to organizePledge of collateral for trust funds, Board unwilling to waive

membership condition requiring pledge of col-lateral for, State attorney general preparingopinion re right of State member banks to makepledge

Deferment of membership condition requested by Mr. Stevenspending decision of State Supreme Court, Boardhas not waived condition

Enforcement of membership condition, letter from Mr. Youngand memo of Mr. Seitz recommending that Boarddelay no longer, approved and letter to Mr.Young

Reorganized banks involving issue of deferred certificates ofdeposit, reply to Mr. Wilkes re proposed modi-fications in reorganization plans, in connectionwith membership

"In process of collection", interpretation of, in Sec. 5204, R.S.,letter requesting views of Comptroller re,where Cleveland Trust Co. places past due debtin hands of committee for constant and activeattention

Letter to FRBank of Cleveland reIncome tax regulations, amendment to, to be published in FRBulletinIndebtedness and outside business relations:

Beavers, P. L. T., Assistant Cashier, RBank of Atlanta, to re-sign as trustee under trust indenture

2/24 4165112/29 ay

12/30

9/26

4/22

2345

i974

639

55°3/6

5/27 1°91

9/11

5/26

6

1085

12/11 ,12v12/18 2 ,4

5/26 jO

11/25 2126


243

Pages

Illdebtedness and outside business relations: (Continued)

Beavers, P.L.T.: (Continued)

Advice to IRBank that Board believes _MBank officers should

not accept trusteeships and request that he re-

si6n such positionFRBank of Minneapolis, reports of two new employees, noted that

Mr. Mosiman contemplates selling hats to friends,

no objection

FRBanks, memo from Division of Examinations recommending that

examiners be authorized to review reports of, of

officers and employees in conjunction with exam-

inations, approved and letter to Mr. Drinnen re

Los Angeles Branch, indebtedness of Messrs. Jones and Szeveryto member banks, have not and will not assist

in examinations of such banks, not to be re-

ported to Attorney General, but should be

eliminated

Reports of FRAgents' department personnel, reply to Mr. Walsh

that reports should be made covering all, and

copy to other FRAgents

Shortt, W. D., Assistant Examiner, FRBank of San Francisco, in-

debtedness to member bank which was in exis-

tence prior to employment, not to be reported

to Attorney General, but should be eliminated

Welker, Marcus, New Orleans Branch, no objection to continuing

connection with hospital tut that with Dibert,

Bancroft and Ross Co. canes within prohibition

Welton, A. Chester, appointment as examiner at New York ERBank

approved with understanding that arrangements

will be made to liquidate indebtedness to member

bankINie

btedness of executive officers: (See Executive officers)14debtedness of officers to State member banks, reply to Senator

Fletcher re, as of Dec. 31, 1934

Interest, maximum rates on time and savings deposits pre-

scribed in Regulation 10, letters to FRAgents

at Chicago and St. Louis that it is binding on

member bankslana Bankers Association:Social Security Act, reply to Mr. Warrick's suggestion that Board

rule on voluntary subjection by member banks to

provisions of, in connection with which he has

requested ruling of Commissioner of Internal

Revenue

i'd-duals, partnerships and corporations, discounts for, under

Sec. 13 of FRAct, extension of authority toFRBanks to make, for additional six months, toJuly 31, circular re, revised to conform to

Banking Act of 1935 1/24 205-9

12/ 3 2163

3/24 653

3/27 695

10/19 1906

6/24 1232

10/19 1906

4/ 7 770

2/28 454

1/14 127

1/ 6 57

12/ 9 2196


244 Pages

Industrial banks, liabilities and resources, reply to Rand McNallyBankers Directory re inclusion in total of, offigures for

Industrial Indemnity Exchange, deposits of, may not be classified assavings accounts, reply to FRBank of San Fran-cisco

Industrial loan departments:Farmers State Bank of Alto, Mich., no objection to establishmentSaginaw State Bank, Saginaw, Mich., granted permission to op-

erate

1/31 2°

20g

726

185Inflation:

Federal Advisory Council, report of feeling re trend toward, incredit and prices, and request as to possible ac-tion to check, discussion of, statement ofChairman Eccles and statement of Mr. Golden-

2075-6weiser 11/17

Presidents' Conference requested for advice as to fear of, opin-ion that it is more quiescent, that there is somehedging but funds are available for mortgagefinancing and long term credit 3/17

Information furnished public by Board, letter to Senator Byrd,Select Committee on Investigation of ExecutiveAgencies, submitting certain data re 11/20 2108

Inquiries from member banks and individuals re interpretations oflaw and regulations, to be referred in futureto appropriate RBank for answer 8/

Insurance:Accident, on employees of Board working at site of new building,

Secretary authorized to procureFRBank of Minneapolis, extension for year of group life insur-

ance policy, noted with approvalFRBenk of New York, group life policy, reply to Mr. Sailer re

increase in cost of, that there is no objectionto continuing indefinitely

FRBenk of St. Louis, contributory group life insurance policy,reply to Mr. Stewart that there is no objectionto continuing providing cost does not materiallyexceed estimate

Registered mail shipments of coin, currency, bullion, etc., let-ter to Mr. McReynolds re possible discontinuanceof

State member banks:Membership condition prescribed for Security Bank and Trust

Company of Owatonna to prohibit writing, Mr.McKee opposed, Division of Examinations makingstudy, condition desired by counsel, conditioneliminated

Writing of, applications of St. Louis banks for fiduciarypowers in order to continue, granting would es-tablish precedent, action deferred, statementthat likelihood of withdrawal from membershipshould not bar refusal

Conference with Mr. Wood to be held Nov. 30

5/15

4/15

1/20

7/14

5/13

3/ 6

104

812

116

1011

0°11/12

11/25 21


''sured bank", report by Mr. Ransom that he had abandoned hope of

influencing FDIC to change use of term, no

245

Pages

further action to be takenIlisured

7/15 1363

banks:Citizens Bank and Trust Co., Carthage, Tenn., deferring of with-

drawal from FRSystem to be suggested so that it

can be accepted as insured bank simultaneously 3/14 579FDIC, letter to, re use of term "Member of FDIC" 4/17 824

Nember", use of term by FDIC in referring to nonmember insured

banks, draft of memo re, statement of Mr.

O'Connor that solution could be reached, Chair-

man authorized to take up with 1/30 239Regulation U, expression of appreciation at offer of FDIC to

notify of provisions ofInte

rdistrict

4/ 2 727

Settlement Fund:Clearings of FRnotes to be made in even thousands effective

Dec. 1note clearings through to be in thousands of dollars effective

11/28 2143

Dec. 1, transit clearing in thousands to be

considered by Presidents' Conference 11/28 2143Signature of orders on, counsel unwilling to approve proposed

amendment to Board's bylaws to permit Chief or

Assistant Chief of Division of Bank Operations

to sign, procedure is agreeable to Treasurer,

to be resubmitted with further amendment 3/21 633

Transit clearing in. even thousands of dollars, proposal objected

to by some IRBanks, to be considered by Presi-

dent's ConferenceIliterect.

11/28 2143

Absorption of exchange and collection charges, reply to Senator

Barkley re provision of Regulation Q prohibiting,

and stating that provision has been suspended 1/ 9 88Certificate of deposit renewed within ten days after maturity,

Board waives requirement for payment for inter-

vening period that certificate be postdated to

maturity date 5/18 1041Compounding monthly at 1%, reply to Mr. Fletcher on inquiry of

First National Bank at Pittsburgh, that it is

not permissible 1/20 167

Court funds in New York, demand deposits, reply to Department of

Audit and Control that interest may be paid

upon, under State law, until Aug. 24, 1937 5/ 6 975Definition of, in Regulation Q, reply to Mr. Awalt on interpre-

tation of 1/10 98

No objection to copy of letter being sent to member banks

in 12th district 1/21 179

Regulation of FDIC to be published in FRBulletin 2/11 321

Subsection l(f) of Regulation q, Mr. Ransom to recommend

that it be placed in effect 10/ 6 1843

Statement of Mr. Broderick that he hopes Board will make ef-

fective, regardless of what effect it might have

on membership in ERSystem 11/12 2041

(See also Regulations, Board of Governors)


246Page

Interest: (Continued)Demand deposits:

Government funds, reply to First National Bank of Conawa,Okla., that it may not now be paid 12/22 2265

Indian funds, reply to First National Bank of Conawa,12/22 2255Okla., that it may not now be paid

Similar reply to Tradesmens National Bank, OklahomaCity 12/22 2266

Payment of accrued, after Aug. 23, 1937, on Indian funds,Postal savings funds and other Government funds,reply to First National Bank, Conawa, Okla.,that it may not now be paid 12/22

Postal savings funds, reply to First National Bank of Conawa,Okla., that it may not now be paid 12/22

Franklin County Bank, Washington, Mo., carries account of Bankof Washington representing pro rata share ofFranklin County funds, interest payment thereonis illegal 7/10

Indiana, maximum rate on time and savings deposits prescribedin Regulation 10, letters to FRAgents at Chicagoand St. Louis that it is bindin;: on member banks 1/ 6

Indirect payment, Boston Clearing House Committee, memo of Mr.Owens re effect of suspended provision of Regu-lation Q on furnishing articles and services,reply that questions cannot be answered untildefinition of interest is adopted

"Intrest checks": (See infra "'Utility certificates")

Iowa, reply to Iowa Bankers Association on action Board wouldtake if State Banking Board should prescribe amaximum rate of 2% on time and savings deposits

Maximum rate under Regulation q:

Change in, report of Mr. Ransom recommending that any actionbe deferred until a change in existing circum-stances called for farther consideration, ap-proved

Presidents, statement requested from, re desirability ofreduction in

Protest of Senator Glass, reply prepared, Board members toconsider, and take up at later meeting

Reduction to 1 recommended by Mr. Morrison, referred toMr. Ransom for recommendation

Suggestion of Mr. J. Frank Russell, Hartley NationalBank, Bedford, Pa. re, reply

Board not contemplating further reduction at present,reply to Citizens National Bank, Emporia, Va.

Reply to Harry A. Honker that Board does not at thistime have under consideration any further re-duction

Ruling to be published in FRBulletinMississippi, rate which may be paid under Regulations Bulletin

No. 5 and under Supplement C to, letter to Mr.Wood re effect on time and savings deposits

2255

2255

1554

51

5123/ 5

1/15

7/15

3/17

1/ 9

3/ 6

12/ 8

12/12

100

605

520

21.91

12/30 23.26/22 1

1/14


247

Pages

erest: (Continued)Nicholson Cemetery Association - Permanent Deposit, reply to

Comptroller that First National Bank, Nicholson,

must take immediate steps to reduce interest

rate from 4% to 2:WL 7/20 1411

PeYment on deposits which may no longer be classified as savings

accounts,. may not be paid for period succeeding

Jan. 1, reply to Mr. Peyton on inquiry of First

Bank Stock Corporation 3/ 4 504Postal savings deposits:

Mississippi, letters to Messrs. Wood and Clark that Regula-

tions Bulletin No. 5 and Supplement C thereto,

are applicable to, and copies to Comptroller 1/14 125

New York maximum rate which is below statutory rate for,

reply to Iowa Bankers Association on effect of 1/15 135

Vermont, maximum rate payable on, reply to President Young

agreeing with position taken in letter to Mr.

Ellenberger 9/25 1764

Plano funds:Iowa Bankers Association, reply to, on interpretation of

Sec. 324 of Banking Act of 1935, which excepts,

for two years, from prohibition on payment of

interest on 1/10 99

New Jersey, letter to Mr. Case re inquiry of First National

Bank of Bloomingdale as to payment on, suggest-

ing conferring with IRBank of Philadelphia, and

letter to Mr. Storch of bank re 1/15 134Rates:

Earnings of member banks, statement of Mr. Ransom at meeting

with presidents that he is interested in increas-

ing but that he does not believe increased rates

would aid 3/16 596

Reports requested of member banks as to rates on deposits and

loans 8/ 4 1484

Regulations of Board, FDIC and State authorities re interest,

reply to Commission for Financial Institutions

of Indiana re suggestion for conference to

reconcile differences, that conference has been

arranged with FDIC 5/ 6 974

Memo of Mr. Wyatt re proposed conference 5/ 6 975

RePorts on FR 249 re rates on deposits and on loans, reply to

FRBank of San Francisco that there is no objec-

tion to releasing summary to member banks 10/12 1869Sevincs accounts:

Borough of Waynesburg, reply to First National Bank and

Trust Company of Waynesburg that deposit may

not be classified as, and interest may not be

paid thereon 2/17 362

Payment on, reply to First-:Mechanics National Bank of

Trenton, N. J., that it may not be paid in

excess of the rate of 2;d% per annum regardless

of basis on which computed 1/15 137


248Pagel'

Interest: (Continued)Time and savings at mutual savings banks, question whether pay-

ment of dividends would constitute payment of,Board not to reach decision until such bank ac-tually applies for membership 5/18

Time certificates of deposit:Farmers and Mechanics National Bank, Woodbury, N. J., reply

to Mr. Ware that State law limits rate if belowBoard's maximum and that no interest may be paidon deposit of 14 days' duration 6/10

Maturity of six months or more, advice to Citizens NationalBank and Trust Co. that interest may be paid

11°at 2160 per annum 1/11

Payable upon six months' written notice by Mr. Harr andcallable by First National Bank of Gettysburgafter 30 days' notice, shorter period governsin determining maximum rate 4/25

Payment of, for monthly periods when deposit is withdrawn atend of two and a half months, and prior tomaturity, member bank should not deduct interestcredited 2/27

Payment when renewed within ten days of maturity, reply toFRBank of Minneapolis re differences betweenBoard's and FDIC regulations, Board will notobject to practice 4/13

Similar letter to Mr. Young and copies to other FRAgents 4/13

Letter to Telegraphers National Bank, St. Louis, Mo., re 4/13

Payment on, when renewed within ten days of maturity, replyto Mr. Sargent that certificate must be post-dated to maturity date 5/ 5

Payment on certificate callable by bank on 30 days' writtennotice, ruling to be published in FRBulletin 5/26

Payment when renewed within ten days after maturity, rulingto be published in FRBulletin 5/26

Subject to withdrawal on 31 days' notice, and 2% payable ifleft six months or longer, question of termina-tion of contract, no objection to payment at2% if in effect Jan. 1, and terminated six monthsfrom date, reply to Mr. Fletcher 1/

Uninvested trust fund deposits payable on demand, PennsylvaniaCompany for Insurances on Lives and GrantingAnnuities under Pennsylvania law may pay

"Utility certificates" or "intrest cheks", evidencing demanddeposits upon which interest is payable if out-standing three months or more, reply to FRBankof San Francisco that issue is not lawful 4/18

6

1042

110

446

792

794

911

1069

100

904/29

Vermont:Maximum rate payable by national banks, reply to FRBank of

Boston 6/25 1248Maximum rate on time and savings deposits, letter of FRBank

of Boston advising member banks of effect of12/22 01State order approved


249

131 terest: (Continued)Wharton County (Texas) Conservation and Reclamation District

No. 1, no objection to payment of interest by

Pages

Security Bank and Trust Co., Wharton,on demand

deposits of, arising from arrangement with Com-

mercial State Bank of El CampoItte

rlocking directorates:Contiguous and adjacent:

1/20 169

San Francisco and Oakland, ruled to be adjacent 1/31 273

Service of Mr. Milton to banks in towns which are "con-

tiguous" but not "adjacent", Prohibited 1/31 271Miscellaneous:

Amory, Roger, may serve national bank and State Street

Trust Co., Boston, after consolidation of lat-

ter with Union Trust Co., until Feb. 1, 1939 6/25 1252

Atkins, C. H. M., reply to Mr. Fletcher re request of Mr.

George of Fifth-Third Union Trust Co., Cincin-

nati, that Board is unable to supply copy of per-

mit, not to be advised until considered in

light of revised Regulation L 1/ 6 61

No objection to continued service until Feb. 1, 1939 6/12 1175

.eirst Industrial Loan Company of California, Los Angeles,

Calif., reply to Mr. Sargent re service ofdirectors of, as directors of member banks,

that Regulation L, soon to be issued may dis-

pose of questionKemp, Robert D., reply to RBank of Philadelphia that ser-

vice on advisory committee of Wilmington Trust

Co. does not come within provisions of Clayton

ActLeBlond, R. K., reply to Mr. Fletcher re request of Mr.

George of Fifth-Third Union Trust Co., Cincin-

nati, that Board is unable to supply copy of

permit, service appears legal

Massone Savings and Loan Association, Massena, N. Y., reply

to Mr. Gidney that it is not a "bank" and ser-

vice to, and to member bank is not prohibited

Milton, John, service permissible, as Jersey City and

Newark are held not contiguous

Murphy, Henry C., reply to Comptroller, in connection with

conversion of Upper Avenue Bank into' UpperAvenue National Bank, that he may continue to

serve, even after Feb. 1, 1939, as other insti-

tution is in town 65 miles distant

Osgood, Roy C., reply to Comptroller, in connection with

conversion of Upper Avenue Bank into Upper

Avenue National Bank, that he may continue to

serve until Feb. 1, 1939

Shelley, George E., question of service to two national

banks and newly organized trust company, latter

in place of organization now out of business

1/ 2 11

10/ 6 1846

1/ 6 61

7/30 1455

8/28 1610

7/20 1410

7/20 1410

6/25 1254


250page'

Interlocking directorates: (Continued)

Miscellaneous: (Continued)Smith, Edger, question of service to two national banks and

newly organized trust company, latter in placeof organization now out of business

Stanley, E. B., copy of permit forwarded to Mr. Fletcherfor transmittal to Mr. George, Fifth-ThirdUnion Trust Co., Cincinnati, Ohio

Welch, Andrew, Class C director at San Francisco, reply thatSec. BA of Clayton Act was repealed and thereis no longer any question as to eligibility

Wheeler, Harry A., question of service involved as he merelypresides at directors' meetings and attendsexecutive committee meetings, question of in-terpretation of "executive officer" in Regula-tion 0 also involved, Board cannot permitservice

Advice of action transmitted

Oakland, question of adjacency to San Francisco reconsideredand held not to be adjacent, Board may desirelater to consider again and hold adjacent

Review and reports re permits, telegram to all FRAgents thatSec. 4 of Regulation L supersedes X-7426 andTRANS 2225

Service under Banking Act of 1935:Acher, John W., reply to Mr. Peyton that "legal service"

on Aug. 23, 1935, depends on whether bank merelychanged name and location or whether it becameanother corporation

Atkins, C. H. M., Norwood and Cincinnati are contiguoushence there is no application of exception in-volving substantial competition

Barbour, J. E., service as vice president of national bankon date of enactment of Banking Act of 1935was not legal, hence is not permitted now

Bench, Edward C., service not prohibited as New York Cityand Englewood, N. 3., are not "contiguous oradjacent"

Brown, Thatcher M., service appears unlawful, but hearingwill be granted Mr. Pell in connection with

Corby, Karl W., reply to Mr. Fleming that under amendmentsto Clayton Act, his service as director of PiggsNational Bank and W. B. Hibbs and Co. is nolonger prohibited

Curtis, Louis, permit previously granted was in effectAugust 23, 1935, hence continued service islegal until February 1, 1939

Damerel,H., permit was not submitted to Board prior toAug. 23, 1935, may continue to serve one bankunder resolution of Sept. 13 and other two untilFeb. 1, 1939, continued service depends on con-tiguity of two towns involved

Reply to Mr. Sargent that service to banks in Azusa and

San Dimas is not prohibited

6/25 1254

611/6

7/1 1289

7/ 7 117/11 3.̀ "

4/2

1/29 251

5672/19

4/13191

691/9

6/ 8 13's89/ 2 1°

1/8To

61s3/18

1/11

1/31

115


251

Pages

Illterlocking directorates: (Continued)

Service under Banking Act of 1935: (Continued)

Dunn, Burton, service to title company is not within pro-

visions of Clayton Act 5/18 1044

Edwards, J. Renz, service to banks named not permissible

and Board's resolution of Sept. 13, 1935 is not

applicable 1/ 9 90

Hinds, General Ernest, service to two banks in San Antonio

prohibited 1/ 9 91

Jackson, John B., exception re ownership of more than 50%

of stock of banks involved by same directors,

not applicable 3/ 3 495

Johns, Glover S., service to title company is not within

provisions of Clayton Act 5/18 1044

Karraker, R. W., exception re ownership of more than 50c; of

stock of banks involved by same directors, not

applicable 3/ 3 495

Kinney, R. W., service depended upon contiguity of Oakland,

and San Francisco, assumed that Mr. Sargent has

concluded that they are adjacent 1/11 116

Reply to Mr. Sargent that San Francisco and Oakland are

"adjacent" within meaning of Clayton Act and

service prohibited 1/31 273

Reconsidered and held not to be adjacent, but Board

may consider again, reply to Mr. Sargent 4/ 2 730

Luce, Charles A., reply to Mr. Case that Board agrees that

service is within exception as two towns in-

volved are not contiguous or adjacent 4/ 8 781

Miller, Lawrence M., may continue service which was legal

on Aug. 23, until Feb. 1, 1939, but may not

serve as president also of one of institutions 1/24 209

Milton, John, reply to FRAgent that service is prohibited

to banks in towns which are contiguous, but not

adjacent 1/31 271

Wheeler, Harry A., reply to Mr. Stevens that service as

officer of bank was not covered by permit on

Aug. 23, 1935, and that therefore, he must

sever connection with one bank 3/ 9 539

Whittemore, Clark McK., may serve national bank and two

trust companies under exception (4) to Sec. 8

of Clayton Act 3/24 658

Violations, letter to FRAgents that Comptroller has ceased

practice of reporting to Board in national

banks 4/18 829114ernational Longshoremens Association, Local 38-82, deposits

may not be classified as savings accounts, re-

ply to Mr. Fetzer 5/20 1055

Illternational Union of Operating Engineers, Local No. 393, reply to

Congressman Rogers re letter of Mr. Van Presser,

that Board has no jurisdiction over possible

affiliation with Oklahoma City Branch engineer 5/19 1054


Pages252

Investment securities:Bonds of Bath Iron Works, holdinz by Depositors Trust Co.,

Augusta, Me., not violation of regulationInterpretation of Comptroller's regulationLimitation of 10% imposed by Sec. 5136, B.S., upon amount any

bank may hold of one obligor or maker, adviceto all RBanks and to Mr. Evans re inclusionin term of another corporation which hasguaranteed obligations, a parent corporationor lessor corporation

Municipal obligations in default, reply to Mr. Burke that Comp-troller's regulation re investment securitiesdoes not forbid purchase of, by State memberbanks

Notes which are in fact securities, reply to Mr. Stevens re in-terpretation of Board's ruling, X-9322, subject-ing such notes to restrictions of Sec. 5136of Revised Statutes as applicable to their pur-chase by State member banks

Preferred stock, called, reply to State-Planters Bank and TrustCo., Richmond, Va., that Sec. 5136, R.S., pro -hibite purchase of, letter to Comptroller re

Regulation of Comptroller, reply to latter offering certain ob-jections to portions of, intended to clarifyas concerns State member banks

Letter to FRAgents re replies of Comptroller to cuestionsraised under, and reply to Mr. Sargent that

/ 76/14/25

7/13

3/24

2/27

5/

1/27

1188b412

1546-

°

449

991

22°

gradual liquidation of excess investments is 0permissible 4/ 4

9Interpretation, Questions raised by Bank of Jamestown 5/ 1

Statement of Federal Advisory Councilman Smith in criticismof certain features of 5/19

Bonds convertible into stock only at option of holder, replyto Mr. 'Young and advice to IRAgents re effectof Comptroller's speech before California BankersAssociation on right of member bank to pur-chase 6/ 5 1148

Reply to Mr. Swanson re inquiry of First State Bank ofRushmore re 6/ 5 1149

Rulings of Comptroller under Sec. 5136, R.S., copies to befurnished to Board for distribution to Statemember banks and no objection to publicationin FRBulletin 6/18 1196

State member banks, purchase of, draft of reply to FRBank ofChicago interpreting Board's letter of Sept.11, 1935 (X-9322), should be revised, referredback to Counsel's Office 2/18 4

Investment trusts, hearing to be held by Securities and ExchangeCommission of officers of Liberty Share Cor-poration, advice to Board because of close con-nection with Liberty Bank of Buffalo, Board tosend observer 12/28 2291


41va:

Interest rate, reply to lama Bankers Association on action

Board would take if State Banking Board pre-

scribed maximum of 2'4 on time and savings de-

253

Peges

positsckot Bankers Association:

1/15 135

Branch banking statistics, reply to Mr. Warner that in future

explanatory note will be added re offices main-

tained to receive deposits and cash checks 5/16 1036

F°r[ilis of certificates of deposit submitted, reply to Mr. Warner

that they conform to provisions of Regulation Q 1/9 07

Interest payment on deposits, reply to Mr. Warner re State limi-

tation on rate as affecting Postal savings de-

posits, and what action Board would take if

Iowa State Banking Board reduced maximum rate 1/15 135

PUblic funds, reply to, on interpretation of Sec. 324 of Banking

Act of 1935, which excepts, for two years, from

prohibition on payment of interest onIrwin and Leighton, Philadelphia, Pa., selected as alternate for

nine firms to be invited to bid on Board's new

building

1/10

1/2

99

3

X1110,xe'-on, William H., present at meeting of Board on Regulation Uenicke, Reichsbankrat: (See Foreign banks, Reichsbank)

erfles Baird Co., Washington, D. C., to be invited to bid on Board's

new building

4/30

1/ 2

929

3

T Lids submitted byElly43 Stewart and Co., Inc., New York, N. Y., to be invited to bid

1/30 234

on Board's new building 1/ 2 33. Bids submitted by 1/30 233

S. A.: (See National banks, Citizens National Bank and

1. t"y Trust Co., Mansfield, 3hio)

enrY Schroder Banking Corporation, par list, inclusion approved,

ho u although not strictly a banking institution

'W. Cowper Co., Inc., Washington, D. C., to be invited to hid1/ 4 46

on Board's new building 1/2 3

3.0 Bid submitted by 1/30 233

44 Griffith and Son, Chicago, Ill., to be invited to bid on

Board's new building 1/2 3

Bid submitted by 1/30 234

114 McShein, Philadelphia, Pa., selected as alternate for nine

firms to be invited to bid on Board's new build-

Ioh„ lug

., 80n, Harold: (See Nebraska)

1/2

1Z480n, H. S.: (See Removal of officers and directors)

'Janson, Senator Hiram:Shasta Snow Cone Machine Company, reply on effort of Mr. Mattox

to secure industrial advance from FRBank of

San Francisco 1/6 59


254page;

Johnson, R. F.: (See National banks, Iirst National Bank of BradleyBeach, N. J.)

Johnson, Welter L., present at meeting of Board to discuss Regula-tion

Johnston, L. H., present at meeting of Board to discuss Regulation UJoint stock land banks:

Louisville Joint Stock Land Bank, fiscal agency functions per-formed by Louisville Branch in connection withbonds of, at request of Farm Credit Administra-tion, opinion of Board that request should bemade by Secretary of the Treasury

Copy of letter re to be sent to all YRBanksUnion Joint Stock Land Bank of Louisville, fiscal agency func-

tions performed by Louisville Branch in connec-tion with bonds of, at request of Farm CreditAdministration, opinion of Board that requestshould be made by Secretary of the Treasury

Copy of letter re to be sent to all FRBanksJudd and Detweiler, Inc.: (See Printing)

Kennedy, B. R.:Kennedy, Walter:

Kent, Fred I.,

Keogh, Edward S.:

Kopplemann,

"K"

(See Federal Register)(See National banks, First

gamery, Ala.)Regulation U, reply re letter on suggestions by Ad-

visory Committee of New York Stock Exchange(See National banks, Citizens National Bankof Freeport, N. Y.)

Congressman Herman P., flood conditions, letter request-ing financial aid to sufferers in vicinity ofHartford, Conn., letter to be prepared to Gover-nor Young suggesting liberal attitude toward in-dustrial loan applications, possibility of aidfrom other Government agencies

National Bank of Mont-

Labor unions:Affiliation of engineer of Oklahoma City Branch withDeposits of, may not be classified as savings accountsSavings deposits, reply to Mr. Young that funds of, may not be

classified asLamson, Arthur C., reply re applicability of Regulation 0 to ser-

vice as inactive executive officer of nationalbank

Lancaster, W. W., present at meeting of Board to discuss Regulation

(See Securities and Exchange Commission)and Perry, loan to corporate investment trust for

retirement of debentures, reply to FRBank ofNew York re inquiry of Larkin, Rathbone andPerry on behalf of Central Hanover Bank andTrust Co. that Regulation U is applicable to

Landis, James M.:Larkin, Rathbone

4/224/22

5/135/13

5/135/13

5/

3/25

5/195/20

4/10

3/13

4/22

11/ 5

939939

1°151016

1°'

951

665

1°5;161°'

788

61 '1

809

2°Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1/78°/1) N. E.: (See Rand McNally Bankers Directory)

C°Zell, P. W.: (See State member banks, Bank of Jamestown, N.Y.)

ague of Nations:Iinancial committee, American representation, cablegram of

Secretary Hull re desire of League secretariat

for, suggestion of Mr. Riefler, Board not will-

ing for Mr. Williams to serve

Mr. Williams not to be considered further, Mr. Riefler to

be proposed as alternate to Mr. Norman Davis,

report of Chairman re discussion with President

Harrison re

tellseci wire system:Atlanta - New Orleans telegraph wire, discontinuance of and

substitution of timed wire service under con-

tractChicago=Minneapolis circuit, letter to A. T. & T. requesting

substitution of automatic sending TO( equipment

for present leased wire, procedure for handling

vouchers, advice to President Peyton and Mr.

Olson

Contracts with American Telephone and Telegraph Co., letter to

Mr. I. W. Adams re new form of, suggesting

changes and letter to Federal Communications

Commission requesting advice of future changes

in tariffsCost of messages, Governmental agencies, reply to IRBank of

Chicago re rate charged, and suggesting that

lower rate in use between Chicago and Detroit

Branch be used in charging

EXpenditures covering costs of, procedure for approving payment

New York - Washington, changed from duplex to single wire and

request that three way switch at New York be

changed to single switch

Recommendations of leased wire committee approved, re payment

by Board for its messages, transfer of Washing-

ton operators to Board's payroll, changes in

monthly statement and accounting, etc., letter

to all FRBanks

Regulations regarding transfers, FRBank of Dallas, reply to

Governor McKinney that regulation of Jan. 3

applied only to wire transfers but ff proposed

circular relates also to mail transfers, there

is no objection to changing liability clause

Teletype equipment, letter to Chairman of Leased Wire Committee

approving recommendations and Board to proceed

with installation of machines on Washington-New

York, New York-Chicago and Washington-Chicago

circuits

Personnel problem considered as to Washington office, opera-

tors to be retained for present, assistance in

securing other positions to be offered

255

Pages

12/18 2231

12/29 2298

10/23 1941

12/15 2222-3

12/11 2211-3

5/19 10532/14 356

6/ 1 1112

3/26 681

2/ 6 309

6/30 1278

6/30 1279


256 pages

Leased wire system:Teletype machine test, letter to President Schaller as chairman

of Leased TNire Committee referring recommenda-tion of A. T. & T. re use of page machine inpreference to tape machine

Treasury telegrams, letter to Secretary of Treasury reviewinghistory of absorption by FRBanks of expensesof, and requesting that after this month paymentbe made therefor, or some arrangement be madeunder which Board and FRBanks would be relievedof this expense

Reply to Mr. McReynolds that uoon his assurances of paymentcommencing Jan. 1, 1937, expenses will continueto be absorbed until end of current year, adviceto FRBanks

Vouchers for telegrams sent over branch lines, advice to FRBanksre refusal of General Accounting Office to ap-prove because of method of computation of costnot shorn, such vouchers to be uniform in future

7/16

7/31

1i/25

1576

1466

219Leaves of absence:

Annual and sick, Civil Service Commission and Council of Person-nel Administration to draw up regulations underAct of March 14, 1936, representative of Boardrequested to attend meeting, Mr. Morrill author-ized to designate representative as observer

M59only 3/25

Board of Governors, Government limitation for sick and annual,adopted, regulation not to be drawn up untilGovernment departments have adopted their regu-

90-4lation 4/28

Secretary or an Assistant Secretary authorized to approve30 days sick leave beyond accrued sick leaveupon recommendation of head of division 4/28 °

Douglas, Edward O., RBank of New York, leave with pay for one1664week granted in addition to regular leave 10/10

FRBank of Cleveland, employees granted week with pay to attendbanking lectures at University of Michigan,approved 5/18 1°41

FRBanks:Annual and sick, question of following governmental practice

raised at Presidents' ConferenceGovernment limitations for sick and annual, suggestion of

Chairman that they be requested to conform to,no action, Mr. Smead to obtain full informa-tion as to present leave schedules

Graduate School of Banking, letter to all presidents thatadditional annual leave may be granted for at-tendance

Modification of Board's circular of Dec. 5, 1932, author-izing granting in excess of annual leave to at-tend Graduate School of Banking or as delegatesto conference of A.I.B., without securingBoard's advance permission

3/17

4/28

4/16

605


Lea, es of absence: (Continued)FRBanks: (Continued)

Modification: (Continued)Advice to FRBank of New York that authorization fully

covers additional leave with pay granted to

257

Pages

three employees 4/28 905Policies, memo of Mr. Smead re, recommending no action to

seek conformity with Iederal practices, thatFRBanks be requested to advise Board of anychange in practices, and that review be made

of practice at FRBank of Minneapolis of con-sidering all leave other than annual as sick

leave, approved 7/23 1420Helm, J. W., FRBank of Kansas City, granted additional leave

with pay 4/18 827

Herring, Allene, Counsel's Office, sick leave granted not in

excess of that accrued in connection with lastillness and impending death of mother 10/ 9 1862

Jones, Laurence, FRExaminer, granted one day, six hours withpay in addition to regular annual leave 9/ 2 1633

Linke, Robert N., temporary employee in connection with Board's

new building, leave with pay granted for timeabsent because of accident 5/13 1007

Litchfield, Mrs. Susan Eurr, Division of Research and Statistics,granted leave without pay from Aug. 7 indefi-nitely, for personal reasons 8/ 4 1483

McAdams, A. M., Assistant FRAgent, IRBank of Kansas City, granted

leave with pay for six months on account of ill-

ness 7/29 1447

941rff, Gordon R., Assistant IRExaminer, sick leave granted withpay Feb. 6 to Sept. 1, and per diem allowancegranted i'eb. 6 to March 3 3/12 561

O'Donnell, Thames B., Assistant YPExaminer, granted additional

30 days' leave with pay on account of sickness 6/13 1176

Leave for two additional weeks granted with pay on account

of illness 7/16 1373

Peyton, J. N., President, IRBank of Minneapolis, plan to beaway from bank for period to visit Europe 4/24 867

Pitman, Carol F., Chief Examiner, 1RBank of Chicago, granted six

months leave of absence to assist IDIC 4/30 937

Reehling, Mrs. Ruth Porter, Division or Research and' Statistics,additional sick leave with pay granted 9/19 1733

Rice, Mrs. Margaret A., Secretary's Office, leave granted for

27 days without pay 6/ 2 1119Sick leave granted to employees in excess of 30 days, Board ap-

proves procedure whereby such leave would be

approved by executive committees of FRBanks and

reported to directors at next meeting 2/11 333

Sissman, Mrs. Louise, Division of Research and Statistics,

granted leave without pay to attend summer ses-sion at Columbia University 7/ 1 1288


258 pages

Leaves of absence: (Continued)Stewart, C. M., Assistant tl?Agent at St. Louis, vacation from

July 6 to July 31, noted without objectionTappy, Mrs. Elizabeth P., Division of Research and Statistics,

granted additional sick leave because of ap-proaching confinement

S.: (See National Emergency Council)

program, review by Mr. Eccles of conversations rebanking legislation, desire to use facts broughtout by special studies previously requested,question raised by Mr. McKee as to proprietyof sponsoring

Act of March 14, 1936, not determined yetapplicability to staff of Board

Assignment of duties to members of Board, amendment to FRActtentatively proposed

Assistant FRAEents, authorization to act for FRAgent when thereis vacancy and to eliminate requirement oftested bankinc!, experience proposed tentativelyin amendment to FRAct

International Settlements, amendment to FRAct tenta-tively proposed to make clear that a member ofthe Board of Governors may serve as director

likelihood of enactment of any at this session ofCongress, two topics suggested for Federal Ad-visory Council not discussed

of 1933, Sec. 30, suggestion of Mr. Ransom thatsenior staff make recommendation as to any de-sirable amendment to, approved

Capital requirements for membership and branch banking, amend-ment to FRAct tentatively proposed to modify

Chairman and FRAgent, separation of office proposed tentativelyin amendment to FRAct

Conference to be held Dec. 22 in office of Secretary of Treasuryof representatives of Treasury, F.D.I.C., P.F.C.Comptroller and Board, tentative suggestions for

Dividends of FRBanks, amendment to FRAct tentatively proposedto reduce cumulative dividends to 4% and to per-mit payment up to 6% when earned during currentyear

Federal Open Market Committee, amendment to FRAct tentativelyproposed to change method of selection of FRBankrepresentatives and to require that they all bePresidents of FRBanks

FRAgents, proposal of Personnel Committee to make recommendationat next session of Congress for separation offunctions of, and of Chairmen

FRnotes, letter to Secretary of Treasury suggesting changes inform of resolution authorizing reimbursement of1RBanks for replacement of series 1928 noteswith series 1934

Leggett, EugeneLegislation:

Administration

Annual Leave

Bank for

Banking, no

Banking Act

as to

7/ 3 15°1

12/22 2251

11/24 0

3/23 669

12/18 2235

12/18

12/18

20

2206

5/19 1046

11/12

12/18

12/18

12/18

12/18

12/18

2/18

2041

2204

22g

2204

2206

o0-

4/ 7 711


Legslation: (Continued)FRnotes: (Continued)

Penalty for paying ofamendmentpeal

Government securities as

another IIRBank's notes by a FRBank,

to PAct tentatively proposed to re-

collateral for FRnotes, amendment mak-

ing present authority permanent suggested, with

suggestion that it be taken up with Congress

separately in order to secure action before

March 3, 1937Governors of the Federal Reserve System, amendment tentatively

proposed to 1RAct to penult participation in

Retirement System8368: (See infra Liquor drafts)12395: (See Revenue Act of 1936)

of Board of Governors, amendment to FRAct tentatively

proposed to facilitateInterpretations of law, reply to Mr. Clerk re his suggestion

that they be furnished to FRBanks in digest

form, advice that Digest of Rulings is being

brought up to datedrafts, collection of, advice to RBank of San Francisco

re status of bill, H. R. 8368 to repeal crim-

inal provisions re 5/27 1100

Membership in FRSystem, waiver of requirements, amendment to

FRAct tentatively proposed to make effective

immediately provision for, to facilitate entry

of banks to continue insured status 12/18 2234

Public Utility Holding Company Act:

Applicability to banks, recommendation of Mr. Vest that let-

ter of SEC be published in IRRIlletin, approved 5/ 2 958

Rules of Securities and Exchange Commission, under Sec. 17(c),

to be published in ERBulletin 7/23 1426

Violations of Sec. 17(c), reply to FRBank of Cleveland

that it is not required to analyze reports for 12/19 2246

Pensions for Board members, reply to Congressman Mott re pro-

visions for, proposed at last session of Cong-

ress 11/ 4 1997

Revenue Act of 1936, amendment suggested to exempt holding com-

pany affiliates from tax on that part of earn-

ings Sec. 5144 requires them to set aside, re-

quest to be drafted 5/15 1023

Letter to Senator Harrison re, approved 5/16 1038

Amendment proposed by Board to exempt holding company af-

filiates from taxation on surplus under Sec.

5144, R.S., adopted but requirement for cer-

tification inserted, question of elimination

to be looked into

Securities Exchange Act of 1934:

Addition to Sec. 23(a), letter to Securities and Exchange

Commission requesting that "or the Board of

Governors of the Federal Reserve System" be

included in proposed

H. R.R. R.

Hearings

Liquor

259

Pages

12/18 2236

12/18 2236

12/18 2235

12/18 2235

9/17 1721

6/ 3 1125-6

3/26 679


260 Pages

Legislation: (Continued)Securities Exchange Act of 1934: (Continued)

Amendment to, provided in Sec. 3 of S. 4023, letter toChairman Landis of SEC that it is broad enoughto include banks

to Sec. 15(e), reply to Chairman Landis of Se-curities and Exchange Commission expressing ap-preciation at submission of, to Congress

to permit nonmember banks to voluntarily cancelagreements under Regulation T, reply to France,McLanahan and Rauzer that Board has not re-quested

making unclaimed deposits in national banks sub-ject to escheat laws of States, no report to bemade on

S. 4357, report requested by Treasury, reply to Mr. McReynoldsthat because bill affected national banks asto escheat laws of States, Board expected tomake no report, in accordance with procedureagreed upon on Feb. 27, 1935

4023: (See supra Securities Exchange Act of 1934)4514, relating to payment of dividends by national banks,

objections to, Chairman authorized, in eventbill seems likely to became law, to take suchsteps as he considers necessary

Consideration given to, outlined for Federal AdvisoryCouncil, belief that bill will not pass

S.P. 217, chart of functions and activities of Board and state-ment of expenses for 1935 sent to Senate Com-mittee on Federal Organization under

Sick Leave Act of March 14, 1936, not determined yet as to ap-plicability to staff of Board

Social Security Act:

Amendment proposed to bring all banks under, memo of Mr.Vest re effect on FRBanks, attention called to,by Mr. Ransom with request that Board membersconsider also effect on member banks

Report of Chairman that it would bring FRBanks under,data to be compiled to show contributionsnecessary, then to consider whether to recom-mend continuance of exemption

Member banks, reply to Indiana Bankers Association re sug-gestion that Board rile on voluntary subjectionto terms of, in connection with which he hasrequested ruling of Commissioner of InternalRevenue

Monetary aspects of, discussed informally by Chairman withMr. Winant and will be discussed further, Divi-sion of Research and Statistics has been re-quested to prepare study, to be discussed byBoard

National banks ruled to be instrumentalities of U. S. byBureau of Internal Revenue and exempt fromtaxes thereunder

S.

Amendment

Amendment

3727, bill

4/29 '926

5/16 1001

5/ 5 lie

4/10790

7904/10

5/15 1024

5/19 1°48

7/ 2 1296

3/25 669

12/ 4 2116

12/ 9 2196

11/25 21°


261

-Pages

Lem,tAaation: (Continued)Social Security Act: (Continued)

State member banks, proposed letter to Camlissioner of In-

ternal Revenue requesting ruling if act is ap-

plicable, sending deferred 7/31 1463

Taxes under, three rulings of Bureau of Internal Revenue

re applicability to national banks, State

member banks and nonmember banks, to be pub-

lished in FRBulletin 10/27 1955

State, proposed, Presidents requested by Mr. Ezymczak to give

consideration to 3/16 596

Uniform Trust Receipts Act, committee of American Bankers Asso-

ciation to study, reply to request for position

of Board regarding receipts 8/25 1584Letterheads, Board members, to be printed with individual names for

14 those desiring 2/14 352-3

State banks, and resources, reply to Rand McNally

Bankers Directory re inclusion in total of, of

Librezies: Morris Plan banks and industrial banks 1/31 269

PRBank of Minneapolis, reply to Mr. Peyton re action in making

available to member and nonmember banks in

district and that other YRBanks are being ad-

vised re 10/16 1902

FREank of Philadelphia, reply to Mr. Austin re discontinuance

of service several years ago and re such work

recently inaugurated by FRBank of Minneapolis 11/ 6 2017

ticell8ing of banks, signatures of recommendations to Secretary

of Treasury, re issuing to newly admitted

State banks, advice to all Presidents that

President or Vice President should sign 8/25 1579Licmdations, national banks, Business Finance Co., reply that

Board cannot furnish names of those, in New

Jersey and that no action will be taken in

connection with notices of appearance in case

of two national banks 5/25 1079tit rediscount of paper secured by warehouse receipts repre-

senting, reply to Union Commercial Corporation

re, and advising that age of whiskey would have

_ no effect on eligibility 1642

ql1Qr drafts, collection by ERBanks, reply to Mr. Agnew, RBank

of San Francisco, that facts in particular

case should be decided by FRBank and stating

status of repeal of criminal provisions of

law re 5/27 1099

Reply to National Wholesale Wine and Liquor Dealers Association

that administration of Sec. 239 of Criminal

Code rests with Department of Justice 6/15 1176tlgt8:

Nonnember bank agreements under Securities Exchange Act,

FRAgents notified that they may discontinue

furnishing lists to other FRAgents, and proce-

dure for Board furnishinE. lists 4/ 4 757


262 page

Lists: (Continued)Stocks registered on national securities exchanges, supplement

to be published 6/19 1200(See also Securities exchange administration)

Livesey, F.: (See Department of State)Livingston, W. H., member of firm of Paul P. Cret, present at meeting

of Board to discuss plans and specifications for 65Board's new building 1/ 7L. N. & S. P. Houston, Regulation 0 interpreted as not prohibiting

loan to partnership by Wood and Huston Bankof which latter is executive officer, as bothpossess equal interest in 1/31 265

Loan funds at FRBanks: (See Employees loan funds)Loans:

Advances under Sec. 10(b) of FRAct:Electric Home and Farm Authority paper, reply to Hamilton

National Bank, Chattanooga, Tenn., that it isnot eligible for discount but that it may beused as collateral for 7/10 1537

Ruling of Board that such loans may be made even thoughmember bank may have assets eligible for dis-count or security for advance under other sec-tions of FRAct, final determination rests withFRBank, advice to all ERBanks 7/ 8 1°

Ruling re, to member banks which have not exhausted eligiblepaper, to be published in FRBulletin 7/23 1425

Affiliates, real estate corporations, loans to, by San JacintoNational Bank, Houston, Texas, on real estatemortgages, reply to Mr. Walsh re applicabilityof Sec. 23A 2/17 561

Bank loans under Securities Exchange Act of 1934, reply to Mr.Sargent and copy to other FRAgents re questionas to whether bank is on notice to restrictcredits granted to margin requirements, and reexamination procedure 5/ 6 979

Corporation, by member bank, executive officer of which is sub-stantially interested in corporation, replyto Mr. Wood that it is not violation of Sec.

59522(g) or 22(d) of FRAct 2/19Discounts for individuals, partnerships and corporations, exten-

sion of authority to FRBanks to rediscount for,for additional six months, to July 31, circular

20Sre, revised to conform to Banking Act of 1935 1/24Authority has expired for FRBanks to make, question of re-

newal, suggestion of Mr. Broderick that FRBanksbe requested for views, adopted 8/27 1596

Renewal of authority, letter to all presidents advisingthat Board does not intend to make and request-ing any necessity for 9/ 3 1.°

Memo of Division of Bank Operations re opinions of FRBanksas to necessity for extension of authority, onlyFRBank of Boston objected to lapse of, approved 10/ 2 11316


263

PagesLoans:

(Continued)Examiner for FDIC by bank under Title II of Federal Housing

Act, reply to FRBank of Cleveland that Depart-ment of Justice has not ruled on applicabilityof Sec. 22(a) of FRAct 9/29 1799

Farm, amount to be reported in condition reports of memberbanks for Secretary of Agriculture 5/19 1053

Government lending agencies, statement of Mr. Ransom at meetingwith presidents that he was interested in re-

ducing activities of, and restoring field tocommercial banks 3/16 596

Government securities, question raised as to restriction on

total permitted to bank on security of, by Mr.

Von Windegger, Plaza Bank of St. Louis, referred

to Comptroller 1/28 225

Industrial advances:Anniston Soil Pipe Co., Anniston, Ala., reply to Representa-

tives Hobbs re refusal of RBank of Atlanta toaccept application for 3/23 638

Birchfield Boiler Company of Tacoma, Wash., reply toSenator Bone re reasons of FRBank of San Fran-cisco for refusing application 2/21 412

1RBanks, letter to all, re expanding volume of, that study

of Committee on Direct Loans of the AssociatedBusiness Papers indicates more can be done, andform of letter for transmission to member banks 1/ 4 44

Reply to Governor Martin re proposed amendment to let-ter to be sent to banks 1/ 9 89

Reply to Governor Schaller re amendment proposed toletter to banks 1/10 100

Text of proposed letter to banks from 1RBank of Dallassatisfactory 1/11 112

Flood conditions, reference to telegram sent to FRBanks inflood territories requesting number of applica-

tions and survey of conditions 4/ 1 722

Flood sufferers in vicinity of Hartford, Conn., 1RBank of

Boston to be advised to be liberal as to appli-

cations in connection with 3/25 665

Legal fees in connection with applications, information re-quested from FRBank of Boston re practice ofcharging borrower for 6/ 2 1121

Losses to FRBanks, authorized to set up reserves or makecharge offs against 12/28 2285

Munlock Engineering Co., Washington, D. C., reply to Mr.

McPherson re reasons of FRBank of Richmond for

refusing to make advance to 2/19 386

Passaic Print Works, Inc., Passaic, N. J., fee for Pitney,

Hardin and Skinner approved for payment by

1RBank of New York in connection with loan 7/ 9 1333

Perkerson, C. T., reply re refusal of RBank of Atlanta togrant application 3/26 680


264pages

Loans: (Continued)Industrial advances: (Continued)

Profits and losses on, FRBanks advised to follow same pro-cedure as at end of 1935 re

Red Cap Battery Corporation, loss sustained by RBank ofSt. Louis on commitment to First National Bankof Louisville, Ky., in connection with loan to

Shasta Snow Cone Machine Co., reply to Senator Johnson oneffort of Mr. Mattox to obtain, from i4RBank ofSan Francisco

Smell industry, reply to Mr. Radford re his radio addresswith reference to loans for, outlining indus-trial loan policy of Board

Survey proposed by National Conference of Business PaperEditors of field for, reply to Mr. Bill re pro-posed questionnaire and that Board is not will-ing to sponsor survey

Townsend Lawn Mower Co., employment by FRBank of New Yorkof Pitney, Hardin and Skinner in connectionwith, approved

Francisco that there is no objection to re-Interest rates, reports on FR 249 re, reply to FRBank of San

leasing summary of, to member banksNational bank examiner, by State member bank, reply to Tompkins

County Trust Co., Ithaca, N. Y., re statutesdealing with

Notes, purchase of, by State member banks, reply to Mr. Stevensre interpretation of X-9322 subjecting suchnotes as are in fact securities to restrictionsof Sec. 5136 of Revised Statutes

Partnership, in which two men have equal interest, reply to Mr.Wood re case of S. P. Houston, executive officerof Wood and Huston Bank, that Regulation 0does not prohibit extension of credit to

Partnerships of which one member is executive officer of memberbank, ruling re, under Sec. 22(g) of FRAct, tobe published in FRBulletin

Real estate, condition reports of State member banks, replyto National Bureau of Economic Research givingreasons Board is not willing to call for cam-merciel and residential urban classifications

Real estate affiliate, wholly owned, request of Union TrustCompany of Maryland for amendment to membershipcondition requiring publication of loans to, asseparate item, referred to Mr. McKee

Sec. 10(b) of FRAct, Federal Housing Administration mortgagesor modernization loans, reply to Mr. McDonaldthat member bank notes secured by, may be con-sidered under provisions of, by FRBanks

Sec. 23A of FRAct, Norristown-Penn Trust Co., Norristown, Pa.,loans to affiliate involving acquisition oftitle to foreclosed real estate, not applicable

12/28

7/30

1/ 6

5/12

4/ 8

2286

1454

b9

1°°5

779

11/10 032

10/12 1869

8/24 157°

2/27 448

1/31 265

7/23 3-45

10/ 3 182S

3/25666

6/22 121

3/27 696


265

115: (Continued)Securities and exchange firm of Struthers and Dean, reply to Mr.

Starbuck that there is no legal restriction as

to his lending sum to, upon retirementWest Side Trust Co., Newark, N. J., on own stock, extension of

time for compliance with membership condition

requiring disposal of

Lowenthal,

1,4tdorf and

Lynch

toe

4ceti0n of banks:Bank of Haines, Ore., removal to Baker, Ore., and request for

permission to withdraw immediately from member-

ship, information re intention to be obtained

as deposit insurance would cease immediately

Advice to FDIC re proposed withdrawal and permission granted

to examineRemoval from one place to another, reply to FRBank of San

Francisco that Board has ruled removing bank

must have capital sufficient for organization

of member bank in new locationc)effler, W. G.: (See Federal Deposit Insurance Corporation)

4ondon, John R.: (See National banks, Peoples National Bank, Rock

Hill, S. C.)

14°"°11 securities market, convenience and cost of, relative to New

York market for trading in American securities,

informal advice of Mr. Ahigham re

48 Angeles Times, editorial stating that banks may secure 100% of

face value of Government bonds in currency at

FRBank, reply to American National Bank, Santa

Monica, Calif., re

Max: (See Committees, Senate, Interstate Commerce, In-

vestigating Railroads)

Bicknell, Chicago, Ill., selected as alternate for

nine firms to be invited to bid on Board's

new buildingThomas C.: (See National banks, Carthage National Exchange

Bank, Carthage, N. Y.)

ttMt1

Donald, P. S., reply that amendment to Regulationincreased margin requirements to all securities

in margin accounts

E. M.: (See Quarters of Board)

Gregor:at meeting of Board to make stenographic record of

hearing of Mr. Johnsonrecord of hearing re removal of Mr. Johnson as

officer of Point Pleasant National Bank

Hart and Dice)

Zackintosh,Pherson,Present

Stenographic

(See also

Confirmations of telegrams, mailing to 1RBanks to be discon-

tinuedNo objection to FRBank of Dallas and branches discontinu-

ing mailing confirmations to Board

T applied

Pages

1/27 222

2/ 6 305

11/13 2056

11/16 2066

10/23 1937

10/29 1958

8/ 7 1505

1/ 2 rz

3/6 531

11/10 2028

12/29 2298

10/ 9 1863

10/10 1866


266page°

Mail: (Continued)Confirmations of telegrams: (Continued)

Reply to FRBank of Kansas City that Board has no objectionto FRBanks and branches discontinuing mailingconfirmations

insured shipments of coin, currency, bullion, etc.,letter to Mr. McReynolds re possible discon-tinuance of insurance on

liability clause, no objection to changing in pro-posed circular of IRBank of Dallas if it relatesto, as well as to wire transfers

Registered,

Transfers,

Equipment,

Par list and

Procedure,

Malcolm C. Brock A. insured mortgages, reply thatapplicability of 60% limitation toin Comptroller's jurisdiction, andof placing its own mortgage in trustcharging for service of

Maley, C. A.: (See National banks, American National Bank of St.Paul, Minn.)

Margin accounts, study by New York Stock Exchange proposed, author-ized to announce that it was being made at re-quest of Board

10/19 1916

5/13 101?

purchase of addressograph, graphotype, plates, cabinet,authorized, to be used in connection with mail-ing of FRBulletin and Par list

supplements, to be done by National Capital Press,addressed envelopes to be furnished by Board

telegram to IRBanks suggesting, for mailing, allcopies from Washing,ton, if agreeable to FRBanksthey should furnish mailing lists and changestherein, with number of copies to be furnished,to Board

and Co., F. H.question redeposits isre questionaccount and

Margin requirements:Brokerage business affected by, reply to F. Shepard CornellChanges in, question of considering, action deferred until Mr.

Ransom returnsTo be considered July 14

Consideration of, opinion of Mr. Ransom that it should be con-tinuous, more detailed reports to be made byDivision of Research and Statistics

Effect of Regulation U and increase in, discussed, stock marketreaction held due to other causes and shift oftrading to foreign exchanges is inconsequential,question of reducing requirements discussed,consideration deferred

Flexibility of, reply to Mr. Heydon re policy of Board as to

Information given to press on prospective action by Board

Regulation T, recommendation of Mr. Parry that they be increased,

reasons for, reference to excess reserves, state-

ment of Mr. Wyatt as to requirements of law, ef-

fective date, amendment 7 to Regulation T and

supplement thereto approved, press statement to

be prepared

2/6

1/21

1/4

1/22

6/ 8

309

160

49

187

6/ 1 3.111

7/16 1515

6/25 1247/ 7

"11/12 2041

6/ 35/276/30 1231

1/24 191-6


267

Pages

Mar

Ma •

rglnal collateral to be required under revision of Regulation A,

Mari discussion of 7/31 1462

4 'XI Col. A. T.: (See Retired Officers Association)wiari

et A., Jr.: (See State member banks, Markle Banking and Trust

Mas Co.)

gin requirements: (Continued)

Regulation T: (Continued)

Referred to, in advising Federal Open Market Committee of

no action on its recommendation re increasing

reserve requirements 1/31 261

Regulations T and U, review by Dr. Parry of recent trends in

securities markets and other relevant factors

and statement of reasons which he felt justi-

fied increase from 60 to 75", in maximum loan

values 7/14 1357

Consideration of, action deferred, Mr. Broderick voting

"no" 7/15 1361-3

ten A. E., and Co.: (See A. E. Masten and Co.)Matt Wm. B.: (See Shasta Snow Cone Machine Co.)atteon, Edgar L.: (See National banks, Midland National Bank and

Trust Co., Minneapolis)114attlrity distribution of bills and securities, form of table in

tRBulletin and weekly statement to be changed 9/29 1792

m (See also Press statements, Weekly FRBank statement)

4verick, Congressman Maury, correspondence with FRBank of Dallas

on retirement of D. S. Lawhon, noted 8/20 1560

Jer, Meyer, Austrian and Platt, employment by FRBank of Chicago

as special counsel in connection with illegal

assessment on FRBank building 5/ 6 982

Employment approved and also employment of Mr. Adelbert Brown 8/22 1569

"teAdams, T. B.: (See State member banks, Union Trust Company of

ker., . Maryland)1, -Lintic-Marshall Corp.: (See Bethlehem Steel Corporation)

Closkey and Co., Inc., Philadelphia, Pa., to be invited to bid on

Board's new building 1/ 2 3

Bid submitted by 1/30 234

m's McConnaughey: (See Committees, Senate, Interstate Commerce)

mee0rahy, James C.: (See Wilson Chemical Co.)mel'edden, Haynes: (See Georgia Bankers Association)

c'ICRY, Withers and Ramsey, payment of sum to, by FRBank of Atlanta,

in connection with indebtedness of Florida

Mcv. Asphalt Block Paving Co. 1/20 177

1nley, R. A.: (See Department of Financial Institutions of

M. Indiana)

eMeckin, Hugh J.: (See National Wholesale Wine and Liquor Dealers

Association)1,4ePherson, David M.: (See Munlock Engineering Corporation)

"Lequeid, W. R.: (See National banks, Barnett National Bank,

Jacksonville, Fla.)"Member Bank Reserves", letter from Mr. Gilbert entitled, appearing

in New York Times, Federal Advisory Council ad-

vised to read, as expressing views with which

Chairman Eccles is in agreement 2/12 342


268 page'

Member banks:Accounts with nonmember banks, ruling of 1923 re application of

10% limitation to, reply to Mr. Fry that itshould not be reconsidered in light of later de-cisions

"Branch clearing" accounts, classification in call reports andin computing reserves

Classification for electoral purposes, no change to be madein Chicago District

Earnings, statement of Mr. Ransom at meeting with presidentsthat he is interested in improving, that hedoes not believe increased interest rates wouldaid, but proper use of service charges wouldsupplement

Executive officers: (See Executive officers)Guarantee of signatures on stock certificates authorizing trans-

fer of stock, consideration of suggestion ofComptroller that effort be made to stop practice,Mr. Ransom discussed with President Fleming ofA. B. A.

Reclassification for electoral purposes, IRBank of Atlanta, replyto Mr. Martin that no such reclassification isnecessary at present

Rural Electrification Administration, reply to Mr. Cooke thatBoard cannot release confidential informationre financial responsibility of banks designatedas depositaries for, outline of assistanceBoard may render

Social Security Act:Amendment proposed to bring all banks under, consideration

requested by Mr. Ransom of effectIndiana Bankers Association, reply re suggestion that

Board rule on voluntary subjection to provi-sions of, in connection with which he has re-quested ruling of Commissioner of InternalRevenue

Trustees of bond issues, Securities and Exchange Commissionstudying legislation to control, A. B. A. be-lieves Board should control through RegulationF, Chairman Eccles to confer with Mr. Landis

Mr. Ransom to confer with Mr. Douglas, copy of A. B. A.statement re to be referred to Counsel forsummarization and comment as well as a digestof S. E. C., Mr. Ransom may invite Mr. Douglasto meet with Board

Member of FDIC: (See Federal Deposit Insurance Corporation)Membership in ESystem:

American Bank and Trust Co., Miami, Fla., organizing, questionof admission upon opening, FDIC did not con-sult Board before insuring deposits of, Mr.McKee to take up with Mr. Crowley and Mr.Paulger to make investigation of bank when inFlorida in November

10/29

3/26

8/22

1964

g

i568

3/16 59

8/11

7/29

1 511

449

11/ 6 2°15

11/25 2125

12/ 9 2196

11 /1 3 2051.

11/25 21°"4

10/20 1918


Meatharship in FRSystem: (Continued)

American Bank and Trust Company, Miami, Fla.: (Continued)

Action deferred pending strengthening of management and

to permit to be operated long enough to prove

it merits membership 11/25 2135

American Trust and Banking Co., Chattanooga, Tenn., request

for cancelation of condition forbidding sale

of mortgages, refused, but to be advised that

prohibition does not apply to insured mortgages 3/14 579

Ann Arbor Savings and Commercial Bank, Ann Arbor, Mich., ap-

plication approved and letter to FRAgent to

satisfy himself as to legality of consolida-

tion of banks, copies of agreements and organ-

ization papers requested, and that acquired

assets are satisfactory 2/ 7 312

Certification of membership to F.D.I.C. 2/17 360

APplications, newly organized banks, letter to Mr. Sargent

reviewing Board's policy 9/12 1693

Banco de Puerto Rico, San Juan, Puerto Rico, application, out-

line of arrangements made for examination 1/ a 76

Application being considered, reply to Mr. Cochran, and

that Board will advise of action as soon as

possible 5/19 1051

Withdrawal of application to be suggested as Board is not

prepared to admit Puerto Rican banks to System 6/ 2 1118

Application withdrawn, reply to FRBank of New York agreeing

that it is inadvisable to comply with request

to leave decision pending indefinitely, and

suggestion as to proposed reply 7/ 2 1293

Banco Popular de Puerto Rico, San Juan, Puerto Rico, applica-

tion, outline of arrangements made for examina-

tion 1/ 8 76

Withdrawal of application to be suggested, as Board is not

prepared to admit Puerto Rican banks to System 6/ 2 1118

Bank of Canton, Ga., stock of Canton Cotton Mills, extension of

time for disposition of 4/ 4 745

Bank of Commerce, Lexington, Ky., application approved and let-

ter to FRAgent re criticisms of trust department,

charge off of loss on loan to Director Yantis,

nonconformity of one director with Sec. 32 and

no copy of certificate to commence business 5/16 1029

Bank of Fairfield, Wash., eligibility, letter to Mr. Sargent

that he take up with bank, in view of Board's

reversal of position re deferred certificates

of deposit 1/ 6 54

Bank of Garber, Okla., application approved and letter to

FRAgent re desirability of amendment to articles

of incorporation re number of directors 5/ 8 988

Bank of Hartington, Nebr., application approved and letter to

FRAgent suggesting amendment to articles of

incorporation to provide for minimum legal

number of directors 4/15 805

269

Pages


270

Membership in 1RSystem: (Continued)

Bank of Lansing, Mich., application approved and letter toFRAgent re conditions under which certaindirectors and stockholders are to be reimbursedfor cash and securities advanced 6/11

Bank of the Manhattan Co., New York, N. Y., extension for oneyear of time for compliance with condition re-

quiring disposal of stock of County Trust Co.,Mite Plains

Bank of North Collins, N. Y., application approved and letter toFRAgent re shares of stock not yet stamped renonpayment of dividends during life of reorgani-zation agreement and question of disposition offunds in undivided profits account 2/21

Banks outside of United States:Alaska, letter to Mr. Sargent that Board is of opinion that

application of First National Bank of Ketchikanshould be approved when new examination has beenmade 6/ 2 1122

Puerto Rico, proposed letter to Mr. Gidney stating thatBoard is not prepared to admit banks in, andthat he suggest withdrawal of applications ofBanco Popular de Puerto Rico and Banco dePuerto Rico

6/ 2 ]-

Question of placing minute entry re exclusion in Board'spolicy record, action deferred 6/23

Bay City Bank, Bay City, Mich., application approved and letterto FRBank of Chicago re charge of bond premiumsto undivided profits account, number of direc-tors, and erroneous amendment to articles ofincorporation 12/12 22/6

Benefits of, Mr. Peyton to be requested to speak on, beforeNational Association of Supervisors of StateBanks 8/ 4 1416

Broadening of powers by Central Trust Co., Cincinnati, Ohio,through amendment to articles of incorporation,reply to Mr. Iletcher that there is no contra-vention of condition of, until powers are ex-ercised 5/18 1°44

Calvin B. Taylor Banking Co., Berlin, Md., eligibility, letterto Mr. Fry advising of reversal of Board'sposition re deferred certificates of deposit,suggesting obtaining of new application 1/ 6

Capital requirements, amendment tentatively proposed to FRActto eliminate minimum basis involving populationbut retaining certain restrictions, also to

°apply to national banks 12/18 2

Central State Bank, Muscatine, Iowa, application approved, andletter to FRBank of Chicago re condition pre-scribed relating to claim of waiving depositorsonly against earnings, carrying value of se-curities in excess of call prices 12/22 22°

1167-8

9/ 2 1654

410


271

14etab

Conditions:Capital, maintenance of adequate, letter to all RAgents

that condition 2 and footnote 8 of Revised

Regulation H may be applied to member banks

subject to old condition 15, and request that

condition of banks be reviewed annually in

connection with 2/28 454-7

Capital stock reductions, provision in revised Regulation

H permitting, where capital is correspondingly

increased or specific reserve set up, made ap-

plicable to all banks subject to condition re-

quiring prior approval of Board 2/ 6 306



certain reductions 2/13 348

Corrections, question raised by Mr. McKee re wisdom of pre-

scribing requirements of subsequent, pointed

out to be matter for determination by individual

facts 10/30 1979

Pages

ership in FRSystem: (Continued)

Charlevoix County State Bank, Charlevoix, Mich., application

approved 4/ 8 773

Charters and articles of incorporation, reply to FRBank of

Chicago re satisfaction of requirements of

Board re applications, for Michigan and Wiscon-

sin applicants 11/ 7 2020

Chesaning State Bank, Chesaning, Mich., application approved 5/27 1091

Citizens and Southern Bank, Charleston, S. C., reply to FRBank

of Richmond that if it becomes member and meets

requirements, branches established subsequent

to Feb. 25, 1927 may be retained 12/24 2273

Citizens Mutual Trust Co., Wheeling, W. Va., stocks carried in

investment account in apparent violation of

condition 7, letter from, forwarded to FRBank

of Cleveland and transfer of authorization to

grant extensions of time from IRAgent to Presi-

dent 11/ 4 1995

Citizens State Bank, Wausau, Wis., application approved and

letter to FRBank of Chicago re nonconformity

of savings accounts, bonds carried in excess

of call price and payment of time deposits

before maturity, question of continuance of

trust department 12/12 2218

Citizens Trust and Savings Bank of South Bend, Ind., extension

of time for accomplishment of 2/ 5 299

Commercial Bank and Trust Company of Ocala, /la., application

approved and letter to FRAgent that Board is

not willing to waive membership condition re-

quiring deposit of collateral for trust funds

in banking department to extent to which de-

posit insurance covers 6/ 6 1151-2


272 Pages

Membership in FRSystea: (Continued)Conditions: (Continued)

Deposit of collateral for trust funds in commercial depart-ments, consideration of waiving to extent suchfunds are insured by F.D.I.C., letters to F.D.I.C. end Comptroller re possible amendment toFRAct to exempt national banks from requirement,opposed by Messrs. McKee and Ransom, referredto latter 3/10 546

Depositors agreements, special condition not prescribedre transfer of net earnings to surplus aftertermination of, in case of State Savings Bankof Fenton, Mich. 4/ 7 7"

Coopersville State Bank, Coopersville, Mich., specialcondition not prescribed 4/ 7 7°

Exercise of unusual powers, mem of Mr. Seitz recommendingthat Board cease prescribing condition prohibit-ing, and suggestion of Mr. Wyatt that applicant'sattention be called to necessity for securing

3 1992-!Board's permission to exercise such powers 11/Imposed on applicants by F.D.I.C., letter to all FRAgents

re desirability of Board and F.D.I.C. supplement-ing each other's efforts to build up soundbanking system 7/10 1g6

Insurance departments, present policy of prohibiting opera-tion of, questioned by Mr. McKee, Division ofExaminations proposes review of policy, reasonsof Counsel's Office for inclusion of conditionin case of Security Bank and Trust Co. ofOwatonna, eliminated 3/ 6

No. 6, reply to FRBank of New York that condition was pre-scribed for Orange County Trust Co., Middletown,N. Y., in order to invoke if necessary, but astrust funds are accorded statutory preference,.bEBank has authority to waive compliance 11/24 2111

No. 7, stocks carried previously acquired in protection ofloans, authority granted FRAgent to authorizeextensions of time, transferred to Presidents,advice to FRBank of Cleveland ill 4" 1996

Pledge of collateral for trust funds:Connecticut, Board refuses to waive 10/ 8 1852Illinois, Board unwilling to waive, State attorney

general preparing opinion re right of Statemember banks to make pledge 3/ 6

Deferment of application requested by Mr. Stevenspending decision of State Supreme Court, Boardhas not waived 5/27 1091

Letter from Mr. Young, memo of Mr. Seitz recommend-ing that Board no longer defer application ofcondition to banks, approved and letter to Mr.Young 9/13 1666;1


ership in FRSystem: (Continued)

Conditions: (Continued)

Pledge of collateral for trust funds: (Continued)

Insurance of such deposits, letter to Comptroller ask-

ing views re waiver of condition to extent of,

suggesting amendment to Sec. 11(k) of FRAct,

letter to American Bankers Association re

Ratio of capital and surplus to deposits, Second ERListrict,

report of Mr. Case that all except two banks

subject to condition meet requirements, no ac-

tion to be taken as two banks have total capi-

tal structure in excess of requirements

Real estate affiliate, loans to wholly owned Royal Realty

Corporation, request of Union Trust Company of

Maryland for amendment to condition requiring

publication of, referred to Mr. McKee

Real estate business, reply to Mr. Hill that condition was

not intended to apply to usual transactions in

connection with commercial or trust banking,

and that in specified case prohibition is not

applicable if operation is in bona fide fidu-

ciary capacity

Regulation F, suggestion of Mr. Sargent of imposition of

condition requiring compliance with, reply un-

favorable

Stock ownership of other banks by applicant, question of

policy raised by application of Monongahela

Trust Co., to be admitted subject to condition

that stock be disposed of, or banks converted

into branches

Suggestion of Mr. Fleming that condition be not pre-

scribed or ihaived indefinitely, Board believes

it should not waive but will consider extension

for reasonable period

Coopersville State Bank, Coopersville, Mich., application ap-

proved and letter to FRAgent re omission of

special condition, transfer of net earnings to

surplus after termination of depositors' agree-

ment

Extension of time for accomplishment of

Condition re increase in capital and surplus modified

Extension of time for accomplishment of

Corn Belt Bank, Bloomington, Ill., application approved and

letter to FRBank of Chicago re confiscation of

dormant balances, no copy of application to

organize

Corn Exchange Savings Bank, Sioux Falls, S. Dak., question

raised regarding approval of application be-

cause of unsound practices, approved, Mr.

McKee raises question re prescription of con-

dition requiring subsequent corrections

273

Pages

4/ 8 775

2/11 333

3/25 666

7/30 1452

6/24 1232

12/29 2300

12/30 2333

4/ 7 7665/11 9945/21 10646/ 2 1123

11/ 7 2018-9

10/30 1977-9


274pageS

Membership in FRSystem: (Continued)County Bank and Trust Co., Cambridge, Mass., extension of time

for compliance with condition of membership re-quiring Shawmut Association to obtain a generalvoting permit

County Trust Company of Maryland, Cambridge, Md., applicationapproved and letter to FRAgent re supervisionof credits, eliminations, retirement of de-bentures, number of directors and office main-tained in Baltimore

Circular sent out by FRBank re admission containing state-ment as to licensing of bank by Secretary ofTreasury, FEBank advised not to circularizeany statement which would make it appear thatbank was operating as member before date oflicensing

DeRuyter State Bank, DeRuyter, N. Y., application approvedDeuel County State Bank, Chappell, Nebr., application approved

and letter to FRAgent suggesting amendment toarticles of incorporation to provide for legalminimum number of directors

Dollar Savings Bank and Trust Co., Youngstown, Ohio, applicationapproved and letter to FRAgent to verifylegality of operation of branch and request forcopy of certificate to commence business andform of debenture issued to RFC

6/22

5/13

8/137/21

4/15

2/17

1205

1009

14'

804

3'Eligibility:

Certificates of beneficial interest, advice to FPAgentsthat Board has reconsidered position, and out-lining conditions under which State banks shallbe admitted 1/ 6

Bank Commissioner of Maryland to be informed of Board'sreversal of position 1/ 6

Morris plan companies and industrial loan companies in 12California 1/ 2Elyria Savings and Trust Co., Elyria, Ohio, application approved,

action to be taken re mortgage pools, excessloans to be reduced, copies of documents re-quested

Fairbury State Bank, Fairbury, Ill., application approved andletter to FRAgent re depreciation of bankinghouse

Farmers and Citizens Bank, Sauk City, Wis., application approved,and letter to FRAgent re investigating quali-fications of Mr. Marguardt as director

Farmers and Merchants State Bank of Bushnell, Ill., applicationapproved

Federal Deposit Insurance Corporation, procedure of obtainingviews of Board with respect to new bank, notfollowed in connection with application ofAmerican Bank and Trust Co., Miami, Fla., Mr.McKee to take up with Mr. Crowley

5/11

6/ 1

5/25

12/15

10/20

106

10 0

2221

1919


14azb

2'75

Pages

ership in 1,RS3rstem: (Continued)

Federal Deposit Insurance Corporation: (Continued)

Report of Mr. McKee that he had discussed with Mr. Crowley

the arrangement whereby the F.D.I.C. and the

Board will consult with each other in advance

of action on applications for insurance or

membership and that he had agreed 11/10 2028

Farmers and Merchants State Bank of Springfield, Minn., inter-

pretation of membership condition 12 as not

prohibiting sale of occasional mortgage to

customer without recourse 5/ 7 984

Farmers State Bank of Alto, Mich., authorized, under membership

condition 1 to establish industrial loan de-

partment 4/ 2 726Fidelity Savings Bank of Antigo, Wis., application approved

and letter to Assistant FRAgent re showing of

"B-2" debentures in condition reports 5/21 1062-3

First Citizens State Bank of Whitewater, Vis., application ap-

proved and letter to President Schaller re-

questing copy of articles of incorporation and

certification of amendments thereto 10/13 1876-7

First National Bank of Ketchikan, Alaska, application, letter

to Mr. Sargent that Board is of opinion it

should be approved when new examination has

been made 6/ 2 1122

First Security Bank, Beaverton, Ore., application approved and

letter to RAgent re excess deposit with non-

member bank, own stock securing loan, laBank

stock application should be amended and advice

re reporting capital and surplus 6/16 1181

First State and Savings Bank of Holly, Mich., application ap-

proved 5/25 1076

First State Bank, Maypearl, Texas, application approved, and

letter to FRAgent requesting form 83E, copy of

resolution reducing number of directors and

form of debenture issued to R.E.C. 3/31 714

I'irst State Bank of Purcell, Okla., application approved and

letter to FRAgent suggesting amendment to by-

laws to provide for minimum legal number of

directors 3/31 713

First State Bank of Shannon, Ill., application approved and

letter to IRBank of Chicago re carrying of se-

curities in excess of call price and re number

of directors 12/10 2198

First State Bank of South Haven, Mich., application approved 7/24 1429

Gary-Wheaton Bank, Itheaton, Ill., application approved 7/24 1428

Geo, L. Harter Bank, Canton, Ohio, application approved, and

letter to FRAgent approving operation of

branches at North Canton and Louisville, loans

in excess of 20%, advances to realty affiliate

under Sec. 23A 5/ 5 965-7


276pages

Membership in FRSystem: (Continued)

Glen Rock Bank, Glen Rock, N. J., application approved, andletter to FRAgent re completion of payment ofcapital stock and re assumption of liabilitiesand ourchase of assets of Glen Rock National 30Bank 1/ 4 346

Certification to F.L.I.C. that it is now member of ERSystem 2/13 29

Extension of time for completion of 2/ 5Green Island Bank, Green Island, N. Y., application approved

and letter to E}Bank of New York re number ofdirectors 12/ 7 2186

Guaranty Bond State Bank, Tomball, Texas, application approved,attention to be called to excess deposit withnonmember bank 5 1°71

Hackensack Trust Co., Hackensack, N. J., application approved 6/ 8

Hudson Trust Company of Union City, N. J., advice to F.D.I.C.that application will be held in abeyance inview of information submitted and letter to

I-C Bank and Trust Co., Chicago, Ill., articles of incorporation, 22°

FRBank of New York re 12/11

reply to Mr. Stevens noting that organizingbanks in Illinois do not execute, and request-ing copy of application to organize 1/20 174

Illinois:Applicant banks should furnish copy of application to or-

ganize 1/20

Increase, statement of Mr. McKee at meeting with presidents,re desirability of and steps to be taken in

596connection with 3/10

597Statement of Mr. Morrison re 3/16

Jackson City Bank and Trust Company, Jackson, Mich., applica-tion approved and letter to FiiBank of Chicagore question of classification of savings de-posits, criticisms of trust department, to beadvised re re rights of Central State Building Co. 12/24

Joy State Bank, Joy, Ill., application approved and letter toAssistant FRAgent that as losses have beeneliminated, no condition relative thereto was 7/31 1466imposed

Lawyers Trust Co., New York, N. Y., extension of time for com-pliance with condition requiring dispositionof loans secured by own stock 2/20

Licensing of banks, letter to Mr. Leach, re case of County TrustCompany of Maryland, Cambridge that IRBank ofRichmond should avoid circularizing any state-ment which would give impression that bank wasoperating as member before date of authoriza-tion of license 8/13 1°

Lineville State Bank, Lineville, Iowa, application approvedand letter to FRAgent calling attention to ex- 690cess balance carried with nonmember bank 3/28

Littlestown State Bank, Littlestown, Pa., application approvedand letter to FRAgent re legal effectiveness of

09'9

reorganization 1/29


277

Pages

Menibership in iRbystem: (Continued)Lorain Street Bank, Cleveland, Ohio, extension of time for com-

pliance with condition requiring bank to obtain

full release from fiduciary responsibility in

connection with trust accounts 2/20 398

Board feels condition requiring release from all fiduciary

responsibility has been complied with although

one trust is in litigation 8/26 1588

Manistique Bank of Manistique, Mich., Board not willing to ap-

prove application, suggestion that it be with-

drawn 2/20 396

Markesan State Bank, Markesan, Wis., application approved and

letter to FRAgent re bringing operations of

trust department into conformity with approved

procedure 8/12 1516-7

Monongahela Trust Company, homestead, Pa., question raised re-

garding ownership of stock of two national

banks, application approved subject to condi-

tion that such stock be disposed of or the banks

be converted into branches 12/29 2300

Suggestion of Mr. Fleming that condition be not prescribed,

or waived indefinitely, Board believes it should

not waive but will consider extension for

reasonable period 12/30 2333

Mount Clemens Savings Bank, Mount Clemens, Mich., application

approved and letter to Mr. lbw:1;z re elimination

of undesirable assets, limitation on deposits

with nonmember banks and possibility that cer-

tificate of deposit may not comply with Regula-

tion Q 8/13 1518

Certified to F.D.L.C. as member of IRSystem 9/ 1 1631

Mount Vernon Trust Co., Mount Vernon, N. Y., compliance with

conditions 19, 21 end 26, reply to Mr. Case re

apparent failure in 1/31 253

Mutual savings banks, reply to Mr. Fletcher re attitude of

Board toward capital requirements of, in connec-

tion with possible application of Society for

Savings in the City of Cleveland 3/26 676

Reply to Mr. Fletcher re possible application by Society

for Savings in the City of Cleveland, Ohio 5/18 1042

Niles Center State Bank, Niles Center, Ill., application ap-

proved 6/1b 1178

Extension of time for completion of membership 7/ 7 1323

Northern Bank and Trust Co., Lancaster, Pa., application ap-

proved and letter to FRBank re criticisms of

trust department, memo of Mr. Seitz 11/ 3 1991-3

Old Corunna State Bank, Corunna, Mich., application approved

and letter to IRBank of Chicago re reasons for

not prescribing conditions relative to increase

in capital and payment of dividends 11/20 2106


278pages

Membership in FRSystem: (Continued)

Orange County Trust Co., Middletown, N. Y., application approved

and letter to RBank of New York re interestpayment on demand deposit, classification ofcorporation accounts as savings deposits, num-ber of directors and requesting copy of articles

of incorporation 11/ 6 2009

Standard condition No. 6, reply to Mr. Gidney that Boardprescribed in order to be able to invoke ifnecessary but as trust funds are grantedstatutory preference, FRBank has authority

1619:to waive compliance 11Organizing bank, reply to Mr. Sargent, and copy to presidents,

as to eligibility of

9;124 2 :

Peoples Bank, Bishopville, S. C., interpretation of conditionrequiring submission of loans to directorsmonthly 4/ 4 746

Peoples-Liberty Bank and Trust Co., Covington, Ky., applicationapproved and -letter to FRAgent re compliancewith State law as to security for trusts, dis-posal of corporate stocks, payment on defaultedbonds, extension of time to dispose of branchand number of directors 1/11 1°5

Peoples State Bank, Belleville, Mich., application approvedand letter to President Schaller re excessbalance with nonmember bank, excess loan andrequesting organization documents and amend-ments thereto 9/18

Peoples State Bank of Holland, Mich., application approved andletter to RAgent re service of cashier to in-vestment company, corrections in real estateaccount and request for copy of certificateauthorizing bank to commence business 2/13

Pioneer Bank, North Branch, Mich., application approved andletter to FRBank of Chicago re excess balancewith nonmember bank, securities carried at morethan call price, condition re final settlementregarding banking premises not prescribed 12/ 9 21.94

Pomeroy State Bank, Pomeroy, Wash., application approved 1/ 6Certification to F.D.I.C. that it is now member of IRSystem 1/22

Rapides Bank and Trust Company in Alexandria, La., applicationapproved and letter to FRAgent re keeping writtenrecord of supervision of trust activities,board of directors not full, large loan, nocopy of certificate authorizing commencement of 6/business 1/ 7

Reorganized banks in Illinois which have issued deferred cer-tificates of deposit, reply to Mr. Wilkesre proposed modification of plan 5/26

Rochester State Bank, Rochester, Ill., application approved 6/ 2 11'1

St. Marys State Bank, St. Marys, Kansas, application approved,and letter to FRAgent re criticisms of operat-ing matters and inadequacy of fidelity bonds 1/31


Menth

279

Pages

ership in FRSystem: (Continued)Sandwich State Bank, Sandwich, Ill., eligibility, letter to Mr.

Stevens requesting that he take up with bank,

in view of Board's reversal of position re de-

ferred certificates of deposit 1/ 6 53

Saratoga State Bank, Saratoga, Wyo., application approved and

letter to FRAgent at Kansas City re necessity

of amending articles of incorporation re number

of directors, question of qualification of Mr.

Munz as director, charge for depreciation and

charge for loan to C. A. Cook et al 3/23 635-7

Extension of time for completion of 4/23 857


Modification of condition requiring elimination of loans

to C. A. Cook and G. C. Feusett and extension

of time for completion of membership 6/25 1246-7

Savings Deposit Bank and Trust Co., Elyria, Ohio, application

approved, letter to FRAgent re number of direc-

tors, activities of Mr. Smith as security sales-

limn and transaction of business of Depositors

Mortgage Loan Co. in same quarters 4/28 913

Schirding State Bank, Petersburg, Ill., application approved 5/ 8 987

Security Bank and Trust Company of Owatonna, Minn., application,

proposed condition prohibiting operation of

insurance department questioned by Mr. McKee,

Division of Examinations proposes review of

policy, reasons for inclusion, eliminated and

application approved 3/ 6 521-2

Letter to FRAgent to secure voting permit agreement from

Northwest Bancorporation and to forward copy of

any certificate authorizing commencement of

business 3/ 6 523


Security State Bank, Algona, Iowa, application approved 4/27 897

Smith Trust and Savings Bank, Morrison, Ill., application ap-

proved and letter to FRAgent re criticisms of

trust department, request for copy of applica-

tion to organize 3/21 624-6

Society for Savings in the City of Cleveland, Ohio, reply to

Mr. Fletcher re attitude of Board toward capital

requirements of mutual savings banks, in connec-

tion with possible application of 3/26 676

Reply to Mr. Fletcher re possible application of, and re

effect of Regulation Q on payment of dividends 5/18 1042

Solvay Bank, Solvay, N. Y., application approved and letter to

FRBank requesting further information re in-

crease in directors 10/29 1962


Southern Arizona Bank and Trust Co., Tucson, Ariz., insured

mortgages, reply to Mr. L'Autremont that they

are excepted from provisions of membership con-

dition 12, but that Board cannot relax condi-

tion 17 to permit investment of trust funds

in pools of 1/ 2 9Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

280 pages

Membership in FRSystem: (Continued)Southern Arizona Bank and Trust Co., Tucson, Ariz.: (Cont'd)

Not to be required to increase capital and surplus atpresent in compliance with condition of

Southington Bank and Trust Co., Southington, Conn., request forwaiver of membership condition requiring de-posit of collateral for trust funds in commercialdepartment to extent such funds are insured byF.D.I.C., opposed by Messrs. McKee and Ransom,referred to latter

Reply to Mr. Curtiss that Board refuses to waive conditionLetters to Comptroller and American Bankers Association re

general question involved, suggesting advisa-bility of amending Sec. 11(k) of FRAct

State Bank of Coloma, Mich., application approved, and letterto FRAgent re adjustments in building and fur-niture accounts under agreement with trusteesfor waiving depositors

Extension of time for completion ofState Bank of Mayville, Wis., application approved and letter to

FRBank of Chicago re reasons for including con-dition re trust powers, corporation need not bereported as affiliate if indebtedness is retired,practice of setting up bonds purchased at pricesof bonds sold, and advice re amendments tocharter

State Bank of St. Johns, Mich., application approvedExtension of time for accomplishment of

State Bank of Viroqua, Wis., application approved and letter toFRAgent re checking capital and surplus and or-ganization papers, not planned to exercise trustpowers, depreciation of banking house to be pur-chased and increase in capital if deposits in-crease to expected amount

Certified to F.D.I.C. as member bankExtension of time for completion of membership

State Bank of Waupun, Wis., application approved and letter toFRAgent re elimination of losses and possibilitythat certificates of deposit do not comply withRegulation Q

State banks, inquiry of Mr. Morrison to Presidents' Conferenceif Board is making it difficult for entrance of,feeling expressed that reasons for failure toapply are beyond Board's control

State Savings Bank of Fenton, Mich., application approved andletter to FRAgent re excess balances with non-member banks and omission of condition re trans-fer of net earnings to surplus after terminationof depositors agreement

State Savings Bank of Owosso, Mich., withdrawal of applicationbecause not desirable to increase capital to re-quired amount

1/431

3/10 546 \4/8 774

776"4/8

5/ 4

6/ 2

960

1122

2011-11/ 6 -

603/27

8034/14

6/25105

093/17

4/ 7

12/31

rgs

25sa


keMbership in IRSystem: (Continued)Summit Trust Co., Summit, N. J., extension of time for disposal

of stock in Summit Title and Mortgage GuarantyCo. and also to act as trustee for obligations

281

Pages

of company 5/16 1032Thomson State Bank, Thomson, Ill., application approved and

letter to President Schaller requesting copyof application to organize 8/26 1586-8

Trust Company of Wyoming County, Warsaw, N. Y., applicationapproved if and when Wyoming County NationalBank, National Bank of Wyoming and North JavaCompany are merged 12/24 2268

Letter to 14RBank of New York re merger, week board, holdingcompany affiliation of Financial Institutions,Inc. will be terminated, branches at Wyomingand North Java approved 12/24 2269

Turtle Creek Bank and Trust Co., Turtle Creek, Pa., applicationapproved and letter to FRAgent re fee collectedfor trustee service which may not be legal 6/ 8 1155-6

Union State Bank, Pushville, Nebr., application approved and noobjection to proposed disbursements to reserve,depreciation, and payment of dividends 6/24 1225-6

Union Trust Company of the District of Columbia, Washington,D. C., application approved and letter toFRAgent, not to be considered as dealing in-directly in mortgaEe participations because ofactivities of affiliated Thomas J. Fisher andCo., Inc.

Union Trust Company of Maryland, Baltimore, Md., condition re-quiring showing of extensions of credit to,and investments in other real estate, amendment

5/ 5 967-9

requested 1/ 7 69

Question of amendment referred to Mr. McKee 3/25 666

Cancelation of 5/ 5 970Union Trust Co., St. Petersburg, Fla., transfer to surplus of

entire amount in special reserve, approval

granted in accordance with membership condition 6/25 1248

United home Bank and Trust Co., Mason City, Iowa, application

approved, letter to FRBank of Chicago re notprescribing condition as to investment in bank

premises, Mr. Clark to devote entire time tobank and bring his mortgage business into bank 10/29 1963

Valley Savings Bank, Des Moines, Iowa, eligibility, letter to

Mr. Stevens to take up with bank, in view of

Board's reversal of position re deferred cer-

tificates of deposit 1/ 6 54

Waiver of requirements, amendment to RAc-t tentatively proposed

to make effective immediately provision for,

to facilitate entry of banks to continue in-

sured status 12/18 2234


282pages

MembershipWarren

in rRSystem: (Continued)Bank and Trust Co., Warren, Pa., application approved

and letter to FRAgent re no trust officer andno minutes of trust committee, no copy of cer-tificate of authorization and no copy ofLiquidating Trust Certificates

West Side Trust Co., Newark, N. J., extension of time for com-pliance with condition requiring disposal ofloans on own stock

Further extension of time to comply with condition requiringdisposal of own stock as collateral to loans

Wyoming County Bank and Trust Co., Warsaw, N. Y., applicationapproved if and when Wyoming County NationalBank, National Bank of Wyoming and North JavaCompany are merged by Trust Company of WyomingCounty under above title

Letter to FRBank of New York re merger, weak board, holdingcompany affiliation of Financial Institutions,Inc., will be terminated, branches at Wyomingand North Java approved

Michigan:Charters and

Middle Coal Yield

Milberg, Henry,

Miller, A. C.,

Press statement

(See alsoMiltenberger, to

Mimeograph paper,

Minneapolis - St.Regulation U,

articles of incorporation of banks applying formembership, certified copies Should be sub-mitted

Poor District, reply to Mr. O'Connor re queryof Hazleton National Bank, Hazleton, Pa., thatBoard is reconsidering question of classifica-tion of such funds as savings deposits

reply re question in connection with litigationarising from liquidation of First National Bankof West New York that Board cannot comment onmerits of such questions

building for Board, to be available for consultationin connection with questions arising re, letterto be prepared to, setting forth arrangementto be prepared re and re appointment of Mr.Thomas and Mr. Hamlin as 1PAgent at Kansas Cityand Special Counsel to Board respectively

Staff of Board)

Alex., possible violation of Sec. 22(c) of IRActbe reported to Department of justice

contract with Barton, Duer and Koch Papersupply Board for remainder of year

Paul Stock Exchange:

reply to Mr. Selover re restriction on extension

of credit by banks and re maximum loan values

of stocks not registered on national securities

exchange and collateral value of stocks on ex-

empted exchanges, under Regulation T

Co. to

2/19 582-3

2/ 6

6/24

12/24

305

1226

2266

12/24 2269

11/ 7 202°

10/ 1 1812

5/21 1066

2/ '7

2/ 7

310

12/ 2 2159

5/21 1061

5/18 1040

Mississippi:Interest, rate which may be paid under Regulations Bulletin No.

and under Supplement C thereto, effect on time

and savings deposits and postal savings deposits 1/14 125


283

Pages

Mitchell, W. C., opinion of Dr. Goldenweiser that he is best fac-

tual economist in country, connected with Na-

tional Bureau of Economic Research 9/18 1724

m (See also National Bureau of Economic Research)m°11tgomery, John D.: (See Court Cases, Suit against Board members)

(301.e, Edward D.: (See National banks, Indiana National Bank,

Indianapolis, Ind.)

John F.: (See Cooley and Co., Hartford, Conn.)4orbidity and Mortality study of Public Health Service, RBanks re-

Morris

_, quested to cooperate 1/ 4 50

Roland, present at meeting of Board with committee of

Directors of /RBank of Philadelphia and memo-

randum re appointment of Governor Norris as

President of FRBank 3/ 3 477-9

Mc'rris Plan banks:Executive officers of member banks, reply to Hart, Gainer and

Carr on inquiry as to whether indebtedness to,

should be reported to boards of directors under

Regulation 0 2/20 400

Liabilities and resources, reply to Rand McNally Bankers Lirec-

tory re inclusion in total of, of figures for 1/31 269ilortga-e bonds issued by State Bank, Winfield, Kansas against annex

to building, letter to Mr. Thomas re reporting

to Attorney General 5/27 1100

14/rtgeges:Federal Housing Administration mortgages and modernization loans,

reply to Mr. McDonald that IRBanks may consider

member bank notes secured by, for loans under

Sec. 10(b) of /RAct 6/22 1213

Insured:Limitation of 60% of deposits, reply to Malcolm C. Brock

and Co. that question comes within jurisdiction

of Comptroller 6/ 8 1157

Membership conditions 12 and 17, reply to Southern Arizona

Bank and Trust Co., that they are excepted from

provisions of 12, but Board cannot relax 17

to permit investment of trust funds in pools of 1/ 2 9

Sale of, American Trust and Banking Co., Chattanooga, Tenn.,

to be advised that membership condition pro-

hibiting sale of mortgages does not apply to,

and Board not willing to waive condition 3/14 579

Title II of National Housing Act, liability of executive

officer on loan under, reply to Mr. O'Connor

that it is not exempt from provisions of Sec.

22(g) of RAct 3/20 622

Trust accounts, reply to Malcolm C. Brock and Co. re right

of bank placing mortgage it originated in trust

account to make service charge thereon 6/ 8 1157

Investment of trust funds in, purchased from own commercial de-

partment, question of making exception as to

national banks in Pennsylvania to extent per-

mitted by Pennsylvania Banking Code 9/ 1 1627


284pages

Mortgages: (Continued)New Jersey banks to show amounts in condition report forms for

publication 3/12 564

Participations in real estate loans between trusts 6/26 1257

Real estate, loans to affiliated real estate corporations bySan Jacinto National Bank, Houston, Texas, replyto Mr. Valsh on applicability of Sec. 23A 2/17

Sale of note secured by, reply to Mr. Sargent that membershipcondition 3 prohibits Bank of Spanish Fork fromengaging in business generally, but not inisolated case

Sale without recourse, of occasional, to customer, interpreta-tion of membership condition 12, to whichFarmers and Merchants State Bank of Springfield,Minn., is subject, as not prohibiting 5/ 7

Summit Title and Mortgage Guaranty Co., Summit, N. J., extensionof time for Summit Trust Co. to dispose of stockof, and for acting as trustee for obligations of 5/16

Motor Contract Co., stock held by Trust Company of Georgia Associates,permission granted Trust Company of Georgia tohold in absorption of 9/14 1709

Mott, Congressmen Tames tk., pensions for Board members and officersof /PSystem, reply re provisions proposed inlegislation at last session of Congress forformer end re retirement system 11/ 4 1997

Moyer, L. A.: (See Civil Service Commission)Munlock Engineering Corporation, reply to Mr. McPherson re reasons

of IRBank of Richmond for refusing to make in-dustrial advance to 2/19

Mutual /ire Insurance Co., deposits may not be classified as savings 1/10

Mutual savings banks:Capital requirements for membership in FRSystem, reply to Mr.

676Fletcher re Board's attitude toward 3/26

Society for Savings in the City of Cleveland, Ohio, reply toMr. Fletcher re possible application for mem-bership 5/18 1°°

Myers, W. I.: (See Farm Credit Administration)

”N”

Nathan, Edgar A., reply re effect of amendment to Regulation T in-creasing margin requirements to cash withdrawalsfrom accounts

National Archives:Destruction of useless records of Board, letter to Archivist

O'Connor listing and advising that they shouldbe destroyed rather than sold

Federal Register:Laws under which Board is authorized to issue rules and

regulations, reply to Mr. Kennedy listing pro-visions of

361

I1/31 255

984

log

38699

2/27 446

12/11 221°

4222/25


285

Pages

1101ona1 Archives: (Continued)

Federal Register: (Continued)

List of documents required to be furnished by Board to,

letter to Administrative Committee of, re 1/2:5 213

(See also Federal Register)

II:Wanks, proposed survey of fiscal agency and FRApents' depart-

ment records, letter to Mr. Hamer re, and letter

to FIZBanks 4/18 828-9

Inspection of records of fiscal agency and IRAgents' departments

in FRBanks, by representatives of National

Archivist, reply to President Hamilton re 4/16 816

411tional Association of Supervisors of State Banks:

Convention of, invitation to Mr. Peyton to address, request for

suggestions, to be requested to speak on bene-

fits of membership in i,RSystem 8/ 4 1478

Report of Mr. Broderick re attendance and informal address,

FRBanks of New York, Boston, Philadelphia,

Cleveland, Chicago and St. Louis represented 9/22 1748

144t1ona1 banks:Agreement for general voting permits, amendment authorized re

requirement that Board approve changes in in-

vestments, as to national banks, RAgents to

be advised 3/25 667-8

American National Bank of Kalamazoo, Mich., inactive vice presi-

dent, should be considered as executive officer

under Regulation 0, reply to Mr. Stevens 1/ 6 58

American National Bank of St. Paul, Minn., time certificate of

deposit payable 3, 6, 9 or 12 months from date,

reply to Mr. Maley that it complies with Regula-

tion 3/ 9 537

American National Bank, Santa Monica, Calif., Government bonds,

reply to Mr. Gandy re editorial in Los AngeleS

Times that bank may secure 100) value in cur-

rency for, from FRBank, advising of methods by

which member banks may secure currency from

FRBanks and various types of loans for which

bonds are eligible as collateral 8/ 7 1505

sank of America National Trust and Savings Association, charges

that Governor Calkins discriminated against:

(See Giannini, Allegations)

Barnett National Bank of Jacksonville,

Deposits of credit unions and citrus growers associations,

reply to Mr. MccAaid that they may not be clas-

sified as savings accounts 1/15 138

Holding company affiliate credit allowance under Revenue

Act of 1935, reply to Mr. McQuaid relative to

procedure in connection with 11/13 2060

Boatmen's National Bank of St. Louis, units of trust shares

representing listed stocks, reply to Mr. Wagen-

fuehr prepared that under Regulation U they are

not stocks, additional information to be ob-

tained and reconsidered 4/21 833


286 Pages

National banks: (Continued)Byram National Bank of East Port Chester, Conn., fiduciary

powers, application refused because of insuffi-cient capital, review of capital requirements ofConnecticut and attention called to requirementthat capital be common stock, while Board holdsthat as applicable to national banks, Sec. 11(k)of FRAct may be considered to include preferred

125stock 1/14Callicoon National Bank, Callicoon, New York, fiduciary powers, 1661

surrender approved 9/ 8Carthage National Exchange Bank, Carthage, N. Y.:

155Fiduciary powers, application approved 1/17Trust funds, reply to Mr. Lynch re deposit in savings depart-

ment, under Regulations F and Q, and re treatment 116

Central National Bank of Green Castle, Greencastle, Ind., fidu-ciary

11/24 2

584

of such deposits in reportsCentral National Bank in Chicago, Ill., reserves, authorized to 2082carry reduced 11/17

power application approved 2/19Central National Bank and Trust Company of Battle Creek, Mich.,

fiduciary powers, certificate of surrender andletters to Comptroller and 1RBank of Chicagothat as bank is in liquidation, Board will not

-6

require change in title to eliminate "and TrustCompany" 12/ 2 2155

Charleston National Bank, Charleston, W. Va., trust funds, replyto Mr. j'Connor on inquiry of bank, that Regu-lation 1' prohibits loan from one trust toanother in absence of order of court, even though 1908trust authorizes use of bank's discretion 10/19

Citizens National Bank, Emporia, Va.:Maximum interest rate, reply to Mr. Harc1inc that Board does

795

not at present contemplate redaction in 12/12 2219

Savings deposits, reply to Mr. Harding re question of con-tinuing use of certificates of deposit to repre-sent 4/13

Citizens National Bank of Freeport, N. Y., reply to Mr. Keoghthat Board has previously determined that Ran-borough Corporation was not a holding companyaffiliate and no action by Board is necessaryto permit to vote stock 7/14 3:j")56

Citizens National Bank of Marshfield, Wis., fiduciary power ap-plication, action deferred because of limitedrecommendation of .RAgent, uncertain quality oftrust officer and dubious prospects of profits,

77/letter to Comptroller re 4/ 8Citizens National Bank, 3ntario, Calif., reply to Mr. White that

deposits of Mutual Fire Insurance Co. cannot 99be classified as savings account 1/10Citizens National Bank, Wellsville, N. Y.:

Dairymen's League Co-operative Association, Inc., reply toMr. Cassel that funds of, may not be classifiedas savings deposits 3/21 626


287

Pages

t.Na.'10rial banks: (Continued)

Citizens National Bank, Well sville, N. Y.: (Continued)

Executive officer purchased property and assumed mortgage,

question of applicability of Sec. 22(g) of

IBAct depends upon whether transaction was

for protection of bank 1644

Executive officers, reply to Mr. Cassel that Secretary

should not be considered as, as long as he per-

forms only usual functions 3/ 5 514

Citizens National Bank and Trust Company of Fulton, N. Y., ex-

ecutive officer, reply to. Mr. ivVilson that

director who is secretary of board is not, under

Regulation J 1/ 4 43

Citizens National Bank and Trust Co., Tvlansfield, Ohio, reply to

Mr. Jennings that deposits of Mansfield Cemetery

Association may be classified as savings accounts 7/ 9 1331

Citizens National Bank and Trust Company of Waynesboro, Pa.,

Regulation Q, reply to Mr. Stouffer interpreting

provisions of, re interest payable on tire cer-

tificate having maturity of six months, no ob-

jection to use of pass book for business corpora-

tions 1/11 110

Citizens Union National Bank, Louisville, Ky., fiscal agency

functions performed by Louisville Branch in

connection with joint stock land bank bonds,

national bank involved in procedure 5/13 1015

City National Bank of Philadelphia, Pa., "redmption fund",

reply to Mr. Hill that Sec. 9(b) of Regulation

F requires security to be deposited for, when

deposited in banking department 7/17 1398

Clark County National Bank, Vancouver, '/Vash., savings accounts,

practice of customer leaving withdrawal slip,

signed in blank with passbook at bank so that

cost of securities purchased may be charged,

reply to Mr. Daniels that it is permissible 5/16 1034

Commercial National Bank of Spartanburg, S. C., published con-

dition statement of nonmember Citizens and

Southern Bank of South Carolina, letter from

Mr. Campbell calling attention to iten, "Cor-

porate stock including FRBank stock" 7/29 1448

Condition reports:Call as of Decetber 31 1/ 6 51

Call as of March 4 3/16 585

Call as of June 30 7/ 3 1299

Form to be furnished to banks well in advance of call under

new policy adopted by Comptroller, Board adopts

similar policy 8/ 1 1470

Continental Illinois National Bank and Trust Company of Chicago,

Deposits of affiliates reported as "not subject to reserve",

advice to .RBank of Chicago that such deposits

are subject to reserve 1/17 157


238pages

National banks: (Continued)Continental National Bank and Trust Co. of Chicago, reserves

against uninvested trust funds, memo of counselthat they should be maintained, overruled, notto be required

Letter to Mr. Stevens advising of actionCounty National Bank at Clearfield, Pa., trust funds, investment

in assets acquired from commercial department,reply to Mr. Fulton expressing disapproval of

Crocker National Bank of San Francisco, Sec. 2(c) of RegulationU, reply to Mr. Wheeler re question of, turningon interpretation of

Del Rio National Bank, Del Rio, Texas, executive officer, pro-test against inclusion of inactive officers indefinition of, in Regulation J, from Mr.Stevenson, matter referred to Mr. Morrison andreply approved

Deposit of collateral for trust funds in commercial department,consideration of request for amendment to TRActto relieve of necessity to extent such fundsare insured by opposed by Messrs.Ransom and McKee, referred to former

Depositors National Bank of Durham, N. C., fiduciary power ap-plication approved

Discount of commercial paper "without recourse"Dividends, S. 1514, relating to payment of, objections to,

Chairman authorized to take such steps as heconsiders necessary in event bill seems likelyto became law

Consideration given by Board to S. 4514 outlined for FederalAdvisory Council, belief that bill will not pass

Earnings and dividends reports, amendments to provide reportingof additional items

Further modifications made by ComptrollerFarmers and Mechanics National Bank, Westminster, W., trust de-

partment, reply to Brown and Shipley re procedurenecessary for discontinuance of, and letter toComptroller that bank desires to know whethercontinued exercise of one power will subjectbank to examination and charge in connectionwith

Farmers and Mechanics National Bank, Woodbury, N. S.:Building and loan associations, reply to Mr. Ware that de-

posits of, may not be classified as savingsaccounts

Interest on time deposits, reply to Mr. Ware re limitationon, by State law, and that no interest may bepaid on deposits of 14 days' duration

Farmers National :Bank of Waseca, Minn., fiduciary powers, cer-tificate of surrender

1/241/31

3/S

6/

3/ 4

262

511

1145

498-9

3/10 546

5/14 1°2°6/17 119°

5/15

5/19

4/ 84/28

1024

1048

?el917

11/1? 2082

6/10 1162

010 11"1°41/11


tkti

289

Pages

onal banks: (Continued)

Fiduciary powers, small banks in competitive situations, Comp-

troller not willing to t:trant application of

First National Bank of Christiansburg, Va.,

Board to adhere to original position, to confer

further with Comptroller 8/11 1508

Report of Mr. Ransom on Comptroller's position, file to be

recirculated and considered again 8/27 1596

First and Merchants National Bank, Richmond, Va., Regulation F,

record of litigation, reply to Mr. Fry on in-

quiry of, as to scope of record required 7/ 2 1294

First-Mechanics National Bank of Trenton, N. J., interest payment

on savings deposits, reply to Mr. Ray that it

may not be paid in excess of 2,61 per annum re-

gardless of basis on which computed 1/15 137

First National Bank of Albert Lea, Minn., fiduciary powers, sur-

render of 2/ 7 314

First National Bank of Anchorage, Alaska, use of words "Member

F.R. System" on condition statement, reply to

Mr. Clerk notinz use was inadvertent and will

not be repeated 8/31 1625

First National Bank, Atlanta, Ga.:

Regulation If, reply re five questions as to interpretation of 5/20 1056

Trust funds, reply to Mr. Williams re question of viola-

tion of Regulation F by investment in securities

purchased from affiliate 9/12 1695

First National Bank in Bedford, Pa.:

Cohn, M. M., President, reply to Mr. Austin re extension or

loan to, made subsequent to Banking Act of 1933

and prior to Banking Act of 1935, in connection

with Departuent of Justice determining if he

was executive officer at the time 4/ 2 727

First National Bank of Be.resford, S. Dak., time certificate of

deposit, reply to Mr. Olson that it may not be

paid before maturity, unless emergency exists,

suit threatened by guardian 12/ 4 2181

First National Bank of Bloomingdale, N. J., interest payment on

New Jersey funds, letter to Mr. Case re inquiry

of Mr. Storch re, suggesting conferring with

FRBank of Philadelphia 1/15 134

First National Bank of Bradley Beach, N. J., inactive officers,

reply to Mr. Johnson that they come within

definition of' executive officer in Regulation J 4/28 916

Reply to Mr. Johnson that there is no distinction as to

type of loan in exception re amount officers

may borrow 5/16 1035

First National Bank of Christiansburg, Va., fiduciary power ap-

plication, not approved by Comptroller because

of likelihood of poor earnings, Board to adhere

to position re small national banks in com-

petitive situations, but first to confer further

with Comptroller 8/11 1508


290 pages

National banks: (Continued)First National Bank of Christiansburg, Va.: (Continued)

File to be recirculated and considered again in light ofMr. Ransom's report re position of Comptroller

Review of previous consideration and position of Comptrol-ler, application approved, Messrs. Broderickand Ransom voting "no"

Letter to bank advising of approval of applicationFirst National Bank of Clifton Forge, Va., loan to Mr. Ihmett,

vice president, reply to Mr. Fry as to whetherit constituted a violation of Sec. 22(g) ofFRAct, copy to ComptrollerBank, Colorado Springs, Colo., executive officer,reply to Mr. Howbert that resolution or amend-ment to bylaws would not affect status of chair-man of board asBank, Conawa, Okla., interest, reply to Mr.Courtney re payment of accrued, after August 23,1937 that interest may not now be paid on denanddeposits of Indian funds, Postal savings fundsand other Government fundsBank at Gallitzin, Pa., funds of Gallitzin FireCompany Relief Association may be classified assavings deposits, reply to Mr. Cooper

Bank of Gatesville, Texas, executive officer,reply to Mr. Ayres that where no evasion isintended loan by bank to corporation in whichofficer is interested is not violation of Regu-lation 0Bank of Gettysburg, Pa., interest on time cer-tificate of deposit payable upon six months'notice by depositor, Ur. Harr, and callableupon 30 days' notice, shorter period governsin determining maximum rate

Bank of Henderson, Ky., fiduciary power applica-tion approved

Bank of Homestead, Pa., stock owned by Mononga-hela Trust Co., latter admitted to membershipsubject to condition requiring disposal ofstock or conversion of bank into branch

Bank of Idaho, Boise, Idaho, fiduciary powerapplication approvedBank of Ketchikan, Alaska, membership in FRSystem,letter to Mr. Sargent that Board is of opinionthat application should be approved when newexamination has been made

Bank, Keystone, W. Va., Regulation U, reply toMr. Vaughan re applicability to certain accountBank of Lake Charles, La., documentary draftsdrawn on purchasers in puerto Rico, reply to Mr.North re question of classification as cashitems in process of collection

First National

First National

First National

First National

First National

First National

First National

First National

First National

First National

First National

8/27 15496

9/11 1.6889/17 1718

1/15 14° 1

1/31266

12/22 20

5/27

4/25

8/21

12/29

4/15

1097

E390

1 564

so7

226/ 2 11

12566/26

6/24 1254


291

National banks: (Continued)First National Bank of Lenoir City, Tenn.:

Eason-Norwood Co., is affiliate of, appropriate exhibit

should be furnished by Hamilton National Asso-

ciates in connection with voting permit ap-

plicationFirst National Bank of Louisville, Ky., loss sustained by

ERBank of St. Louis on commitment to, in con-

nection with loan to Red Cap Battery Corpora-

tion

First National Bank in Meridian, Miss., fiduciary power appli-

cation approved

First National Bank of Montgomery, Ala., dealings, between trust

accounts, reply to Mr. Kennedy re provisions

of Regulation F re and re duties of trustee in

connection with

First National Bank, Nicholson, Pa., permanent deposit of

Nicholson Cemetery Association, reply to Comp-

troller that bank must take immediate steps

to reduce interest rate from 4',5; to 2bL

First National Bank of Perth Amboy, N. j., unsafe practices,

review of situation by Mr. McKee, authorized to

call conference re

First National Bank of Philadelphia, Pa., executive officers,

reply to Mr. Haas that Regulation U should be

construed as requiring that reports of in-

debtedness be available to board of directors

First National Bank at Pittsburgh, Pa., interest payment at

1;i0 compounded monthly on time deposits, reply

to Mr. Fletcher on inquiry of, that it is not

permissibleFirst National Bank of Pomona, Calif., fiduciary powers, supple-

mentary application approved

First National Bank of Princeton, Minn., liquidation nearly

complete, Metals Bank and Trust Co. of Butte,

Mont., need not report on form 105 as affiliate

First National Bank, Pueblo, Colo., cash bond, reply to Mr.

Thompson that deposit in name of United States

Fidelity and Guaranty Co. as collateral for

E. L. Westcott may be classified as savings

account

First National Bank of Pullman, Wash., fiduciary powers appli-

cation approvedFirst National Bank of Remsen, N. Y., increase in reserve re-

quirements, reply to Mr. Roelse re letter of

Mr. Park relating to certain statements in

Board's statement re

First National Bank in Santa Ana, Calif., fiduciary powers,

State refuses license because of legal prohi-

bition on examination by, of trust department,

bank may agree to permit examination, and

license not required to be granted by State

under Board's authorization

Pages

1/ 4 37

7/30 1454

6/19 1199

5/23 1070

7/20 1411

9/ 4 1651

3/ 5 513

1/20 167

5/27 1092

5/21 1065

9/22 1749

5/16 1033

8/25 1581

1/20 165


292pages

National banks: (Continued)

First National Bank of Selins Grove, Prender ofBank of Spring Valley, Minn.,certificate of surrender of

Bank of Spring Valley, N. Y.,reply to Mr. Fuller advisingsurrender of

Bank of Toppenish, Wash., absorption by TradersBank, no objectionBank of Trumansburg, N. Y., consolidation of, byTompkins County Trust Co., Ithaca, and estab-lishment of branch, no objection

First National Bank of Wallace, Idaho:McCarthy, James F., reply to Mr. Flohr re

will not accept honorary viceof requirements of Sec. 22(g)Bank of West New York, • N. J., litigation arisingfrom liquidation, of, reply to Mr. Milberg thatBoard cannot comment on merits of questions in-volved in

Bank and Trust Company of Ann Arbor, Mich., con-solidated into Ann Arbor Savings and CommercialBank, latter's membership application approvedBank and Trust Company of East Pittsburgh, Pa.,fiduciary application of East Pittsburgh Savingsand Trust Co. approved upon conversion into,letter to Comptroller, and one to FRAgent reomission of ninth power from applicationBank and Trust Co., Minneapolis, Minn., savingsdeposits, reply to Mr. Geery re classificationof funds of business groups, professional asso-ciations, mutual benefit organizations andpublications of professional associations

Bank and Trust Co., Oklahoma City, sales oftrust assets to officers, directors, etc., replyto Mr. Thomas that they may be effected beforeeffective date of revised Regulation F

Bank and Trust Co., Rochester, N. Y., consol-idated by Lincoln Alliance Bank and Trust Co.Bank and Trust Company in Sioux Falls, S. Dak.,fiduciary power application, denied because ofcriticisms of management and policies

Supplementary application approvedNational Bank and Trust Co., Waynesburg, Pa., deposit of

Borough of Waynesburg, reply to Mr. Ailes thatit cannot be classified as savings deposit andno interest may be paid thereon

National Bank and Trust Co., Stamford, Conn.,withdrawal from. ERSystem considered by, becauseof definition in Regulation Q. of interest pro-hibiting classification of deposits of cor-porations operated for profit as savings accounts

First National

First National

First National

First National

First

First

First

First

First

First

First

First

National

National

National

National

National

National

National

First-Stamford

., fiduciary powers,

fiduciary

sur-

powers,

fiduciary powers,of procedure for

complaint that hepresidency becauseof FRAct

9/25

4/24

i782

868

7/27 1435

12/22

5/21

2/7

2258

1066

310

6/23 1221-'

7/13 1,46

5/27 1°93

11/13 059

4/ 4 7,,411

11/ 5 2C1v

2/17 .

1/22 164


293

Pages

National banks: (Continued)

Fletcher-American National Bank of Indianapolis, claim of

liquidating trustees against TRBank of

Chicago, to be considered at meeting of Board

tomorrow 7/28 1440

Memo of Mr. Wyatt re status of case, authorized to continue

negotiations for settlement, and upon conclusion

of conferences, to submit recommendation after

consultation with Mr. Ransom 8/ 4 1478

Report of Mr. Wyatt re status of, question of settlement,

Mr. Wyatt and Mr. Dreibelbis authorized to dis-

cuss matter with FRBank directors at meeting

next held 9/11 1684

Compromise of, payment of settlement approved 11/11 2035


Franklin County National Bank of Brookville, Inc., fiduciary

powers, supplementary application approved 7/18 1402

Glen Rock National Bank, Glen Rock, N. J., assumption of lia-

bilities and purchase of assets of, by Glen

Rock Bank 1/ 4 30

Hamblen National Bank of Morristown, Tenn.:

Morrison Turning Co., is affiliate, appropriate exhibit

should be filed by Hamilton National Asso-

ciates in connection with voting permit appli-

cation 1/ 4 37

Hamilton National Bank, Chattanooga, Tenn.:

Electric Home and Farm Authority, reply to Mr. Harris that

paper of, is not eligible for discount, but is

eligible as collateral for Sec. 10(b) loans 7/10 1337

Hamilton National Bank, Washington, D. C.:

American Retail .Federation, Inc., reply to Mr. vans that

funds of, may not be classified as savings de-

posits 3/21 627

National Fertilizer Association, inc., reply to Mr. Evans

that funds of, may not be classified as savings

account 7/ 3 1302

Hartford National Bank and Trust Co., Hartford, Conn., executive

officer, reply to Mr. Bailey re loan made to

him by another bank which later merged with his

own bank, that interpretation of Sec. 22(E)

of RAct rests in this case with Department of

Justice 10/ 1 1813

Hartley National Bank, Bedford, Pa., maximum rate of interest,

reply to Mr. J. ii-rank Russell re suggestion

that it be reduced 12/ e 2191

Hays National Bank, Hays, Pa., stock owned by Monongahela Trust

Co., latter admitted to membership subject to

condition requiring disposal of stock or con-

version into branch 12/29 2300

Hazleton National Bank, Hazleton, Pa.:

Middle Coal Held. Poor District, reply to Mr. O'Connor that

Board is reconsidering question of classifica-

tion of such funds as savings deposits 10/ 1 1812


294 pages

National banks: (Continued)Indiana National Bank, Indianapolis, Ind., par remittance for

checks by all banks doing commercial bankingbusiness, reply to suggestion of Mr. Moore torequire

Lancaster County National Bank, Lancaster, Pa., Regulation F,amendment suggested by Messrs. Zecher andTruxel to permit investment of trust funds inmortgages purchased from own commercial de-partment to extent authorized by State law,disapproved

Liquidations, Business Finance Co., reply that Board cannotfurnish names of banks in, in New Jersey andthat Board will take no action in connectionwith notices of appearances in case of two na-tional banks

Madison-Crawford National Bank of Chicago, Ill., reserves, per-mission granted, to carry reduced

Midland National Bank and Trust Co., Minneapolis, Minn., bor-rower makes loan not subject to Regulation U,then makes additional loan subject to Regulationand case in which conditions are reversed, replyto Mr. Geery re effect of, in response to in-quiry of Mr. Mattson of

Mechanicks National Bank of Concord, N. H., fiduciary powers,supplemental application approved

Merchants National Bank, Montgomery, W. Va., executive officers,reply to Mr. Claypool re applicability of Reg-ulation 0 to vice president (inactive) anddirector and two assistant cashiers whose dutiesare merely those of tellers

Additional information furnished not sufficient to deter-mine status of Assistant Cashiers Buchanan andJudy, reply to Mr. Claypool

Merchants National Bank of Salem, Mass., election of Class Adirector, reply to Mr. Curtiss that NationalShawmut Bank of Boston and National ShawmutAssociation are not holding company affiliates,in connection with eligibility to participate in

Montclair National Bank, Montclair, N. J., absorption byMontclair Trust Co., and establishment of branchby latter

National Bank of Commerce of San Antonio, Texas:Southern Underwriters Corporation, reply to Mr. Hart that

deposits of, may not be classified as savingsaccount

National Bank of Commerce, Seattle, Wash., Sec. 2(c) of Regula-tion U, reply to Mr. Wheeler re question of,turning on interpretation of

National Bank of Logan, W. Va., executive officer, reply to Mr.Await re inquiry of Mr. Valentine that proposedappointment of Mr. Raike as, while indebted tobank would not constitute violation of Sec.22(g) of FRAct

1/22 18'

9/23 17s5

5/25 109

8/22 1568

6/ 5 1145

12/22 2253

10/ 1 1614

1o/22 1°)

9/16 1712

2/2'7 440

1/30 241

6/ 5

1/11 11SDigitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

Nat ional banks: (Continued)

National Bank of Middlebury, Vt., deposits of cooperative

fire insurance companies and cooperative sav-

ings and loan associations, reply to Mr. Hincks

that Board has ruled they may not be classed

as savings accounts

National Bank of Wyoming, N. Y., merger with Trust Company of

Wyoming County to be effected under charter of

latterNational Bank of Yorkville in New York, N. Y., absorption by

Marine Midland Trust Company of New York and

establishment of branch, no objection

National City Bank of New York:

Deposits, study of activity of, report re test study made by

Havana Branch, vaults of Havana Agency, use of compartments

in, for storage of surplus silver coin, no ob-

jection providing FRBank of Atlanta is released

from responsibility and at any time may re-

sume use of

National Safety Bank and Trust Company in New York, "checkmaster

plan", reply to Mr. Vogt that Board does not

know that plan violates any laws which came

within jurisdiction of Board

National Shawmut Bank of Boston, holding company affiliate

status, MUDD of Mr. Baumann re, Board refuses

to determine that it is not, request granted

that standard agreement for voting permit be

amended as to requirement that Board approve

changes in investment

Northern National Bank of Presque Isle, Me., fiduciary power

application approved

Officers and directors, removal under Sec. 30 of Banking Act

of 1933: (See Removal of officers and directors)

Overland National Bank of Grand Island, Nebr., fiduciary power

application approved

Pennsylvania, trust funds, question of making exception re in-

vestment in mortgages purchased from own can-

mercial department to extent provided for by

Pennsylvania Banking Code, to be reviewed by

Board members

Board does not feel justified in modifying position re in-

vestments by banks in property acquired from

own commercial departments, or in amending

Regulation F

Peoples National Bank, Charlottesville, Va., additional advance

in account established prior to May 1, reply to

Mr. Hildreth that it would be subject to Regu-

lation UPeoples National Bank of Claremont, N. H., FRBank stock sub-

scription, for additional share on basis of

carrying computation to fourth decimal thus

securing fraction of 400

295

Pages

10/ 8 1850

12/24 2268

5/ 1 951

1/16 149

2/20 399

5/21 1067

3/25 667-8

1/30 242

1/23 189

9/ 1 1627

9/23 1754

7/ 9 1332

3/ 7 533


296 pageS

National banks: (Continued)Peoples National Bank of Lakewood, Ohio, absorption by Lorain

Street Bank, Cleveland, no objectionPeoples National Bans of Marlborough, Mass., executive officer,

indebtedness of inactivePeoples National Bank, Rock Hill, S. C.:

Peoples Trust Company is not holding company affiliate of,reply to Mr. London

Phillips National Bank of Helena, Ark., executive officer, loanto, inactive chairman before passage of BankingAct of 1935 is for determination of Departmentof Justice, Board will not object to salary ad-vance for month which has 31 days althoughRegulation 0 limits to 30 days

Point Pleasant National Bank, Point Pleasant, W. Va.:Johnson, H. S., President and Director, certified to Board

by Comptroller for removal under Sec. 30 ofBanking Act of 1933, Board to consider sendingnotice by Sept. 22

Ramsey County National Bank of Devils Lake, N. Dak., time cer-tificate of deposit, reply to FRBank of Min-neapolis agreeing with opinion of counsel thatwhen maturity falls on holiday, renewal shouldbe as of that date

Ramsey National Bank, Ramsey, Ill., reserves, report required,against net deposits, reply to Mr. Easterdayre necessity for filling in all columns, to showactual required reserves

Red Wing National Bank and Trust Co., Red Wing, Minn., fiduciarypowers, certificate of surrender, letters toComptroller and FRBank of Minneapolis re waiverof requirement that "and Trust Company" beeliminated

Riggs National Bank, Washington, D. C.:Savings deposits, classification of number of types of,

reply to Mr. Await re, on inquiry of Mr.Hoskinson

Trust investment committee, reply to Mr. Fleming that provi-sion of bylaws providing that he, as president,appoint, with advice and consent of directors,complies with Regulation F

San Jacinto National Bank, Houston, Texas, loans to real estateaffiliates, reply to Mr. Walsh re applicabilityof Sec. 23A

Seattle-First National Bank, Seattle, Wash., Regulation U, replyto Mr. Arnold re five questions as to inter-pretation of

Inconsistency between second paragraph of Sec. 1 and lastclause of third paragraph, reply to Mr. Berryre possible

Loan agreement, reply to Mr. Wheeler re questions relatingto general

2/20

3/18 613

11/25 2141

1/16 151-2

9/18 1721

12/29 2312

6/ 51147

12/ 4 -92177

911/10

9/ 9 1665

3612/17

5/13 1°12

5/13 1°I.

5/20 1°59


297

Pages

National banks: (Continued)Second National Bank, Bucyrus, Ohio, noncash collection items,

letter from Mr. Cook quoting resolution ofNational Bank Division of American BankersAssociation that FRBanks discontinue handling,to be directed to secure information requested

from President Young 10/16 1897-8Social Security Act, ruling of Bureau of Internal Revenue that

such banks are instrumentalities of U. S. under,and both banks and employees thereof are exempt

from taxes imposed by Act, advice to all Presi-dents 7/13 1348

Ruling to be published in FRBulletin 10/27 1953

Somerset National Bank, Barker, N. Y., inactive president and

cashier, reply to Mr. Carlyle that Board can-not except from definition of executive officerunder Regulation 0 10/14 1882

SPringvale National Bank, Springvale, Me., fiduciary power ap-plication approved 6/ 1 1108

Telegraphers National Bank, St. Louis, Mo., interest payment ontime deposits renewed within ten days aftermaturity, reply to Mr. Coombs re differencesbetween Board's and F.D.I.C. regulations, noobjection to practice 4/13 794

Terminal National Bank of Chicago, Ill., reserves, permissiongranted, to carry reduced 8/22 1568

Tradesmens National Bank, Oklahoma City, Okla., interest onIndian funds, reply re payment after August23, 1937, that it may not now be paid on demanddeposits 12/22 2256

Union National Bank, New Brighton, Pa., executive officer givingnote to commercial house which later discountswith bank, reply to Mr. Bingham that such in-debtedness should be reported by officer to his

directors 7/21 1414

Upper Avenue National Bank of Chicago, Ill., conversion fromUpper Avenue Bank 7/20 1410

Valley National Bank, Des Moines, Iowa, absorbed by nonmemberbank and not yet placed in liquidation, question

of action as to having receiver appointed left

to FRBank, dividends on FRBank stock to be with-

held 7/ 3 1303

Vermont, maxim= interest rate payable, reply to FRBank of

Boston 6/25 1248

Williamstown National Bank, Williamstown, Mass., fiduciary

power application approved 6/ 1 1108

Wyoming County National Bank of Warsaw, N. Y., merger with Trust

Company of Wyoming County to be effected under

charter of latter 12/24 2268N •"lonal Bureau of Economic Research:

Condition reports of State member banks, reply to Mr. Mitchell

giving reasons Board is not willing to call forurban real estate loans to be divided into com-

mercial and residential classifications 10/ 3 1828Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

298pages

National Bureau of Economic Research: (Continued)

Goldenweiser, E. A., request of Mr. Willits that he serve asmember of exploratory committee, research re-quested by Reserve City Bankers Association,discussed by Mr. Riefler with Mr. Ransom, dis-

cussion of question, to attend meetings in-

formallyNational Capital Press, printing of par list and mailing, contract

awarded to, addressed envelopes to be furnished

by Board

National Compress and Warehouse Co.: (See State member banks, Bank

of Russellville, Ark.)

National Conference of Business Paper Editors, survey of field forindustrial loans, reply to Mr. Bill re proposed

questionnaire and that Board is not willing tosponsor survey

National Emergency Council:

F. W. Dodge Corporation, request of Mr. Alverson that

nish Council with copies of contractsporation, reply to be made that Boardwritten contract and that reports aretial

FRSystem, policies and operations, request for summary of, byMr. Leggett, Mr. McKee opposed, statement re-ferred to Messrs. Morrill, Goldenweiser and

Thurston for revision to conform to materialpreviously released

National HousingExecutive officer, letter to Comptroller re question of excep-

tion of mortgage loan insured under Title II,from Sec. 22(g) of FRAct

Modernization loans insured under, /RBank can make advancesunder Sec. 10(b)

National Industrial Conference Board, Inc.:"Personnel practices covering salaried employees", questionnaire

entitled, no objection to ERBank of New Yorksupplying information requested

Thrift activities carried on by FRBank of New York for employeesno objection to furnishing information re-quested

National Institute of Public Affairs, intern, proposal of Mr. Wingoto place Mr. Fenn with the Board, Mr. Morrillconsulted Messrs. Stockberger and McReynolds,

Goldenweiser feels employment of unsalaried

individual would be undesirable, Board to con-

sider appointment on nominal salary basis and

Mr. Goldenweiser to interview Mr. Fenn

National Wholesale Wine and Liquor Dealers Association, collection

of liquor drafts by FRBanks, reply to Mr.McMackin that administration of Sec. 239 ofCriminal Code rests with Department of Justice

Neary, W. C.: (See State member banks, Union Bank and Trust Company

of Los Angeles)

Board fur-with cor-has noconfiden-

9/18 170-6

1/449

4/8 779

5/26 log

12/ 1 214'9

3/20 6°

6/22 1215

8/13

g44/25

9/29 1#'6

11166/13


Public funds,

Publication of

New York:Department of Audit and Control, court funds, demand deposits,

reply to Mr. Doris that interest may be paid

upon under State law until Aug. 24, 1937

securities market, convenience and cost of London market

in relation to, for trading in American securi-

New ties, informal advice of Mr. Whigham reYork State Bankers Association:Group 1, invitation of Mr. Davis to member of Board to address

meeting of, suggestion of Mr. Broderick that

Board members not accept invitations of groups,

referred to Mr. Szymczak for determination

Reply to Mr. Davis regretting necessity to decline invita-

tion for Board member to address meeting, but

suggesting that an officer of F(Bank of New

New , York be invited and letter to President Harrison

lork Stock Exchange:Advisory Committee, Regulation U, reply to Mr. Kent re consid-

eration given to regulation and which will be

given to any recommendations of committeeMargin accounts, study of, proposed, authorized to state that

it was at request of Board

Meeting with Board requested by Mr. Gay, April 30 fixed as

date forMeeting with Board of President Gay, Counsel and two members of

Governing Committee re Regulation U, discussion

of, memo of points to be filed with Board

Regulation T, supplement, request of Mr. Worcester through Mr.

Rounds that effective date of subdivision (2)

be postponed, review by Mr. Bradley of factors

involved

York

NewXersey:

Nebilteka:State member banks, directors, reply to FRBank of Kansas City

re inquiry of Mr. Johnson that amendment ofbylaws of bank to increase minimum number was

suggestion, prompted by Sec. 31 of Banking

Act of 1933

Building and loan associations, deposits may not be classified

as savings accounts by member banks

Reply to Farmers and Mechanics National Bank, Woodbury,

N. J., reinterest payment on, letter to Mr. Case re in-

quiry of First National Bank of Bloomingdale as

to, suggesting conferring with FRBank of

Philadelphia, and letter to Mr. Storch of bank

condition reports of State member banks, State

Commissioner desirous of arrangement whereby

single publication may be made for both Board

and State, no objection to insertion in report

form of information required by State underappropriate heading, copy to all IRAgents

299

Pages

5/27 1099

6/10 1161

6/10 1162

1/15 134

3/12 563

5/ 6 975

10/29 1958

3/31 710

4/ 3 740

5/ 1 951

6/ 1 1111

4/28 906

4/30 929

4/ 1 720-1


300 Pages

New York Stock Exchange: (Continued)Regulation T: (Continued)

Postponement requested by President Gay, referred to Divi-sion of Security Loans

Recommendation of FREank of New York, review of situationby Mr. Bradley, including position of Haskinsand Sells and Mr. Seperstein of Securities andExchange Commission, postponement disapproved

Amendment, comments being formulated and to be submittedto FRBank of New York, Mr. Parry to meet withrepresentatives at ERBank of New York, to begiven opportunity to meet with members of Boardif desired

New York Times:"Member Bank Reserves", letter appearing under date of Dec. 18,

from S. Parker Gilbert, attention of FederalAdvisory Council called to, as expressing viewswith which Chairman Eccles is in agreement

Society for Stability in Money and Banking, attention called byUr. Morrill to report that Mr. Goodbar had ap-pointed Mr. G. E. Roberts to, and that latterwas also member of National Bureau of Economicsappointed by American Bankers Association

"Stabilization Still Opposed by England", article appearingFeb. 9, attention of Federal Advisory Councilcalled to, as expressing views with whichChairman Eccles is in agreement

Newark Clearing House Association, building and loan associationsin New Jersey, reply to Mr. Gidney re inquiryof, and after consideration of Mr. J. H.Harrison's memo, that deposits of, may not beclassified as savings accounts

Reply to Farmers and Mechanics National Bank, Woodbury, N. J., reNewspapers:

Board members and staff, cost referred to, and to increase thatwould be caused by additional papers requested,Mr. Thurston requested to report on necessityfor continuance of expenditure

Definition in Regulation HDefinition for purposes of publishing condition reports of State

member banksStatement of Mr. Ransom that he planned to discuss with

Comptroller and F.D.I.C., no further action atthis time

Expenditures of Board for, report of Mr. Thurston re, nofurther action to be taken

Publication of condition reports in, reply to Mr. Clerk thatspecializing papers such as Daily CommercialNews do not meet requirement of Regulation Hthat paper should be one disseminating news ofgeneral interest

4/3 r136

4/3 742

12/ 4

2/12

23.64

342

9/18 1726

2/12 342

6/106/10

2/146/ 2

7/ 7

1161

3541116

7/15 1564

3/ 6 524


4411tiember banks:Accounts of member banks, ruling of 1923 re application of

10% limitation to, reply to Mr. Fry that itshould not be reconsidered in light of later

decisionsunder Securities Exchange Act of 1934, lists of

banks filing, to be prepared by Board in future

and FRBanks not to prepareSavings Bank, Ann Arbor, Mich., consolidated into

Ann Arbor Savings and Commercial Bank, latter's

membership application approved

of Aspinwall, Pa., no objection to absorption by Common-

wealth Trust Company of Pittsburgh and estab-

lishment of branchof Pleasant Shade, Tenn., no objection to absorption by

Citizens Bank and Trust Co., Carthage, Tenn.

suspension study, Mr. Smead authorized to negotiate with

F.D.I.C. for use of condition reports of, in

connection withBank and Trust Co., Newark, N. 3., reply to F.D.I.C.

that there is no objection to absorption by

Columbus Trust Co. and establishment of branch

Citizens and Southern Bank of South Carolina, showing in pub-

lished condition statement item, "Corporate

stock including ERBank stock, letters to Chief

Examiner Daniel and President Leach re erroneous

impression likely to be caused

accounts, par list, banks to be included, as well as

three institutions not actually banks

Commercial State Bank of El Campo, Texas, arrangement with Se-

curity Bank and Trust Co., Wharton,for deposit

of funds of Wharton County Conservation and

Reclamation District No. 1 with latter, no

objection to trust company paying interest on

Commonwealth Commercial State Bank, Detroit, Mich., excessbalance carried with, by Peoples State Bank,

Belleville, Mich.Currency shipments to, reply to Mr. Strater that Board notes

with approval action of Governors' Conference

of October 23, 1935Deposit of trust funds with, in excess of 10% of capital and

surplus by Union and New haven Trust Co., New

Haven, Conn., reply to Mr. Curtiss that member-

ship condition and Sec. 19 of FRAct are not ap-

plicableEaston Dollar Savings and Trust Co., Easton, Pa., merger by

Easton Trust Co. in 1932, approved

First National Bank of Anchorage, Alaska, reply to Mr. Clerk

noting that use of "Member of YESystem" was

inadvertent and will not be repeated

Agreements

An Arbor

bank

Bank

Bank

Central

Clearing

301

Pages

10/29 1964

4/4 757

2/7 313

12/30 2341

7/23 1422

6/17 1191

4/25 890

7/29 1447-8

1/4 45

1/20 169

9/18 1731

6/23 1223

6/11 1168

1/14 122

8/31 1625


302 page

Nonmember banks: (Continued)First State Bank, Gruver, Texas, absorption by First State Bank,

Spearman, no objection 8/13 152180675Letter to F.D.I.C. on absorption 10/1011 1 22

First State Bank of Holland, Mich., proposed absorption byHolland City State Bank, no objection 1/

2

Ford City State Bank, Ford City, Mo., absorption of, by First412State Bank of King City 2/21

Lubec Trust and Banking Co., Lubec, Me., absorption by BarHarbor Banking and Trust Co. 6/ 1 11°7

Membership in FRSystem, statement of Mr. McKee at meting withpresidents re desirability of bringing eligibleState banks into system 3/16

Statement of Mr. Morrison re 3/16Inouiry by Mr. Morrison of Presidents' Conference if Board

is making it difficult of entrance, feelingexpressed that reasons for failure to apply arebeyond Board's control 3/17

Mt. Lebanon Bank, Mt. Lebanon, Pa., no objection to absorptionby Commonwealth Trust Company of Pittsburghand establishment of branch 12/30 2341

Plymouth Exchange Bank, Plymouth, Wis., no objection to absorp-tion of, by Citizens State Bank of Sheboyganand establishment of branch 2/19

Social security act, applicability of certain taxes under, rul-ing of Bureau of Internal Revenue to be publishedin FRBulletin 10/27

Spitzer Rorick Trust and Savings Bank, Toledo, Ohio, partici-pation certificates representing waived depositsin, held by Fayette State Savings Bank Co.,Fayette, Ohio, reply to Mr. Fletcher that theyneed not be included in determining limit ondeposit with 9/ 3 1641

State Bank of Plymouth, Wis., no objection to absorption of, byCitizens State Bank of Sheboygan, Wis. end es-tablishment of branch

2/19 384

Valley Savings Bank, absorption of Valley National Bank, DesMoines, Iowa '7/ 3 13°

Visits to, by FRBank officers, Presidents requested by Mr.Szymczak to give consideration to 3/16 596

North, N. S.: (See National banks, First National Bank of LakeCharles, La.)

North Shore Civic Alliance, Inc., Flushing, N. Y., reply to Mr.Bradford re his radio address with referenceto loans for small industry, outlining indus-trial loan policy of Board 5/12 1°5

North American Associated Companies, Los Angles, Calif., reply toMr. Holabird, Receiver, that his deposits maynot be classified as savings accounts 1/20

Note issue function of FRBanks, statement to be prepared re, for usein replies to questions from individuals, etc. 8/27

596597

609

384

1600


503

Pages

4/tes, securities, reply to Mr. Stevens re interpretation of(X-9322) subjecting such notes as are in fact

securities to restrictions of Sec. 5136 of Re-

vised Statutes in connection with purchase by

R.P. State member banks 2/27 448

Severin Co., Chicago, Ill., selected as alternate for nine

firms to be invited to bid on Board's new build-

Utter,

ingMcClennon and Fish, investment trust stock, unregistered,

reply that it has no loan value under Regula-

tion T

1/2 3

1/20 173

—8 of office, forms, memo of Mr. Vest recommending changes in

and for printing forms for directors, FRAgents

and Assistant FRAgents, approved 10/16 1901Oft4,, Leers, removal of: (See Removal)'Hare, Frank: (See Foreign banking corporations, International

Ohio: Discount Corporation)

Time deposits of public funds noted from condition reports,

whereas State law prohibits, reply to Mr.

Fletcher re 1/15 139

480n, A. R.: (See National banks, First National Bank of Beres-

ford, S. Dak.)okm Market operations:

Federal Open Market Committee, scope of authority over, includ-

ing dealings in bills payable in foreign cur-

rencies, and accounts and transactions with

foreign banks and bankers 5/15 1027

Maturities of government securities, shifts authorized in

resolution of Federal Open Market Committee

on Dec. 17, 18, approved 1/20 174

Procedure for interim between expiration of old committee and

organization of new, letter from President

Harrison re, proposing continuance of routine

operations, Board in agreement and President

Harrison to be so advised 3/10 545

Replacement of April 15 maturities in connection with March

financing, recommendation re, by executive com-

mittee of Federal Open Market Committee, com-

mittee has authority but transactions will take

place after March 1, will increase FRBank earn-

ings, approved 2/26 432

Letter to Governor Harrison re action 2/28 457

Sale of small amount from System account suggested by Mr.

Newton if reserve requirements are further in-

creased, to offset theory that system holdings

are "frozen assets" 11/19 2103


304pages

Open market operations: (Continued)System open market account, allotments of government securities,

quarterly report to be obtained from FRBanks reunusual charge offs, in connection with formularetained by F.O.M.C. for, and uniform policyto be striven for

Open market policy:Advice to presidents not members of F.O.M.C., question is one to

be considered by F.O.M.C.Question of, to be brought up by Mr. Broderick at meeting on

March 3

np”

6/ 3 11"

11/18

2/27

2098

441

Pamphlets, Editorial Research Reports, copies sent to Presidents of 2022

1RBanks 11/ 7Par list:

189Federal credit union, may not be placed on 1/23

05Interest definition in Regulation Q, effect on withdrawals from 11/1

,m

"Interest", opinion of Federal Advisory Council asked as tolikelihood of withdrawals from, if suspended

9/10 1669definition, in Regulation (4 is put into effectMailing:

Equipment for, purchase of addressograph, eraphotyde, plates,cabinet, authorized 1/21

Procedure suggested for mailing all copies from Washingtonand if agreeable to FRBanks, they should furnishmailing lists and changes therein, with numbersof copies to be furnished, to Board, telegramto FRBanks re 1/22

Nonmember banks, list of clearing, to be published in, on recom-mendation of Standing Committee on Collections 1/ 4

Printing of, and supplements for 1936, to be done by NationalCapital Press, mailing to be done by, addressedenvelopes to be furnished by Board 1/ 4

Withdrawals of banks from, problem to be presented to FederalAdvisory Council for advice 10/20

Letter and memoranda sent to Mr. Lichtenstein in accordancewith 10/27

Park, Rufus W.: (See National banks, First National Bank of Remsen,N. Y.)

Partnerships, loan to, in which two men have &ma) interest and oneof whom is an executive officer of loaning bank,Wood and Huston Bank, reply to Mr. Wood thatRegulation 0 does not prohibit

Payments:Fee for Judge Cole in case in connection with tax anticipation

note of Ocean City, N. J., FRBank did not complywith instructions re prior approval, approved 12/ 2

1RBank of Atlanta:Bell, Sims and Honour, authorized to pay six months' salary

in cash upon retirement 6/30

180

1 81

46

49

1926

1948

12°


305

Pages

TelegramPetlehman, George

Pell, Williamson

Pellasylvania:Trust funds:

National

PaMents: (Continued)FRBank of Atlanta: (Continued)

McKay, Withers and Ramsey, payment of fee to, approved, for

services in connection with indebtedness of

Florida Asphalt Block Paving Co.

FRBank of New York:Pitney, Hardin and Skinner, payment of fee for legal ser-

vices in connection with indebtedness of Passaic

Print Works approved 12/ 2 2160

Jones, Harry C., FRBank of Minneapolis, dismissal allowance,

six months' salary in lump sum or six monthly

payments authorized 4/ 2 726

McLean, William, FRBank of Chicago, dismissal wage of six

months' salary in lump sum or six monthly in-

stallments authorized 4/ 7 770

Thomas, J. J., sum equal to six months' salary authorized for,

in connection with placing position of FRAgent

at Kansas City upon honorarium basis

advising of action approvedA.: (See State member banks, California Bank,

Los Angeles), request for hearing on service of Thatcher M.

Brown under Clayton Act 9/ 2 1635

?Gaston

banks, question of making exception re investment

in mortgages purchased from own commercial de-

partment to extent permitted by Pennsylvania

Banking Code

Amendment to Regulation F suggested by Lancaster County

National Bank, disapproved

interest may be paid on demand deposits of, by

Pennsylvania Company for Insurances on Lives and

Granting Annuities, under State law

Commission of the Police and Fire Departments of the

Township of Union, N. J., reply to IRBank of

New York that Board is reconsidering questions

re classification of such funds as savings de-

positsmembers and officers of FRSystem, reply to Congress-

men Mott re provisions proposed in legislation at

last session of Congress for former and re Re-

tirement System 11/

iz kerson, C. T.: (See Loans, Industrial advances)

onne1 classification plans at FRBanks: (See FRBanks)

411adelphia Stock Exchange, margin requirements increase, reply to

FRBank of Philadelphia re inquiry of, that

transactions entered into prior to Feb. I are

not affectedJr., gold certificates held by Dallas Bank and

Trust Co., Dallas, Texas, surrendered to, viola-

tion of executive orders reported to Secretary

of Treasury

Uninvested,

Fund

?elisions,

1/20 177

12/28 229212/29 2303

Board

Philpott, W. A.,

9/ 1 1527

9/23 1753

4/29 923

10/ 1 1812

4 1997

1/28 225

5/13 1016


306pages

Physical examinations, Dr. A. D. Daughton employed to make, duringabsence of Dr. Barr

Pimm, A. B. and Co.: (See A. B. Pimm and Co.)Pitney, Hardin and Skinner:

Employment by FRBank of New York approved in connection withloan to Townsend Lawn Mower Co. under Sec.13(b) of 1RAct

Payment of fee for legal services approvedFee approved for, in connection with loan by FRBank of New York

to Passaic Print Works, Inc., and retentionauthorized, if necessary, to defend title tomortgaged property sold

Poland:Foreign loan service suspension, letter from President Harrison

reviewing situation, and likelihood of dis-criminatory treatment of American creditors,suggestion that matter be taken up with StateDepartment adopted

Memo of Mr. Gardner reporting result of conferences withMessrs. Eels and Livesey and probable action ofDepartAent, copy of letter to be furnished in-formally to State Department and Mr. Harrisonto be informed

Letter to Mr. Harrison advising of furnishing of his letterto State Department and requesting any otherinformation which might became available fortransmission to Department

Policy record of Board of Governors: (See Board of Governors)Policy record of Federal Open Market Committee: (See Committees)Political affiliations, Class A nominee at Boston serving Advisory

Council on Banking of Connecticut, reply toFRAgent Curtiss that he may continue to serveif elected

Pope, B. F.: (See Voting permits, Marine Midland Corporation)Post Office Department:

FRnote shipments, letter to Mr. Eilenberger requesting discon-tinuance of practice of charging separateregistry fee on each package in pouch

Interest payable on postal savings deposits in Vermont, replyto President Young agreeing with positiontaken in answer to Mr. Eilenberger, ThirdAssistant Postmaster General

Postage surcharge on currency and securities shipments, letter toChairman of Governors' Conference re recommenda-tion that Board endeavor to have Postal au-thorities discontinue

Postal savings deposits:Interest:

Demand deposits, reply to First National Bank of Conawa,Okla., that it may not be paid now

Similar reply to Tradesmens National Bank, OklahomaCity, Okla.

6/13 lig'

1/10 12/ 2

7/ 9

10/ 6

10/ 9

10/14

9/ 3

11/17

9/25

2/20

12/22

12/22

2(j)L2e:202

1355

1839

166°

1818

164°

2°66

1764

401

2255

2256


307

Ares

Potte

POiver

Postal savings deposits: (Continued)

Interest: (Continued)Mississippi, letters to Messrs. Clark and Wood that Regu-

lations Bulletin No. 5 and Supplement C thereto,

are applicable to, and copies to Comptroller

New York, maximum rate which is below statutory rate for,

reply to Iowa Bankers Association on effect of

Vermont, maximum rate, reply to President Young agreeing

with position taken in letter to Mr. Eilenberger

Baltimore, Md., approved as sub-contractor for

Board's new buildingpledge of Government obligations for FRnotes,

should run from FRAgent at Atlanta to FRAgent at

New York, reply to FRAgent Martin, "suitable audit", as used in Regulation F,

reply to Mr. Wilkins that Board cannot define

precisely, but giving general principleStates:order designating as Vice Chairman for fouryears

bess relations, Board of Governors, members to adhere to policy of

referring all inquiries from press representa-

tives to Mr. Thurston

and Callahan,

of attorney,

Prentice-Hall,

President of UnitedRansom, Ronald,

e statements:Bank debits, weekly, release time changed from "Sunday morning"

to "immediate" upon request of Chicago Daily

NewsContractors for Board's building, Mr. Miller and Mr. Thurston

authorized to consult end issue if advisable re

selection of

Earnirws and expenses of /RBanks, press statements not to be

issued until Board issues statement covering

System as whole

Advice to FRBanks

FRAgents, appointments to serve after March 1

FRBanks, Presidents requested by Mr. Szymczak to give considera-

tion toIncrease in reserve requirements of member banks, draft of, dis-

cussed and amended, to be released for tomor-

row's papers in accordance with action increas-

ing requirements

Leakage of Board's policy matters indicated in recent articles,

attention called to by Mr. McKee, to be taken

up by Chairman with Mr. Thurston, Mr. Golden-

weiser and Mr. Parry

Margin requirements increase under Regulation T, to be prepared

by Messrs. Thurston and Parry re amendment to

Regulation T

Pages

1/14 125

1/15 135

9/25 1764

2/18 377

3/12 565

11/10 2033

8/ 7 1497

2/4 296

7/29 1449

1/ 4 27

12/28 2284-612/30 23423/4 498

3/16 596

7/14 1352-7

6/30 1281

1/24 196


308 Page6

Press statements: (Continued)Members of Board of Governors not reappointed February 1, re-

lease to be prepared re appointment of Mr. Thomasas FRAgent at Kansas City, Mr. Hamlin as SpecialCounsel to Board and Mr. Miller in advisorycapacity in connection with Board's new building 2/ 7

of FRBanks, suggestion of Chairman Eccles that briefreview of results be released concurrently withrelease by RBanks 12/23

and First Vice Presidents, no necessity for issuing

re appointments, should be announced by FRBanksT, supplement prescribing current market value of

securities as basis for margin requirements andsuperseding supplement prescribing statutoryformula, to be released for March 26 publication

Statement re, approvedProposed amendment to limit time for furnishing margin,

statement to be prepared reStatement presented and approved, sent to FRBanks with

draft of proposed amendmentRegulation U, to be released for publication March 26

Statement re, approvedSecretary of Treasury, purchase and sale of gold among stabiliza-

tion funds of U. S., England and France, an-nouncement of arrangement

Weekly statement of RBanks:Distribution of bills and maturities, memo of Mr. Owens

raising question as to adequacy of report re,approved, to be submitted to Mr. McKee beforebecoming effective

Excess reserves, estimate of, for August 12 less than an-ticipated, statement explaining difference tobe published in

Maturity distribution table for bills, industrial advancesand Government securities, memo of Mr. Sneadsubmitting form to replace that approved Oct.20, approved

bank notes, liability has been assumed by Treasury,item "Treasury and national bank currency"changed to "Treasury currency"

ratios, question of eliminating, Messrs. Golden-weiser and amead to prepare memo for considera-tion prior to June 30

Memo presented and elimination approved, explanatoryparagraph to be published, with slight changedue to retention by FRBank of Boston of smallamount of bonds for resale to employees

Advice to all FRBanks of elimination of itemPrice, Andrew: (See Voting permits, Marine Bancorporation)Printing:

Budget of Fiscal Agent increased for additional

Operations

Presidents

Regulation

National

Reserve

3/ 4

3/24

3/25

1111://112285 2°43/24

oil

2262

498

655664

2066653664

10/12 18'4

9/29 1792

8/12 10

12/28

8/ 6 1495

6/251242

-6/30

1271 ,995

7/ 2

9314/30


309

Pages

Printing: (Continued)FRAct, letter to Public Printer that Board should not be re-

quired to pay for 20'4 rush, and that no charge

Incidental to reprinting should be made 1/18 161

FRBulletin, to be printed by Judd and Detweiler, Board to furnish

paper stock and franked, addressed wrappers 4/25 894

Printing to be continued in commercial plant, contract with

Judd and Detweiler authorized for 1937 12/18 2242

Lists of stocks registered on national securities exchanges,

recommendation of Mr. Parry approved 4/17 818

Par list and supplements, for 1936, to be done by National

Capital Press, mailing also to be done by,

addressed envelopes to be furnished by Board 1/ 4 49Proctor, Robert, reply that prohibition in Regulation F on bank

purchasing its own stock for trusts, does not

apply to such stock originally in trust 6/ 2 1124

Production credit associations, loans of, discussed by Governor

Myers with Federal Advisory Council 11/17 2077Public

Health Service, FRBanks, letter to, requesting cooperation

in occupational Morbidity and Mortality study

being conducted by, at request of Dr. H. S.Cumming 1/ 4 50

, (See also U. S. Public Health Service)rUbli4c Utility Holding Company Act, applicability to State member

banks, reply to Securities and Exchange Com-mission that Board is advising of Commission's

Rule re, and letter to FRBanks on 4/27 900Nblications:

"Examination of Financial Statements by Independent Public Ac-

countants", representing revision of bulletin

reprinted by Board as "Verification of Financial

Statements", reply to Mr. Carey re revision by

American Institute of Accountants 2/25 423

Revision to be distributed by Institute, advice to FRAgents 3/10 550

Letter to Mr. Broad that Board has discontinued distribution

of Verification of Financial Statements 8/18 1540

"Father Coughlin v. FRSystem", reply to FRBank of Minneapolis

that Board's supply of publication ts exhausted,

may be obtained from Editorial Research Reports 11/23 2113

"Federal Laws Affecting National Banks", memo of Mr. Vest

recommending publication of statement re, in

FRBulletin and that FRBanks be advised of deple-

tion of stock, approved 9/25 1764

IRBanks, Presidents requested by Mr. Szymczak to give consid-

eration to 3/16 596

Dealing with matters of more than local interest, to be

submitted to Board 6/ 3 1131

List of stocks, supplement, first, authority granted Division

of Security Loans to have printed, and estimate

of requirements for further supplements 6/19 1200


310

Publications: (Continued)Newspapers, expenditures of Board for, report of Mr. Thurston

re, no further action to be takenPamphlet descriptive of RSystem, manuscript returned to Mr.

Stevens with suggestions for changes"Verification of Financial Statements", reply to American In-

stitute of Accountants re revision of (Insti-tute's title: "Examination of Financial State-ments by Independent Public Accountants")

Advice to FRAgents that Board will not distribute in future,revision prepared by American Institute ofAccountants under title of "Examination ofFinancial Statements by Independent PublicAccountants" may be obtained from Institute

Puerto Rico, membership of banks in IRSystem: (See Membership)Purchase orders: (See Board of Governors, Administration)Purse Co., Los Angeles, trust department reports, reply to Mr.

Chalfant that Board does not require, of Statemember banks, and listing available data re

ft (.4„ft

Quarters of Board of Governors:Architect, basis for compensationAssessment on FRBanks for building to be charged to profit and

lossLetter to FRBanks and Mr. Leach calling for part of unpaidAssessment for lest six months of year to cover cost of

Demolition of No. 5, program for, provides for breaking groundfor building between February 1 and 12

New building:Bids, invitations, Secretary authorized to send to 9 con-

tractorsOpening of, time for, deferred until 3:00 p. in. Jan. 29Received and opened publicly, listing of bids, George A.

Fuller Company lowest bidder, Mr. Morrill au-thorized to execute contract, specifying Georgiamarble as exterior stone and Raman travertinefor interior, Mr. Morrill to give formal noti-fication to proceed with work

3/6

1/31

2/25

3/10

5 / 2 3

5/14

1/314/236/22

1/2

1/ 71/25

1/30

Page5

524

27°

425

550

1°7

O21

261s 581210

1

64216

252'

Contract, form of, reviewed by Board members, Kr. Kramer andTreasury Procurement Division, approved

Contractors, outline by Mr. Miller of procedure in selectingthose to be invited to bid, two lists of, basisof selection, discussion of, invitations to belimited to 9

Letter to be sent to prospective contractors inquiringif they will bid

George A. Fuller Co., extension of time requested because oflabor difficulties, refused

Georgia marble to be used on exterior

1/ 2

1/ 2

1/ 2

2/271/30

6

5

452255


311

Pages

gllarters of Board of Governors: (Continued)New building: (Continued)

Map for Board Room, authorization to have Ezra Winter make

preliminary sketch of, and if satisfactory, make

and install map, and price therefor 6/17 1193

Medallions for ends of lobby, recommendation of Mr. Miller

that he be authorized to arrange with sculptors

for designs, action deferred pending a meeting

when all members of Board are present 3/25 663

Mr. Miller authorized to arrange with limited number of

sculptors to submit design for bas relief of

President Wilson for one medallion, no decision

as to other medallion at present 5/12 999

Miller, A. C., former member of Board, services to be avail-

able for consultative purposes in connection

with, press statement to be prepared re 2/ 7 310

Letter to, re arrangement 2/13 349

Plans and specifications being reviewed by Mr. Kramer,

final plans and specifications expected by Tan.

6 and expectation of sending out bids by Jan.

8, which would make possible award of contract

by Feb. 1 1/ 2 2

Plans to be in Washington Tuesday, reported by Mr.

Miller, and he would like to have meeting on

that day to consider, in order that bids may be

sent out, press statement authorized if de-

sirable re selection of contractors 1/ 4 27

Printing and mimeographing of, reply to Mr. Cret 1/ 4 49

Submitted and approved, Secretary authorized to send out

bids, Building Committee authorized to fix con-

ditions for release of extra copies of plans

and specifications 1/ 7 63-4

Memo of Mr. Kramer that it was not believed that any

further revisions would be made and suggesting

furnishing present copies to contractor at no

additional cost, approved 2/ 4 297

Raman travertine to be used as interior stone 1/30 235

Seals, bronze and marble, authorization to George A. Fuller

Co. to procure and install in entrance hall and

lobby 9/25 1765

Sub-contractors, letters to George A. Fuller Co. approving

proposed, approved and names of 2/18 376

Alberene Stone Corporation of Virginia, letter to

George A. Fuller Co. that it is not objec-

tionable for black serpentine stone spandrels 4/15 813

Builders Wood flooring Co., New York, wood floors, let-

ter to George A. Fuller Co. that company is not

objectionable 3/16 585

Crab Orchard Stone Co., letter to George A. Fuller Co.

approving, for bluestone flagging, sills and

coping 4/28 917


312pages

Quarters of Board of Governors: (Continued)

New building: (Continued)Sub-contractors: (Continued)

Dahlstrom Metallic Door Co., approved for hollow metal

work, and for metal partitions upon condition

that all specifications are metEdward W. Minte Co., Painting, reply to George A. Fuller

Co. that company is not objectionable

Edwd. F. Caldwell and Co., Inc., approved for lighting

fixtures, expected that contract will contain

5/27

3/11

1103

553

no qualifications as to strikes, elements, etc. 6/ 6 1152

Erik Jannson, Inc., Philadelphia, letter to George A.

Fuller Co. offering no objection to, for milland cabinet work 4/ 2 09

F. M. Venzie and Company, Inc., letter to George A.Fuller Co. approving 3/26 60

General Bronze Corp., Long Island City, N. Y., no objec-

tion to 4/ 2

George Peterson, Inc., letter to George A. Fuller Co.

approving 3/26 668

Harris Granite Quarries Co., Salisbury, N. C., letter to

George A. Fuller Co. approving 5/14 1022

Harriton Carved Glass, Inc., letter to George A. FullerCo. approving, for special glass 4/23

860

Harry Alexander, Inc., Washington, D. C., electricalwork, not objectionable, letter to George A.

Fuller Co. 3/ 5 515

Karl Koch Erecting Co., New York, N. Y., letter toGeorge A. Fuller Co. approving 3/26 688

Ketterer, Gustav, approved for interior decoration, ad-

justment to be made in contract cost 6/24 1255

Lamson Co., letter to George A. Fuller Co., offering noobjection to, for pneumatic tube system 4/ 4 159

Mitchell-Rand Dampproofing Corp., Pittsburgh PlateGlass Co. and H. E. Fletcher Co., letter toGeorge A. Fuller Co. approving 3/26 661

Norman Campbell, Washington, D. C., setting of exteriormarble, granite, bluestone, etc., letter toGeorge A. Fuller Co. that contractor is not ob-jectionable 3/16 566

P. B. Polhemus Co., New York, N. Y., kitchen equipment,reply to George A. Fuller Co. that firm is notobjectionable 3/11 55a

Piccirilli Bros., letter to George A. Fuller Co., approv-ing, for Exterior Carving, adjustment to be madebecause bid is below allowance 4/23 859

Riggs Distler and Co., letter to George A. Fuller Co.

that company is not objectionable 3/14

Rule, E. A., brickwork and tile partition work, no ob-

jection 8/ 6 1496

S. Haskel and Sons, Inc., reply to George A. Fuller Co.

that company is not objectionable for purposes141

stated (granite for fountains and spandrels) 4/ 3


313

Pages

Qularters of Board of Governors: (Continued)Nev, building: (Continued)

Sub-contractors: (Continued)

Samuel Yellin, Philadelphia, Pa., wrought iron work,

not objectionable, letter to George A.Fuller Co.

Standard Floors, Inc., Washington, D. C., letter to

George A. Fuller Co. that company is not objec-

tionable for purposes (linoleum and linoleum

3/ 5 516

tile) 3/23 637

Supplee-Biddle Hardware Co., letter to George A. Fuller

Co. approving, for hardware, adjustment to be

made as bid is less than allowance 4/23 860

Towson Nurseries, Inc., reply to George A. Fuller Co.

authorizing award of contract to, for land-

scape work, adjustment to be made on account

of price 6/22 1214

United States Tile and Marble Co., Inc., letter to

George A. haler Co. offering no objection to 4/ 4 758

Voigt Company, Philadelphia, Pa., models, not objec-

tionable, letter to George A. Fuller Co., amount

less than specification allowance 3/ 5 517

W. A. Fingles, Inc., Baltimore, Roofing Sheet Metal and

Skylights, letter to George A. Puller Co. that

contractor is not objectionable 3/16 585

Walker Hancock, John Gregory and Sidney Waugh for

sculpture, approval of 3/28 703

Western Waterproofing Co., Philadelphia, Waterproof

Cement Coat, reply to George A. Fuller Co. that

company is not objectionable 3/11 558

Westinghouse Electric Elevator Co., letter to George A.

Fuller Co. that Board does not object to 4/ 2 730

Wm. H. Watts and Co., Philadelphia, Pa. tile work, not

objectionable, amount exceeds specification al-

lowance, letter to George A. Diller Co. 3/ 5 516

Shoreham Building:

Division of Research and Statistics, lease of five additional

rooms on fifth floor 2/24 417

Lease of rooms 617 and 618 approved 1/31 271

Lease of room 750 for use of Division of Security Loans

approved 2/10 319

Lease of rooms 330 to 334 authorized, for Division of Bank

Operations, letter to give up rooms 335 to 338,

such rooms to be reserved for Mr. Miller and

for expansion 2/24 417

Site, portion under lease by National Park Service, and rent

collected by, no action 1/ 7 64

Washington Building:

Rooms 402 and 628 available, leasing authorized 1/18 162

Room 613, letter to Mr. Mackintosh of Weaver Brothers,

Inc., re arrangement with Mr. Homer to occupy

room 628 rent free for seven months for releas-

ing of, and leasing by Board 1/28 226

Letter to Mr. Homer confirming arrangement and memo

from Mr. Morrill re 1/28 227Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

314 Page

Questionnaires:National Industrial Conference Board, "personnel practices

covering salaried employees", no objection toFRBank of New York furnishing information re-quested

Radford, W. D., reply re radio address with reference to loans forsmall industry, outlining industrial loan pro-gram of Board

Radio addresses, presidents of FRBanks requested to give considera-tion to, by Mr. Szymczak

Railway investigation:Senate Committee on Interstate Commerce, reply to 'Mr. Lowenthal

that Board cannot extend loan of services ofGeorge Folsom as requested, but will requestthat he hold himself available for consultationwith his successor

Ramsay, Robert E.: (See Robert E. Ramsay Organization, Inc.)Rand McNally Bankers Directory, liabilities and resources of State

banks, reply to Mr. Larson re inclusion in total,of Morris Flan banks and industrial banks

Rates:FRBank of Atlanta:

Schedule of discount and purchase

8/13 10

5/12

3/1

9/13

1/31

1/ 41/201/312/142/283/133/274/104/245/ 85/236/ 56/197/ 37/177/318/148/289/119/2510/ 910/2311/ 611/2012/ 412/18

FRBank of Boston:Schedule of discount and purchase 1/ 9

1/10

oos

597

175

269

28

164251354455

691'7868689811069

1141119,i93071318,146315136160416901760

1301931

2008,210.'23-11206

06


"es: (Continued)FRBank of Boston: (Continued)

Schedule of discount and purcha

FRank of Chicago:Schedule of discount and purchase

(Continued)i ued)

315

Pages

1/23 1882/6 3042/19 3783/4 5043/18 6134/1 7234/15 8044/29 9195/13 10075/27 10906/10 11606/24 12257/ 8 13247/22 14168/ 5 14898/19 15509/ 2 16339/16 17119/30 1801

10/14 187810/28 195511/10 203111/25 213512/ 9 219412/23 2263

1/11 1021/27 2172/11 3312/21 4093/6 5283/20 6174/3 7374/17 8205/1 9505/15 10276/ 1 11056/12 11716/26 12567/10 13347/24 14278/ 7 14988/21 15649/ 4 16539/13 172910/ 2 181610/16 189910/30 193111/13 205811/28 2143


316pages

Rates: (Continued)FRBank of Chicago: (Continued)

Schedule of discount and purchase: (Continued)12/11 2206

12/29 2308

12/31 2351

Establishment, without change on Dec. 17 approved withassumption that bank would again establishrates within fourteen days from that date 12/29

FRBank of Cleveland:Schedule of discount and purchase 1/11

1/272/112/213/ 63/204/ 34/175/ 15/156/ 16/126/267/107/248/ 78/219/ 4

9/1810/ 210/16

10/3011/1311/2812/11

12/24

FRBank of Dallas:Schedule of discount and purchase 1/ 8

1/222/ 52/112/212/263/ 93/234/ 64/ 74/174/275/115/256/ 86/17

10.211331409628617

731

100,110171

121.5,6A

142114911564

2206n66

299353'409433

535160

'764

0°091991


317

Pages

11"es: (Continued)FRBank of Dallas: (Continued)

Schedule of discount and purchase: (Continued)

FRBank of Kansas City:Schedule of discount and purchase

7/ 1 12887/13 13447/27 14338/7 14988/15 15308/27 16019/ 9 16649/17 17189/28 178410/ 6 184510/15 188610/26 194211/ 5 200011/16 206411/25 213512/ 7 218312/15 222112/28 2295

1/7 661/10 931/27 2171/28 2242/7 3112/20 3943/4 5073/12 5613/26 6744/9 7834/23 8575/6 9745/20 10555/21 10616/ 4 11386/ 5 11416/17 11847/ 1 12887/ 9 13317/23 14208/ 6 14928/ 7 14988/21 15648/27 16019/10 16719/24 175710/ 1 181110/15 188610/26 194211/ 5 2000


318Pages

Rates: (Continued)ERBank of Kansas City: (Continued)


FRBank of Minneapolis:Schedule of discount and purchase

FRBank of New York:Schedule of discount and purchase

11/2011/23

12/ 712/1012/22

1/ 2

1/151/231/292/122/243/ 93/234/ 64/134/205/ 45/186/ 16/ 86/156/297/137/277/298/118/249/ 49/189/2310/ 610/1910/3111/1611/2812/1112/1512/22

1/ 81/111/181/251/312/112/142/212/283/ 63/13

2105210921831982251

9

129188228556414559655760

792e51959

1040

1105115411781265154!450

1442

151!1574,i165f172,

17651845

1.9053.98z)2064

21,452206

22212251

75102161212251551554409455528571


319

Pages

Rates= (Continued)FRBank of New York: (Continued)

Schedule of discount and purchase: (Continued)3/20 6173/27 6914/3 7374/10 7864/17 8204/24 8685/1 9505/ 8 9875/15 10275/23 10696/ 1 11056/ 5 11416/12 11716/19 11996/26 12567/ 3 12997/10 13347/17 13787/24 14277/31 14648/ 7 14978/14 15268/21 15648/28 16049/ 4 16539/11 16909/18 17299/25 176010/ 2 181610/ 9 186210/16 189910/23 193710/30 198111/ 6 200811/13 205811/20 210512/ 4 217712/11 220612/18 223612/31 2351

FRBank of Philadelphia:Commitments on industrial advances, minimum of et, and

maximum of 2% approved 1/16 145

Schedule of discount and purchase 1/6 511/9 861/17 1541/31 251


320 Pat°

Rates: (Continued)FRBank of Philadelphia: (Continued)


No quorum, and no action as to establishment of rates,reply to Mr. Austin re

FRBank of Richmond:Schedule of discount and purchase

2/ 62/193/ 43/184/ 14/154/29

5/ 65/206/ 36/177/:1.7/157/298/ 58/219/ 29/169/3010/ 810/2211/ 411/1812/ 212/1712/30

8/20

1/101/242/ 72/142/273/123/244/ 6

4/ 94/235/ 75/145/256/ 46/177/ 17/ 97/228/ 58/13

4

378504613723804

919974

10551156118412881370

1442

14891564

16 317111601849

3.9281994

20922153222:235')

1552

95204

0554

441561655760

7658569631019

107j,113°304

1288

15;9J'1416148!151g


Rate (Continued)FRBank of Richmond: (Continued)


FRBank of St. Louis:Schedule of discount and purchase

IRank of SanFrancisco:Rediscount, establishment every 14 days, letter to Mr.

Sargent re failure to comply with law because

of lack of quorum, copy sent to all FRBanks

321

Pages

27 16019/10 16719/24 175710/ 8 184910/22 192811/ 4 199411/12 204711/25 213512/ 8 219012/10 219812/23 2263

1/7 661/16 1451/30 2412/7 3112/19 3783/ 4 5043/13 6133/28 6984/10 7864/15 8044/28 911s/& 9745/20 10556/ 3 11366/17 11847/ 1 12887/14 13587/28 14418/ 5 14898/18 15349/ 1 16289/ 2 16339/16 17119/29 179810/ 8 184910/22 192811/ 4 199411/18 209212/ 2 215312/17 222712/29 2308

1/13 1


322pages

Rates: (Continued)FRBank of San Francisco: (Continued)

Rediscount: (Continued)Reply to Mr. Sargent re holding meetings on alternate

Thursdays that there will be no objection tolapse of 15 days when Thursday falls on holiday 2/24

Reestablishment of, revision of bylaws authorizing executivecommittee to fix only at figures established byboard of directors, letter re, to be revised 12/28

Schedule of discount and purchase 1/ 71/101/252/ 72/203/ 53/204/ 24/164/305/146/i.6/116/257/ 97/238/ 68/209/ 39/1710/ 110/15102911/1212/ 112/1012/28

FRBanks:Rediscount:

Establishment each 14 days, reply to Mr. Sargent remeetings to be held on alternate Thursdays,that lapse of 15 days is not objectionable whenholiday falls on that day

Executive Committees, proposal that Board suggestamendments to bylaws eliminating provision forfixing of discount rates by, voted that sug-gestion not be made to FRBanks

Reply to Mr. lhalsh that there is no objection tomaking provision in bylaws for establishment by,copy to other FRBanks

Reserve requirements increase, President Harrison sug-gests reduction in discount rates in conjunctionwith any action re, to indicate no change inSystem policy

2/24

2/24

415

22886693212311394

5076177258149361019110511661244

13311420

1482135216311718

1811188619612047

215221982295

415

414

3/17 6°'


323

Pages

1111Y1 Harold:

klYniond

4aders Digest:"America Faces

Reply to C.

Ileadily marketable

Reading,

4(1gia, O. W.:

Ileal estate:Farm loans to

State member

Pee

Sir

Rates: (Continued)Interest:

Glass, Senator, protest, reply prepared, Board members toconsider and take up at later meeting

Maximum under Regulation Q:Reduction of maximum to leo recommended by Mr. Morrison,

referred to Mr. Ransom for recoamendation

Presidents' Conference, request by Board for advice re

desirability of reducing and establishing dif-

ferential, and as to advisability if F.D.I.C.

does not take similar actionOpinions expressed reStatement re

Change in, reply to Markle Banking endnone is contemplated by Board

(See National banks, First-MechanicsTrenton, N. J.)

Concrete Pile Co., New York, N. Y., approvedtractor for Board's new building

Trust Co. that

National Bank

as sub-con-

Bankruptcy", article by H. Parker Willis, con-

densed from American Mercury, letter fromWilson Chemical Co. re, referred to Treasury

S. Yeager on statement of H. Parker Willisre no metallic backing for currency in circu-

lationassets, Government securities, ruled to be,

in connection with Sec. 5144, R.S. and Sec.

26(d) of Revenue Act of 1936

Claude: (See Foreign banks, Commonwealth Bank of

Australia)(See State member banks, Forney State Bank of

Forney, Texas)

of

be reported in member bank condition reports

for Secretary of Agriculturebanks subject to membership condition prohibiting

engaging in, reply to IRBank of Philadelphia

that banks should be given benefit of excep-

tions toonstruction Finance Corporation:Staff:

Husbands, Sam H., present at conference re condition of

Perth Amboy Trust Co. and Raritan Trust Co.,

Perth Amboy, N. J.M. J., present at conference re condition of Perth

Amboy Trust Co. and Raritan Trust Co., Perth

Amboy, N. J.review of, by Mr. Goldenweiser and factors in-

volved, statement of Mx. Williams re, question

of reversing easy money policy, before Presi-

dents' Conference

McGrath,

Recovery movement,

1/9 85

3/6 520

3/17 6053/17 6083/17 608

3/24 655

2/18 377

9/11 1685

10/14 1683

12/29 2301

5/19 1053

7/30 1452

9/11 1683

9/11 1683

11/19 2101


324 pages

Rediscounts:Electric Home and Farm Authority paper, reply to Hamilton Na-

tional Bank, Chattanooga, Tenn., that it is noteligible, but that it may be used as collateralfor Sec. 10(b) loans 7/10 1337

Endorsement "without recourse" by bank president of paper ofcompany solely owned by such president, replyto Comptroller that transaction does not comewithin provisions of Regulation 0 6/17 1189

Individuals, partnerships and corporations, under Sec. 13 ofFRAct, extension of authority to FRBanks tomake, for additional six months, to July 31,circular re, revised to conform to Banking Actof 1935 1/24 2°5-9

Authority has expired for FRBanks to make discounts for,question of renewal, suggestion of Mr. Broderickthat FRBanks be requested for views, adopted 8/27 1598

Renewal of authority, letter to all presidents advisingthat Board does not intend to make and request-ing any necessity for 9/ 3 1642

Extension of authority, memo of Division of Bank Operationsre opinions of FRBanks as to necessity for,only FRBank of Boston objected to lapse of, ap-proved 10/ 1818

Interest rates, reports on HZ 249 re, reply to _MBank of SanFrancisco that there is no objection to releas-ing summary of, to member banks 10/12 109

'Amor bonded warehouse receipts, reply to Mr. Reiner on ac-ceptability as collateral by banks 8/ 7 15°1

Reply to Union Commercial Corporation re discount of papersecured by, and advising that age of whiskeywould have no effect on eligibility 9/ 3 1642

Notes, purchase of, by State member banks, reply to Mr. Stevensre interpretation of X-9322 subjecting suchnotes as are in fact securities to restrictions

446of Sec. 5136 of Revised Statutes 2/27Redmond, Roland L., present at meeting of Board re Regulation U 4/30Regulations:

Board of Governors:A, revision of, notion of Mr. Broderick that Board consider

advisability of, carried 3/ 4Report of Mr. Ransom re study, and that he would submit

draft with recommendation as soon as possible,to be given opportunity to review final draftbefore adopted 7/15

Revision of, to be considered at meeting on July 31 7/28Statements re minimum standards for loans on real estate,

should be extended to other principal kinds ofloans, and question of maximum marginal col-lateral, revision to be prepared on basis ofsuggestions 7/31

Procedure for consideration of final draft, Mr. Ransomprepared to recommend 10/ 6

Memo prepared by Mr. Daiper, Mr. Ransom to submit recom-mendation to Board 12/ 1

929

501

1364140


NuLlations: (Continued)


D:"Drafts drawn upon or other authorizations to charge

member bank's reserve account", reply to Mr.

Helm re interpretation of

Requirement that they be included in gross demand

deposits in computing reserves, reply to FRBank

of Dallas on proposed memo to be used in answer-

ing questions

FRBank rather than FRAgent to address letters to direc-

tors on failure to maintain reserve requirements,

reply to Mr. Walsh on reasons for change, and

on responsibilities under

Increase in reserve requirements, supplement issued,

increasing 50%

Directors of FRBranch banks:

Amendment eliminating requirement that at least one

director appointed by Board reside outside of

branch city, considered in connection with ap-

pointments at Cincinnati and Pittsburgh branches,

adoptedManaging director, Board not willing to make change to

eliminate from board of directors

Six year maximum service provision, reply to Mr. Peyton

re inquiry as to possibility of amendment, that

regulation is in forceAmendment making more definite provision barring

directors from reappointment who have served

six or more consecutive years

Examiners, National bank, to be furnished with copies of

D, H, I, 0, P, and

F:Amendment proposed to except sales of stock of fiduciary

bank to officers, directors, etc., where au-

thorized in trust instrument and where full

value can be secured only by this method, re-

ferred to A.B.A. for comment

Amendment suggested by Lancaster County National Bank,

Lancaster, Pa., to permit investment of trust

funds in mortgages purchased from own com-

mercial department to extent authorized by

State law, Board does not feel justified in

makingBank stock of fiduciary bank, prohibition on purchase

of, by bank for trusts does not apply to stock

originally in trust, reply to Mr. Proctor

Deposit of collateral to secure agency, escrow, receiv-

ership and custodianship funds deposited by

trust department in commercial department of

national bank, reply to Mr. Geery re require-

ments of regulation as to

325

Pages

1/14

3/21

126

629

1/ 7 73

7/14 1357

12/28 2294

6/23 1216

2/17 358

12/28 2289

1/ 6 60

8/ 4 1484

9/23 1753

6/ 2 1124

8/ 4 1486


326pages

Regulations: (Continued)Board of Governors: (Continued)

F: (Continued)Federal Advisory Council, comments re revision of, feel-

ing of difficulty it getting directors to serveon trust investment committees and reference toquestions arising from prohibition on investmentof trust funds in interests of directors, em-ployees, officers, etc.

Investment of trust funds by national bank in obliga-tions executed by officer of bank as Federal re-ceiver, applicability of Sec. 11(a)

Membership condition suggested by Mr. Sargent to requireState member banks to comply with provisionsof, replyof litigation, reply to Mr. Fry on inquiry ofFirst and Merchants National Bank, Richmond,that only such record need be kept as will en-able it to properly discharge its duty as fidu-ciary

Ruling re, to be published in FRBulletinRevision of, motion of Mr. Broderick that Board consider

advisability of, carriedApproved

Sale of trust assets to officers, directors, etc., replyto Mr. Thomas that no objection was raised toprohibition of, Board will consider modificationwhere trust instrument authorizes sale

11(a), interpretation of, forbids loan of one trustto another in bank even though trust instrumentauthorizes bank to use its discretion, reply toComptroller

11(c), dealings between trust accounts, reply toFirst National Bank of Montgomery, Ala., re

"Suitable audit", Sec. 8, reply to Prentice-Hall thatBoard cannot define precisely, but givinggeneral principle

Trustees of bond issues, Securities and Exchange Commis-sion studying legislation to control, A.B.A.believes Board should control through RegulationF, Chairman Eccles to confer with Mr. LandisRansom to confer with Mr. Douglas, copies ofA.B.A. statement and S.E.C. digest to be re-ferred to counsel for summarization and comment,Mr. Ransom may invite Mr. Douglas to meet withBoard

Advisory Council, tentative drafts, letter to Mr.Lichtenstein confirming proposed procedure forsubmitting, for comments and review

Record

Sec.

Sec.

Federal

H:

Mr.

Capital stock reductions by State member banks, adviceto all RAgents that provision permitting bemade applicable to all banks

5/19 1049

7/22 1417

6/24 1232

.7/28/20

3/ 44/24

5/2'7

10/19

5/23

11/10

11/13

1294

1560

501al 4

1908

i070

0

51

11/25 21294

9 /1 9 17

2/ 6


327

Pages

Ilegtaations: (Continued)Board of Governors: (Continued)

(Continued)Capital stock reductions: (Continued)

Reply to Mr. Fletcher that letter (X.-9480) does not


certain reductions

Member and nonmember banks, copies to be furnished to

in view of replies received from IRBanks to

telegram (X-2344) of Dec. 23, 1935

Standard condition regarding maintenance of adequate

capital, letter to FRBanks re

Hours of duty of employees and record of overtime, with

report to Civil Service Commission re, under

Act of March 14, 1936, memo of Mr. Vest re, no

actionRegulation recommended by Mr. Morrill, adopted and re-

ports of overtime work of certain classes of

employees to be reported to Civil Service Com-

missionInterpretations, digest form, reply to suggestion of Mr.

Clerk that interpretations be furnished to

ntBanks inInterpretations and rulings, revised designations for

X-letters containing

L:Amendment suggested by Mr. Sinclair to permit inter-

locking directorates between national banks

and trust companies under certain conditions,

Board not favorable, but willing to grant hear-

ing to those interested

Review and reports re service, telegram to FRAgents that

Sec. 4 supersedes X-7426 and Trans 2225

Revision of, draft submitted with memo of Mr. Chase,

discussion of, suggestions as to permitting

certain relationships, from Governor Norris,

consideration given permitting suburban bank

to have services of down-town bank director

and certain private banker relationships, ap-

provedTo be sent to IRBanks for printing in order to have

distributed to member banks before annual elec-

tionsLeave, Government limitation for sick end annual adopted,

regulation not to be drawn up until Government

departments have adopted their regulation 4/28 903-4

Secretary or an Assistant Secretary authorized to ap-

prove 30 days sick leave beyond accrued sick

leave upon recommendation of head of division 4/28 904

2/13 348

1/ 4 43

2/28 454

6/11 1165

6/30 1274

9/17 1721

8/18 1539

6/23 1224

1/29 231

1/ 4 16

1/ 4 27


328 pages


0:"Executive officer", question of interpretation raised

in connection with service of Mr. Wheeler underClayton Act, and service of Mr. Shove whose onlyduties as chairman are to preside at board meet-ins, Board not willing to alter 7/ 7

342Advice of action concerningMr. Wheeler transmitted 7/11 1

Inactive officers, Protest from Mr. Stevenson of DelRio National Bank against inclusion in defini-tion of Executive Officer, Mr. Morrison not inagreement with definition, matter referred tohim and reply approved 3/ 4 498-9

Interpretations: (See Executive Officers)Salary advances to executive officers limited to 30

days by, but Board will not object to prepayment151for month which has 31 days 1/16

P, member banks, copies to be furnished to in view of re-plies received from RBanks to telegram (X-2344)

43of Dec. 23, 1934 1/ 4

Absorption of exchange and collection charges, reply toSenator Barkley re provision of, prohibiting,

88and stating that it has been suspended 1/ 9

Recommendation of Federal Advisory Council that itbe put into effect immediately, answers to ques-tions re effect of, particularly as to par

-4clearing banks, discussion of 11/17 2°71Differences between, and Regulation IV of F.D.I.C. re

payment of interest on time deposits renewedwithin ten days after maturity, reply to IEBankof Minneaoolis, Board will not object to prac-

792tice 4/13Similar letter and copy to other TRAgents, to Mr.

Young 4/13Letter to Telegraphers National Bank, St. Louis, 794

Mo., re 4/13Conference arranged with F.D.I.C. to reconcile dif-

ferences between regulations, reply to Commis-sion for Financial Institutions of Indiana re,

974'5memo of Mr. Wyatt re conference - 5/ 6Dividends of mutual savings banks, in event of membership

1042in aSystem, effect of 5/18Federal Deposit Insurance Corporation regulation, "in-

terest" definition reviewed by F.D.I.C. and con-clusion reached, as stated in letter from :Mr.Crowley, that corporation could not cooperatewith Board in prohibition on absorption of ex-change and collection charges, section ofregulation q affected, postponed indefinitely 1/24 2O1'


Reelaations: (Continued)


Q: (Continued)Federal Deposit Insurance Corporation: (Continued)

Telegram to all FRAgents advising re action

Reply to Mr. McAdams re, that member banks should

be further advised

1/27

1/31

329

Pages

219

259

Indirect payment of interest on demand deposits, memo

of Mr. Owens re effect of suspension of pro-

vision of, on furnishing articles and services,

reply that questions of Boston Clearing House

committee cannot be answered until Board adopts

definition of interest 3/ 5 512

Interest, definition of, reply to Mr. Await on inter-

pretation of 1/10 98

No objection to letter being sent to member banks

in 12th district 1/21 179

Federal Advisory Council, discussion of, end of

suspension, opinion asked as to likelihood of

withdrawals from par list if placed in effect 9/10 1669

Mr. Ransom prepared to recommend that Sec. 1(1) be

made effective 10/ 6 1845

Federal Advisory Council to be asked for advice re 10/20 1926

Letter and memoranda sent to Mr. Lichtenstein in

accordance with 10/27 1948

Interest rate, memo of Mr. Morrison recommending reduc-

tion to ly/o, referred to Mr. Ransom for recom-

mendation 3/ 6 520

Interpretations of revision, in accordance with questions

received by Deputy Comptroller of the Currency

from Mr. Hoskinson, Riggs National Bank 1/10 97

Maximum interest rate, change in, report of Mr. Ransom

recommending that any action be deferred until

a change in existing circumstances called for

further consideration, approved 7/15 1363

Savings accounts, corporations operated for profit,

contemplated withdrawal from FRSystem of two

banks because of prohibition on classification

of deposits as 1/22 184

Savings deposits, definition, question of altering,

Counsel to prepare alternate definitions 7/28 1437

Consideration suggested by Mr. Ransom before de-

parture of Chairman, no urgency and Chairman

willing to be considered as concurring in any

decision 7/31 1461

Prepared in accordance with previous action, drafts

to be reviewed by Board members 8/11 1510

Discussion of, by Federal Advisory Council 9/10 1669

Revision of, advice to F.D.I.C. that Board is con-

sidering 9/12 1694

Liberalization, Mr. Ransom prepared to recomwend 10/ 6 1845


330


Q: (Continued)Savings deposits: (Continued)

pageS

Federal Advisory Council to be asked for advice re 10/20 1926

Letter and memoranda sent to Mr. Lichtenstein inaccordance with 10/27 1948

Sec. 1(e), recommendation of Federal Advisory Councilthat it be continued in present form, but ifchanged that it be made more liberal, discussionof, question as to labor unions, manufacturers'associations, etc. 11/17 2070-2

Sec. 1(1), suspension outlined before Federal AdvisoryCouncil, latter would like to see prohibitionon absorption of exchange and collection chargesapplied to all banks 2/11 321

Suspended because of difference with F.D.I.C. interestregulation, discussion of 5/19 1047

Recommendation of Mr. Broderick that it be made ef-fective regardless of possibility of withdrawalsfrom membership and failure of F.D.I.C. to in-clude in its regulation, action deferred pendingrecommendation of Federal Advisory Council

Report of Mr. Broderick that various bankers hadsuggested that it be put into effect, and if de-cided during his absence he desired to be

2166recorded as favoring 12/ 4

Recommendation of Mr. Ransom in connection with hismemorandum that it be made effective immediately,Messrs. Broderick and Davis expressed approvalpreviously, discussion of absorption of exchangeand collection charges as interest, approved,advice to F.D.I.C.

Transfer of funds from savings account to checking ac-count on telephone order, reply to F.D.I.C.

12/11 22°1‘-'

that they are not permitted but that transferis permissible on written order and that Boardwill consider provision covering in next re-vision of Regulation Q 6/22 12°5

R, Relationships with dealers in securities, revision of,draft submitted with memo of Mr. Chase, questionof expanding Sec. 2, motion of Mr. Miller toadopt in present form, motion of Mr. Szymczekto adopt with expanded Sec. 2, lost, Mr.Miller's motion carried and regulation approved,Mr. Thomas voting "no" 1/ 4

To be sent to FRBanks for printing in order to havedistributed to member banks before annualelections 1/ 4

Standard hours of duty, adopted and provisions made for re-porting overtime work 6/30 12"


331

Pages

NWiations: (Continued)


T:Amendment, motion of Mr. Broderick that Board consider

advisability of, carried 3/ 4 500

Amendment No. 7 and supplement thereto, presented and

approved, increasing margin requirements Feb. 1 1/24 191-6

Press statement re, authorized to be prepared 1/24 196

Amount of margin to be demanded for transaction

entered into prior to Feb. 1 not affected 1/28 225

Referred to, in advising Federal Open Market Com-

mittee of no action on its recommendation re

increasing reserve requirements 1/31 261

Amendments, technical, statement of Mr. Parry re need

for, to be prepared for consideration by staff

and Board 6/ 3 1134

Consideration of, action deferred 6/11 1166

Amendment to Sec. 3 proposed and adopted 6/25 1240

Amendment to be wired to FRBanks for printing 6/25 1240

Amendments, minor, suggested by Dr. Parry, to be con-

sidered at meeting tomorrow 7/14 1357

Action deferred 7/15 1361-3

Suggested amendment to Sec. 3(c) to enable broker

to carry account of registered odd-lot dealer

on same basis as permitted by Regulation U,

action deferred 7/15 1362-3

Amendments:Meeting of Mr. Parry with representatives of Chicago

Stock Exchange at FRBank of Chicago re proposed,

report re unsatisfactory situation at Chicago

bank 12/ 1 2150

New York Stock Exchange, comments being formulated

and to be submitted to FRBank of New York, to

be given an opportunity to meet with members of

Board if desired, Mr. Parry to meet with repre-

sentatives at FRBank of New York 12/ 4 2164

Consideration should be given to, Regulation U and ex-

cess reserves at same time as they are inter-

related, form of Regulation U to be considered

tomorrow 3/13 570

Effect of increased margin requirements discussed, stock

market reaction held due to other causes and

shift of trading to foreign exchanges is in-

consequential, question of reduction in re-

quirements discussed, action deferred 6/ 3 1133-4

Enforcement, suggestion of Mr.. Parry that Board might

wish to discuss with Mr. Landis later 3/24 647

Haskins and Sells, arrangement with, continuance 5/ 1 943

Interpretations, 48, seven-day period referred to, in

Sec. 6 ends at midnight of the seventh day

following date period commences to run 1/28 224

Margin formula, belief of Mr. Landis that it should be

uniform with that adopted for Regulation U 3/24 647


332 page'


T: (Continued)Margin requirements contained in, Regulation U should

prescribe same, discussion of interrelationshipand factors tending toward desirability of in- 80-4crease in 1/ 9

Method of determining, FRAgents advised that ifBoard adopts method different as to RegulationU, T will be modified 1/11 111

Supplement prescribing margin requirements basedon current market value of securities and super-seding formula based on statute adopted, ef-fective March 30, to be released for publicationon March 26 3/24

Effective date advanced to April 1 3/25Press statement approved 3/25Change, consideration of, deferred until return of

Mr. Ransom 6/25Question of considering change in, and in Regulation

U, to be taken up July 14 7/ 7Increase in, for loans to brokers to carry customers,

review by Dr. Parry of situation and reasonsfor action, minor amendments suggested, to beconsidered at meeting tomorrow 7/14 1551,

Consideration of, action deferred, Mr. Broderick1561#'voting "no" 7/15

Consideration of, opinion of Mr. Ransom that itshould be continuous, more detailed reports to

2041'be made by Division of Research and Statistics 11/12Amendment proposed to limit time for furnishing

as it is possible for traders to purchase stocksand sell them again without furnishing margin,Securities and Exchange Commission agreeable tochange, to be considered by staff, sent toFRBanks for comments and press release to beprepared 11/12 0°1'4

Telegram to all FRBanks transmitting amendment andpress statement re 11/18 2°649

Postponement of effective date of third paragraph ofsupplement requested by Mr. Worcester of NewYork Stock Exchange through Mr. Rounds, reviewof factors involved by Mr. Bradley and deter-mination to take no action until some interestedparty submits matter in writing 4/ 1 '

Postponement requested by President Gay of New YorkStock Exchange, referred to Division of SecurityLoans 4/ 3

Recommendation of FRBank of New York, review ofsituation by Mr. Bradley, including positionof Haskins and bells and Mr. Saperstein ofSecurities and Exchange Commission, postpone-

70ment disapproved 4/

652'5661664

120

130


333

Pages


Travel by Board members and Staff, draft of, to be prepared

showing allowances 2/ 4 297

Submitted and approved 3/14 581-4

Amendments suggested by Chairman Eccles, Secretary to

prepare draft of regulation embodying for con-

sideration of Board 10/20 1922

U, Loans by banks on securities:

Adoption and issuance:Meeting next week to consider, suggested by chair-

manDraft presented with explanatory statement, margin

requirements proposed to be included in supple-

ment, desirability of issuing, alternative

supplement abandoning statutory margin formula,

relationship with Regulation T, to be sent to

FRBanks for commentLetter transmitting to FRBanks

Federal Advisory Council, Board has not received

reports from all FRBanks re and is not prepared

to discuss regulationStatement that Council still believes issuance un-

necessary and feeling that simpler regulation

would be more effective, resolution adopted

Nov. 21, 1935 readRecommendation of Federal Advisory Council renewing

opinion that issuance at this time is unneces-

saryQuestion of publicity to be given to

Reply to be prepared and submitted to Board

Reply Prepared, but Board desirous of more time to

consider, Mr. Lichtenstein to be advised

Board not to release reconmendation, but no objec-

tion to Council releasing

Advice to Council

Issuance of, statement of Mr. Broderick that on

March 3 he intends to bring up for discussion

the question of fixing definite time for

Draft to be furnished to Board members for study

Draft of, letter and memo from Mr. Landis, Securi-

ties and Exchange Commission with suggestions,

referred to Mr. ParryLetter recommends increase in scope of regulation,

suggestion that U, T, and question of excess

reserves are interrelated and action should be

deferred on U pending adoption of general credit

policy, form of regulation to be considered

tomorrowTentative draft, discussion of, senior members of

staff have not yet held conference on, and Mr.

Parry to discuss with Mr. Landis suggestions

in his memo of March 12 and then to be invited

to meet with Board

1/4 27

1/ 9 80-41/11 111

2/11 326

2/11 327

2/12 3412/12 3412/14 352

2/18 372

2/26 4322/28 458

2/27 4413/ 4 501

3/13 567

3/13 569


334 Pages


U: (Continued)Adoption and Issuance: (Continued)

Issuance of, advisability questioned by Mr. Morri-son at meeting with Presidents

Presidents' Conference, Board desires advice as todesirability of issuing and as to margin formula,feeling of no need for issuance at present,should be in simple form and with simpleformula, exemption of mall accounts suggested

Statement re, and review by Mr. Wyatt of whetherBoard is required to issue

Revised draft of, submitted with memo of Dr. Parryrecommending form of supplement prescribingmargin, and that maximum loan value be basedon current market price, Mr. Landis to beinvited to meet with Board

Messrs. Landis and Gammack present, former pointsout that definition of "stock" does not applyto stock purchase warrants, etc., advocatingbroadening

Mr. Landis believes unregistered securities shouldhave no loan value, as in Regulation T

Margin formula provides greater loan value tobrokers than customers, feeling of Mr. Landisthat capital ratio limitation should apply tobrokers and question of who should prescribe

Feeling of Mr. Landis re margin formula and agree-ment that flat percentage basis of currentmarket value would have advantage of simplicity,belief :that Board would be justified in abandon-ing statutory formula

Discussion of Mr. Landis' suggestions and indicationthat his definition of "stock" might be adopted,question of exemption of persons owing not morethan 41000 to banks

Limitation on brokers' credit would be more effectiveunder limitations of Regulation U than underexchanges' control

Differential between stocks pledged to secure loansto customers and securities rehypothecated bydealers or brokers

Suggestion of Mr. Landis that formula not be ap-plicable to loans on customers' securities bybrokers and dealers members of national se-curities exchanges and that latter limit bor-rowings

Board might specify list of stocks published bySecurities and Exchange Commission rather thanpublish list, Mr. Landis has no objection

3/16

3/17

3/17

3/24

3/24

3/24

3/24

3/24

3/24

3/24

3/24

3/24

3/24

591

"5

6°8

640-1

641

64

645

644

645

645

645

646

646


NAlations: (Continued)Board of Governors: (Continued)

U:

335

Pages

(Continued)Adoption and Issuance: (Continued)

Margin formula, Mr. Landis not in favor of formula

based on lowest market value since a specified

date and believes that such a formula should

be used on current market value 3/24 647

Feeling of Mr. Landis that Regulations T and U

should contain same margin formula 3/24 647

Margin formula, based on current market price of

securities adopted, and percentages fixed at

45% and 60% 3/24 648

Exemption from provisions, of person owing not more

than 4.000 to bank, motion that it be retained,

carried, Mr. Ransom voting "no" 3/24 648

Effective date, Mr. Morrison left word that he was

unfavorable to adoption of Regulation at this

time, Regulation approved, effective May 1 3/24 648

Approved effective May 1, to be released for publi-

cation on March 26 3/24 649

Discussion of entry to be placed in policy record

re, Divisions to be requested for memorandumof reasons in future re policy matters 3/25 660

Press statement re, approved 3/25 664

Reactions of banks, brokers and others, Kr. Bradleyrequested for statement re, statement that it

had been favorable except for some criticismfrom officers of New York Stock Exchange,may be desirable to make some further exemp-

tion for arbitrage transactions 3/31 710

Advisory Committee of New York Stock Exchange, reply

to Mr. Kent to consideration given to Regulation

and consideration which will be given to any

suggestions of 5/ 1 951

Amendment to except certain loans for financing bona

fide arbitrage transactions suggested by Mr.

Rounds, Board will consider 5/16 1036

Amendments, technical, statement of Mr. Parry re need

for, to be prepared for consideration by staffand Board 6/ 3 1134

Amendments to, consideration of, action deferred, but

agreed to adopt proposed amendment to Sec. 2

when other proposed amendments are considered 6/11 1166

Amendment to Sec. 2 adopted, amendment to Sec. 3

proposed, adopted after substitute amendment

of Mr. Broderick lost 6/25 1237-9

Amendments to be wired to FRBanks for printing 6/25 1240

American Bankers Association subcommittee memo re, tomeet with Board April 22, Mr. Rounds to be in-

vited and Mr. Parry to discuss with representa-

tives of Securities and Exchange Commission 4/17 819


336 pago


U: (Continued)American Bankers Association: (Continued)

Memo of, presented at meeting with Board, amendments840suggested and discussed 4/22

Amendment presented to Sec. 3(f) to meet firstsuggestion of A.B.A. subcommittee, action de-ferred 4/23 854

Amendments proposed by A.B.A. subcommittee, Nh..Parry discussed proposed exemption of loans tobrokers, to consider further 4/23 856

Revised draft of amendment presented with memo ofDr. Parry, Securities and Exchange Commissionconsiders it a banking problem, Board not tomake any amendments at present, A.B.A. to be 662'5notified 4/24

Bank loans under provisions of Act, examining procedure 979in connection with 5/16

Conference of New York Stock Exchange representatives 906set for April 30 at request of Mr. Gay 4/28

Meeting with Board re, discussion of points involved, 929memo to be filed with Board re 4/30

Effect of, discussed, stock market reaction held dueto other causes and shift of trading to foreignexchanges is inconsequential, question of reduc-tion in margin requirements discussed and con-sideration deferred 6/

Federal Deposit Insurance Corporation, printed copiessent to, expression of appreciation for sug-gestions and of offer to notify insured banksof provisions, conference may be desirable be-tween staff of and Board's staff on carryingout purposes of 4/ 2 72:7

Haskins and Sells, arrangement with, to be continued 5/ 1 94'Hyoothetical cases:

Interpretation of, reply to cases cited by Mr.Mattson 6/ 5 1144

Reply to F. A. Berry and W. N. Norvall re interpre-tation of certain provisions for certain Nash-ville banks, Board cannot rule on 6/25 12519

Interpretations:General loan agreement, reply to Mr. Wheeler on

questions raised by Seattle-First NationalBank re 5/20 1059

Questions arising under, reply to Seattle-First(0National Bank, Seattle, Wash. answering six 5/13 1

Questions raised by memo of Mr. Clyde Williams,10010

answers to, in letter to Mr. Clark 5/20 0Rulings to be published in FRBulletin 5/26

Transfer of loan made prior to May 1 from one bankto another, question of retaininkr, exempt status,

856to be studied further before ruling 4/23


337

Pages

eiNlations: (Continued)Board of Governors: (Continued)

U: (Continued)Interpretations: (Continued)

Memo of Mr. Parry re, ruling approved 4/24 866-7

Circulation of member banks re should include non-

member banks, reply to Mr. Fletcher 4/27 900

"Investment quality" securities, reply to Mr. Wheeler

re suggestion of California Security Dealers

Association that amendment be made to give

higher loan values to 6/22 1209

Margin requirements:

Change, question of considering, deferred until

return of Mr. Ransom 6/25 1240

Question of considering change in, and in Regulation

T, to be taken up July 14 7/ 7 1320

Review by Dr. Parry of situation and reasons for ac-

tion, minor amendments suggested, to be con-

sidered tomorrow at meeting 7/14 1357

Consideration of, action deferred, Mr. Broderick

voting "no" 7/15 1361-3

Consideration of, opinion of Mr. Ransom that it

should be continuous, more detailed reports

to be made by Division of Research and Statis-

tics 11/12 2041-2

Minneapolis-St. Paul Stock Exchange, reply re restric-

tion on extension of credit by bank and re

maximum loan values of stock not registered on

national securities exchange 5/18 1043

Printed copies furnished to Comptroller with supplement

thereto 4/ 4 758

Questions re "total indebtedness", statement of officer,

publication of list of registered securities

end term "another lender", reply to IRBank of

San Francisco re 4/18 827

Sec. 1, reply to Seattle-First National Bank, Seattle,

Wash., that provisions in fact are consistent 5/13 1013

Similar reply to FRBank of Dallas 5/13 1014

Sec. 2(c), reply to Mr. Wheeler re questions of Crocker

First National Bank of San Francisco and Na-

tional Bank of Commerce of Seattle . 6/ 5 1145

Transfer of loan, reply to Mr. Wheeler that Sec. 3(e)

applies to a loan made on, after or prior to

May 1 4/25 891

Units of trust shares representing listed stocks, reply

prepared to Boatmen's National Bank of St. Louis

that they are not stocks, additional information

to be obtained and reconsidered 4/21 pezq

Wire transfers, revision of, in accordance with recommenda-

tion of Standing Committee on Collections, in-

cluding conditions for making, for nonneyber

banks 1/ 4 46-9


338pagee

Regulations: (Continued)Civil Service:

Leave, under Annual Leave Act and Sick Leave Act, conferenceof representatives of agencies to be held todraw up, observer to represent Board 3/25 669

Commissioner of Internal Pevenue:Credit for holding company affiliates, reply to Mr. Helverim7

re draft of, and making suggestions re 10/19 1912Holding company affiliate exemption on income tax in connec-

tion with holding of general voting permits,those not holding may desire to obtain beforeend of year, letter to be prepared by Counselrequesting RBanks to call attention to regula-tions of 10/30

Comptroller of the Currency:"Investment securities", reply to Comptroller offering cer-

tain objections to portions of, intended toclarify as concerns State member banks

State member banks are not forbidden to purchase ex-empted securities under Sec. 5136 of RevisedStatutes, even though such securities are indefault, reply to Mr. Burke

Letter to EPAgents inclosing statements of Comptroller'sviews re questions raised under, and reply toMr. Sargent that gradual liquidation of invest-ments in excess of limitations of Sec. 5136 ofRevised Statutes is permissible

Interpretation of, reply to Mr. Sargent re certain ques-tions raised by Mr. Peachman, California Bank,Los Angeles, Calif.

Questions raised in connection with Bank of Jamestown,N. Y., reply re

Federal Advisory Council, statement of Mr. Smith thatit is not practical in operation, rulings re,to be published, suggested that Council studyand submit report re

Bonds convertible into stock only at option of holder,reply to Mr. Young and advice to FRAPents reeffect of Comptroller's speech before CaliforniaBankers Association on right of member banks topurchase

Reply to Mr. Swanson on inquiry of First State Bank ofRushmore, Minn. re

Interpretations: (See Investment securities)Federal Deposit Insurance Corporation:

"Interest" definition reviewed by and conclusionreached, as stated in letter from Mr. Crowley,that corporation could not cooperate with Boardin prohibition on absorption of exchange andcollection charges, section of Regulation Q. af-fected, postponed indefinitely 1/24 0

Telegram to all FRAgents re action 1/27Reply to Mr. McAdams re, that member banks should be

further advised 1/31 259

1/27 22°

3/24 657

7544/ 4

4/25 "2

5/ 1 952

5/19 1°47

6/ 5 114'S

6/ 5 1149


339

Reellations: (Continued)Federal Deposit Insurance Corporation: (Continued)

Publication in FRBulletin, statement of Mr. Szymczak reomission of III and IV and reasons therefor,policy to publish all official information,publication approved

III, "member", letter to F.D.I.C. re use of, in referring to

insured nonmember banks, and possibility of re-

sulting in confusion with members of FRSystem

IV, differences between and Regulation Q, of Board, re pay-

ment of interest on time deposits renewed within

ten days after maturity, reply to FRBank of

Minneapolis, Board will not object to practice

Similar letter to Mr. Young and copies to other FRAgents

Letter to Telegraphers National Bank, ot. Louis, Mo., re

Conference arranged to reconcile differences withBoard's Regulation Q, reply to Commission for

Financial Institutions of Indiana re, memo of

Mr. Wyatt re conferenceV, Insurance of trust funds, reply to Mr. Crowley making

suggestions reFederal Income Tax, amendment to, statement re, to be published

in FRBulletinFederal Open Market Committee, tentative draft of, to be sent

to IRBanks for study prior to organizationmeeting


Interest, of Board, F.D.I.C. and State authorities, reply to

Commission for Financial Institutions of

Indiana re suggestion ror conference to recon-

cile differences, that conference has been

arranged with F.D.I.C.

Memo of Mr. Wyatt re proposed conference

Securities and Exchange Commission:

Rules under Public Utility holding Company .Act, reply to

Chairman Landis re tentative draft of

Sec. 17(c), rules issued under to be published inFRBulletin

1115111„`Ler, James: (See Union Commercial Corporation)'-Lations of FRBanks with foreign banks:

FRBank of San Francisco, holding of earmarked silver for Banco

de Mexico, advice to FRBank that although

original agreement was between Banco de Mexico

and FRBank of New York, Board's approval should

be securedProcedure, statement re, sent to all FRBanks

Letter to President Harrison re, and stating that Board

agrees with suggestion that smaller foreign

banks be advised with respect to responsibili-

ties of Board in connection with revision of

agreements

Pages

2/11 320-1

4/17 824

4/13 7924/13 7934/13 794

5/ 6 974-5

10/ 3 1825

5/26 1089

3/10 5473/13 5673/13 569

5/ 6 9745/ 6 975

4/10 789

7/23 1426

12/19 224612/29 2313

12/29 2317


340page'

Relations with dealers in securities:

Bank of Coulmerce, Lexington, Ky., interlocking relationship of

one director, to be brought into conformity

with Sec. 32

Miscellaneous:Breed, F. F., applicability of Sec. 32 depends upon extent

to which investment trust deals in its own

stockReply to Mr. McRae that rate of sale of shares of invest-

ment trust indicates that Sec. 32 is applicable

to servicesBrown, W. F., Sec. 32 not applicable to

Bullitt, Orville H., reply to Assistant Secretary of State

Moore outlining basis for prohibition for ser-vice and explaining that Board cannot deviate

from position that service is forbidden

Eckert, William K., relationships would be prohibited under

Revised Regulation R, letter to Mr. Austin re-

questing information as to whether he is comply-

ing with lawEgner, Carl, Sec. 32 not applicable

Foster, A. V., Sec. 32 applicable and permits may not beissued despite special circumstances

Kean, Robert Winthrop, reply to Mr. Dillistin re percentages

of type of business described in Sec. 32 that

high activity of 1936 should be controlling andsection held applicable, request further advicebefore final action

Love, Pinkney W., Sec. 32 applicable toMcLeod, H. S., Sec. 32 applicable and permits may not be

issued despite special circumstances

Robertson, Charles E., Board agrees with counsel for F?Bank

of Philadelphia that Sec. 32 is applicable to

Rothschild, Louis F., Sec. 32 not applicable

Sachs, Walter E., Sec. 32 not applicableShoenberg, Sydney, reply to Mr. Wood agreeing with conclusion

that Sec. 32 is not applicable to

Smith, P. R., director of membership applicant, to be de-termined if Sec. 32 is applicable

Thorne, J. N., reply to Mr. Dillistin that Board agreesSec. 32 is applicable

Welsh, Charles W., Sec. 32 not applicableWheelwright, Henry J., Sec. 32 applicable to

No action on service to national bank (not acting asofficer or director) and investment company

until next annual election

Violations, letter to FRAgents that Comptroller has ceased re-porting, in national banks

Removal of officers and directors:Brownfield State Bank, Brownfield, Texas, recommendation of Mr.

Walsh that president and cashier be cited toshow reason why they should not be removed,

procedure

5/16

6/26

7/115/ 5

7/23

1/296/15

3/16

11/171/15

3/16

2/ 78/298/29

3/9

4/28

9/258/261/15

6/25

4/18

3/ 2

105

1259

13419/2

142°

1119

686

20s!14')

566

31.6160

1625

556

914

1156169!14P

12°

8°


Reit"al of officers and directors: (Continued)J-ohnson, H. S., Point Pleasant National Bank, Point Pleasant,

W. Va., certified to Board by Comptroller, fileto be circulated and Board to consider sendina

notice by Sept. 22Memo of counsel presented, with letter to Comptroller and

notice to Mr. Johnson to appear at hearing be-

fore Board Oct. 22, recommending that it be

served by a representative of Board, approved,

directors to be advised

Letter to Comptroller and one to Mr. Johnson that Board is

not willing to postpone hearing until about

Dec. 1, but willing to postpone until Nov. 5

Hearing, agreement to appear before Board on Nov. 5, Mr.Wyatt to furnish Board with procedure prior to

that dateProcedure for, memo of Mr. Chase, Comptroller's counsel to

present evidence, agreement on details

Postponement of hearing pending settlement with Comptroller

of procedure for conduct of hearing

Recommendation of Mr. Ransom that hearing be postponed in

order to determine participation by Comptroller,

opposed by Mr. McKee, suggestion that hearingbe preliminary one, not to be postponed and

Counsel to prepare outline of procedure, Acting

Comptroller to be notified to be prepared for

hearingQuestion of further consideration with Comptroller re pro-

cedure to be taken up by Mr. Ransom and Mr.

Wyatt, Board would not be willing to postpone,

to be in nature of preliminary hearing, Mr.

McKee voting "no"Mr. Ransom, with Mr. Wyatt and Mr. Dreibelbis called on

Mr. O'Connor, agreement on proposed procedure,

but not to be precedent, national bank examiner

to be present at hearing

Mr. Johnson present at hearing, Ur. L. U. Starr, nationalbank examiner, present and stenographic record

made by Mr. McPhersonMr. Chorpening present, question of additional information

to be submitted, and to be sent to r. Johnson

Stenographic record and copies of documents submitted,

sent to with extension of time until Nov. 23

to make any further answer desired

Reply that extension of time has been granted to Nov. 23

and request for definite advice as to whether

he desires to question Messrs. Starr and

Chorpening personally, Board desires to close

record by Nov. 23

Request for opportunity to question Messrs. Starr and

Chorpening before Board, Dec. 2 fixed as

date for

341

Pages

9/18 1727

9/21 1739

10/15 1887

10/20 1922

10/29 1959

11/ 2 1988-9

11/ 6 2005-7

11/ 9 2023-5

11/10 2026-7

11/10 2028-9

11/10 2029

11/16 2066

11/18 2093

11/24 2116


342 Pages

Removal of officers and directors: (Continued)Johnson, H. S.: (Continued)

Hearing postponed from Dec. 2 to Dec. 16 because of illnessof Mr. Johnson

Hearing to question Messrs. Starr and Chorpening, only twoBoard members present, questions to be sub-mitted in writing and further hearing to becalled if necessary

Letter from, with questions to be presented to Messrs.Starr and Chorpening, hearing to be resumedDec. 29

Procedure for, statement prepared by Mr. Dreibelbis, to beread by Chairman, Messrs. Chorpening, Starrand Kelly present, stenographic record made byMr. Macpherson

Procedure, letter to presidents and FRAgents re, copy to Comp-troller

Comptroller feels that it lies with Board after certifica-tion of facts by his office, hearing of Mr.Johnson postponed pending return of Comptrollerand definite settlement of procedure

Suggestion of Mr. Ransom that senior staff prepare a draftof, for future proceedings and to submit recom-mendation as to any desirable amendment tostatute, approved

Reports re violations of law or unsound practices, Vice Presi-dent in charge of examinations at FRBank of NewYork to report directly to Board of Governorspending appointment of FRAgent

Reorganization of FRBanks:FRBank of AtlantaFRBank of BostonFRBank of ChicagoFRBank of ClevelandFRBank of DallasFRBank of Kansas City

, • , (1:FRBank of New York 1

FRBank of PhiladelphiaFRBank of RichmondFRBank of St. LouisFRBank of San FranciscoModifications to plans in Illinois, reply to Mr. Wilkes re

those involving deferred certificates of de-posit, in connection with membership

Reports:Average daily deposit liabilities, Williams Savings Bank,

Williams, Iowa, letter from F.D.I.C. re failureto submit, referred to FRBank of Chicago

Bank relations:.MBank of Atlanta, report submitted, reply to Mr. Clark

that Board's request did not contemplate de-tailed reports and outline of information de-sired

12/ 1

12/16

12/23

12/29

8/29

11/ 2

11/12

9/30

8/20

12/307/207/177/177/179/14

9/ 8'7/179/14

8/29

5/26

10/19

10/27

2146

2225

2261.-

2291

160

1968'9

2047

180

15042506140150159w,

15016913,166'10341/04

10°

19°1

1°


343

Pages

l*orts: (Continued)Bank relations: (Continued)

FRBank of Boston, letter to President Young re scope of

information desired by Board and requesting

such report rather than individual reports on

banks 11/ 4 1996

FRBank of Cleveland, letter to, re scope of reports Board

contemplated would be submitted to it, stating

that Board does not desire individual reports

on banks 10/19 1911

Opinions of individuals re iqRSystem, reply to Mr.

Strater re desirability of making deliberate

effort to obtain 10/30 1983

FRBank of Dallas, report may be delayed until about Oct. 1 9/ 9 1665

FRBank of New York, letter to Mr. Gidney re scope of infor-

mation desired by Board and requesting_ such re-

ports rather than individual reports on banks 11/ 4 1997

IRBank of Philadelphia, acknowledgment of receipt of, and

advice that they are satisfactory 10/23 1940

FRBank of Richmond, letter to Mr. Garrett re scope of in-

formation Board desires and advising that it

does not desire reports on individual banks 11/ 6 2015

FI/Bank of St. Louis, reply to Mr. Wood that special visits

to member and nonmember banks came within in-

structions re 9/19 1734

Letter to Mr. ‘c)(3d re scope of information desired by

Board and requesting such reports rather than

individual reports on banks 11/ 4 1997

FRBanks, reports now consolidated by Mr. Strater, question

of Board taking over, Mr. Szymczak to prepare

draft of form of report 8/ 4 1473

Letter to IRBanks instructing as to reports Board de-

sires 8/25 1582

Deposits for reserve purposes, letter to Mr. Wood and copy to

other FRAgents re banks not showing allowable

deductions and advising that reports should be

submitted showing information called for 1/31 263

Earnings and dividends, form 107:

Amendments re rent received, fees of directors and com-

mittee members and real estate taxes, in ac-

cordance with changes made by Comptroller,

approved 4/ 8 781

Change approved re showing of reserve for dividends payable

in common stock 10/31 1986

Changes in form for Dec. 31, copies forwarded to all

FRBanks and instructions re 12/21 2250

Copies forwarded to TRAgents and attention called to new

items 6/24 1233

Earnings and expenses, Integrity Trust Company of Philadelphia,

reply to Mr. Rogers that Board cannot furnish

analysis of 1/ 8 77


344 page'

Reports: (Continued)Federal Deposit Insurance Corporation to request, from insured

banks as a basis for an estimate of insured de-posits, Board will cooperate

Letter to FRBanks reFunctional expense:

FRBank of Dallas, instructions were not intended to applyto charges on form B-23, no change to be re-quired in charging industrial loan expenses

Methods, suggestion of Mr. Peyton for improvement in, replyoutlining steps now being taken

Interest rates of member banks, copies of forms sent to FRBanksfor transmittal to member banks with request for

Interest rates on deposits and interest and discount rates onloans, reply to FRBank of San Irancisco thatthere is no objection to releasing to memberbanks summaries of reports on FR 249

Reserves required against net deposits, necessity of fillingin all columns to show actual required reserves,reply to Ramsey National Bank, Ramsey, Ill., re

Salaries of employees of FRBanks, reply to Mr. Larson thatadvance payments to Mr. Rest, FRBank of Min-neapolis, and Helena branch employee uponseparation from service should not be includedin (Nov. 22 X-9366)

Securities exchange members, amendment to requirement of Aug.18 to exempt from filing monthly reports, banksmembers of national securities exchanges (ex-cept those carrying margin accounts) and requiresemi-annual reports from all member firms ex-cept banks in two classes listed and drafts ofletters advising of action, approved

Trust departments of State member banks, reply to Purse Co.that Board does not require reports of, andlisting available data re

Research and statistical function at FRBanks: (See FRBanks)Reserve City Bankers Association:

National Bureau of Economic Research, request that researchproject be taken up by

Reserves:Advance payments against Government securities, reply to Presi-

dent Harrison that they are deposits againstwhich member banks and FRBanks are required tomaintain reserves

Affiliate deposits with Continental Illinois National Bank andTrust Co. of Chicago, Ill., reported as "notsubject to reserve", advice to FRBank of Chi-cago that such deposits are subject to reserve

Allegheny Valley Bank of Pittsburgh, Pa., granted permissionto carry reduced

Branch clearing balances, classification of, in computingdaily deposit liabilities for reserve reports,reply to Mr. Hale and copy to E'RAgents

5/ 25/4

1/ 6

10/19

8/ 4

1o/12

6/ 5

1/ 4

2/20

5/23

9/1a

12/22

/

95696

60

1909

1484

1669

1147

29

402

1726

2251

161


48erves: (Continued)

Central National Bank in Chicago, Ill., authorized to carry

reduced

Change in requirements, information given to press on prospec-

tive action of Board

Commodity drafts, reply to Mr. Walsh on treatment of, in reports

of deposits subject to reserves

Deficiencies:FRBank rather than IRAgent to address letters to directors

re failure to maintain requirements, reply to

Mr. Walsh re change in Regulation D

Waiver of penalties in New York and Buffalo by liRBank of

New York

Deposits of borrowers in Installment Plan Account at Homewood

Bank at Pittsburgh, Pa., reply to Mr. Anderson

that they constitute deposit liability and are

subject to reserves

Dividends payable in common stock, reply to Mr. Fletcher re

reporting on Form 105

"Drafts. ..to charge member bank's reserve accounts", reply to

Mr. Helm re interpretation of, as used in Regu-

lation D

Call report schedule item, reply to Mr. Stewart that it

means some thing

Requirement of Regulation D that they be included in gross

demand deposits in computing, reply to FRBank

of Dallas re proposed memo to be used in answer-

ing questions re

Excess:Margin requirements, reference to volume of, in connection

with consideration of increasing, under Regu-

lation T

Resolution of Federal Open Market Committee renewing recom-

mendation on increase in requirements made on

Dec. 18, no action

Advice to committee of action

Federal Advisory Council, renewal of recommendation for re-

ducing, through increase in reserve requirements

question of publicity to be given to

Chairman Eccles advises Councilmen to read letter of

S. Parker Gilbert in New York Ttmes*Dec. 18

entitled "Member Bank Reserves" as expressing

views he is in agreement with

Reply to be prepared and submitted to Board

Reply prepared, but Board desirous of more time to con-

sider, before publication, Mr. Lichtenstein to

be advised


Council releasing

Advice to Council re release

345

Pages

11/17 2082

6/30 1281

4/ 3 738

1/ 7 73

4/ 4 748

7/11 1340

9/12 1695

1/14 126

1/14 127

3/21 629

1/24 192

1/24 2021/31 260

2/12 3392/12 341

2/12 3422/14 352

2/18 372

2/26 432

2/28 458


346 page°

Reserves: (Continued)Excess: (Continued)

Question of, to be brought up by Mr. Broderick at meetingof March 3 2/27 441

Consideration of question of, and Regulations T and U. areinterrelated 3/13 5"

Absorption of, advice to Mr. Powell that in future addresses,Board believes it best to avoid mention of, asa controversial subject 5/26 1081

Estimate of, for Aug. 12 less than anticipated, statementexplaining difference to be published in weekly1RBank statement 8/12 1515

Review of situation by Mr. Goldenweiser before Presidents'Conference, question of further increase, effectof August increase, opinion of Presidents notmembers of F.O.M.C. that further action shouldbe through increase, distribution of reservesfavorable, Board studying

Gold imports, methods to sterilize to prevent additions to,discussion of

Review of the month, question raised by Mr. McKee re pos-sible implication in statement on gold importsterilization and reserve situation that Boardintended to increase reserve requirements

Publication planned to correct impression that excessreserves are concentrated in New York, to bere-read and taken up further if any questionstill exists

Statement discussed further, to be published with minorchanges

FRBank of Atlanta, net earnings after payment of dividends,authorized to transfer to losses not elsewhereprovided for

FRBank of Chicago:Board's new building, authorized to set aside sum against

future assessments forConsolidation of several reserve accounts into one approvedLosses, additional awn authorized

FRBank of Cleveland:Depreciation on "other real estate", authorized to set

aside usual sum forPrior liability to Retirement System, request for permission

to set up reserve against out of contingentliabilities reserve, no objection, but paymentsto system to be charged to current expenses

iiRBank of Dallas:Fixed machinery at head office, Houston and San Antonio

branches, special reserve authorizedLosses, authorized to increase

FRBank of Kansas City:Losses, awn authorized for

11/19

12/11

12/28

12/28

12/29

12/30

12/287/13

12/28

12/28

1/29

11V/:

12/28

2101'4

2201

2282

2 26 5

2298

2 5

2 28 6100

2286

229

%45

90--


347

Pages

Ileserves: (Continued)FRBank of Kansas City: (Continued)

Self insurance, authorized to increase and transfer of

additional sum to 12/28 2286

FRBank of Minneapolis:Helena Branch buildinr, authorized to set aside special

reserve to establish 100% reserve thereon 12/28 2284

Losses, sum authorized for 12/28 2285

Profit on sale of Government securities to System Open

Market Account, reply to Mr. Peyton on treat-

ment of 7/17 1397

FRBank of New York:Depreciation on "other real estate", authorized to set aside

usual sum for 12/28 2286

Head office building, authorized to set aside special re-

serve toward reducing book value 12/28 2284

Losses, authorized to set up additional reserve against and

for self-insurance 12/28 2285

FRBank of Philadelphia, authorized to transfer sum to losses

and contingencies, to restore after charging

losses in connection with sale of assets of

Guarantee Trust Co., Atlantic City 12/30 2333

FRBank of Richmond:Depreciation on "other real estate", authorized to set

aside usual sum for 12/28 2286

Losses not elsewhere provided for, authorized to transfer

sum to, and to reserves for losses account of

closed banks 12/28 2285

-bRBank of San Francisco:

Bank premises at San Francisco, Los Angeles and Salt Lake

City, authorized to set up special reserves

against 12/28 2285

Net earnings, after payment of dividends, authorized to

transfer to losses not elsewhere Provided for 12/30 2334

Banks:Bank buildings and fixed machinery, authorized to set

aside usual 2% reserve against 12/28 2284

Deficiencies, reporting to Treasury Department, letter to

Mr. Smith requesting if permissible to report

annually rather than monthly 2/27 450

Advice to FRBanks that Assistant Secretary of Treasury

Taylor has agreed that monthly reports may be

discontinued and such reports submitted an-

nually 10/12 1968

Recommendations for end of year, discussion of memo of Mr.

mead re and views of Chairman Eccles re

Policy, also suggestion that brief statement

of results of operations of FRBanks be re-

leased to press 12/23 2262


348pages

Reserves: (Continued)FRBanks: (Continued)

Recommendations for end of year: (Continued)



press statements re earnings and expenses to

be withheld until Board issues statement cover-

ing entire System

Advice to FRBanks to withhold press statements

Reserve ratios, advice to all FRBanks of elimination from

weekly statement of FRBanks

I-C Bank and Trust Co., Chicago, Ill., authorized to carry re-

duced

Increase in requirements:

Federal Open Market Committee, resolution renewing recom-

mendation of Dec. 18 re, no action 1/24 05°

Advice to Committee of action 1/31

Federal Advisory Council recommendation re reduction 359through increase in requirements renewed 2/12

341Question of publicity to be given to 2/12

Chairman Eccles calls attention to letter of S. P. Gil-

bert in New York Times of Dec. 18 entitled

"Member Bank Reserves", as expressing views he 130is in agreement with 2/12

352

Reply to be prepared and submitted to Board 2/14

Reply prepared, but Board desirous of more time to con-

sider, before publication, Mr. Lichtenstein to

be advised 2/18


Council releasing 2/26 459

Advice to Council re release 2/28

Question raised as to action to be taken, to be considered

tomorrow, Messrs. Landis, Harrison and Burgess

and Williams to be invited to attend 4/21

Information to be secured re effect of an increase in 856reserves 4/21

Information requested from FRBanks re effect to be awaited

before taking action, to be deferred until after

April 26 and to be taken up not later than

May 1 4/22

Discussion of, views of President Harrison re, question

of uniform application, views of Mr. Burgess

as to effect on domestic capital market

Opinion of Mr. Landis reported, analysis of foreign situa-

tion by Mr. Williams, discussion of foreign

monetary possibilities

Treasury financing discussed in connection with timing of

action, statement of Mr. Harrison re present

and future risk involved in increase 4/22

Action deferred on, until shortly after July 1 5/ 1*

Action on question, recomwendation of Mr. Eccles that it be

deferred until after July 4 when Mr. Ransom will

have returned and Mr. Davis will have taken of-

fice, approved 6/23 1°

12/2812/30

7/ 2

4/22

2285-62 542

1295

852

846'4/22

34-64/22

09960


Res

349

Pages

ellres: (Continued)

Increase in requirements: (Continued)

Question of considering, agreed to be taken up July 15 or

16 7/ 7 1320

Consideration of, Mr. Davis not familiar with problem,

motion of Mr. McKee to defer action, lost,

draft of statement re increase, discussed and

amended, requirements increased 50%, effective

Aug. 15, Mr. Davis and Mr. McKee voting "no",

discussion of actions in event increase proves

unsettling or restrictive, and supplerient to

Regulation D approved 7/14 1350-7

Movement of funds to meet increased requirements, discussion

of, and report of Mr. Ransom re steps taken 8/11 1510

Statement released by Board re, reply to Mr. Roelse on let-

ter from Rufus W. Park relatinE to certain

statements in 8/25 1581

Results of, request of Mr. McKee as to opinion of Federal

Advisory Council re, opinions of Messrs. Frost

and Perkins 11/17 2079

Review of the month, question raised by Mr. McKee re pos-

sible implicatdon in statement on gold import

sterilirzation and reserve situation that Board

Intended to increase 12/28 2282

Publication planned to correct impression that excess re-

serves are concentrated in New York, to be

re-read and taken up further if any question

still exists 12/28 2283

Statement discussed further, to be published with minor

changes 12/29 2296

Interpretation of Sec. 19, reply to Mr. Borneman 12/ 8 2192

Lorain Street Bank, Cleveland, Ohio, granted permission to

carry reduced 9/ 4 1654

Madison-Crawford National Bank of Chicago, Ill., permission

granted to carry reduced 8/22 1568

Member banks:"Branch clearing" accounts, classification of, in computing,

ruling to be published in FRBulletin 3/26 679

Circular of FRBank of Atlanta re, reply to Governor Newton

re decision not to revise and reissue, in view

of scope of Regulation D 2/13 348

Position of, data re requested to form basis for analysis of 11/25 2139

Plaza Bank of St. Louis, Mo., transfer of sum from special re-

serve to surplus proposed, only partial trans-

fer approved 2/ 6 306

Ratios of FRBanks, question of eliminating from weekly state-

ments, Messrs. Goldenweiser and Smead to prepare

memo for consideration prior to June 30 6/25 1242

Memo presented and elimination approved, explanatory para-

graph to be published, with slight change due

to retention by /RBank of Boston of mall smount

of bonds for resale to employees 6/30 1277-8


350pages

Reserves: (Continued)Reduced, of member banks, review of IRAgents covering banks

authoriv.ed to carry, recommending continuanceof authority, approved, and I-C Bank and TrustCo., Chicago, authorized to carry reduced

Report required against net deposits, necessity of filling inall columns to show actual required reserves,reply to Ramsey National Bank, Ramsey, Ill., re

Reports of deposits for purposes of, letter to Mr. Wood andcopy to other FRAgents re banks not showingallowable deductions and advising that reportsshould be submitted showing information calledfor 1/31 2°

Requirements of member banks, increase, Board desires advicefrom Presidents' Conference as to desirabilityof, end as to classes of banks it should apply 605to 3/17

Opinions expressed re, and as to amount of any increase,statement of President Harrison re situationand that action should be preventive, not cor-rective, favors reduction in discount rate in 606Tconjunction with 3/17 606

Statement re 3/17Savings departments where assets are required to be segregated

from assets of other departments, recommendationof System Committee on Bank Reserves that FRBanks 376carry separate reserve accounts for, tabled 2/18

Terminal National Bank of Chicago, Ill., permission granted to 1666carry reduced 8/22

Uninvested trust funds, memo of counsel that Continental Na-tional Bank and Trust Company of Chicago, berequired to maintain, disagreed with by 'Mr.Thomas, ruled that reserves need not be main-tained against, Mr. Szymczak voting "no" 1/24 ,o

Letter to Mr. Stevens advising of action 1/31Resolutions:

Board of Governors:Assessment, levying on FRBanks for expenses of Board and sum 1210

for new building 6/22 rin22;

Regulation Q, making Sec. l(f) effective 12/11

Assessment for first six months of 1937 12/30

Division of Issue and Redemption, transferring employees

proved by American Bar Association

to Comptroller's payroll 11/25

Federal administrative court, principle of establishment ap-

140

8/ 4

Federal Advisory Council:Regulation U, that issuance is not necessary (adopted Nov.

32121, 1935) read at meeting with Board 2/11

Federal Open Market Committee:Increase in reserve requirements, renewing recommendation

re, of Dec. 18, no action 1/24 00Advice to committee of action 1/31

4/22 852

6/ 5


Snead,

ile8oUrces, State

Iletired Officers

351

Pages

Ilesolutions: (Continued)

Federal Open Market Committee: (Continued)

Maturities of Government securities, shifts authorized at

meeting of Tan. 21, approved, no action re-

quired by Board on third resolution 1/31 262

Meeting of Dec. 17 and 18, reply to Governor narrison re

those adopted, end approving one referring to

shifts in maturities of governments 1/20 174

IRBank of Atlanta:Havana Agency, discontinuance of, or plan to operate without

loss, action deferred to permit Mr. Ransom to

develop certain information 3/31 709

(See also Agencies)FRBank of Boston:

Federal Open Marketditionstors ofholds su

FRBank of Chicago:Fees end allowances

FRBank of Cleveland:Alternate member of Federal Open Market Committee, that

attend all meetings of Committee and act in

advisory capacity, reply, end copy to other

FRBanks, that law does not authorize

FRBank of Kansas City:McAdams, A. M., Assistant FRAgent,

absence for six months

illness, approved


Directors' fees, authorizing payment to FRAgent

Salary of President Day

Montgomery County Loan and Trust Co., Hillsboro, Ill., re

ment of contributions of directors, changes

suggested to provide for epproval by FRAgent

at St. Louis rather than Board

Presidents' Conference:

Conference of auditors, recommending, approved

E. L., recommendation that he be assigned to assist

Committee on Free Services, noted with approval

banks, end liabilities, reply to Rand McNally

Bankers Directory re inclusion in total of, of

Morris Plan banks and industrial banks

Association, deposit of, reply to Col. Marix that

it cannot be classified as savings deposit

etirement System:Board of Trustees:

Broderick, Joseph A.,Governors

Disability retirement allowance:

Senders, T. Gordon, FRBank of Kansas City, reply to FRBank

authorizing lump sum contribution to system tosupplement allowance, and authorization to all

FRBanks

Committee member, imposing certain con-

on, re reconcilement of views of direc-

FRBanks of Boston and New York, Board

ch member must be unrestricted

of directors, fixed, no objection

he

recommending leave ofwith pay, on account of

repay-

designation to represent Board of

2/27 442

6/ 3 1137

2/19 379

7/29 1447

8/ 7 15006/ 3 1135

1/10 93

7/ 2 1296

7/ 2 1297

1/31 269

3/28 699

2/20 395


352 Page°

Retirement System: (Continued)Disability retirement allowance: (Continued)

Supplement to, authorization to all FRBanks to make lumpsum contributions to system for 9/28 170

Dirmissal wages:Payment to employees, reply to Mr. Preston re payment to

Retirement System or to employee 2/17 363

Schedule of benefits, reply to Er. Rounds noting with ap-proval outline of, to be furnished FRBanks 4/ 9 784

Division of Issue and Redemption, letter to Mr. Rounds that asemployees have been transferred to Comptroller,membership terminates, applications of four em-ployees for deferred retirement allowances, ap-proved 12/ 7 21°

Dorsey, W. E., Division of Bank Operations, recommendation that 55

he be retired April 1, approved 2/18

(See also Staff of Board of Governors)Employees of Division of Issue and Redemption, transfer to Comp-

troller's payroll, letter to employees re ter-mination of membership

Brinker, Henrietta T., request to be made for, end to be

11/25 2195019in, and effect ofExtensions of service:

retired as of July 1 4/28Burchard, Addie K., request to be made for, and to be re- 909

tired as of July 1 4/28Copeland, L. G., request to be made for, and to be retired

909as of July 1 4/26

Mooney, J. J., Chief Operator, additional extension for year 191

recommended 1/21

Quesenberry, Caroline B., request to be made for, and to be 09

retired as of July 1 4/26Simms, R. N., request to be made for, and to be retired as

09of July 1 4/26

Sneed, Susan U., request to be made for, and to be retired 909

as of July 1 4/26

Governors of FRSystem, amendment tentatively proposed to FRAct

F

12/18 20to permit participationMaximum salary upon which retirement income may be based, cam-

mittee of RBank of New York to visit Board todiscuss increase from 40_2,000 to 0_8,000 12/23

1991

476

Mott, Congressman James W., reply re establishment of, in con-nection with inquiry as to provisions forofficers of FRSystem 11/ 4

Policy involved in mandatory retirement at 70 years raised inconnection with refusal to approve appointmentof Mr. Norris as President of FRBank of Phila.-delphie 3/ 3

Statement that refusal to approve appointment is contraryto Retirement System 3/ 3

Board feels that there is no legal or moral obligation toapprove appointment because of principles ofRetirement System 3/ 3


Ret

353

Pages

irement System: (Continued)Prior service liability:

Adjustment in favor of FRBank of Chicago in connection

with transfer of Washington office telegraph

operators to Board's payroll 3/26 686

Board of Governors, reasons for large payments should be

explained in annual report, suggestion that

discharge should be in smaller amounts in years

of low earnings 12/30 2332

FRBank of Cleveland, Board desires procedure followed at

other IPBanks for charging, to be followed, but

has no objection to segregating specific re-

serve for 1/29 229

BEBank of Minneapolis, reply that authorization to charge

1/48 of amount off monthly was not intended to

revoke authority to set up reserve against 1/13 120

Reporting contributions to, reply to President Harrison re

suggested change in method of 5/11 995

Reports of FREanks on B-23, governors advised that contributions

should be listed at full rate, but additional

contributions at end of year should not be in-

cluded 1/ 2 11

Retirements at 65 will aid in economy movement at FRBanks,

statement of Chairman Eccles at Conference of

Presidents, possibility of retirement of persons

near 65 with sufficient contribution to bring

retirement allowance up to what it would be

at 65 3/16 591

Retirements:Austin, R. L., FRAgent at Philadelphia, to be retired April

30, FRBank authorized to pay retirement allowance

equal to six months' salary to, or to Retirement

System 2/26 429

Bell, M. W., FRBank of Atlanta authorized to pay six months'

salary in cash at time of 6/30 1283

Advice to Mr. Clark of authority 7/ 3 1300

Bradley, C. S., probable termination of services in connec-

tion with expiration of term of Mr. James,

eligible for, and sum may be paid to system to

increase annuity 1/30 236

Brinker, Henrietta T., Division of Issue and Redemption,

recommended, and special contribution to in-

crease retirement allowance, action deferred 3/31 707

Extension of service to be requested for, and to be re-

tired as of July 1, special contribution to be

made to increase retirement allowance 4/28 908-9

Burchard, Addle K., Division of Issue and Redemption, recom-

mended, and special contribution to increase

retirement allowance, action deferred 3/31 706



made to increase retirement allowance 4/28 908-9


354pages

Retirement System: (Continued)Retirements: (Continued)

Calkins, John U., FRBank of San Francisco, contribution tosystem authorized in addition to that previouslyauthorized to supplement retirement allowance

Case, J. H., RAgent at New York, to be retired April 30and FRBank authorized to pay to system sumsufficient to bring allowance up to amount itwould have been if he were 65 on April 30 andalso to pay to, or to Retirement System, re-tirement allowance of six months' salary

Retirement allowance, letter from Director Woolley re-questing authority to increase contribution bybPnk to 12 months' salary

Reply to Mr. Woolley refusing authorityCopeland, L. G., Chief, Division of Issue and Redemption,

recommended and special contribution to increaseretirement allowance, action deferred

Extension of service to be requested for, and to be re-tired as of July 1, special contribution to bemade to increase retirement allowance

Curtiss, F. H., Hagent at Boston, to be retired April 30,iiRBank authorized to pay retirement allowanceequal to six months' salary to, or to RetirementSystem

Employees of Board, recommendation re seven, further con-sideration of, action deferred pending returnof Chairman who had suggested consideration inconnection with position to be taken on retire-ment of _MBank employees of 65

Extension of service to be requested for and to be re-tired as of July 1

Honour, J. W., FRBank of Atlanta authorized to pay sixmonths' salary at time of, in cash

Advice to Mr. Clerk of authorityJohns, W. S., cash payment of six months' salary authorizedMcKay, C. R., FRBank of Chicago, FRBank authorized, if it

should approve such action, to pay to, sum suf-ficient to bring allowance up to amount he wouldbe entitled to if 65

Reconsideration of action in limiting salary payment toSept. 1, 1936, approved until Feb. 28, 1937,and if retired at that time, special contribu-tion authorized

Cost to bank, reply to President Schaller re, and allow-ance for, if he is retired now or retained until65

Resignation submitted with understanding he will receiveallowance equal to that he would receive if heremained with bank until 65, Board not willingto extend authorization

Payment to system of amount to provide allowance equalto that he would be entitled to if he were 65,noted without objection

4/ 6762

2/26 429

9475/ 1 i.5/12 1°"'

3/31706

,1/ 28 906-9

2/26

4/ 3

4/28

6/307/ 37/ 3

3/ 6

429

705

906

1060)1 #

526

7/20 3- 406

7/29 1446

7/31 1459

A948/ 6 1


355

Retirement System: (Continued)Retirements: (Continued)

Norris, G. W., FRBank of Philadelphia, payment of six months'salary authorized upon retirement, not clearwhether payment is to be to, or to Retirement

Pages

Systemquesenberry, Caroline B., Division of Issue end Redemption,

recommended, and special contribution to increaseretirement allowance

3/20

3/31

618

706Extension of service to be requested for, and to be re-

tired as of July 1, special contribution to bemade to increase retirement allowance 4/28 908-9

Remembrances, request of FRBank of Cleveland for establish-ment of uniform system policy whereby eachiiRBank would be authorized to expend up to100 for, to be referred to presidents' Con-ference 12/ 4 2165

Reply to President Fleming and copy to Chairman ofPresidents' Conference 12/11 2210

Sailer, L. F., FRBank of New York, continuation of servicesand payment of salary requested, until end ofyear, Board determines to adhere to originalposition that he be retired Aug. 31 8/14 1524

Discussion of, letter of Mr. Harrison and statement by 8/19 1E42-6Motion to adhere to position lost and voted to grant

continuation of services until Dec. 31 8/19 1548Advice to FRBank of action 8/20 1553

Simms, R. N., Division of Examinations, recommended andspecial contribution to increase retirementallowance, action deferred 3/31 707

Extension of service to be requested for, and to be re-tired as of July 1, special contribution to bemade to increase retirement allowance 4/28 908-9

Sims, R. A., IRBank of Atlanta authorized to pay sixmonths' salary in cash at time of 6/30 1283

Advice to Mr. Clark of authority 7/ 3 1300Snead, Susan U., Division of Issue and Redemption, recom-

mended and contribution to increase retirementallowance, action deferred 3/31 706


Soule, Mary L., Division of Issue and Redemption, recom-mended, and special contribution to increase re-tirement allowance, action deferred 3/31 706


Walsh, C. C., FRAgent at Dallas, to be retired April 30,-MBank authorized to pay retirement allowanceequal to six months' salary to, or to RetirementSystem 2/26 429


356 pages

Retirement Systen: (Continued)Retiranents: (Continued)

Wood, John S., RAgent at St. Louis, to be retired April30, FRBank of St. Louis authorized to pay tosystem sum sufficient to bring allowance up toamount it would have been if he were 65 onApril 30 and also to pay to, or to system,retirement allowance of six months' salary

Rules and Regulations, amendments, action deferred on proposalto allow board of trustees to six maximum sal-ary, pending study of takincr, salary of lastten years as average for retiranent, and ao-proval of proposal to change basis for calcula-tion of contribution rates

Secretaries of members of Board whose terms expire Jan. 31,payments and provisions available for

Special contributions, RBank of New York, committee to visitWashinqton to discuss, in connection with offi-cers retiring Dec. 31, 1936

Retirements:4alsh, C. C., as i+RAgent at Dallas, letter of appreciation of

servicesReview of the Month: (See FRBulletin)Revised Statutes:

Sec. 5136, limitation of 10% on amount of investment securitiesof one "obligor or maker", advice to all FRBanksand to Mr. Evans re conclusion of Comptrollerre inclusion in term of another corporationwhich has guaranteed obliations, a parent cor-poration or lessor corooration

2/26 429

6/ 2 1115-6

1/30 °5-3

12/23 2265

12/12 2215

7/1:3 130-9Sec. 5144:

Readily marketable assets, government securities ruled to be 12/29

Subsection (b), interpretation of phrase "per centum of ag-gregate par value of all bank stocks controlled",reply to Mr. Sargent extending interpretationfurnished by counsel for FRBank of San Franciscoto Anglo National Corporation 10/22

Subsections (b) and (c), reply to Mr. Fletcher re requestof EancOhio Corporation for interpretation of 8/ 7

Sec. 5201, applicability to holding of own stock by bank ascollateral in nonledger assets 5/ 2

Sec. 5204, "in process of collection", letter to Comptroller reinterpretation of, where Cleveland Trust Co.places past due debt,is placed in hands of com-mittee for constant and active attention, re-questing views 12/11

Letter to FRBank of Cleveland re 12/18

Riddle, John, National Bureau of Economic Research exploratory com-mittee, member of 9/18

Riefler, tinfield:League of Nations financial committee, suggestion of as American

representative, State and Treasury Departmentsprefer John h. tilliams

To be oroposed as alternate for Mr. Norman Davis

213°1

1952

1505

955

22042241

/OS

12/18 22201612/29 24''


357

Pages

Roberts George E.:National Bureau of Economic Research, representative of American

Bankers Association on, recently appointed by

Dr. Goodbar to Society for Stability in Money

11() and Banking 9/18 1726

ckefeller Foundation:pay, Edmond E., Director of Research, refusal to serve ex-

ploratory committee of National Bureau of

Economic Research officially but to meet with

committee informally 9/18 1726

114;ers, Alva L., reply that Board cannot furnish analysis of earnings

and expenses of Integrity Trust Company of

Philadelphia, and reply that merger or consol-

idation usually requires approval of stock-

holders 1/ 8 77

ers, Congressman Viill:

International 'Union of Operating Engineers, Local Union No.

393, reply re letter of Mr. Van Presser, that

Board has no jurisdiction over possible affil-

iation of Oklahoma City Branch engineer with 5/19 1054

B. L.: (See National banks, Phillips National Bank of

Helena, Ark.)

411ings:Board of Governors:

Accounts of member banks with nonmember banks, limitation of

10%, reply to Mr. Fry that ruling of 1923 re

application of, should not be reconsidered in

light of later decisions 10/29 1964

Advances under Sec. 10(b) of FRAct, FRBanks may make even

though member bank has assets eligible for re-

discount or advance under other sections of

IRAct 7/ 8 1328

To be published in IRBulletin 7/23 1425

Riefler, Vdnfield: (Continued)

National Bureau of Economic Research exploratory committee,

member of, discussion with Mr. Ransom of ser-

vice of Dr. Goldenweiser on 9/13 1723-5

Social Science Research Council, served as member while on

Board's staff, was by informal sanction of

Rti Board members 9/13 1724

Roderick H., reply to Mr. McKinney, and letter to, that

charges imposed for cashing out-of-town checks

were made by store and Board has no jurisdiction 3/20 1560-1

Charges made by Austin, Texas, banks for collecting checks, re-

ply to, that legality of such charges is being

investigated and letter to FRBank of Dallas re 10/ 2 1820

R°1)art E. Ramsay Organization, Inc., savings deposit, reply to Mr.

Ramsay on letter to Senator Glass, that deposit

of business corporation may not be classified

as, and copy to Senator Glass 1/30 245


358pages

Rulings: (Continued)Board of Governors: (Continued)

Affiliation of corporation with member bank where presidentof latter controls corporation and voted stockof member bank at last election on R.F.C. proxy,held that corporation is not affiliate

Applicability to collateral for loans made prior to May 1,1936, of provisions in Regulation U governingwithdrawal or substitution of collateral, tobe published in FRBulletin

Applicability of Sec. 2(c) of Regulation U to securitydealers "making a market" in registered stocksor purchasing an inventory of such stocks forresale, to be published in FRBulletin

Applicability of Sec. 2(f) of Regulation U to a loan to adealer to purchase securities to comply withorders from customers, to be published inFRBulletin

Branch banks, domestic, removal from one location to another,but within same business district, ruled not tobe establishment of new branch, and Board's ap-proval not required

"Branch clearing" accounts, classification of, in call re-ports and computing reserves, to be published inFRBulletin

Christmas club accounts not within classification of savingsdeposits, to be published in FRBulletin

Circularization of certain by FRBank of Minneapolis, op-posed

Citrus growers association deposits, may not be classifiedas savings accounts

Condition reports of affiliates, waiver of, ruling re, pro-posed to be issued by Board, letter to Comp-troller asking his concurrence

Court funds, demand deposits in New York, interest may bepaid upon, under State law, until Aug. 24, 1937

Credit union deposits, may not be classified as savingsaccounts

Demand deposits of uninvested trust funds in Pennsylvania,Pennsylvania Company for Insurances on Livesand Granting Annuities may pay interest on,under Pennsylvania law

Deposit of collateral with trust department for use oftrust funds in bank's business, to be publishedin FRBulletin

Deposit of borrowers in Installment Plan Account at HomewoodBank at Pittsburgh, Pa., reply to Mr. Andersonthat they constitute deposit liability and aresubject to reserves

Deposits of liquidating corporation may not be classifiedas savings accounts

2/20

6/22

6/22

6/22

9/26

3/26

1/25

3/ 3

1/15

5/21

5/ 6

1/15

4/29

8/20

7/11

1/ 20

399

1215

10

21

772

679

2,35

495

130

1064

975

156

925

, 660

134°

ri°


?kaings: (Continued)


Deposits of receiver, may not be classified as savings ac-

counts

Digest form, reply to suggestion of Mr. Clerk that rulings

and interpretations be furnished to FRBanks in,

and advice that Digest of Rulings is being

brought up to date

Exchange which cashes checks and accepts deposits, as

agent for depositor, for transmission to member

bank, ruled not to be branch thereof

Executive officers:

Accommodation indorsement by, as extension of credit,


Appointment as, of person indebted to bank, to be pub-

lished in FRBulletin

Director who is secretary of board of directors, ruled

not to be, under Regulation 0

Director who receives salary and directs policies of na-

tional bank but has no official title, held to

be executive officer within definition of Regu-

lation 0, and would be so held even if he re-

ceived no salary

Exemption of ;I;'2500, reply to Mr. O'Connor that it is ap-

plicable to partnership in which individual

executive officer owns majority interest

Extension of loan made prior to Tune 16, 1933, where

collateral is sufficient to liquidate loan, re-

ply to Comptroller of the Currency

First National Bank, Colorado Springs, Colo., reply

that resolution or amendment to bylaws would

not relieve chairman of board of status as

Indorsement of note for accommodation of third party,

reply to Comptroller that it constitutes lia-

bility subject to provisions of Regulation 0

Indorsement of note of partnership in which he has

less than majority interest, ruling re appli-

cability of Sec. 22(g) of FRAct to, to be

published in FRBulletin

Indorsement "without recourse" by bank president of

paper of company solely owned by such president,

for discount with his bank, Regulation 0 not ap-

plicable

Lending of trust funds by bank to, ruling re, to be

published in nailletin

Liability on mortgage loan insured under Title II of

National Housing Act, held that it is not ex-

empt from provisions of Sec. 22(g) of FRAct

Loan to corporation by member bank, executive officer

of which has substantial interest in corporation,

reply to Mr. Wood that it is not violation of

Sec. 22(d) or 22(g) of IRAct

To be published in FRBulletin

359

Pages

1/20 172

9/17 1721

10/ 8 1849

3/26 680

1/25 216

1/ 4 43

3/27 693

7/ 3 1302

4/21 837

1/31 266

3/ 3 490

9/19 1735

6/17 1189

4/25 893

3/20 622

2/19 3853/26 680


360pages


Executive officers: (Continued)Loans heretofore made to, statement re provisions of

436law applicable to, to be published in FRBulletin 2/26

Loans made to individual when not executive officer ofbank, question of extension or renewal at matur-ity when such person has since became executive

621officer 3/20

Loans to partnerships under Sec. 22(g) of FRAct, to be660

published in FRBulletin 3/26

Loans to partnership in which executive officers haveindividually or together less thana majorityinterest, reply to Mr. O'Connor that Sec. 22(g)is not applicable to 4/ 4

Loans to partnerships under Sec. 22(g) of FRAct, to be 1425published in FRBulletin 7/23

Members of boards of managers of branches and financecommittees of branches, held not to be 5/ 4

Mercantile-Commerce Bank and Trust Co., indebtedness 1314of Mr.. McQuaid should be reported 7/16

Morris Plan banks, reply to Bart, Gainer and Carr re in-quiry as to whether indebtedness to, should bereported to board of directors by, under Regu-lation 0 2/20

National Bank of Logan, reply to Mr. Await on appointmentof Mr. Raike while indebted to bank, not viola- 1.13tion of Sec. 22(g) of FRAct 1/11

Note given to commercial house which later discountswith bank, reply to Union National Bank, NewBrighton, Pa., that such officer should reportindebtedness to his board of directors 7/21 1414

Overdraft for, not in excess of 30 days' advance salary,held to be violation of Sec. 22(g) of FRAct and

141Regulation 0 1/15Overdrafts, granting of, or carrying cash items for,

216ruling re, to be published in FRBulletin 1/25Renewal of loan to person who was not executive officer

at time of making loan, to be published inFRBulletin 4/25

Renewal or extension of loans made to, prior to June16, 1933, to be published in FRBulletin 5/26 1053

Reports of indebtedness, should be made to Board of 30.1Directors under Regulation 0 2/ 6

Advice to FRAgents to circularize member banks re [10provisions of 2/19

Reports of indebtedness to other banks, to be published406in FRBulletin 2/26

Reports of indebtedness made subsequent to Banking Actof 1935 and prior to effective date of Regula-tion 0, reports required by regulation need notbe remade if in substantial compliance withregulation 2/28 456


kai-nEs: (Continued)Board of Governors: (Continued)

Executive officers: (Continued)

Reports of indebtedness, should be made available to

board of directors of member bank under Regu-

lation 0Reports of indebtedness to other banks, to be published

in ±Railletin

Reports of indebtedness to Morris Plan companies, to be

published in IRBulletin

Reports of indebtedness to another bank in its capacity

as trustee, to be published in FRBulletin

Reports of indebtedness evidenced by note discounted by

another bank, to be published in FRBulletin

Secretary, board of directors, reply to Citizens National

Bank, Wellsville, N. Y. that he should not be

considered as, as long as he performs only usual

functions

To be published in 1RBulletin

Trust funds, loans to, by own bank end by other banks,

Regulation U held applicable to

Federal credit unions, may not be classified as banks and

may not be placed on par list

Federal Deposit Insurance Corporation, funds held as re-

ceiver may be deposited with FRBanks

Letter to President Day re

Federal Open Market Committee members, that they may not be

elected by RBanks under limited authority

Indebtedness of affiliate to State member bank on assets ac-

quired from latter, ruling re applicability of

exception to Sec. 23A, to be published in

FRBUlletin

Individual, deposit of, for use in business, reply to FRBank

of Minneapolis that such a deposit may not be

classified as savings deposit

Insured mortgage placed by originating bank in trust account,

service charge may not be assessed unless part

of authorized compensation for administering

trustInterest on time deposit on which interest has been paid

monthly, withdrawn at end of 2: months and prior

to maturity, member bank should not deduct in-

terest credited

Interest payment after maturity on time certificate of de-

posit renewed within ten days after maturity,


Reply to Mr. Sargent that certificate must be postdated

to maturity date

Interlocking directorates, "contiguous or adjacent", service

of Mr. Milton to banks in towns which are

"contiguous" but not "adjacent" prohibited

361

Pages

3/ 5 513

3/26 680

3/26 680

8/20 1560

8/20 1560

3/ 5 5143/26 680

3/20 618

1/23 189

8/ 4 14878/26 1591

2/25 419

4/25 893

1/15 137

6/ 8 1157

2/27 446

4/25 893

5/ 5 971

1/31 271


362


Interpretations and rulings, revised designations forX-letters containing

"Intrest cheks": (See infra "Utility certificates")Investment securities, notes which are securities in fact,

reply to Mr. Stevens re ruling (interpretationof X-9322) subjecting such notes to restrictionsof Sec. 5136 of Revised Statutes as applicableto their purchase by State member banks

Maximum rate of interest payable on time certificate of de-posit callable by bank on 30 days' writtennotice, to be published in FRBulletin

Ruling to be published in July FRBulletinNational bank not permitted to invest trust funds in obliga-

tions executed by officer of such bank as re-ceiver, ruling to be published in FRBulletin

Participation certificates representing waived deposits,need not be included in determining limit onamount Fayette State Savings Bank Co., Fayette,Ohio, may deposit with nonmember Spitzer RorickTrust and Savings Bank, Toledo

Partnership, in which two men have equal interest, reply toMr. Wood re case of Sherman P. Houston, executiveofficer of Wood and Huston Bank, that Regulation0 does not prohibit extension of credit to

Payment of interest after maturity on time certificate ofdeposit renewed within ten days after maturity,to be published in FRBulletin

Preferred stock, called, purchase of, by State member bankprohibited by Sec. 5136 of Revised Statutes,reply to State-Planters Bank and Trust Co.,Richmond, Va., and letter to Comptroller re

Record of pending litigation required by Regulation F, to bepublished in FRBoalletin

Regulation U, interpretations of, to be published inritBuiletin

Reserves against uninvested trust funds, ruled that they neednot be maintained

Reserves, drafts drawn on FRBanks included in gross demanddeposits in computing, ruling re, to be pub-lished in /Rbulletin

Saving- E. deposits:Building and loan associations in New Jersey, may not be

classified asBusiness corporation, ruling that they may not maintain,

to be published in FRBulletinBusiness groups, such as Rotary and Kiwanis Clubs, reply

to Mr. Geery that funds of, may not be classi-fied as

Cash bonds:Classification as, of deposit of fidelity company

as collateral

pages

2/27 448

5/266/22

10881212

8/20 1560

9/ 3 1641

1/31

5/26

s/ 6

8/20

5/26

1/24

265

log

981

1.560

1088

205

2/26 456

6/10

2/26

1161

406

7/13 1546

9/22 1749


ka inga: (Continued)Board of Governors: (Continued)

Savings deposits: (Continued)

Cash bonds: (Continued)Employee to employer under California law, reply to

FRBank of San l'rancisco that such deposit may

be classified as

Cemetery lots, reply to F.D.I.C. that funds of organiza-

tions not operated for profit may be classi-

fied as, in connection with inquiry of Savings

and Trust Company of Indiana

Cemetery lots, funds given to city or town for per-

petual care, reply to F.D.I.C. that they may be

classified as, only if given in trust

Certificates of deposit representing, reply to Citizens

National Bank, Emporia, Va., re continued use

Classification of number of types of deposits, reply

to Mr. Await

No objection to copy of letter being sent to member

banks in 12th district

To be published in FRBulletin

Classification of funds of cemetery organizations and

of municipalities held for maintenance of

cemetery lots as, ruling to be published in

FRBulletinClose corporations, Board agrees with Mr. Case that

deposits of, may not be classified as

Deposits of credit unions and citrus growers associa-

tions may not be classified as, to be published

in FRBulletin

Funds of individual for use in business may not be

classified as, to be published in FRBulletin

Interest payment on those withdrawn between interest

payment dates, ruling re, to be published in

FRBulletin

Labor unions, reply to Mr. Young that funds of, may not

be classified as

Question raised by Harris Trust and Savings Bank

of Chicago re ruling that they may not be

classified as, action deferred and matter re-

ferred to Mr. Ransom, to consider also views of

FRBank of New YorkQuestion of altering ruling, Counsel to prepare

alternate definitions of savings deposits

Consideration suggested by Mr. Ranson before de-

parture of Chairman, no urgency and Chairman

willing to be considered as concurring in any

decision

Municipal corporations, deposits of, may not be classi-

fied as, to be published in FRBulletin

Municipal deposits, for sinking funds, education, police

and fire departments, playgrounds and chari-

table purposes, may not be classified as

363

Pages

9/22 1750

6/22 1206-7

6/22 1207

4/13 795

1/10 97

1/21 1791/25 215

7/23 1425

2/27 445

1/25 215

1/25 215

2/26 436

4/10 788

6/30 1276

7/28 1437

7/31 1461

3/26 679


364 pageS


Savings deposits: (Continued)Mutual benefit organizations, reply to Mr. Geery that

1546funds of, may be classified as 7/13Professional associations, reply to Mr. Geery that funds 1346of, may not be classified as 7/15Receivers and liquidatina trustees, ruling that deposits

of, may not be classified as, to be published 436in HBulletin 2/26

Reconsideration of classification of certain types of1694funds as, reply to that Board is making 9/12

Transfer of funds to checking account not permissible, 1203but may be transferred on written order 6/22Volunteer fire department and ladies auxiliary af-

filiated with fire department, ruled that de- 04posits may be classified as 3/24

Withdrawal slip, signed in blank, left with passbook atbanl, so that cost of securities purchased may be

104charged, practice ruled permissible 5/16Withdrawal by depositor upon telephone or other oral

1426order, ruling to be published in RBulletin 7/23Stock certificates of State member bank representing stock

of corporation holding bank premises, to be1°published in FREulletin 5/26

Summary of mimeographed interpretations, Board not willingfor Comptroller's Office to prepare and dis-tribute 6/18

Time certificates of deposit:Payable 3, 6, 9 or 12 months from date, reply to

American National Bank of St. Paul, Minn., that 53r1form of, complies with Regulation Q 3/ 9 679To be published in FRBulletin 3/26

Renewed within ten days after maturity, Board waives re-quirement for payment of interest for interven-ing period that certificates be postdated to

5 1°41maturity date /18Trust funds, investment by national bank in obligations ex-

ecuted by officer of bank as receiver appointedby Federal Court, reply to Mr. Fenner that Sec. 141/11(a) of Regulation F prohibits 7/22

Securities purchased from affiliate of national bank,not permitted to invest in, to be published in

9/19 1-75A-tBulletin"Utility certificates" or "intrest cheks", evidencing de-

mand deposits upon which interest is payableif outstanding three months or more, reply toFRBank of San Francisco that issue is not lawful 4/18

Bureau of Internal Revenue:National banks are instrumentalities of U. S. within meaning

of Social Security Act and such banks and theiremployees are exempt from taxes imposed by theAct 7/13 3"1°


41ings: (Contirued)Bureau of Internal Revenue: (Continued)

Social security act, three rulings re applicability of taxesunder, to national banks, State member banksand nonmember banks, to be published in FRBul-letin

Comptroller of the Currency:Bonds, convertible into stock only at option of holder,

reply to Mr. Young and advice to TRAgents reeffect of Comptroller's speech before Cal-

ifornia Bankers Association on right of memberbanks to purchase, under investment securities

regulationReply to Mr. Swanson on inquiry of First State Bank of

Rushmore, Minn., reInvestment securities under Sec. 5136, R. S., copies to be

furnished to Board for distribution to Statemember banks and no objection to publication innBulletin

Federal Deposit Insurance Corporation, deposits of trust fundsmade by member bank in nonmember uninsured bank,ruling that insurance does not cover

11Ye1 Electrification Administration, financial responsibilities ofState member and national banks as depositariesfor, reply to Mr. Cooke that Board cannot makeavailable information regarding condition of,outline of assistance Board may render

41ssell, T. Frank: (See National banks, Hartley National Bank,Bedford, Pa.)

4tekeeping,

Pranei sco

cehlick

4E115:Board of

"S"

gold for Banco de Venezuela by kRBank of New York,charge for, service will be free if accountopenedExchange, collateral value of newly issued

stocks and extensions of credit, reply toFRB n1 f S F isc

G.:Oscar:

Stock

a < o an ranc o

is

(See Bicycle Manufacturers Association)(See State member banks, Mercantile-Commerce Bank

and Trust Company of St. Louis)

Governors, desiFms presented and one submitted byGovernment Printing Office selected withslight modifications, order for two sets of

dies authorized

Sample of impression presented to Board, adopted and im-

pressed in minutes'1'etary of Agriculture:

Condition reports of State member banks, reply to SecretaryWallace that Board will request information re

farm loans and real estate owned in next call,and consideration will be given to items in

connection with proposed standard form ofreport

365

Pages

10/27 1953

6/ 5 1148

6/ 5 1149

6/18 1196

8/18 1536

11/ 6 2015

7/22 1419

10/26 1943

1/7 65

1/30 232


366 Pages

Secretary of the Treasury:FRnotes, letter to, suggesting changes in form of resolution

authorizing reimbursement of liTaanks for re-placement of 1928 series with 1934 series

Morgenthau, Henry H., Jr., meeting of Board called at requestof, present and advice to Board of developmentsleading to monetary understanding between U.S.,England and France

Taylor, tayne, Assistant Secretary:Advances by FRBank of New York to B. I. S. against gold,

discussion of matter with Secretary Morgenthauand no objection by Treasury

Devaluation of French franc, present with Secretary ofTreasury Morgenthau when latter informed Mr.Ransom re

Secretary of State:Moore, R. talton, Assistant Secretary, reply to Orville H.

Bullitt re applicability of Sec. 32Securities, shipments, postal surcharges on, letter to Chairman of

Governors' Conference re recommendation thatBoard endeavor to have Postal authorities dis-continue

Securities and Exchange Commission:Amendment to Securities Exchange Act of 1934 provided in Sec. 3

of S. 4023, letter to Chairman Landis that itis broad enough to cover banks

"Arranging" for extension of credit, transactions involving,reply that Arnold and Co. seems to arrangewithin meaning of Securities Exchange Act forcarrying of accounts with Prentice, Blaunerand Brady

Cooperation of Board with, statement of Chairman Eccles atmeeting of Board attended by Mr. Landis thatBoard will be glad to discuss matters of mutualinterest and of desire for

Galamack, Thomas, Executive Assistant to Chairman, present atBoard meeting with Mr. Landis during discussionof Regulation U

Hearing of officers of Liberty Share Corporation, investmenttrust, are connected with Liberty Bank ofBuffalo, advice re, Division of Examinations tosend observer

Landis, Tames, Chairman:Present at Board meeting to discuss draft of Regulation URegulation U, Mr. Parry to discuss with, suggestions made

under date of March 12, and then to be in-vited to attend Board meeting

Reserves, excess, to be invited to attend meeting of Boardtomorrow for discussion of problem

!:lanheim, Dibbern and Co., memo of Counsel re possible viola-tions of Securities Exchange Act of 1934 andRegulation T, recommending report to, approved

IRBank of San Francisco authorized to cooperate in inves-tigation

4/7 971

9/29 1987

9/28 1984

9/26 1767

7/23 1423

2/20 401

4/29 9°

11/ 4 1995

3/24 647

641'13/24

12/28 2291

641-73/24

3/14 57 6

4/21 .855

3/11. 556

65°3/21


367

4cUrities and Exchange Commission: (Continued)Public Utility Holding Company Act, applicability to banks,

reply to Commission that Board is advisingFRBanks of Commission's Rule re, and letter toERBanks re

Recommendation of Mr. Vest that letter of S.E.C. re appli-

cability to banks be published in FRBulletin,

approvedRegulation T, amendment to limit time for furnishing margin,

agreeable toRegulation U:

Amendment proposed to Sec. 3(f), Mr. Landis advised Board

that he considers it a banking problem

American Bankers Association subcommittee memo re, Mr.

Parry to discuss with representatives of com-

missionDraft of, letter from Mr. Landis with memo suggesting

changes in, referred to r. Parry(See also Regulations, Board of Governors)

Rules under Public Utility Holding Company Act, reply to Chair-

man Landis re tentative draft ofRules issued under Sec. 17(c) to be published in FRBulletil

Securities Exchange Act:Sec. 15(e), recommendation of modification of amendment to,

at request of BoardSec. 23(a), letter to, requesting that "or the Board of

Governors of the Federal Reserve System" beincluded in proposed

Trustees of bond issues, study of legislation to regulate ac-

tivities of banks, reported by Mr. Smith,A.B.A.

Question raised by Mr. Smith with Mr. Landis as to attain-

ment of objectives by amendments to Regulation

F, statement of principles of A.B.A., Mr. Coles

to take Charge

Smith to discuss with Chairman Eccles, Mr. Ransom to

advise latter with suggestion that he take

matter up with Mr. Landis

Mr. Ransom to confer with Mr. Douglas, copies of A.B.A.

statement and S.E.C. digest to be referred tocounsel for summarization and camm6nt, Mr.Ransom may invite Mr. Douglas to meet with

Board4e1U.uities dealers:

Third FRDistrict, inducing banks to obtain disproportionate

amounts of Postal savings deposits and selling

them bonds lacking in proper investment charac-

teristics as collateral, no objection to Mr.

Sargent informing State authorities in 12th

district

Pages

4/27 900

5 / 2 958

11/12 2043

4/24 864

4/17 819

3/13 567

4/10 7897/23 1426

5/15 1037

3/26 679

11/13 2051

11/13 2052

11/13 2053

11/25 2123-4

4/24 871


368 pages

Securities exchange administration:Accounts may not be divided segregating securities formerly

subject to 45% margin requirements in one ac-count subject to same requirements and new ac-count confined to securities subject to 55%

3/ 3 4°requirement, reply to A. E. Masten and Co.Agreements of nonmember banks, FRAgents notified that they may

discontinue furnishing lists to other FRAgents,and procedure for Board furnishing lists 4/ 4 757

Reply to France, McLanahan and Rouzer re questions on, andadvice that Board has not requested amendmentto Securities Exchange Act of 1934 to permitvoluntary cancelation of agreement by bank 5/ 5 971

Agreements on form T-2, execution of certificate by IRAgent orAssistant FRAgent, reply to .FRBank of New Yorkconcurring in opinion that this is proper pro-cedure, in case of Bence Commerciale Italiana 12/ 2

n15?

American Industries Corporation, FRBank of Chicago officersand manager of Detroit branch authorized togrant extensions of time to obtain payment, in

10/23 109connection with inquiry of"Arranging" for extension of credit, transactions involving,

reply to Securities and Exchange Commissionthat Arnold and Co. seems to arrange withinmeaning of Securities Exchange Act for carryingof accounts with Prentice, Blauner and Brady 11/ 4 1995

Bank loans under provisions of Act, examining procedure in 919connection with 5/16

Bank loans on securities under Regulation U: (See Bank loanson securities)

Collateral value of stocks on exempted exchange, under Regula-tion T, reply to Minneapolis-St. Paul StockExchange 5/18 1O°

Collateral value of certain types of newly issued securities,reply to Mr. Wheeler, on inquiry of Mr. Shaugh-nessy re, as to conditions governing, and ex-

10/26 1945tension of creditCornell, F. Shepard, reply to, that question relates to broker-

age business as affected by present margin re-quirements and is receiving careful study 7/16 1376

Corporation to lend on registered securities, reply to Mr.Gursey re proposed organization of, that Boardhas authority to regulate extension and main-tenance of credit by organizations not now in-cluded in scope of Regulations T and U 6/22 3°9

Credit extended is credit extended altogether on registered se-curities, reply to Mr. Moran on hypotheticalquestion presented, that interpretation is out-side of Board's province 7/30 455

Extension of time for consummation of bona fide cash transac-tion, reply to Mr. Anderson that exchange busi-ness conduct committee may grant and may refuseto act, if committee should refuse to grant tononmember, Board will consider granting authorityto FRBank re 3/26Digitized for FRASER


Securities exchange administration: (Continued)

Extensions of time to obtain payment, ERBank of Chicago offi-

cers and manager of Detroit branch authorized

to grant, in connection with inquiry of American

Industries Corporation

FRBank of Chicago, report of Mr. Parry that matters are not be-

ing properly handled and that some corrective

action should be taken, to make recommendations

Letter re qualifications of person to handle securities ex-

change matters, stating that Mr. Dawes is not

competent and outlining procedure to bring

about satisfactory solution

FRBanks, question raised as to control of functions under Se-

curities Exchange Act, suggestion that selection

of person to direct be made subject to approval

of Board or Director of Division of Security

Loans, adopted and Mr. Parry to prepare state-

ment embodying

Statement presented and approved

Letter to FRBank of Minneapolis advising of action

Grain transactions in restricted account, reply to inquiry of

William Cavalier and Co. re withdrawal of pro-

ceeds of warehouse receipt sales on day broker

receives them and if receipts were delivered

in settlement of grain "futures" sold and if

customer may withdraw securities or cash de-

posited in connection with commitment

Inquiry of Mr. Todd referred to 1EBank of Chicago for reply

Investment trust stock, unregistered, reply to Nutter, McClen-

nan and Fish that under Regulation T it has no

loan valueJoint account in unregistered securities by member firm and

nonmember firm, reply to FRBank of San Francisco

re inquiry of Los Angeles Stock Exchange that

determining factor is whether the member firm

Is extending credit to nonmember

List of stocks registered on national securities exchanges,

recommendation of 10.1'. Parry for printing of,

approvedSupplement, authorization for printing and estimate of re-

quirements for further supplements.

Loan to firm by retiring member, reply to Mr. Starbuck that

there is no legal restriction on his lending

sum to Struthers and Dean

Loans to intermediaries for purchase of stocks, reply to FRBank

of Boston re inquiry of A. B. Pimm and Co. as

to applicability of Regulations U and T

Loans to corporate investment trusts on stocks, reply to

Messrs. Larkin, Rathbone and Perry

Manheim, Dibbern and Co., possible violations of Sec. 7(c)

of Securities Exchange Act of 1934 and Regula-

tion T, memo of counsel re, and recommending

report to Attorney General and Securities and

Exchange CommissionFRBank of San Francisco may cooperate in investigation of

369Pages

10/23 1939

12/ 1 2151

12/24 2277

7/ 7 13107/13 13457/20 1408

6/22 12089/10 1672

1/20 173

11/13 2060

4/17 818

6/19 1200

1/27 222

10/14 1880

11/ 5 2002

3/11 5563/21 633


370pages

Securities exchange administration: (Continued)Margin requirements:

Adjustments in, reply to Mr. Heydon/s inquiry re flexibilityAmount required under amendment 7 of Regulation T does not

affect transactions entered into prior to Feb.1, reply to Mr. Post

Computation under Regulation T, commission is not included,requirement of 55% is minimum, reply to W. H.Dick

Extension of time to answer margin call, reply to Mr. Abram-ovitz that Board can make no exception to Reg-ulation T re

Increased requirement is applicable to all securities inaccounts, reply to Mr. MacDonald

Securities purchased for foreign customer, reply to Bear,Stearns and Co. that practice of demanding, inconnection with, is mandatory

Study by New York Stock Exchange proposed, authorized to saythat it was being made at the request of theBoard of Governors of the FRSystem

"Net withdrawal", reply to Mr. Hitschler that payment of 55%of proceeds from sale from an account consti-tutes, and is prohibited unless such sale causesaccount to become unrestricted

Nonmember firms transacting part of business through memberfirns, reply to Mr. Anderson that no interpre-tation has been made as to applicability ofRegulation T or statutes to that part of busi-ness or all of their business

Reports, amendment to requirements of Aug. 18 to exempt fromfiling, banks members of national securities ex-changes (except those carrying margin accounts)and require semi-annual reports from all memberfirms except banks in two classes listed anddrafts of letters advising of action, approved

Reports on 240, Whitaker and Co., business involves some exten-sion of credit, must file semi-annual reports

Repurchase of securities sold by Wrenn Bros. and Co. for res-toration to account of customer who had notmade payment therefor

Restricted accounts, net withdrawal takes place in combinationof transactions whereby customer sells securi-ties and requests a payment from the account

Singer, Dean and Scribner, reply to Mr. Strater that opinionof Mr. Rounds re Sec. 4(e) of Regulation T ap-pears to be correct

Trading in American securities, informal advice of Mr. Whighamre factors entering into relative convenienceand cost of, in New York and London markets

Transfer of restricted account from one broker to another notprohibited by Regulation T nor is second brokerprohibited from accepting note for debit balance,bank may not be transferee of note however, ifmaximum loan value is less than loan representedby note

5/271098

1/28 226

12/ 8 2191

6/11

3/ 6

6/24

117°

551

1231

6/ 1 1111

6/17 1189

3/26 678

2/20

4693/ 3

4/15 8°9

5/26 1°6

9/26 1774

10/29 1 958

8/25 1 580


Securities exchange administration: (Continued)

Warrants, reply to Mr. Schaller on question of Mr. Smith,Chicago Stock Exchange, re margin required

when customer delivers to restricted account

transferable warrants

Withdrawals from unrestricted accounts of cash, reply to Mr.

Sutton re effect of amendment to Regulation T

increasing margin requirements

Reply to/tr. Nathan re effect of amendment to Regulation

T increasing margin requirementsSe clirity Monthly Thrift Plan: (See Deposits)

sea.,ver, H. R.: (See Minneapolis-St. Paul Stock Exchange)"aate Document 75, 67th Congress, Expenses of Federal Reserve

Banks, referred to by President Harrison in

review of consideration previously given sal-

aries of officers of FRBanksShackelford, V. R., reply, on letter to Senator Glass, re inclusion

of inactive officers in definition of execu-

tive officers in Regulation 0Share-the-work plans, reference to, by President Parrison in con-

nection with proposed reorganization surveys

of RBanksSllasta Snow Cone Machine Co., reply to Senator Johnson on effort

of Mr. Mattox to secure industrial advance from

FRBank of San Francisco for

%natures on certificates of stock, study suggested to end prac-

tice of banks guaranteeing

Banco de Mexico, earmarked, in FRBank of San Francisco, reply

to Mr. Knoke that Board assumes it is held as

agent for FRBank of New York under agreement

with, request for confirmation

Advice to FRBank of San Francisco that although original

agreement was with FRBank of New York, Board's

approval should be secured

Purchases by Government, deposits created by, discussion of

problems arising out of, and deficit financing

and gold inflowStager, Dean and Scribner, reply to Mr. Strater that opinion of

Mr.. Round re Sec. 4(e) of Regulation T appears

to be correct-aner, E. H. D.: (See Foreign banks, Bank of England)

M. Siesel, Milwaukee, Wis., selected as alternate for nine

firms to be invited to bid on Board's new

buildingkith, A. Carlyle: (See National banks, Somerset National Bank,

Barker, N. Y.)

kith, A. M.: (See Treasury Department, Division of Bookkeeping

and Warrants)

kith, Tom K., President of American Bankers Association: (See

American Bankers Association)

371

Pages

8/26 1590

2/27 447

2/27 448

3/17 602

3/28 700

3/17 601

1/6 59

8/11 1511

11/ 6 2014

12/19 2246

11/19 2102

9/26 1774

1/2 3


372

Social Security Act:Amendment proposed to bring all banks under operation of,

may affect FRBanksNational banks, ruling of Commissioner of Internal Revenue that

they are instrumentalities of U. S. and exempt

from provisions ofState member banks, letter to Commissioner of Internal Revenue

requesting ruling re applicability to, action

deferred

Social Security Board:ConklinE, Gerald, RExaminer, desire to employ, Board not to

meet salary, referred to Mr. PaulgerMonetary aspect of Social Security Act, Chairman has discussed

informally with Mr. WinEnt, and will discussfurther, has requested Division of Research and

Statistics to prepare study and to be discussedby Board

Tinant, John G., Chairman, monetary aspects of Social Security

Act, Mr. Eccles has discussed informally with,and will discuss further, has requested Divisionof Research and Statistics to prepare study and

to be discussed by BoardSociety for Stability in Money and Banking, report in New York

Times that Mr. Goodbar had appointed Mr. G. E.Roberts to, end that latter was also member ofNational Bureau of Economics representing A.B.A.

Soldiers' bonus, financing of redemption of bonds for, plans for,presented to Board, members present favor al-ternate procedure, statement of Mr. Goldenweiser

showing estimate of requirements of Treasuryup to Tune 30

pages

12/ 4 2176

7/13 1348

7/31 1465

7/31 1°1

11/25

11/25

9/18

2125

2125

1726

2/12 356South Carolina:

Branch banks, reply to FRBank of Richmond re retention by bank

entering FRSystem that it need only to meetstatutory requirements for branches established

subsequent to Feb. 25, 1927 12/24 2213

Southern Underwriters Corporation, reply to National Bank of Com-merce of San Antonio that deposit of, may not

0be classified as savings account 1/30

Spaulding, Kenneth: (See State member banks, Tompkins County TrustCo., Ithaca, N. Y.)

Special counsel: (See Counsel, special)

Spencer, R. E., reply to letter addressed to President Roosevelt,advising re reductions in force of FRBank ofChicago 7/29 1446

"Stabilization Still Opposed by England", article appearing in NewYork Times Feb. 9, attention of Federal AdvisoryCouncil called to, as expressinp, views with which

Chairman Eccles is in agreement 2/12 3°

Staff of Board of Governors:Accident insurance, Secretary authorized to procure, for em-

ployees of Board working at site of new build-

ing, agreement re payment of sick pay 5/15 3024


373

Pages

44ff of Board of Governors: (Continued)

Addresses by members of: (See Addresses, staff members)

Appointments:Memo presented by Chairman recommending procedure to be

followed in future in making, approved

University of Arkansas, reply re policy of Board as to,

in response to inquiry as to vacancies for

graduates

2/4

4/9

293

785

Chairman's Office:Benton, Madeleine E., Secretary to Mr. Thurston:

Designation changed from stenographer 12/30 2321


Clayton, Lawrence, Assistant to Chairman:

Meetings of Board, to attend 2/4 292


Daiger, J. M., Special Assistant:

Employment continued on month to month basis for not

to exceed three months from Ian. 1 12/29 2302

Flood relief, attended meeting of government agencies,

and request to appear before House Ways and

Means Committee, to be accompanied by Mr.

Hammond, and both to be in capacity of ob-

serversEgbert, VaLois, Secretary, continuation of employment and

salary authorized

Ritter, Frederica, Secretary to Mr. Clayton:

Designation changed from Stenographer

Salary increased

Thurston, E., Special Assistant to Chairman:

Meetings of Board, to attend

Salary increased

4/1

1/30

12/3012/30

2/412/30

723

236-8

23212321

2922321

Charts showing principal functions of divisions of, and dis-

tribution of duties among members of divisions,

distributed to new Board members 2/4 291

Civil Service Commission, list of attorneys employed by Board

requested by, reply to be held until return of

Mr. Wyatt and sent if he has no objection 8/27 1594

Counsel's Office:Baumann, John C., Assistant Counsel, salary approved 12/30 2323

Benedict, Frederic P., Assistant Counsel, resignation of 10/19 1903

Clegg, Mrs. Hildur Lehn, Secretary, resignation of, granted

thirty days leave 4/16 814

Costinett, Grace L., Stenographer, salary increased 12/30 2323

Dolan, Helen V., Stenographer:

, Salary increased 12/30 2323

Transfer to, from Division of Examinations 6/ 3 1136

Dreibelbis, J. P., Assistant General Counsel:

Fletcher-American National Bank claim against FRBank of

Chicago, authorized, as individual, to discuss

settlement of, with directors of FRBank at

next meeting 9/11 1685



Pages374Staff of Board of Governors: (Continued)

Counsel's Office: (Continued)12/30 2"3Dyes, Mildred W., Law Clerk, salary increased12/30 2323Entriken, Everett, Law Clerk, salary increased

Gallagher, Nadine, Stenographer, salary increased 12/30 232,13Goepfert, Mabel, Secretary, salary increased 12/30 2,3,4,;Hackley, Howard M., Law Clerk, salary increased 12/30Herring, Allene, sick leave not in excess of that accrued

granted in connection with last illness andimpending death of mother 10/ 9 1862

rzn 2323Hill, Richard A., Stenographer, salary increasedHooff, Wilson L., Law Clerk, salary increased 12/30 2323

Morgan, Mary A., salary increased, question of policy raised /1:as to proper time of year for submission of

recommendations

t:

2

23 221160199Inabnett, Lucy, appointment and salary as stenographer 02

Malley, Mrs. Kathleen, Secretary, resignation of

936O'Brien, Myriam, appointment and salary as stenographer 4/30Owens, Joseph T., Assistant Counsel, salary increased 12/30 2525

2325Seitz, S. Earl, Assistant Counsel, salary increased 12/30Shay, Jerome W., appointment and salary as law clerk 12/17 20

2325Solomon, Frederic, Assistant Counsel, salary increased 12/30

Turner, Winnie (formerly Mrs. DeCosta), resignation as 486stenographer 3/ 3

Wingfield, B. M., Assistant General Counsel, present atconference re condition of Perth Amboy Trust Co.and Raritan Trust Co., Perth Amboy, E. J. 9/11 1685

Wyatt, Walter, General Counsel:Annual meeting of American Bar Association, authorized

to attend and to prepare memo re proposal toestablish Federal administrative court 8/ 4 1477

Report on attendance 9/ 1 1°

Fletcher-American National Bank claim against FRBankof Chicago, memo re status of, authorized tocontinue negotiations then to submit recom-mendation after consultation with Mr. Ransom 8/ 4 1478

Authorized, as individual, to discuss settlementof, with directors of ERBank at next meeting 9/11 1685

Illness, Board desires that he absent himself for time2302n1V/2:

Division of Bank Operations:

necessary to recover completely 2'PMeetings of Board, to attend

Anderson, Eleanor K.:Leave of absence without pay granted for trip abroad 4/28 91,15Transferred to Secretary's Office 12/30

Baldwin, William N., Clerk, designation changed from "In-

Barton, Edgar B., File Clerk:

252Sterdistrict Settlement Fund Clerk" 12/30

Extension of temporary appointment for period not to 395exceed six months 2/20 -

4848/ 4Further extension until Dec. 31 1 os

Resignation of 10/31 19c


Staff of Board of Governors: (Continued)Division of Bank Operations: (Continued)

Buchanan, Avelyn:Appointment and salary as stenographer and file clerkSalary increased and designation changed from stenogra-

pher to secretaryCallahan, F. J., Typist (stencil cutter), designation

1/21

12/30

12/30

12/30

375

Pages

178

2325

2326

2325

changed from clerk-typistCaskey, Merret P., Clerk:

Designation changed from "Federal Reserve Bank Clerk"

Salary decreased 12/30 2329

Crews, Esther G., File Clerk, transferred to Secretary'sOffice 12/30 2323

Daniels, Mortimer B.:Salary increased 12/30 2325

Transfer from Division of Examinations and designated

as technical assistant, no change in salary 2/27 442

DeLaMater, John, Clerk:Designation changed from "Federal Reserve Bark Clerk" 12/30 2325

Salary decreased 12/30 2329

Devereux, Flora S., Clerk, designation changed from "FederalReserve Bank Clerk" 12/30 2325

Dorsey, W. B., reported for duty under influence of liquor,recannendation that he be retired, attentioncalled to previous warning re dismissal, Mr.McKee to take up with Mr. Smead 2/14 351

Recommendation resubmitted with amendment and approved,to be retired April 1 2/18 373

Farrell, John R., Clerk, salary increased, end designationchanged from "Federal Reserve Bank Clerk" 12/30 2325

Hammond, Bray, Technical Assistant:Flood relief, to accompany Mr. Daiger before House

Ways and Means Committee on, both to be incapacity of unofficial observers 4/ 1 723


Holland, Mabel Virginia:

Temporary appointment and salary as camptameter operator 7/22 1416

Extension of temporary appointment for three months 10/15 1887


Horbett, J. E., Assistant Chief, salary increased 12/30 2325

Hurley, J. J., Clerk, designation changed from "MemberBank Clerk" 12/30 2325

Jones, Marjorie F., Clerk, designation changed from "Member

Bank Clerk" 12/30 2325

Kennedy, David M., Clerk, salary increased, and designation

changed from "Member Bank Clerk" 12/30 2325

Kroh, Margaret M., Camptometer Operator, salary increased 12/30 2325

McLelland, Beatrice, Canptometer Operator, salary increased 12/30 2325

Miles, Maria D., File Clerk, transferred to Secretary's

Office 12/30 2323

Millican, Thelma, Clerk, designation changed from "Federal

Reserve Bank Clerk" 12/30 2325


376

Staff of Board of Governors: (Continued)Division of Bank Operations: (Continued)

Mitchell, W. H., Clerk, designation changed from "'Member

pages

Bank Clerk" 12/30 2325Moore, A. A., Clerk, designation changed from "Federal Re-

serve Bank Clerk" 12/30 2325Morrissette, O. B., Clerk, designation changed from "Member

Bank Clerk" 12/30 2325

Myrick, L. S., Technical Assistant, salary increased 12/30 2325Porter, J. H., Technical Assistant, salary increased and

designation changed from examiner 12/30 2325

Roome, Helen C., Camptaneter Operator, salary increased 12/30 2325Scudder, Dilver, Clerk, designation changed from "Federal

Reserve Bank Clerk" 12/30 2325Sherfy, Robert E., Clerk, designation changed from "Inter-

district Settlement Fund Clerk" 12/30 2325

Smead, E. L., Chief:Committee on Free Services, recommendation of Presi-

dents' Conference that he be assigned to assist,noted with approval 7/ 2 1297

Permanent Committee on Standardization of Bank ReportForms, request for attendance at meeting onstandardization of call report form, actiondeferred 11/12 22::

Board unwilling to authorize attendance 11/13Personnel classification plans of 1RBanks, memo on

revision of an

12/24

2265

Transit conference, authorized to visit New York inconnection with preparation of program for 10/28 1956

Smith, Jewel B., Secretary, salary increased 12/30 2325

Stone, Harry B., Clerk, designation changed from "Inter-district Settlement Fund Clerk" 12/30 2325

Swindlehurst, Alice, temporary appointment and salary ascomptometer operator 7/24 1427

Extension of temporary appointment as comptaneter opera-tor for three months and transfer to Divisionof Research and Statistics 10/19

1904

Temporary employees authorized in connection with Bank Sus-pensions study 6/17

Van Fossen, 3. R., Assistant Chief, salary increased 12/30 2325

Walker, F. A., Clerk, salary increased, and designationchanged from "Member Bank Clerk" 12/30 2325

Weihe, Laura, Secretary, designation changed from stenog-rapher 12/30 23,26

Williams, Arthur C., Messenger, salary increased 12/30 2325

Williams, Mary C., Typist (stencil cutter), designationchanged from stenographer 12/30 2326

Division of Examinations:N al Boiseau, atalie, Stenographer, salary increased

Boysen, John T., Assistant Examiner:12/30 2324

Headquarters changed from Chicago to Omaha 7/22 14165



Staff of Board of Governors: (Continued)

Division of Examinations: (Continued)

377

Pages

Brien, E. L., Examiner, salary increased 12/30 2323

Brown, A. B., Stenographer, salary increased 12/30 2324

Brown, S. L., Examiner (field), salary increased and desig-

nation changed from Assistant Examiner 12/30 2324

Brown, W. G., Examiner (field), salary increased and desig-

nation changed from Assistant Examiner 12/30 2324

Buck, Earl D., Examiner, resignation of, three months'

salary authorized as dismissal wage 12/19 2244

Bush, Floyd W., Assistant Examiner, resignation of, dis-

missal wage of three months' salary authorized 12/19 2244

Cagle, C. E., Assistant Chief:

Conference on padding subscriptions to Government se-curities, to attend 5/ 1 946

Examinations of Banco de Puerto Rico and Banco Popular

de Puerto Rico, to participate in, authorized

to travel by airplane, and to be reimbursed

actual expenses 1/ 8 76

Macklin v Federal Intermediate Credit Bank of Columbia,

reply to Mr. Evans, Farm Credit Administration

that he will be available for, compensation and

expenses to be handled as before 1/17 160


Calloway, Roger M., Examiner, resignation of, three months

salary granted as dismissal wage 12/19 2244

Chamberlin, R. B., Examiner, salary increased 12/30 2323

Conkling, Gerald M., Examiner:


Social Security Board, desire to employ, Board not to

meet salary, referred to Mr. Paulger 7/31 1457

Cook, Mrs. Rachel, Stenographer, transferred to Secretary's

Office 5/11 991

Coulon, Catherine, temporary appointment and salary as

stenographer 7/23 1420

Extension for one month of temporary appointment as


Resignation accepted 9/18 1730

Daniels, Mortimer B., Assistant Examiner, transfer to

Division of Bank Operations and deSignation as

Technical Assistant, no change in salary 2/27 442

Dolan, Helen V., transfer to Counsel's Office 6/ 3 1136

Drinnen, F. J., Chief of Field Force:

Accompaniment of Mr. Broderick on latter's visits to

icliBanks in connection with organization surveys,


Appointment as First Vice President at FRBank of Phila-

delphia 5/12 999

(See also FRBank of Philadelphia, Staff)


English, X. F., Assistant Examiner (field), salary increased 12/30 2324


378 Page'

Staff of Board of Governors: (Continued)Division of Examinations: (Continued)

Folsom, G. H., Examiner:Salary increased and designation changed from Assistant

ExaminerSenate Committee on Interstate Commerce, detail to, ex-

tended for further six months in connection withrailroad investigation, at request of SenatorWheeler

Reply to Mr. Lowenthal that Board cannot extendloan of services as requested, but will requestthat he hold himself available for consultationwith successor

Part time arrangement for services to, authorized,in view of urgent requests of Mr. Lowenthal andMr. McConnaughey for extension of services to

Mr. Lowenthal agrees to arrangement, Mr. Folsom willnot participate in any way in hearings conductedby Committee

Franzoni, J. C., Assistant Examiner (field),creased

Goodman, G. M., Examiner, salary increasedGoshorn, Marion, Stenographer, salary increasedHopkins, Julia B., Assistant Examiner, salary increasedHostrup, C. C., Examiner, salary increasedHoward, T. P., Assistant Examiner (field), salary increasedJones, Laurence H., Examiner:

Leave with pay granted for one day, six hours, in addi-tion to regular annual leave

Salary increasedKearney, Helene, Stenographer, salary increasedKidwell, Alice E., File Clerk, transferred to Secretary's

OfficeO., Examiner, salary increasedF., Assistant Chief:at conference re condition of Perth Amboy TrustCo. and Raritan Trust Co., Perth Amboy, N. J.

increasedT., Examiner:increasedCommittee on Interstate Commerce Investigatingrailroads, reply to Mr. Lowenthal refusing toextend period of loan of services of, toBeverly, resignation as stenographer, leave withpay granted

Maynard, Marguerite C., Secretary to Mr. Paulger, salaryincreased

McClelland, W. J., Examiner, salary increased

Millard, E. R., Examiner, (field), salary increased

Murff, Gordon R., Assistant Examiner:Leave of absence with pay on account of illness granted

Feb. 6 to Sept. 1, and per diem allowance

granted Feb. 6 to March 3Leave of absence with pay granted for further period

Koppang, H.Leonard, R.

Present

SalaryMalone, C.

SalarySenate

Mathews, F.

salary in-

12/30 2325

3/4 497

9/18

10/6

10/ 6

1U3012/3012/3012/3012/30

12/50

9/ 212/3012/30

12/3012/30

9/1112/30

12/30

6/27

5/27

12/3012/3012/30

3/128/25

175°

1851'4

1847

2324252523242324

23252324

165523252524

2525,252'7

16652525

252°

1262

109°

2524

5611516


379

Pages



Murff, G. R.: (Continued)

Salary increased and designation changed from Assistant

Examiner to Examiner 12/30

Myers, Edward S., Stenographer, salary increased 12/30

Nelson, F. A,, Examiner, salary increased 12/30

Newcame, Elnyr, Stenographer, salary increased 12/30

Newman, H. J., Assistant Examiner, (field), salary increased 12/30

O'Brien, Bernice, File Clerk, transferred to Secretary's

Office 12/30

23242324232323242324

2323

O'Donnell, Thanes B., Assistant Examiner:

Leave of absence with pay on account of illness, 30

days additional granted 6/13 1176

Granted two additional weeks with pay 7/16 1373


Paulger, Leo H., Chief:

Membership of American Bank and Trust Co., Miami, Fla.,

to look into application during visit to

Florida 10/20 1918

Present at conference re condition of Perth Amboy Trust

Co. and Raritan Trust Co., Perth Amboy, N.J. 9/11 1683

Study of relationship of Division to FRBank examination

function, with view of adopting Mr. Miller's

suggestion re centralization of entire function

under Board 1/ 4 15

Porter, Nancy, Stenographer, salary increased 12/30 2324

Quinn, Dorothy E., resignation as stenographer 10/29 1962

Radford, X. R., Jr., Examiner, salary increased 12/30 2323

Root, Rose D., File Clerk, transferred to Secretary's Of-

fice 12/30 2323

Scott, A. Frances, Stenographer, salary increased 12/30 2324

Sheafe, Edward A„ Jr., transferred to office of Superin-

tendent of Construction 4/ 7 764

Simms, R. N., Messenger, retirement recommended and special

contribution to increase retirement allowance,

action deferred 3/31 707

Extension of service to be requested for, and to be

retired as of July 1, special contribution to

be made to increase retirement allowance 4/28 908-9

Slavens, Henrietta, temporary appointment and salary as


Extension of one month of temporary appointment 8/18 1535

Extension of one month 9/12 1693

Extension of one month 10/12 1867

Extension of two months 11/23 2110

Snow, R. T., Assistant Examiner (field), salary increased 12/30 2325

Stone, Harold F., Stenographer, salary increased 12/30 2324

Strahorn, C. A., Assistant Examiner (field), salary in-

creased 12/30 2324

Troup, F. W., Assistant Examiner (field), salary increased 12/30 2324


7)80pages



Turnbull, J. A., Assistant Examiner (field), salary in-112/30 233

Division of Issue and Redemption:

creased 3

Winkler, P. J., Examiner, salary increased

2/30 2

Barrow, Theresa, deferred retirement allowance, application

for, not to take effect in any event until

Uovernment service is terminated 12/ 7 2183Bohn, Belle Howell, deferred retirement allowance, applica-

tion for, not to take effect in any event until

Government service is terminated 12/ 7 2183Brinker, Henrietta T., retirement recommended and special


action deferred 3/31 7°7



made to increase retirement allowance 4/28 9*4

Burchard, Addie K., retirement recommended and special con-

tribution to increase retirement allowance,

action deferred 3/31 7°6



made to increase retirement allowance 4/28

Copeland, L. G., Chief, retirement recommended and special


action deferred 3/31 706

Extension of service to be requested for, and to be contribution to be

re-

tired as of July 1, special

made to increase retirement allowance 4/28

Mead, Edna S., deferred retirement allowance, application

for, not to take effect in any event until Gov-

ernment service is terminated 12/ 7 210

Meade, Fannie P., deferred retirement allowance, application

for, not to take effect in any event until Gov-

ernment service is terminated 12/ 7 218'3

Ceuesenberry, Caroline B., retirement recommended and special

contribution to increase retirement allowance, 706action deferred 3/31


b "6-9e made to increase retirement allowance 4/28retired as of July 1, special contribution to

Retirement of six employees recommended with special con-

tributions to increase retirement allowance,

action deferred to permit Board members oppor-

tunity to familiarize themselves with operation 706-6of retirement system 3/31

Retirement of seven employees, further consideration, ac- 736tion deferred 4/ 3

Retirement contributions to be returned to le of 22 em-

ployees, other four have made applications for

deferred retirements 12/ 7 2165



Division of Issue and Redemption: (Continued)

Rusch, William John, appointment as chief of division and

salary, reference to question of change in

method of paying expenses of division, action

deferred pending determination of Question

Attitude of Comptroller toward method of payment of

expenses of division not available, salary of

Mr. Rusch considered excessive, temporary ap-

pointment for three months approved

Reply to Deputy Comptroller that Board has deferred

action as to permanent appointment pending ac-

tion of Comptroller re proposed change in manner

of paying expenses of division and temporary

appointment extended to Nov. 15

Temporary appointment, letter to Comptroller calling

attention to, and reouesting early advice re

proposal that Board reimburse for services of

division

Attention called to fact that Board has received no

replies to letters re payment of expenses of

Division, Mr. Morrill to consult with Deputy

Comptroller and that if services are to be

continued, Board will consider short extension

of temporary appointment

Temporary appointment extended until Nov. 30, effec-

tive date of transfer of employees of division

to Comptroller's payroll

Snead, Susan U., retirement recommended and special contri-

bution to increase retirement allowance, action

deferred



made to increase retirement allowance

Soule, Mary L., retirement recommended and special contri-

bution to increase retirement allowance, action

deferred


retired as of July 1, special contribution to

be made to increase retirement allowance

Transfer of employees to payroll of Comptroller and payment

by Board of expenses, letter to Comptroller re

To became effective close of Nov. 30, appointment of

Mr. Rusch extended to that date

Resolution effecting transfer, letter to Comptroller

re procedure in payment of expenses, letter to

employees of division and advice to all FRBanks,

expenses to be prorated

Division of Research and Statistics:

Barnett, Lois L.:

Temporary appointment and salary as clerk

Appointment made permanent and salary approved

Salary increased

381

Pages

6/25 1241-2

6/30 1281

9/26 1771

11/ 5 2004

11/13 2057

11/16 2064

3/31 706

4/28 908-9

3/31 706

4/28 908-9

4/14 800

11/16 2064

11/25 2127

7/ 3 130010/ 1 1811

12/30 2327


332Raga

Staff of Board of Governors: (Continued)Division of Research and Statistics: (Continued)

Barton, H. C., Jr.:Designation changed from Research Assistant to Junior

Economist 12/30 2327

Salary increased 12/30 2326Baur, Helene F.:

12/30

Salary increased 12/30 23262328Designation changed from Statistical Clerk to Clerk

Designation changed from Research Assistant to Junior

Bergelin, John O.:

12/30 2 2327EconomistSalary increased 12/30 326

Blattner, George 902Appointed Assistant Director and salary increased 4/28 ,

Salary increased 12/30 232uBryan, Malcolm H., temporary appointment and salary as

senior economist, to be considered for permanentappointment and to enter retirement system nowif he desires 12/ 4 21'17

Bulla, Beatrice:Designation changed from Research Assistant to Junior

Salary increased 1122//3030 22332276Economist

Burgess, Caroline M.:Designation changed from Library Clerk to Library

Assistant 12/30 2328Salary increased 12/30 2327

Carson, William J., appointment for three months, and salary,1099

to assist in research work of division 5/27Extension of appointment through Sept. 30 9/ 1 163°

Temporary appointment continued on per diem basis fornot to exceed 40 days of actual work fromOct. 1 9/30 1801

Coffey, Lyndall H.:Designation changed from Statistical Clerk to ClerkSalary increased

142//2308 29302782


Collier, Raymond J.:

Designation changed from Statistical Clerk to Economic2328Assistant

Conklin, Maxwell R.:

12/30Salary increased

,

12/30 232°

Designation changed from Research Assistant to SeniorEconomist 12/30

12/30 232(1Salary increased

232:

Counts, Mrs. Catherine Marie: Appointment, temporary, and salary for three months as

Statistical Clerk 8/2E3 16(4)

Deeds, Dorothy R., Secretary, salary increased 1V/3g 16

11/23 2>9Extension for three monthsDesignation changed from Statistical Clerk to Clerk


383



Director, Federal Open Market Committee, consensus of

members of Board that Director should be

mist for, as reconstituted March 1

Dirks, Frederick C.:

Appointment and salary

Designation changed to

Salary increased

Doherty, George P, Jr.:

Appointment and salary

Designation changed to

Salary increased

Drury, Horace 1, Clerk (temporary),

Dyer, Helen R., Library Assistant:

Designation changed from Stenographer-Librarian

Salary increased

Edmiston, Henry, Junior Economist, designation changed

from Junior Research Assistant

Elder, Nora V., Chief Draftsman, designation

Draftsman

Ellis, Margaret:Designation changed

Economist

Salary increased

Ernst, Rosa:Designation changed

Assistant

Salary increased

Esser, Eleanor M.:

Appointment and salary as library assistant

Salary increased

Evans, Ethel L.:Designation changed from Statistical Clerk to Clerk

Salary increased

Evans, Mary Sibley, Junior Economist, designation changed

from Research Clerk

Fenn, Robert D.:Appointment and salary (nominal) as Junior Research

Assistant; is intern of National Institute of

Public Affairs

(See also National Institute of Public Affairs)

Designation changed from Junior Research iksistant to

Economic Assistant

Gardner, Walter R.:

Advances against gold to B. I. S., statement re proposed

transaction

Address on banking situation in Europe, to make before

District of Columbia Bankers Association at

request of Mr. Corby

Designation changed from Research Assistant to Senior

EconomistSalary increasedSalary increased

econo-

as Junior Research Assistant

Junior Economist

as Junior Research Assistant

Junior Economist

from

from

salary increased

changed from

Research Clerk to Junior

Stenographer to Economic

Pages

2/4 291

6/11 116612/30 232712/30 2326

6/25 124412/30 232712/30 232612/30 2327

12/30 232812/30 2326

12/30 2327

12/30 2328

12/30 23284/28 902

12/30 232812/30 2326

5/14 1019

12/30 2327

12/30 232812/30 2327

12/30 2328

10/ 3 1823

12/30 2328

9/28 1779

10/13 1875

12/30 2327

A//38 2g9EDigitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

384

Staff of Board of Governors: (Continued)Division of Research and Statistics: (Continued)

Garfield, Frank R.:Additional leave on account of illness, approved

Extended for 30 daysExtended for 30 days

Designation changed from Research Assistant to Senior

EconomistSalary increased

Gehman, Clayton:Appointment and salary as Junior Research Assistant

Designation changed to Junior Economist

Goldenweiser, E. A., Chief:Advances against gold to B.I.S., statement that he felt

YRBank of New York should make proposed and

views re loans of this characterNational Bureau of Economic Research, request that he

serve as member of exploratory committee to de-

termine subject of research requested by Reserve

City Bankers Association, discussion of, to

attend meetings informally

Review of recovery movement, credit conditions, inflow

of foreign funds, excess reserve situation and

question of reversing easy money policy, beforePresidents' Conference

Haddock, Mary Jane, temporary appointment and salary asclerk for three months

Haigh, Julia:Designation changed from Stenographer to Secretary

Salary increasedHammill, Caroline:

Designation changed from Stenographer to Secretary

Salary increasedHenry, Ella W., Draftsman, salary increased

Hersey, A. B.:

1/31

3/ 33/31

12/3012/30

6/ 812/30

9/28

9/18

11/19

/ 78

12/3012/30

12/3012/3012/30

Pages

252486711

23272326

1154257

17"

1725-6

2101

1498

230

2526

52:6220:86

P

Designation changed from Research Assistant to JuniorEconomist

Salary increasedHodson, Viola A., Clerk, designation changed from Statisti-

cal ClerkHoebreckx, Cherie L., Clerk, salary increased

Hubacher, Mrs. Rose Ella:Appointment and salary as StenographerDesignation changed to SecretarySalary increased

Jaszi, George, appointment and salary as Economic Assistant

Jones, Ruth:Designation changed from Stenographer to Secretary

Salary increasedKenny, Mrs. Gunhild Anderson:

Appointment and salary as Junior Research Assistant,

to remain member of Civil Service retirement

system

12/3012/30

12712//3030

8/ 712/3012/3012/30

12/3012/30

9/26

25272326

2255226

1498Q'252u2527 ,

,A03‘,026P

177 1


385

Pages



Kenny, Gunhild A.: (Continued)

Designation changed from Junior Research Assistant to

Junior EconomistSalary increased

Kline, William A.:Designation changed from Printing Clerk to Assistant

Printing Clerk

Salary increasedKrost, Martin, Junior Economist, designation changed from

12/3012/30

12/3012/30

23272326

23282327

Junior Research Assistant 12/30 2327

Litchfield, Susan Burr:Designation changed from Research Assistant to Senior


Leave of absence without pay from Aug. 7 until herphysician permits her return 8/ 4 1483


Study of relationship between tax and monetary Policy 8/ 4 1481

Longstreet, Victor M.:Designation changed from Research Assistant to Senior



Maroney, Mary:M., Economic Assistant, designation changedfrom Statistical Clerk 12/30 2328

Martz, Jean G.:Designation changed from Statistical Clerk to Clerk 12/30 2328


Morse, Chandler:Designation changed from Junior Research Assistant to

Senior Economist 12/30 2327


Moss, Joyce, Statistical Clerk, resignation of, granted 30days leave 3/10 548

Myer, Eleanor, Secretary, salary increased 12/30 2326

Nergard, Mavis B.:Designation changed from Statistical Clerk to Clerk-

Stenographer 12/30 2328


Olmstead, Helen:Designation changed from Stenographer to Secretary 12/30 2328


Perry, Katharyne W.:Designation changed from Statistical Clerk to Economic

Assistant 12/30 2328


Piser, Leroy M.:Designation changed from Research Assistant to Senior



Rackstraw, Elsie, Librarian, salary increased 12/30 2326


386 pages



Reehling, Mrs. Ruth H. (Porter)

Leave of absence on account of illness, additional,

with pay, granted 9/19

Reappointment as clerk and salary, approved 3/27 69;


Robinson, Harvey A.:Designation changed from Library Clerk to Library

Assistant 12/30 2328


Robinson, Roland I.:Desigmation changed from Research Assistant to Junior


Per diem allowance approved for time spent in New York 508in connection with W. P. A. project 3/ 5

Salary increased2326

Rott, Neva E.: 2328

Designation changed from Stenographer to Secretary 1122//33:


Ruch, Edith B.:Designation changed from Statistical Clerk to Clerk

2328

Salary increased 1V/3300 20

Sahm, Grace R.:Appointment and salary as assistant in drafting work 6/25 1244


Sanderson, Alex G., Jr., temporary appointment and salaryas junior Research Assistant 7/18 1401

Schwartz, Carl H., Jr., appointment and salary as Junior

Research Assistant 5/14 1°19

Seals, Constance:Designation changed from Statistical Clerk to Clerk %) 2328,,90PSalary increased 70

Seaman, Cherie LaForge, appointment and salary as Clerk 4/ 9

Silverman, Joseph:Appointment and salary as Statistical Clerk 10/31. 1985

12/30 08Designation changed to Clerk

Sissman, Louise:Designation changed from Research Clerk to Junior


Leave of absence without pay ,;1-ranted, to attend summer

session at Columbia University 7/ 1 10


Smith, Jesse, Messenger, salary increased 1/15

Stockwell, Eleanor J.:Appointment and salary as Statistical Clerk 8/31 1624

2328Designation changed to Clerk

Sutherland, Alvern H., Assistant Librarian, salary increased 12/2/0 23260

Sutton, Mrs. Blanche L., resignation, letter to Civil Service

Commission re, as condition to reinstatement of

her husband as Government employee, suggesting

acceptance of, as of June 1 3/26 675


387

Pages

461tf of Board of Governors: (Continued)


Sutton, Mrs. Blanche L.: (Continued)

Resignation accepted and advice to Civil Service Com-

mission in connection with reinstatement of

Mr. Sutton in National Park Service

Swindlehurst, Alice, extension of temporary appointment as

camptometer operator for three months and trans-

fer to Division from Division of Bank Opera-

tionsDesignation changed to Clerk

Tappy, Elizabeth P.:

4/29

10/1912/30

919

19042329

Designation changed from Statistical Clerk to Clerk 12/30 2328


Sick leave, granted additional because of approaching

confinement 12/22 2251

Taylor, Alice M.:Designation changed from Statistical Clerk to Clerk 12/30 2328


Terborgh, George W.:

Appointment and salary as Research Assistant 8/14 1526

Designation changed to Senior Economist 12/30 2327

Tewksbury, Elizabeth P., appointment and salary as Clerk 7/11 1339

Thomas, Woodlief, Assistant Director, service to Social

Science Research Council arranged by informal

sanction of Board members 9/18 1724

Thorne, Wendell E.:Designation changed from Research Assistant to Junior



VanBrakle, Raymond, Messenger:


Transferred from messenger pool in Shoreham Building

(Secretary's Office) to Division 4/2 725

Vincent, Helen:Designation changed from Statistical Clerk to Clerk 12/30 2328


Wenger, Jane, temporary appointment as Clerk made permanent,

no change in salary 1/8 75

Designation changed from Statistical Clerk to Clerk 12/30 2328


White, Mary:Designation changed from Statistical Clerk to Clerk 12f30 2328


Waitney, Simon N.:

Appointment and salary as Junior Research Assistant 5/13 1040


Williams, Lois A.:Designation changed from Stenographer to Secretary 12/30 2328



388pa g e s



Wills, Mrs. Norma Finch:

Appointment and salary as Stenographer 4/25 88!32°

Designation changed to Secretary 12/30 2

Salary increased 12/30 2327Division of Security Loans:

Bradley, Philip E., Assistant Chief:


Statement re reaction to issuance of Regulation U 3/31 7100

Branic, Otto H., Messenger, salary increased 12/30 232'

Dembitz, Lewis N., Research Assistant, salary increased 12/30 2329

English, Earle W., recommendation of Mr. Parry that he be

transferred from IRBank of Chicago, and salary,1309

approved 7/ 7 2329

Salary increased 12/302329

Grinioff, Vladimir b., Research Assistant, salary increased 12/30

Hail, Catherine A., Economic Assistant, desimation changed2329

from Statistical Clerk 12/30

O'Hare, Florence C., Secretary, salary increased 12/30 2329

Parry, Carl T., Chief:

Meeting with representatives of Chicago Stock Exchangeat RBank of Chicago re proposed amendment to

Regulation T, report re unsatisfactory situation 2150at FRBank 12/ 1

Regulation T, to meet with representatives of New York

Stock Exchange at FRBank of New York re proposed 2164amendment 12/ 4

Schmidt, Catherine L., Secretary, salary increased 12/30 2329

Employees excused from duty on Sept. 23 until 1 p.m. on occa-

sion of G. A. R. parade 9/22

Employees who can be spared to be excused at 1:00 p.m. Dec. 24,

Board's offices to be closed Dec. 26 12/ 4

Examining Physician:Daughton, Br. A. D., alternate for Dr. Barr, appointment 6/18 1195

Hours of duty and record of overtime with report thereof to

Civil Service Commission, memo of Mr. Vest re

regulations with respect to, under Act of March1165

14, 1936, no action 6/11

Regulation recommended by Mr. Morrill, adopted and reports

of overtime work of certain classes of employees 1274

to be reported to Civil Service Commission 6/30

Intern of National Institute of Public Affairs, proposal to place

with Board, Mr. Morrill consulted Messrs.

Stockberger and McReynolds in connection with

Mr. Fenn, Mr. Goldenweiser feels employment of

unsalaried individual would be inadvisable,Board to consider appointment on nominal salary

basis and Mr. Galdenweiser to interview Mr.

Fenn 9/29 17°'11

Leave, annual and sick, not determined if new Act of March 14,

1936 is applicable to, Mr. Morrill to designate

representative to attend meeting of Council of

Personnel Administration to draw up regulations, 6693/25

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

389

Paaes

StlIff of Board of Governors: (Continued)

Leaves of absence:Government limitation for sick and annual, adopted, regu-

lation not to be drawn up until Government de-partments have adopted their regulations 4/28 903-'1

Secretary or an Assistant Secretary authorized to ap-

prove 30 days sick leave beyond accrued sick

leave upon recommendation of head of division 4/28 904

Graduate School of Banking, granted leave in addition toregular annual leave and transportation expenses

assumed for those attending, to make written

report re 4/28 903-5

Miller, A. C., to be available for consultation on problems in

connection with new building, press statement

to be prepared re 2/ 7 310

Letter to, re arrangament 2/13 349

Office of Mr. Droderick:Carter, Beverly A., Messenger, salary increased and desig-

nation changed from "Messenger-clerk" to 12/30 2322

Ficks, L. G.:Appointment as private Secretary and salary 2/27 442


Office of Comptroller:Griffiths, Mrs. Dolly S., feeling of Mr. O'Connor that some

consideration should be given to terminationof her services as to secretaries to membersof the Board, payment of salary for one monthand dismissal wage equal to six months' salaryauthorized 1/30 236-8

Office of Mr. Davis:Drake, William H., Messenger, assignment to 12/30 2322

Piper, Carol S.:Appointment and salary as Secretary, to continue as

member of Civil Service Retirement and Disabil-

ity Fund 6/29 1265


Office of Mr. Hamlin:Nagle, Mrs. Margaret, Secretary, payments possible in con-

nection with termination of services due totermination of Mr. Hamlin's appointment, salary

approved for 30 days and dismissal wage au-thoriv,ed if not retained 1/30 236-8

Office of Mr. James:Bradley, C. S., Secretary, eligible for immediate retirement,

in connection with termination of Mr. James'

appointment, Mr. James feels that effort should

be made to retain, payment of salary for 30

days and if not retained, sum equal to six

months' salary be paid to Retirement System 1/30 236-8

Office of Mr. McKee:Marlow, Ernest, Messenger, salary increased and assigned to 12/30 2322

Walters, A. C.:Transferred from Secretary's Office to be Secretary to 5/ 5 964Salary increased 6/23 1220Digitized for FRASER


390

Staff of Board of Governors: (Continued)Office of Mr. Willer:

Ficks, L. G., Secretary, payments possible in connectionwith expiration of Mr. Miller's term, feelingof Mr. Miller that he should be retained, pay-ment of salary for 30 days and dismissal wageauthorized, if not retained

Office of Mr. Morrison:Bradley, S. C., appointment as Secretary for sixty days,

same salary to be continued and provision forpayment of six months' salary to retirementsystem to apply if released at end of period

Extension for one month of service as Secretary to, sumto be paid to retirement system if services arenot retained beyond May 31

Continued employment of, status reported by Mr. Morrill,Mr. Broderick investigating possible placementof, continued for one month after May 31 atpresent salary

Office of Mr. Ransom:Cotten, Mrs. Annie Ingram, appointment and salary as Secre-

tary, physical examination to be made by FRBankof Atlanta's physician

Washington, Sidney, Messenger, assignment toOffice of Mr. Szymczak:

Frost, F. L., Messenger, assigmnent toStone, A. M., Secretary, continuation of employment and sal-

ary at increased rate authorizedTaylor, Victrin M., Stenographer, salary increased

Office of Mr. Thomas:Farrar, Margaret E., Secretary, termination of services be-

cause of end of term of Mr. Thomas, paymentthat could be made to, payment of salary for30 days and dismissal wage authorized

Offices of Board members, secretaries to, memo from Mr. Morrillshowing payments which could be made to, inevent they are not continued beyond Jan. 31,recommendations of Chairman Eccles re, approved

Offices of Board to be closed January 2, 1937Overtime, record of, and report thereof, to Civil Service Com-

mission under Act of March 14, 1936, memo ofMr. Vest re, no action

Reports of over-time work of certain classes of employeesto be reported to Civil Service Commission

Reorganization, survey of, preliminary report submitted by Mr.Broderick and final report to be made whenbudget for 1937 is considered

Salaries:Recommendations, question raised by Mr. Wyatt as to proper

time of year for submission ofSurvey of, Mr. Broderick appointed to conduct

Secretary, Federal Open Market Committee, consensus of membersof Board that committee as reconstituted March1 should have Secretary of Board as its Secre-tary

1/30

3/2

4/23

5/26

2/2412/30

12/30

1/3012/30

1/30

1/3012/29

6/11

6/30

7/ 7

9/123/ 6

2/ 4

Pages

236'8

4"

857

1°84

415

2322

2322

236.8

2321

236-6

235-62299

1165

1274

1521

1692524



Secretary's Office:Anderson, Eleanor K., File Clerk:

Salary increasedTransferred from Division of Bank Operations

Bass, Sampson H.:Appointment as voucher clerk and salary, latter fixed

for probationary period then if services are

satisfactory to be increasedAppointment as voucher clerk made on temporary basis

because of unfavorable physical examination,

it being expected that condition will respond

to treatment

12/3012/30

4/14

4/17

391

Pages

23222323

799

820

Salary increased as result of satisfactory probationary

period 6/18 1194

Bethea, L. P., Assistant Secretary:Meetings of Board, to attend 2/4 291


Brennan, John C., Secretary to Mr. Bethea, salary increased 12/30 2322

Brissenden, Sarah L.:Leave extended for 15 days without pay, Board unwilling

to authorize exchange of positions with MissKent in American Embassy at London 10/ 6 1845

Salary increased and designation changed from Stenog-rapher to Secretary to Mr. Carpenter 12/30 2322

Carpenter, S. R., Assistant Secretary:Meetings of Board, to attend 2/ 4 291


Cassil, John F., Order Clerk, salary increased and designa-tion changed from File Clerk 12/30 2322

Colliflower, Mary L., appointment and salary as stenographer 5/21 1061

Cook, Mrs. Rachel, Stenographer:

Transferred from Division of Examinations 5/11 991


Costello, John M., Messenger, Telegraph Office, salary in-creased 12/30 2322

Crews, Esther G., File Clerk, transferred from Divisionof Bank Operations 12/30 2323

Crowder, Joseph S., appointment for not to exceed threemonths and compensation as file clerk 6/ 6 1151

Dodd, Yvonne, Secretary to Mr. Morrill, salary increased 12/30 2322Grimes, Frank H., Assistant Index Clerk:

Leave of absence without pay granted, in connection withtrip to Europe 4/13 792


Haworth, Mrs. Margaret G., transfer, reply to SurgeonGeneral that there is no objection to negotiat-ing with, for employment by U. S. Public HealthService 3/25 670


Action accepting resignation rescinded and transfer to

Public Health Service authorized effective whenshe reports to new duties 3/31 712


392

Staff of Board of Governors: (Continued)Secretary's Office: (Continued)

Pages

Hoyt, Elva A., appointment and salary as stenographer, ismemberember of Civil Service Retirement System 11/24 all

Jones, Robert Hiley:and salary as messenger, assigned to mes-

senger pool in Shoreham Building 4/ 2 725


Kellogg, Scott D., File Clerk, salary increased 12/30 2322

Kidwell, Alice E., File Clerk, transferred from Division ofhxaminations 12/30 2323

Kidwell, Warren, Messenger, Telegraph Office, salary in-creased 12/30

Kiley, John N., Jr., File Clerk, salary increased

22332222

Kilgore, I. Edward, Administrative Assistant, salary in-creased 1122//3030 2322

Krieger, D. Jeanne, Stenographer, salary increased 12/30 2322Lavelle, Helen G., appointment, temporary, and salary as


Temporary appointment as stenographer made permanent 9/111590

Linke, Robert N., Inspector, continuation of temporary ap-pointment for period not longer than completionof building 11/ 5

2000

Miles, Maria D., File Clerk, transferred from Division ofBank Operations l 2323

Morgan, M. Maxine, Stenographer, resignation acceptedi,///3064

1492

Morrill, Chester, Secretary, meetings of Board, to attend 291

O'Brien, Bernice, File Clerk, transferred from Division ofExaminations 12/30 2323

Parkhill, Dorothy M.:Appointment, temporary, and salary for not to exceed

two months as stenographer 7/15 15°4Appointment extended one month 9/ 9 166Appointment made permanent and salary, to be as-

signed to Mr. Daiger for duration of his appoint-ment 06 83 92

Salary increasedPeregory, Walter L., Supply Clerk, salary increased

112 // 0

12/30

223222

Pinn, William E., Messenger, salary increased 12/30

2322

Poeppel, Edna Betz, appointment and entrance salary asChief File Clerk (to effect consolidation offiles) 9/ 1 1629

Poundstone, John M., Messenger, Telegraph Office, salaryincreased

Rice, Mrs. Margaret A., leave without pay for 27 days12/30 2322

granted 6/ 2 1119

Root, Rose D., File Clerk, transferred from Division of Ex-aminations 12/30 232 3

Smith, Mrs. Mildred F., Stenographer, salary increasedal 12/30 2322

Stewart, Phyllis E., Secretary to Mr. Noell, salary in-creased

-2312//(/)0

2322

Thomason, Mrs. Louise, Typist, salary increased 2322


393

Pages


Secretary's Office: (Continued)

Van Brakle, Raymond, Messenger, transferred from messenger

pool in Shoreham Building to Division of Re-

search and Statistics

Walters, A. C., transferred to be Secretary to Mr. McKee4/ 25/ 5

725964

Wilkes, Mrs. Anne H., Stenographer, resignation accepted 7/29 1442

Service to private economic research organizations, past policy

involved no formal sanction, Mr. Thomas and

formerly Mr. Riefler were members of Social

Science Research Council 9/18 1724

Sick leave, travel regulation, provision for per diem allowance

to persons becoming ill while in travel status 3/14 .581

Special Assistant to Board:

Daiger, J. M., discontinuance of services, to be made ef-

fective Sept. 30, if Chairman desires to retain,

he will make recommendation that Mr. Daiger be

attached to his office 7/28 1436

Extension of appointment for 15 days because of failure

of chairman to advise of discontinuance of ser-

vices 9/11 1676

Appointment extended until Dec. 31 and designation

changed to Special Assistant to Chairman 10/14 1884

Special Counsel:Hamlin., C. S., recommendation of Chairman Eccles that ser-

vices be retained in advisory capacity, Secre-

tary to arrange directly with, as to matters

to be considered by, appointment and salary

approved 2/ 4 295


Superintendent of Construction:

Accident insurance, Secretary authorized to procure, for

employees working at site of new building,

agreement re payment of sick pay 5/15 1024

Kuhn, John B., temporary appointment and salary as inspec-

tor of pile driving and reinforced concrete 5/ 4 959

Resignation accepted 5/21 1062

Linke, Robert Newton:

Appointment and salary for not to exceed six months

period to inspect piling and reinforced con-

crete work 4/17 822

Employment of Mr. Kuhn on temporary basis during ab-

sence of, because of injury 5/ 4 959

Leave with pay granted for time absent because of in-

jury 5/13 1007

Sheafe, Edward A., Jr., transferred to, from Division of

Examinations 4/ 7 764

Toston, Harry Edward, temporary appointment and salary as

inspector for driving of piles and reinforced

concrete work 3/26 674

Continuation of temporary appointment for period not

longer than completion of building 11/ 5 2000


394 pages

Staff of Board of Governors: (Continued)Superintendent of Construction: (Continued)

White, Willard L. K., temporary employment as assistant to,and salary, not necessary to become member ofRetirement System

Survey of personnel and salaries, Mr. Broderick appointed toconduct

Telegraph Office:Mooney, T. T., Chief Operator, extension of time for addi-

tional year under Retirement System recommendedOperators, transfer to payroll of Board as of April 1Personnel problem presented in change to teletype equipment,

operators to be retained for present and assist-ance to be offered in securing other positions

Poundstone, Tohn M., appointment and salary as messengerPrior service liability, adjustment in, in favor of FRBank

of Chicago, in connection with transfer toBoard's payroll

Travel expenses assumed for members attending Graduate Schoolof Banking

Stand-still agreement, German, purchase of corporate stocks byManufacturers Trust Co. to attempt to realizeupon credits and funds restricted under, noobjection

Starbuck, George S., reply that there is no legal restriction onhis loaning sum to firm of Struthers and Deanupon retirement, Securities Exchange Act of1934 does not affect

Starrett and Eken, New York, N. Y., selected as alternate for ninefirms to be invited to bid on Board's new build-ing

authorities in 12th ERDistrict, to be informed ofcertain dangerous tendencies developing inthird RDistrict

liabilities and resources, reply to Rand McNallyBankers Directory re inclusion in total of,of Morris Plan banks and industrial banks

State banking

State banks

State Departatent:Fels, Herbert,

Poland, foreign

devaluation of French franc, report of Mr. Ransomthat he had met with Secretary of Treasury reloan service suspension, letter from PresidentHarrison reviewing Polish situation, and like-lihood of discriminatory treatment of Americancreditors, suggestion that matter be taken upwith State Department, Mr. Gardner authorizedto take up

Memo of Mr. Gardner reporting result of conferences withMessrs. Feis and Livesey and probable actionof Department, copy of letter to be furnishedinformally to State Department and Mr. Harrisonto be informed

Letter to Mr. Harrison advising of furnishing of his letterto Department and requesting any other informa-

tion which might became available for transmis-

sion to

3/6 529

3/6 524

1/213/26

181681

6/30 1279

4/14 800

3/26 666

4/28 9°3-5

1/15 135

1/27 222

2

4/24 311

1/31 269

9/26 1161

10/ 6 184°'d

10/ 9 13


395

State member banks:Allegheny Valley Bank of Pittsburgh, Pa., reserves, granted

permission to carry reduced

Amalgamated Bank of New York, N. -Y., deposits of labor unionscarried as savings accounts

American Trust and Banking Co., Chattanooga, Tenn., membershipcondition forbidding sale of mortgages, requestfor cancelation of, refused, but to be advised

that prohibition does not apply to insured

mortgagesAmerican Trust Co., San Francisco, Calif.:

Burlingame, proposed removal of branch from 1201 Broadwayto 1399 Broadway, reply to Mr. Sargent that asremoval is not into another business districtit is not construed as being establishment ofnew branch and approval not required

Redwood City, establishment of branch approved upon discon-

tinuance of branch at Menlo ParkReorganization, protest from Devlin and Devlin and Diepen-

brook against sale of securities because ofpending suits against company, reply that Boardhas no advice re, copies of correspondencesent Mr. Sargent

Ann Arbor Savings and Commercial Bank, Ann Arbor, Mich., member-ship application approved and letter to RAgentto satisfy himself as to legality of consolida-tion of banks, copies of agreements and or-ganization papers requested, and that acquiredassets are satisfactory

Certification of membership to F.D.I.C.

Badger State Bank, Milwaukee, Wis., affiliate reports, exten-sion of time granted for filing

Bank of Bethlehem, Delmar, N. Y., ratio of capital and surplus

to deposits below requirement of membership

condition but total capital structure in ex-

cess of requirements, no action

Bank of Canton, Ga., stock of Canton Cotton Mills, extension of

time for disposition of, in accordance with

membership conditionBank of Carthage, Mb., banking quarters, permission granted to

increase investment inBank of Commerce, Lexington, Ky., membership application ap-

proved, and letter to FRAgent re criticisms oftrust department, charge off on obligation of

Director Yantis, nonconformity of one directorwith Sec. 32 and no copy of certificate to com-mence business

Bank of Dawson, Ga., withdrawal from membership, reply to Mr.Parker expressing appreciation at personal in-

terest taken and conferences held re

Waiver of notice and permission for immediate, to be de-

ferred until deposits can be insured and per-mission to iDIC to examine

Pages

9/ 4 1654

7/28 1438

3/14 579

9/26 1772

8/ 6 1495

2/28 459

2/ 7 3122/17 360

2/ 7 316

2/11 333

4/ 4 745

6/ 1 1109

5/16 1029

11/17 2082

12/31 2356-7


396pageS

State member banks: (Continued)Bank of Elizabethtown, N. C., withdrawal from membership, per-

mission granted for immediate, suggestion thattermination be deferred until it can be ac-cepted as insured bank, permission to FDIC to

68examine 1/ 7Bank of Garber, Okla., membership application approved and let-

ter to FRAgent re desirability of amendment toarticles of incorporation re number of directors 5/ 8 988

Bank of Haines, Ore., withdrawal from membership because removalto Baker makes capital inadequate, no applica-tion received by FDIC for insurance as nonmember,action deferred on application for

Letter to FDIC authorizing examination in connection with 11/13 2056

desire to continue as insured bank 11/15 2066Telegram to FRBank of San Francisco advising that Board

waives notice, but suggesting that action oncancellation of FRBank stock be deferred untilFDIC could act on application for insuranceas nonmember bank 11/18 2092

Bank of Hartington, Nebr., membership application approved andletter to RAgent suggesting amendment to ar-ticles of incorporation to provide for minimumlegal number of directors 4/15 805

Bank of Hartsville, S. C., affiliate reports, report of RealtyInvestors, Inc., received after date of Board'sletter, waiver not applicable to ConsolidatedLand Co., submission of report as of Nov. 1not to be recuired 1/ 4

Bank of Hartsville, Tenn., withdrawal from FRSystem, rescindingof notice of, not evidenced by resolution ofdirectors, but Board will not require submission 10/30 1982

Bank of Jamestown, N. Y., investment securities, reply to Mr.Lazell re questions raised in connection withComptroller's regulation on 5/ 1 952

Bank of Lansing, Mich., membership application approved andletter to FRAgent re conditions under which cer-tain directors and stockholders are to be re-imbursed for cash and securities advanced

Bank of the Manhattan Co., New York, N. Y., extension for yearof time within which to comply with membershipcondition requiring disposal of stock of CountyTrust Co., ithite Plains, N. Y.

Bank of North Collins, New York, membership application approvedand letter to FRAgent re stock certificates notyet stamped re nonpayment of dividends duringlife of reorganization agreement and questionof disposition of funds in undivided profitsaccount

Bank of Rainelle, W. Va., affiliate report of Meadow River Coaland Lumber Co., subject to terms of waiver andsubmission not required

,0 06/11 11'''

9/ 2 1654

2/21 410

1/ 4 42


State member banks: (Continued)

Bank of Romney, W. Va., examination report reveals unauthorized

exercise of trust powers, improper investment

of trust funds and violation of Sec. 22(g)

thereby, failure of attorney to bend over pro-

ceeds of note collected which may be violation

of Sec. 5209 of Revised Statutes

Noted that Mr. G. W. Arnold has been appointed trustee of

Flora estate, that certain possible trust ac-

counts have been transferred to trustee and ad-

vice that possible violation of Sec. 5209 by

Mr. 2.4mmerman should be reported to Attorney

General

Bank of Rosalie, Vvashington, capital stock reduction below re-

quirement for organization of national bank

through retirement of debentures, membership

could be forfeited, no action

Bank of Russellville, Ark., loan to National Compress and Ware-

house Co., in which executive officer of bank

has interest, reply that loan would not be vio-

lation of secs. (d) or (g) of Sec. 22 of YRAct

Bank of Spanish lork, Utah, mortgage, reply to Mr. Sargent that

bank may sell note secured by, in isolatedcase, membership condition 3 prohibits engaging

generally in such business

Bank of Waldron, Ark., deposit inaarance assessment statement,

failure to file reported by FDIC, telegram to

Mr. Wood to endeavor to secure compliance with

requirement, and advice to FDIC of action

Bankers Trust Co., New York, N. Y., deposits, study of activity

of, report re test study made by

Bar Harbor Bankinc, and Trust Co., Bar Harbor, Me., Lubec, con-

solidation of Lubec Trust and Banking Co. and

establishment of branch approved

Bay City BAnk, Bay City, Mich., membership application approved

and letter to FRBank of Chicago re charge of

bond premiums to undivided profits account,

number of directors, and erroneous amendment

to articles of incorporation

Birmingham Trust and Savings Co., Birmingham, Ala.:

Condition reports, reply to Mr. Clark on inquiry of Mr.

Bradley as to manner of showing difference be-

tween par value and retirable value of pre-

ferred stock

Determination of fair value of assets, request for, desig-

nation of Mr. Newton to make

Blencoe State Bank, Blencoe, Iowa, banking quarters, permission

granted to Purchase

Durfee Trust Co., Fall 'River, Mass., affiliate reports,

failure to submit, and statement that it will

withdraw rather than publish, not required to

publish under terms of waiver, certain figuresshould be reported

397

Pages

9/25 1761

10/12 1867

1/ 4 32-4

2/19 385

1/31 255

1/13 119

1/16 149

6/ 1 1107

12/12 2216

6/17 1186

7/31 1466

3/13 573

10/22 1931


398 pages

State member banks: (Continued)Brooklyn Trust Co., Brooklyn, N. Y., stock of Fresh Air Recrea-

tion Co., Inc., letter to Mr. Case re acquisitionof, under contract existing before enactment ofBanking Act of 1933 to protect interests, noaction and to be disposed of as soon as prac-ticable

Brooks Bank and Trust Co., Torrington, Conn., banking quarters,investment made in, without securing Board'spermission, no objection

Brownfield State Bank, Brownfield, Texas:Unsatisfactory condition, recommendation of Mr. Walsh that

president and cashier be removed under Sec. 30of Banking Act of 1933 or membership forfeited,course of suggested that a seniorprocedure,examiner make next examination

Violation of Sec. 22(g) of FRAct by four officers, reply toMr. '1,alsh that as it was subsequent to Aug. 23,1935, criminal provisions not applicable, butmay be violation of Sec. 5209, R.S., and reportof, to Attorney General

Buckeye Valley Bank, Buckeye, Ariz., surplus, reduction whichdoes not provide for distribution of assets isnot violation of membership condition

Caleb Heathcote Trust Company of Scarsdale, N.Y., consolidationwith County Trust Co., livhite Plains, no objec-tion and permission to latter to establish branchat Scarsdale

California Bank, Los Angeles, Calif.:Capital stock reduction approvedInvesLment securities regulation of Comptroller, reply to

Mr. Sargent re questions as to interpretationof, raised by Mr. Peachman

Capital, maintenance of adequate, letter to KZAgents that con-dition 2 and footnote 8 of revised Regulation Hmay be applied to, subject to old condition ofmembership 15, request for annual review of con-dition of banks in connection with requirement

Capital requirements, reduction through retirement of debenturesor preferred stock by banks in towns of 3000or less, letter to all FRAgents that where re-maining capital is i.25,000 or Board willmore,not consider a violation of FRAct

First State Bank, Koss°, Texas, FRAgent advised to handleapplication for retirement of debentures inaccordance with

Capital requirements for out-of-town branchesCapital stock reductions:

Capital notes and debentures sold to others than R. I. C.,reply to FRBank of New York that Board's letterof January 31, does not apply to reductionsin

2/27

7/23 1421

3/ 2 475

1/31 267

12/ 9 2196

7/24 1430

7/15 1371

4/25 892

2/28 454

1/31 256

1/31 257,12/ 2 2151

2/13 341



Capital stock reductions: (Continued)

Regulation H, provision permitting reduction in cases where

capital is correspondingly increased or specific

reserve set up, made applicable to all banks

subject to condition that Board's permission be

obtained, advice to all FRAgents



certain reductions

Capital structure, reply to FRBank of San Francisco re reduction

of aggregate below minimum for organization of

national bank

Central Bank of Oakland, Calif., capital stock reduction, no

objection and compliance with membership condi-

tion 18 waived

Central Hanover Bank and Trust Co., New York, N. Y., loan to

corporate investment trust for retirement of

debentures, reply to FRBank of New York re in-

quiry of Larkin, Rathbone and Perry that Regu-

lation U is applicable

Central Trust Co., Cincinnati, Ohio, amendment to articles of

incorporation enlarging powers, reply to Mr.

Fletcher that such powers would have to be ex-

ercised before being in contravention of member-

ship condition

Charlevoix County State Bank, Charlevoix, Mich., membership ap-

plication approved

Chesaning State Bank, Chesaning, Mich., membership application

approved

Citizens Bank, Hartford, Ky., banking quarters, building oc-

cupied to be sold at auction, no objection to

bank buying it in

Citizens Bank and Trust Co., Carthage, Tenn.:

Absorption of Bank of Pleasant Shade, Tenn., no objection,

capital should be strengthened

Withdrawal from membership, permission for immediate granted,

FRAgent to suggest deferring withdrawal until

bsnk can secure insurance and letter to FDIC

authorizing examination

Extension of time to effect

Waiver of notice and permission for immediate, Mr.

Newton to endeavor to have withdrawal deferred

until insurance as nonmember becomes effective

Rxtension of time for

Citizens Commercial and Savings Bank of the City of Flint,

Mich., establishment of branch at Mount Morris

authorized

Citizens Mutual Trust Company, Wheeling, W. Va., stocks carried

in investment account in apparent violation of

membership condition 7, letter from, forwarded

to FRBank of Cleveland and transfer of authoriza-

tion to errant extensions of time from FRAgent

to President

399

Pages

2/ 6 306

2/13 348

1/ 4 32

10/ 3 1823

11/ 5 2002

5/18 1044

4/ 8 773

5/27 1091

7/ 2 1294

7/23 1422

3/14 5795/ 5 969

11/12 204712/30 2341

4/15 806

11/ 4 1995Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

400 Pages

State member banks: (Continued)Citizens State Bank, Puyallup, Wash., capital debentures, re-

tirement of, no objectionCitizens State Bank of Sheboygan, Wis.:

Plymouth, no objection to absorption of State Bank ofPlymouth and Plymouth Exchange Bank, and opera-tion of branch

Citizens State Bank of Westbrook, Minn., withdrawal from .eRSys-tem, notice waived and permission granted fortnnediate, effort to be made to have acceptedas insured bank simultaneously with withdrawal,to be advised that single report of conditionwill be accepted by State and Board in future,letter to FDIC authorizing examination

No extension requested in time for withdrawal, Board au-thorizes extension to prevent any future ques-tion re

Citizens Trust and Savings Bank of South Bend, Ind., extensionof time for completion of membership

Cleveland Trust Co., Cleveland, Ohio, debts "in process of col-lection", letter to Comptroller re interpreta-tion of Sec. 5204 of R.S. where past due debtis placed in hands of committee for constant andactive attention, requesting views

Letter to FRBank of Cleveland reCoffman-Dobson Bank and Trust Co., Chehalis, Wash., indebtedness

of Cashier Saeger to, incurred prior to August23, 1935, no need to report, as it is to be re-financed

Colonial Trust Co., Pittsburgh, Pa., publication of conditionreport of Arrow Coal Corporation, reply to Mr.Fletcher that waiver was not applicable to,Board will not require publication as of Nov. 1

Columbus Trust Company, Newark, N. J., absorption of CentralBank and Trust Co. and establishment of branchin Newark, reply to FDIC that there is no ob-jection, involving loan by latter to nonmemberbank

Commercial Bank and Trust Company of Ocala, Fla., membershipapplication approved and letter to FRAgentthat Board is unwilling to waive membership con-dition requiring deposit of security for trustfunds in banking department to extent to whichdeposit insurance covers

Commonwealth Trust Company of Pittsburgh, Pa., consolidation of

Bank of Aspinwall and Mt. Lebanon Bank, no ob-jection and authorized to establish branchesat latter two locations

Condition reports:Call as of Dec. 31Call as of March 4Call as of June 30

7/30 1451

2/19

2/12 337

5/ 5 970

2/ 5 299

12/11 2204

12/18 2241

5/21 1065

1/27 2210

4/25 89°

6/ 6 1151.j

12/30 2341

1/ 6 53'3/16 5857/ 3 1299



Condition reports: (Continued)

Forms and instructions for next call sent to all FRBanks

Forms distributed for Fall call, which was not made, to

be used on year-end call, information called

for in form 105-f to be submitted at mid year

and year end calls

3/7

12/ 1

401

Pages

534

2147

Continental-American Bank and Trust Company, Shreveport, La.:

Examination report reveals holding of own stock as col-

lateral to loans, but such stock has been

charged off, applicability of Sec. 5201, should

be disposed of 5/2 955

Reduction in preferred stock, no objection 7/24 1432

Coopersville State Bank, Coopersville, Mich., application for

membership approved and letter to FRAgent re

omission of special condition, transfer of net

earnings to surplus after termination of de-

positors' agreement 4/7 766

Extension of time for accomplishment of membership 5/11 994

Membership condition re increase of capital and surplus

modified 5/21 1064

Extension of time for completion of membership 6/ 2 1123

Corn Belt Bank, Bloomington, Ill., membership application ap-

proved and letter to FRBank of Chicago redormant balance confiscation, no copy of appli-

cation to organize 11/ 7 2018-9

Corn Exchange Bank Trust Company, New York, N. Y., defalcations

by two employees of branches, Board will not

report to Attorney General because of small

amounts involved

Corn Exchange Savings Bank, Sioux Falls, S. Dak., membership

application, question raised regarding, because

of unsound practices, approved, Mr. McKee

raises question re prescription of condition re-

quiring subsequent corrections

holding premises of, agreement with qBank of San

Francisco that exception in FRAct is not

limited to those bolding premises solely 5/ 6 978

and Trust Co., Cambridge, Mass., extension of time

for compliance with condition requiring Shawmut

Association to obtain a general voting permit

Company of Maryland, Cambridge, Md.: ,

sent out by IEBank re admission contained statement

as to licensing of bank by Secretary of Trea-

sury, FRBAnk advised not to circularize any

statement which would make it appear that bank

was operating as member before date of licensing 8/13 1520

application approved and letter to FRAgent on

supervision of credits, eliminations, retirement

of debentures, number of directors and office

maintained in Baltimore 5/13 1009

Corporation

County Bank

County TrustCircular

Membership

5/7 985

10/30 1977-9

6/22 1203


402 pages

State member banks: (Continued)County Trust Co., Oalite Plains, N. Y., consolidation of Caleb

Heathcote Trust Company of Scarsdale, no objec-tion, and permission to establish branch atScarsdale 7/24 140°

Cowlitz Valley Bank, Kelso, Wash., capital debentures, Boardnot willing to approve retirement of 8/19 1551

Dallas Bank and Trust Co., Dallas, Texas, violation of executiveorders re gold revealed by examination, reportof, to Secretary of Treasury 5/13 1°15

Davenport Bank and Trust Co., Davenport, Iowa, capital struc-ture, review of previous action in not requiringincrease, and determined that no need existsnow for increase 3/ 5 510

Del Rio Bank and Trust Co., Del Rio, Texas, examination reportrevealing capital impairment, capital structurehas been subject to criticism for several years,no action until examined again 3/31 716

Failure to eliminate losses and doubtful assets resultingin capital impairment, State authorities con-templating requesting resignation of VicePresident Freeman 9/25 1761

Deposit of collateral for trust funds in commercial departments,consideration of waiving membership conditionto extent such funds are insured by FDIC, op-posed by Messrs. McKee and Ransom, referred tolatter 3/10 548

Depositors Trust Co., Augusta, Me., bonds of Bath Iron Works,holding of, not violation of investment securi-ties regulation 6/17 1188

Deuel County State Bank, Chappell, Nebr., membership applicationapproved and letter to FRAgent suggesting amend-ment to articles of incorporation to providefor legal minimum number of directors 4/15 804

Reply to Mr. Thomas, in connection with inquiry of NebraskaBanking Department, that recommended change asto number of directors was a suggestion, not arequirement 5/27 1099

Dollar Savings and Trust Co., Youngstown, Ohio:Affiliation with Thornton Laundry and Dry Cleaning Co. re-

vealed by examination, relationship was notrealized, and will be terminated 8/24 1573

Membership application approved and letter to IRAgent toverify legality of operation of branch atStruthers and request for copy of certificate tocommence business and form of debenture issuedto R.F.C. 2/17 359

DeRuyter State Bank, DeRuyter, N. Y., membership applicationapproved 7/21 1410

Dormont Savings and Trust Co., Dormont, Pa., banking quarters,additional investment by purchase of assets ofEast Liberty Realty Co., will increase in ex-cess of capital, approved, effort to be made tohave capital increased 12/ 4 2180


403

Pages


Drafts drawn on RBanks, manner of showing in condition re-

ports 9/17 1719

Earnings and dividends reports, changes in form 107 6/24 1233

Change approved re showing of reserve for dividends payable

in common stock 10/31 1986

Copies of form 107 forwarded 12/21 2250

East Pittsburgh Savings and Trust Co., -Zest Pittsburgh, Pa.,

fiduciary power application approved upon con-

version into First National Bank and Trust

Company of East Pittsburgh, letter to Comp-

troller and one to FRAgent re omission of

ninth power from application 6/23 1221-2

Easton Trust Co., Easton, Pa.:

Capital stock reduction through retirement of preferred

stock, approved 2/ 7 315

Consolidation of Easton Dollar bavings and Trust Co. in

1932, approved 1/14 122

Elyria Savings and Trust Company, Elyria, Ohio, membership ap-

plication approved, advice to FRAgent re request

of State authorities that mortgage pools be

liquidated, re mortgage loans in excess of legal

limitations, no copy of form of debenture 5/11 992-3

Equitable Trust Company, Wilmington, Del., further correspondence

with H. Ralph Ewart re complaint that trust was

handled improperly and letter to Mr. Austin re 1/ 8 76-7

Examinations:Bank loans on securities, reply to Mr. Sargent on procedure

for examination and copy to other FRAgents 5/ 6 979

Costs of, request of Mr. Szymczak that Presidents consider

uniform policy for absorption of, by FRBanks 3/16 596

Form for, ERBanks of New York and Dallas requested to

assign Chief Examiner Sheehan and Mr. Betts to

Board for final work on, actual expenses to be

paid by Board 11/23 2110

Reports of, question of policy raised in connection with

withdrawal of report of Integrity Trust Co. by

nAgent 1/ 4 13-4

Relationship of Division of Examinations with RBank

examination functions, statement of Mr. Miller

that all of FRBank function should be central-

ized under Board, Mr. Paulger authorized to

study 1/ 4 14

FRAgents to be advised to submit copies of all reports

to Board and to refer any serious condition to

Board for determination of action 1/ 4 15

Memo from Division of Examinations re letter prepared

in accordance with action of Board on Jan. 4

re sending to Board as soon as available,

recommending that it not be sent 4/24 870

Letter to all FRAgents requesting forwarding reports as

soon as available, and in case of serious condi-

tion to refer to Board the question of action 4/24 870


404 Pages

State member banks: (Continued)Examinations: (Continued)

Rural Electrification Administration, request for reportsExchange Trust Co., Boston, Mass. (suspended), credit investi-

gation, letter to Mr. McRae on request of BankCommissioner for copy of "audit", suggestingthat copy of report be furnished

Fairbury State Bank, Fairbury, Ill., mmbership application ap-proved and letter to FRAgent re depreciationof banking house

Farmers and Citizens Bank, Sauk City, Wis., membership applica-tion approved, and letter to FRAgent re investi-gating qualifications of Mr. Marguardt asdirector

Farmers and Mechanics Bank, Ann Arbor, Mich., consolidated intoAnn Arbor Savings and Commercial Bank, latter'smembership application approved

Farmers and Merchants Bank of Long Beach, Calif., no objectionto consolidation of Citizens State Bank of LongBeach and establishment of branch, Board's ap-proval not required for establishment withinlimits of city

Farmers and Merchants Bank, Provo, Utah:Affiliated General Assets Co., improperly reported as af-

filiate, brought within general terms of waiverFanners and Merchants State Bank of Bushnell, Ill., membership

application approvedFarmers and Merchants State Bank of Springfield, Minn., member-

ship condition 12, interpretation of, that saleof occasional mortgages to customers withoutrecourse is not prohibited

Farmers and Merchants State Bank, Turkey, Texas, examinationreport revealed shares of own stock held asadditional collateral to loan, reply to Mr..Evans that it is not violation of Sec. 5201,R.S., but is undesirable collateral

Farmers Loan and Trust Co., Tipton, Ind., examination report,demand that directors return cash coveringassets readmitted to repay them their contri-bution, Division of Examinations authorized toconfer informally with FDIC re condition

Reply to Mr. Young that placing of notes in bank ratherthan return of loans will be accepted, requestfor recommendation re strengthening management

Farmers Savings and Trust Company of Mansfield, Ohio, conditionreport published showing uninvested trust fundsas a miscellaneous rather than a deposit lia-bility, resubmission not to be required

Farmers State Bank of Alto, Mich., industrial loan department,authorized to establish

Farmers State Bank, Clifton, Texas, examination report revealsholding of own shares as collateral to preventloss on loan, reply to Mr. Evans re applicabil-ity of Sec. 5201, R.S.

11/ 6 2015

8/ 7 1504

6/ 1 11°6

5/25 1075

2/ 7 513

2/20 395

8/28 1608

12/15 2221

5/ 7 964

6/15 118S

4/? 766

5/23 1° 9

1/30 2

4/ 2 726

6/17 1136


405

Pages

State mamber banks: (Continued)

Farmers State Bank, Flandreau, S. Dak., examination by State

authorities, shortage discovered, FDIC au-

thorized to participate in 1/ 6 55

Reply to Mr. Peyton re possible harm to understanding with

State authorities by reporting criminal viola-

tions to local U.S. Attorney, to forward report

to Board for submission to Attorney General 2/17 362

Farmers State Bank, Winner, S. Dak., withdrawal from FIRSystem,

waiver of notice and permission for immediate 7/24 1430

Permission granted FDIC in connection with, to make exam-

ination of 8/13 1522

Extension of time for accomplishment of 9/12 1694

Farmers State Bank of Worland, Wyo., banking quarters, permis-

sion granted to make additional investment in 1/17 156

Fayette State Savings Bank Co., Fayette, Ohio, participation

certificates representing waived deposits in

nonmember bank, reply to Mr. Fletcher that they

need not be included in computing limit on de-

posit with Spitzer Rorick Trust and Savings

Bank, Toledo 9/ 3 1641

Fidelity Savings Bank of Antigo, Wis., membership application

approved and letter to Assistant FRAgent re

showing of "B-2" debentures in condition re-

ports 5/21 1062-3

First Citizens Bank and Trust Company of Utica, N. Y., banking

quarters, request for permission to invest in

an amount which would bring total in excess of

capital, reply to Mr. Case that the inclusion

of debentures in capital would make investment

legal and unobjectionable 1/ 4 34

First Citizens State Bank of Whitewater, Wis., membership appli-

cation approved and letter to President Schaller

requesting copy of articles of incorporation

and certification of amendments thereto 10/13 1876-7

First St. joseph Stock Yards Bank, South St. Joseph, Mb., con-

dition reports, reply to Mr. McAdams re report-

ing outstanding drafts on FRBank, not in agree-

ment with bank's own books 9/17 1719

First Security Bank, Beaverton, Ore., membership application

approved, and letter to FRAgent re excess

deposit with nonmember bank, own Stock securing

loan, FRBank stock application should be

amended and advice re reporting capital and

surplus 6/16 1182

First Security Bank of Idaho, Boise, Idaho, capital, should be

increased in view of large increase in deposits 3/ 2 475

First State and Savings Bank of holly, Mich., membership ap-

plication approved 5/25 1076

First State Bank, Dodsonville, Texas, examination report reveals

indebtedness of President Nisbett to trust com-

pany, latter is not "bank" and report to direc-

tors not necessary 11/ 6 2013


406 Pages

State member banks: (Continued)First State Bank of King City, Mb., no objection to absorption

of Ford City State Bank, Ford City, Mb.First State Bank, Kosse, Texas, debentures, permission to re-

tire, FRAgent advised to follow instructionsin circular re reductions by banks in towns of3000 to below 00,000

First State Bank, LaCrosse, Wash., capital stock reduction wouldbring below requirement for organization of na-tional bank but not for admission to membership,no objection

First State Bank, Maypearl, Texas, membership application ap-proved, and letter to FRAgent requesting form83E, copy of resolution reducing number of direc-tors and forw of debenture issued to R.F.C.

First State Bank of Petoskey, Mich., reply to FRBank of Chicagoruling that Boyne City Exchange is not branch

First State Bank of Purcell, Okla., membership application ap-proved and letter to FRAgent suggesting amendmentto bylaws to provide for legal minimum numberof directors

First State Bank of Rushmore, Minn., bonds convertible intostocks or accompanied by stock purchase war-rants, reply to Mr. Swanson that Comptroller'sregulation on investment securities prohibitspurchase

First State Bank of Shannon, Ill., membership application ap-proved and letter to FRBank re carrying ofsecurities in excess of call price and renumber of directors

First State Bank of South Haven, Mich., membership applicationapproved

First State Bank, Spearman, Texas, absorption of First StateBank of Gruver, no objection

Letter to FDIC advising that there is no objection to ac-quisition of Government securities by bank

First Trust and Savings Bank of Pasadena, Calif., banking quarters, permission granted to purchase thoseoccupied

Building account set up in larger amount than authorizedby Board, no objection

Floral Park Bank, Floral Park, New York:Capital note retirement would reduce capital below require-

Examination report, letter to Mr. Gidney rement, letter to FRBank of New York re

Forney State Bank of Forney, Texas, forfeiture of membership,proceedings instituted looking toward, in viewof violations of FRAct, Board's regulations anddeterioration of assets

Authorization to change date for hearing from June 2 toJune 16

Reply to Mr. Evans that it would be appropriate for Mr.Walsh, as FRAgent to conduct hearing

2/21 412

1/31 257

12/22 2254

3/31 714

10/ a 1849

3/31 713

6/ 5 1149

12/10 2198

7/24 1429

8/13 1521

10/10 1885

7/24 141

9/30 16°9

116//125b 121173;

4/29 92°

5/4 961

5/12 1005


407

Pages


Forney State Bank of Forney, Texas: (Continued)

Advice from Mr. Reagin advising that bank waives right to

appear before Board and telegram from FRAgent

that hearing before him had conmenced 6/ 8 1156-7

Recommendation of ARBank of Dallas that bank be expelled,

unsatisfactory management discussed, letter

of forfeiture to be forwarded and to be with-

drawn if corrections are made 7/15 1365-7

Effective date of, deferred 8/26 1589

Fountain State Bank, Fountain, Mich., fiduciary power applica-

tion approved conditionally 4/28 915

Franklin County Bank, Washington, Mo., examination report, ac-

count of Bank of Washington represents pro rata

share of Franklin County funds upon which in-

terest is illegally paid 7/10 1334

Gary-Wheaton Bank, Wheaton, Ill., membership application approved 7/24 1428

Geo. D. Harter Bank, Canton, Jhio, membership application ap-

proved, and letter to FRAgent approving opera-

tion of branches at North Canton and Louisville,

loans in excess of 20%, advances to realty af-

filiate, under Sec. 23A

Gimbel Brothers Bank and Trust Co., Philadelphia, Pa., savings

accounts of Gimbel Brothers Foundation does not

comply with Regulation Q, but proposed changes

in bank's rules will bring into conformity

Glen Rock Bank, Glen Rock, N. J., membership application ap-

proved and letter to MRAF:ent re completion of

'Payment of capital stock and re assumption of

5/ 5

6/24

965-7

1227

liabilities of Glen Rock National Bank 1/ 4 30

Certification to FDIC that it is now member of FRSystem 2/13 346

Extension of time for accomplishment of membership 2/ 5 299

Green Island Bank, Green Island, New York, membership applica-

tion approved and letter to FRBank of New York

re number of directors 12/ 7 2186

Guaranty Bond State Bank, Tomball, Texas, membership application

approved, attention to be called to excess de-

posit with nonmember bank 5/25 1077

Hackensack Trust Co., Hackensack, N. J., membership application

approved 6/ 8 1154

Harbor State Bank, New York, N. Y., conversion into trust com-

pany, Pan American Trust Co., to increase

capital, absorb New York Agency of Banco Na-

cional de Mexico, which controls bank, and to

exercise fiduciary powers, approved 12/ 4 2173

Harris Trust and Savings Bank of Chicago, Ill., ruling that

labor union funds may not be classified as

savings accounts, consideration of letter re,

action deferred and matter referred to Mr.

Ransom, to consider also views of FRBank of

New York 6/30 1276


408 Pages


Holland City State Bank, Holland, Mich., absorption of FirstState Bank of Holland, no objection, requestclarification of details and of right of substi-tution of assets under reorganization plan

Homewood Bank at Pittsburgh, Pa., deposits made by borrowers in "Installment Plan Account", reply to Mr.Anderson that they create deposit liability andare subject to reserves

Hutchinson State Bank', Hutchinson, Kansas, affiliate report ofHutchinson Oil and Gas Co., not to be requiredto publish as of Dec. 31, as bank was unawareof affiliation and has since terminated it

I-C Bank and Trust Co., Chicago, Ill.:Articles of incorporation in connection with membership

application, reply to Mr. Stevens noting thatorganizing banks in Illinois are not requiredto execute and requesting copy of applicationto orgsnize

Reserves, authorized to carry reducedIndebtedness of officers to, reply to Senator Fletcher re amount,

as of Dec. 31, 1934Industrial Trust Co., Providence, R. I., executive officers,

ruling that members of boards of managers ofbranches and members of finance committees ofbranches are not

Insurance, fiduciary power applications of St. Louis banks inorder to continue writing, granting would es-tablish precedent, Mr. Ransom opposed to grant-ing, action deferred pending consideration ofprinciples with Mr. Wood, statement of Mr.Broderick that likelihood of banks withdrawingfrom membership should not bar refusal

Conference with Mr.Integrity Trust Co., Philadelphia, Pa.:

Wood to be held November 30

12/11 2201

7/11 130

3/ 7 534

1/20 174

4/22 852

1/14 121

5/ 4 961

11/12 6203411/25 212

Examination report, request of Mr. Austin for authorityto withdraw, and make new examination, question

of policyMr. Austin to be advised that Board will not authorize

withdrawal and another examination should bemade, all FRAgents to be advised to send copiesof all reports to Board and where serious con-dition exists to submit question of action to

1/ 4 15'4

Board I/ 4 15

Letter to Mr. Austin re 1/15 15°

Rogers, Alva L., reply that Board cannot furnish analysis

of earnings and expenses and that mergers

usually require approval of stockholders 1/ 8 77

Investment securities, purchase of, draft of reply to FRBank

of Chicago interpreting Board's letter ofSept. 11, 1935 (X-9322), should be revised, re-ferred back to Counsel's Office 2/18 37°


409

Pages

State member banks: (Continued)Iowa State Bark, Algona, Iowa, purchase of shares of stock of

Algona Federal savings and Loan Association,violation of Sec. 9 of FRAct, no objection toretention of stock until Lec. 31 8/11 1513

Irving Trust Co., New York, N. Y., violation of Revised Statutesby former employee to be reported 12/22 2260

J. N. Ireland and Company, Bankers, Malad, Idaho, retirement

of preferred stock and increase in capitalstock, Mr. Sargent requested to investigate

authority contained in articles of incorpora-

tion for increase to more than minimum State

requirement 4/24 869

Jackson City Bank and Trust Company, Jackson, Mich., member-ship application approved and letter to FRBank

of Chicago re question of classification of

savings deposits, criticisms of trust depart-

ment, to be advised re rights of Central State

Building Co. 12/24 2271-3

Joy State Bank, Joy, Ill., membership application approved and

letter to Assistant FRAgent that as losseshave been eliminated, no condition relativethereto was imposed 7/31 1466

Lawyers Trust Co., New York, N. Y., extension of time, addi-

tional, to comply with membership condition re-

quiring disposition of loans secured by own

stock 2/20 397

Le Grand Bank, Le Grand, Calif., withdrawal from FRSystem, per-

mission granted for immediate 3/ 5 509

Liberty Bank of Buffalo, N. I., hearing of officers of Liberty

Share Corporation (and of bank) to be held by

Securities and Exchange Commission, Board to

send observer 12/28 2291

Lincoln-Alliance Bank and Trust Co., Rochester, N. Y., consoli-

dation of First National Bank and Trust Co.,


Lineville State Bank, Lineville, Iowa, membership application

approved and letter to FRAgent calling attention

to excess balance carried with nonmember bank 3/28 698

Littlestowm State Bank, Littlestown, Pa., membership applica-

tion approved and letter to FRAgent re legal

effectiveness of reorganization 1/29 228-9

Lorain Street Bank, Cleveland, Ohio:

Consolidation of Peoples National Bank of Lakewood, Ohio,


Extension of time for compliance with membership condition

requiring bank to obtain full release fromfiduciary responsibility in connection with

trust accounts 2/20 398

Lakewood branch, no objection to moving location of, in

connection with absorption of Peoples National

Bank of Lakewood 2/20 398


410 Pages


Lorain Street Bank, Cleveland, Ohio: (Continued)

Membership condition requiring discharge from all fidu-ciary responsibility, only one account remainswhich is in litigation, Board feels conditioncomplied with 8/26 1586

Reserves, granted periAission to carry reduced 9/ 4 1654

Lusk State Bank, Lusk, Wyo., banking quarters, purchase ofparcel of real estate without securing Board'spermission, approved 8/21 1566

Manchester Bank of St. Louis, Mo.:

Fiduciary power application received, in order to continueto write insurance, action deferred pending con-sideration of principles involved with Mr. Wood 11/12 209

Conference with Mr. Nood to be held Nov. 21430(See also supra Insurance)

11/25

510Retirement of preferred stock, no objection 3/ 5

Manufacturers Trust Co., New York, N. Y., examination report

revealing purchase of German corporate stocksas part of plan to realize as much as possibleon credits in Germany under Stand-still agree-ment, no objection to 1/15 135

Marine Midland Trust Company of New York, N. Y., absorptionof National Bank of Yorkville in New York andestablishment of branch, no objection 5/ 1 951

Marine Midland Trust Co., Binghamton, New York, violation ofRegulation 0 by Mr. Hemenway through increasein indebtedness incurred June 8, 1934 to coveradvances for taxes made by bank for own Protec-

2249tion, not necessary to report to U.S. Attorney 12/21

Markesan State Bank, Markesan, Wis., membership application ap-

proved and letter to President Schaller rebringing operations of trust department intoconformity with approved procedure 8/12 151

Markle Banking and Trust Co., Hazleton, Pa., postal savings de-posits, reply to Mr. Markle that Board knows

of no contemplated legislation to reduce in-terest on, to 2/0 and Board does not contemplatelowering its maximum rate 3/24 655

Marysville-Comercial Bank, Marysville, Ohio, withdrawal frommembership, six months notice waived and per-mission granted for immediate 7/16 1575

Mechanics Bank and Trust Co., Moberly, Mb., fiduciary powers,permission granted to exercise those granted itby State Commissioner 9/ 2 1654

Mercantile-Commerce Bank and Trust Co., St. Louis, Mo.:

"Foreign and domestic bills maturing", reply to Mr. Stewart

re correct listing, in connection with Dec. 31

condition report 4/ 3 739Schalk, Oscar, Comptroller, draft of letter and opinion of

Mr. Vest, that he is executive officer underRegulation 0, voted not to be 10/30 1976



Mercantile-Commerce Bank and Trust Co., D-t. Louis: (ContinuE.d)

Schalk, Oscar: (Continued)

Advice of ruling that he is not executive officer, in

accordance with action of Oct. 30

Metals Bank and Trust Company of Butte, Mont.:

First National Bank of Princeton, Minn., which is practical-

ly liquidated, need not be reported on condition

report as affiliate

Miami Deposit Bank, Yellow Springs, Ohio, violation of Sec.

5136, R.S. by over-investment in bonds, Board

will not require immediate sale but calls at-

tention to violation also of State law

Monongahela Trust Company, Homestead, Pa., membership applica-

tion, question raised re ownership of stock of

two national banks, approved upon condition that

such stock be disposed of or the banks be con-

verted into branches

Sur.gestion of Mr. Fleming that condition be not prescribed,

or waived indefinitely, Board believes it should

not waive but will consider extension for

reasonable period

Montana Bank and Trust Co., Great Fells, Mont., banking quar-

ters, authority granted to purchase present

Montclair Trust Co., Montclair, N. J., absorption of Montclair

National Bank and establishment of branch, no

objection

Monterey County Trust and Savings Bank, Salinas, Calif.:

Bankire: quarters, permission granted to transfer building

to bank and for expenditures for alterations

and improvements

Greenfield, establishment and operation of branch approved

Montamery County Loan and Trust Co., Hillsboro, Ill., contri-

butions of directors, resolution re repayment,

suggestion that it be changed to provide for

approval by FRAgent at St. Louis

Mount Clemens Savings Bank, Mount Clemens, Mich., membership

application approved and letter to Mr. Young

re elimination of undesirable assets, limitation

on deposits with nonmember banks and possibility

that certificate of deposit may not conform

with Regulation Q

Certified to FDIC as member of FRSystem

Mount Vernon Trust Co., Mount Vernon, N. Y., noncompliance with

membership conditions 19, 21 and 26, reply to

Mr. Case re apparent

New England Trust Co., Boston, Mass., affiliates, reply to

.URBank of Boston on question of waiver of pub-

lication of condition reports of certain business

trusts

411

Pages

11/ 5 2001

5/21 1065

11/12 2049

12/29 2300

12/30 2333

2/ 7 315

2/27 443

9/ 8 16622/18 374

1/10 93

8/13 15189/ 1 1631

1/31 253

12/29 2311


412 pages

State member banks: (Continued)New York Trust Co., New York, N. Y., affiliate reports, reply

to Mr. Gidrey that they may not be waived underprovision re holding of stock in fiduciarycapacity

Newark Trust Company of Newark, Ohio, condition report publishedshowing uninvested trust funds under miscel-laneous rather than deposit liabilities, resub-mission not to be required

Niles Center State Bank, Niles Center, Ill., membership applica-tion approved

Extension of time for accomplishment of membershipNorristown-Penn Trust Co., Norristown, Pa., loans to affiliate,

Pennsylvania Real Estate Exchange involving lat-ter acquiring title to foreclosed real estateand former charging amount to affiliate, notviolation of Sec. 23A and loans for carryingcharges are incidental to transaction

Northern Bank and Trust Co., Lancaster, Pa., membership applica-tion approved and letter to aBank re criticismsof trust department, memo of M.r. Seitz recom-mending that Board cease prescribing conditionre exercise of unusual powers and paragraphadded at suggestion of Mr. Wyatt that Board's

would bepermission necessary for exercise, ap-proved

Officers and directors, removal. under Sec. 30 of Banking Actof 1933: (See Removal of officers and direc-tors)

Ohio Citizens Trust Co., Toledo, Ohio, capital debentures, per-mission granted to retire portion of, and ad-vice to RFC

Old Corunna State Bank, Corunna, Mich., membership applicationapproved and letter to FRBank of Chica!zo rereasons for not prescribing conditions relativeto increase in capital and panent of dividends,time certificate of deposit does not conformto Regulation Q, securities carried in excessof call price

Orange County Trust Co., Middletown, N. Y.:Membership application approved and letter to IRBank of New

an

York re interest payment of demand deposit,classification of corporation accounts as savingsdeposits, number of directors and requestingcopy of articles of incorporation

Membership condition No. 6, reply to Mr. Gidney that Boardprescribed in order to be able to invoke ifnecessary, but as trust funds are grantedstatutory preference, IRBank has authority towaive compliance

6/ 1 1110

1/30 248

6/15 11767/ 7 1323

3/27 696

11/ 1991-5

7/27 1434

11/20 2106

11/ 6 2009

11/24 2117



Pan American Trust Co., New York, N. Y., conversion of Harbor

State Bank into trust company and absorption

of New York Agency of Banco Nacional de Mexico,

under above title, to increase capital and

exercise fiduciary powers, controlled by Banco

Nacional, approved

Pennsylvania Company for Insurances on Lives and Granting

Annuities, Philadelphia, Pa.:

Interest payment on uninvested trust funds payable on demand,

ruling that under Pennsylvania Law, payment may

be made

Loan to customer before May 1 for purpose other than carry-

ing securities, redemption of bonds after May 1

was applied to reduction but customer desired

substitution of registered stock, reply to Mr.

Cheston that substitution may be made under

Regulation U as rectification of error

Bishopville, S. C., membership condition requiring

monthly submission of loans to directors, in-

terpretation ofBloomington, Ill., pledge of securities for trust

funds deposited in banking department, reply to

Mr. Stevens that Board is not willing to waive

membership condition requiring

Reference to letter of March 6 re, in connection with en-

forcement of membership condition in State

Peoples Bank of Montross, Virginia, Incorporated:

Stuart, Charles E., inactive Vice President, increase in

indebtedness, letter to Mr. Fry re applicabil-

ity of Sec. 220?) and Regulation 0

Peoples Bank, Pratt, Kansas, fiduciary power application ap-

proved conditionally

Peoples Bank and Trust Co., Seattle, Wash., retirement of capital

debentures, bank has increased capital in ac-

cordance with condition, action deferred pending

next examination

No objection to retirement of debentures in view of program

to conserve earnings and recoveries

Peoples-Liberty Bank and Trust Co., Covington, Ky., membership

application approved, and letter to FRAgent

re compliance with State law as to security for

trusts, disposal of corporate stocks, payment

on defaulted bonds, extension of time to dis-

pose of branch and number of directors

Peoples State Bank, Belleville, Mich., membership application

approved and letter to President Schaller re

excess balance with nonmember bank, excess

loan and requesting organization documents and

amendments thereto

Peoples Bank,

Peoples Bank,

413

Pages

12/ 4 2173

4/29 923

6/ 5 1146

4/4 746

3/6 530

5/27 1092

3/20 620

4/22 850

8/21 1565

11/12 2048

1/11 103

9/18 1730-1


414 Pages

State member banks: (Continued)Peoples State Bank of Holland, Mich., membership application

approved and letter to IRAgent re service ofcashier to investment company, corrections inreal estate account and request for copy ofcertificate authorizing bank to commence busi-ness 2/13 344-6

Peoples Trust Company of Bergen County, Hackensack, N. J.,withdrawal from IRSystem considered by, becauseof definition in Regulation c of interest pro-hibiting classification of deposits of corpora-tions operated for profit as savings accounts 1/22 184

Perth Amboy Trust Co., Perth Amboy, N. J., unsafe practices,letter to FDIC inquiring if corporation agreesto informal understanding to effect that warningbe deferred pending results of cooperativeefforts of representatives of Board, FDIC andIRBank of New York to work out situation 8/11 1313

Review of situation by Mr. McKee, letter from FDIC agreeingto procedure suggested by Board, request ofFDIC for file, Mr. McKee authorized to callconference of representatives of Board, FDIC,RFC and New Jersey Banking Authorities 9/ 4 1651-2

Recapitalization, report of Mr. McKee re conferences heldon, new institution to be formed 9/11 1682

Pilgrim Trust Co., Boston, Mass., fiduciary power applicationapproved 6/ 2 1123

Pioneer Bank, North Branch, Mich., membership application ap-proved and letter to FRBank of Chicago re excessbalance with nonmember bank, securities carriedat more than call price, condition re finalsettlement regarding banking premises not pre-scribed 12/ 9 2194

Planters Bank and Trust Co., Hopkinsville, Ky., banking quarters,expenditure for improvements, no objection 9/24 1757

Plaza Bank of St. Louis, Mo.:Loan on security of government obligations criticized in

examination report, letter from Mr. Von MndeFgerraising question as to logic of limiting suchloans, referred to Comptroller 1/28 225

Preferred stock, retirement proposed and increase in commonstock, no objection, Board will not permitfull transfer proposed from special reserve tosurplus and no action to be taken requiring, in-crease in capital 2/-6 306

Pledge of collateral for trust funds in banking department,Connecticut, reply to Mr. McRae that althoughAttorney General is considering questions revalid pledge and State law may be amended,Board does not feel that membership conditionrequiring, should be held in abeyance 12/18 2239



Pomeroy State Bank, Pomeroy, Vvash., membership application ap-

provedCertification to F.D.1.C. that it is now member of ±RSystem

Provident Trust Co., Philadelphia, Pa., banking premises, no

objection to expenditures made previously and

those contemplated for alterations and improve-

ments

Quincy Trust Company, Quincy, Mass., sale of new capital stock

to directors and release of guaranties

Repides Bank and Trust Company in Alexandria, La., membership

application approved and letter to FRAgent re

keeping written record of supervision of trust

activities, board of directors not full, large

loan, no copy of certificate authorizing com-

mencement of business

Raritan Trust Co., Perth Amboy, N.J., unsafe practices, letter

to FDIC inquiring if corporation agrees to

informal understanding to effect that warning

be deferred pending results of cooperative

efforts of representatives of Board, FDIC and

rRBank of New York to work out situation

Review of situation by Mr. McKee, letter from FDIC agreeing

to procedure suggested by Board, request of

FDIC for file, Mr. McKee authorized to call con-

ference of representatives of Board, FDIC, R-liC

and New Jersey banking authorities

Report of Mr. McKee re conferences held on recapitalization,

new institution to be formed

Regulation F, reply to FRBank of San Francisco agreeing that it

is desirable for banks to comply with and ad-

vising of reasons for not prescribing as member-

ship condition

Removal to another location, reply to Mr. Sonne that Board has

ruled that bank may not retain membership in

FRSystem if it does not have capital required

by State member bank in new location or in-

creases it to that amount

Rochester State Bank, Rochester, Ill., membership application

approved

Rulings of Comptroller under Sec. 5136, R.S., re investment se-

curities, copies to be furnished to Board for

distribution to

Saginaw State Bank, Saginaw, Mich.:

Banking quarters, application for permission to invest in

building and equipment approved

Industrial loan department, granted permission to operate

St. Marys State Bank, St. Marys, Kansas, membership application

approved, and letter to nAgent re inadequacy

of fidelity bonds and criticisms of operating

matters

415

Pages

1/ 6 511/22 183

7/ 8 1327

9/ 8 1662

1/ 7 67

8/11 1513

9/ 4 1651-2

9/11 1682

6/24 1232

10/23 1937

6/ 2 1121

6/18 1196

2/13 3471/22 183

1/31 252


416pageS


Sanford Trust Co., Sanford, Me., examination report, improper

classification as savings deposits of funds of

cemetery and high school fund 5/ 8 989

Reply to IRBank of Boston that Town of Sanford "Cemetery"account is properly classified as savings ac-

count, but that "Ethan Stone High School Fund"

may not be so classified 7/ 3 1301

Saratoga State Bank, Saratoga, Wyo., membership application ap-

proved and letter to IRAgent at Kansas City re

necessity of amending articles of incorporation

re number of directors, question of eualifica-

tion of Mr. Nun z as director, charge for depre-

ciation and charge for loan to C. A. Cook et al 3/23 635-7



Modification of condition requiring elimination of loans to

C. A. Cook and G. C. Fausett and extension of

time for completion of membership 6/25 1246-1

Savings Deposit hank and Trust Co., Elyria, Ohio, membership

application approved, letter to FRAgent renumber of directors, activities of Mr. Smith assecurity salesman and transaction of business

of Depositors Mortgage Loan Co. in sEffle quarters 4/28 913

Schirding State Bank, Petersburg, Ill., membership application

approved 5/ 8 987

Security Bank and Trust Company of Owatonna, Minn.:

Debentures, retirement of those issued to RC, approved 5/16 1433

Membership application, proposed condition prohibiting

operation of insurance department questioned

by Mr. McKee, Division of Examinations proposes

review of policy, reasons for inclusion,

eliminated and application approved 3/ 6 521'2

Letter to IRAgent to secure voting penult agreement from

Northwest Bancorporation and to forward copy of

any certificate authorizing commencement of busi-

ness 3/ 6 523

Extension of time for completion of membership 3/31 716

Security Bank and Trust Co., Wharton, Texas, interest payment on

demand deposits of Wharton County Conservation

and Reclamation District No. I by, arising

from arrangement with Commercial State Bank of

El Campo, no objection 1/20 169

Security State Bank, Algona, Iowa, membership application ap-

proved 4/27 897

Smith Trust and Savings Bank, Morrison, Ill., membership appli-

cation approved, and letter to FRAgent re criti-

cisms of trust department, request for copy of

application to organize 3/21 624-6

Social Security Act, Proposed letter to Commissioner of Internal

Revenue requesting ruling on applicability of,

sendinF deferred 7/31 140


417

Pages


Social Security Act: (Continued)

Ruling of Bureau of Internal Revenue re applicability of

taxes under, to be published in FRBulletin

Solvay Bank, Solvay, N. Y., membership application approved and

letter to FRBank requesting further information

re increase in directors

Extension of time for accomplishment of membership

10/27

10/2911/28

1953

19622143

Southern Arizona Bank and Trust Co., Tucson, Ariz.:

Capital and surplus, not to be required to increase at

present in compliance with membership condition 1/ 4 31

Insured mortgages, reply to Mr. D'Autremont that they are

excepted from provisions of membership condi-

tion 12, but that Board cannot relax condition

17 to permit investment of trust funds in

pools of 1/ 2 9

Trust funds used in banking department and not fully covered

by deposit of collateral, revealed by examina-

tion, President McKinney requested to seek

correction 10/ 8 1854

Southington Bank and Trust Co., Southington, Conn., deposit of

collateral for trust funds in commercial depart-

ment, request for waiver of membership condition

to extent funds are insured by FDIC, opposed

by Messrs. McKee and Ransom, referred to latter

Reply to Mr. Curtiss in accordance with action of Board on

March 10 that Board will not waive membership

condition requiring deposit of security for, to

extent that such funds are insured

Letters to Comptroller and American Bankers Association re

general question involved, suggesting advisabil-

ity of amending Sec. 11(k) of FRAct

Southwest Bank of St. Louis, MD., fiduciary power application,

in order to continue to write insurance, would

establish precedent, Mr. Ransom opposed to

granting, action deferred pending conference

with Mr. Wood 11/12 2038

Conference with Mr. Wood to be held Nov. 30 11/25 2124

(See also supra Insurance)

Springfield Marine Bank, Springfield, Ill., pledge of security

for trust funds used by bank, reference to

letters of June 7 and August 10, 1935, in con-

nection with enforcement of membership condition

in State 5/27 1092

Safe Deposit Co., Springfield, Mass., stock of cor-

porations held in fiduciary capacity, reply to

Mr. Gettemy on question of affiliation

Banking Co., Springville, Utah, violations of law

by officers certifying checks on accounts

carrying insufficient funds, to be referred

to Department of Justice

Sprinfield

Springville

3/10 546

4/8 774

4/ 8 775-6

9/16 1714

10/10 1866


418 pages

State member banks: (Continued)State Bank of Coloma, Mich., membership application approved,

and letter to :gt'Agent re adjustments in build-ing and furniture accounts under agreement withtrustees for waiving depositors

of time for accomplishment of membershipMayville, Wis., membership application approved

and letter to FRBank of Chicago re reasons forincluding condition re trust powers, corpora-tion need not be reported as affiliate if in-debtedness is retired, practice of setting upbonds purchased at prices of bonds sold, and

advice re amendments to charterOntario, N. Y., ratio of capital and surplus to

deposits below requirement of membership condi-tion but total capital structure in excess ofrequirements, no action

St. Johns, Mich., membership application approved

of time for accomplishment of membership inERSystem

Steelevillo, Ill., banking quarters, no objectionto proposed expenditure for new building

Viroqua, Wis., membership application approvedand letter to FRAgent re checking capital andsurplus and organization papers, not plannedto exercise trust powers, depreciation of bank-ing house to be purchased and increase incapital if deposits increase to expected sum

to FDIC as member of IRSystemof time for completion of membershipWaupun, is., membership application approved andletter to FRAgent re elimination of losses andpossibility that certificates of deposit do notconform to Regulation

State Bank, lidnfield, Kansas, report of special investization ofissuance of bonds against annex, criminal viola-tions of officers revealed, should be reported,bank has been acting as trustee without havingobtaineft authority

State-Planters Bank and Trust Co., Richmond, Va., purchase ofcalled preferred stock, reply to Mr. Wilkinsonthat Sec. 5136, R.o., prohibits, and letter toComptroller re

State Savings Bank of Fenton, Mich., membership application ap-proved and letter to FRAgent re excess balanceswith nonmember banks and omission of specialcondition re transfer of net earnings to surplusafter termination of depositors agreement

State Street Trust Co., Boston, Mass.:Condition report, request of Mr. Hersee for change in item

re unpaid dividends, Board will consider and hasno objection to including explanation

ExtensionState Bank of

State Bank of

State Bank ofExtension

State Bank of

State Bank of

CertifiedExtension

State Bank of

5/ 46/ 2 1122

961

11/ 6 2011-ri

2/11 3333/27 692

4/14 803

7/30 1453

6/12 1171-27/217/ 8

1414

1326

6/25 1246

5/27 110°

5/6 981

4/7 765

4/10 787


419

2ages


State Street Trust Co., Boston, Mass.: (Continued)

Merger with Union Trust Co., no objection, permission of

Board not required for establishment of branch

within city limits 6/12 1173

Legal status was not affected, reply to Mr. McRae

on documents which should be furnished and

those which need not be 11/17 2080

Summit Trust Co., Summit, N. J., extension of time for disposal

of stock in Summit Title and Mortgage Guaranty

Co. and also of authority to act as trustee in

connection with obligations of company b/16 1032

Templeton Savings Bank, Templeton, Iowa, banking quarters, per-

mission granted to make investment looking

toward acquisition of other quarters 7/29 1447

Thomson State Bank, Thomson, Ill., membership application ap-

proved and letter to President Schaller request-

ing copy of application to organize 8/26 1586-8

Toledo Trust Co., Toledo, Ohio, affiliate reports, reply to Mr.

netcher re failure to make for three, but as

affiliation has been terminated, no further

question will be raised re 2/18 375

Tompkins County Trust Co., Ithaca, N. Y.:

Consolidation of first National Bank of Trumansburg, N.Y.,

and establishment of branch, no objection, re-

quest for action on criticised matters 7/27 1435

Question of capital sufficiency for continued operation

of, plan for revision of capital to remove de-

ficiency noted 10/22 1929

Loan to national bank examiner, reply to Mr. Spaulding re

statutes dealing with 8/24 1573

Tower Grove Bank and Trust Co., St. Louis, Mo., violation of

Sec. 22(c) of RAct, possible, by President

Alex Miltenberger, should be reported to Dis-

trict Attorney and Department of Justice 12/ 2 2159

Tracy Loan and Trust Co., Salt Lake City, Utah, reply to Mr.

Collins that Tracy Corporation is affiliate,

and question of publication of report depends

upon terms of waiver 1/20 166

Traders Bank, Toppenish, Wash., absorption of first National

Bank of Toppenish, no objection ' 4/24 868

Traders Trust and Banking Co., Spencer, W. Va., deposit in-

surance assessment statement, failure to file

reported by FDIC, letter to Mr. Fry to endeavor

to secure compliance with requirement, and

advice to iDIC of action 1/13 118-9

Trust Company of Georgia, Atlanta, Ga.:

Absorption of affiliate, Trust Company of Georgia Associates,

no objection, restrictions on assets to be ac-

quired, to be permitted to acquire stock of

Motor Contract Co. 9/14 1709


420 Pages


Trust Company of Georgia, Atlanta, Ga.: (Continued)

Plan whereby Trust Company of Georgia Associates will pur-

chase common stock of Liberty National Bank and

Trust Co. and retire preferred stock and trustcompany will transfer sum from nonbook assets

to associates, no objection 1/31 255

Stock of Motor Contract Co., acquired by subsidiary, Trust

Company of Georgia Associates, not technical

violation of Sec. 5136, R.S. but objectionable,should be disposed of 3/ 3 491

To be permitted to retain 5/ 9 989

Trust Company of Wyoming County, Warsaw, N. Y., membership ap-

plication approved if and when Wyaminq CountyNational Bank, National Bank of Wyoming and

North Java Company are merged

Letter to RBank of New York re merger, weak board, holding

company affiliation of Financial Institutions,

Inc. will be terminated, branches at Wyoming

and North Java approved

Trust departments, reports of, reply to Purse Co. that Board

does not require, and listing available data re

Turtle Creek Bank and TrustCo., Turtle Creek, Pa., membership

application approved and letter to RAgent refee collected for trustee service which may not

be legal

Union and New Haven Trust Co., New Haven, Conn.:

Deposit of trust funds in nonmember bank in excess of 10%

of capital and surplus, reply to Mr.. Curtiss

that membership condition and Sec. 19 of FRAct

do not apply

Hamden, establishment of branch approved

Union Bank and Trust Co., Helena, Mont., pledge of RBank

cashier's checks against funds of Treasurer of

Montana, no objection and instructions for show-

ing on condition reports

Union Bank and Trust Co. of Los Angeles, Calif.:

Christmas club accounts, reply to Mr. Neary that they are

not savings accountsRegulation I, reply to FRBank of San Francisco agreeing

with position that it is desirable for bank tocomply with and advising of reasons for not pre-scribing as condition of membership

Union State Bank, Rushville, Nebr., membership application ap-

proved and no objection to proposed disburse-

ments to reserve, depreciation and payment of

dividends

Union Trust Company of Boston, Mass.:

Funds of agency, safekeeping and corporate accounts received

in trust department, use of funds in commercial

department without deposit of securities re-

vealed in examination report, no objection if

no fiduciary relationship is involved

12/24 2268

12/24 2269

5/23 1072

6/ 8 1155-6

6/11 1168

11/23 2112

2/27450

1/ 7 '72

6/24 1202

6/24 1225-6

1/17 156


421

Pages

Statemadber banks: (Continued)

Union Trust Company of Boston, Mass.: (Continued)

Merger with State Street Trust Co., no objection 6/12 1173

Consolidation under charter of State Street Trust Co. 11/17 2080

Union Trust Company of the District of Columbia, Washington,

D. C., membership application approved and let-

ter to IRAgent, not to be considered as dealing

indirectly in business of selling mortgage be-

cause of activities of affiliated Thomas J.

Fisher and Co., Inc. 5/ 5 967-9

Union Trust Company of Maryland, Baltimore, Md., membership

condition 21, amendment requested to, action de-

ferred pending revision of cell report to

require showing indirect ownership of other real

estate 1/ 7 69

Request of Mr. McAdams that Board amend, so as to relieve

of necessity of publishing loans to Royal

Realty Corporation, wholly owned subsidiary,

referred to Mr. McKee 3/2b 666

Cancelation of condition requiring showing of extensions

of credit to and investments in Royal Realty

Corp. 5/ 5 970

Union Trust Company of Pittsburgh, Pa., time deposit, open ac-

count, reply to Mr. Fletcher that agreement

providing for deposits and withdrawals from

time to time complies with Regulation Q 1/16 147

Union Trust Co., St. Petersburg, Fla., transfer to surplus of

entire amount in special reserve, approval

granted in accordance with membership condition 6/25 1248

Union Trust Company of Springfield, Mass.:

Deposits of trust funds in nonmember uninsured banks, reply

to Mr. McRae that FDIC has ruled insurance does

not cover 8/18 1536

Examination report reveals switching participations in single

real estate loans between trusts, and has agency

and trust cash in banking department 6/26 1257

United Home Bank and Trust Co., Mason City, Iowa, membership ap-

plication approved, letter to /RBank of Chicago

re not prescribing condition as to investment

in Dank premises, Mr. Clark to devote entire

time to bank and bring his mortgage business

into bank 10/29 1963

Upper Avenue Bank, Chicago, Ill., conversion into Upper Avenue

National Bank 7/20 1410

Warren Bank and Trust Co., Warren, Pa., membership application

approved, and letter to FRAgent re no trust of-

ficer and no minutes of trust committee, no

copy of certificate of authorization and request

for copy of Liquidating Trust Certificates 2/19 382-3

Wayne State Bank, Wayne, Mich., examination report reveals pur-

chase of stock of Wayne County Federal Savings

and Loan Association, in violation both of mem-

bership condition and Sec. 9 of FRAct 4/ 3 737


422 Pages

State member banks: (Continued)West Branch Bank and Trust Co., Williamsport, Pa., banking quar-

ters, permission granted to increase investment52// 613 103:25in, to amount in excess of capital stock

West Side Trust Co., Newark, N. loans on own stock, exten-sion of time for compliance with membership con-dition requiring disposal of

Extension of time for compliance with membership condition 6/24 1226

Williams Savings Bank, Williams, Iowa, report of average dailydeposit liabilities, failure to submit correct,reported by FDIC, referred to FRBank of Chicago 10/19 1907

Wood and Huston Bank, Aarshall, Mo., partnership in which twomen have equal interest, Regulation 0 does notprohibit loan by bank to, even though S. P.Houston is executive officer of bank 1/31 265

Woodlawn Trust Co., Aliquippa, Pa., capital, refusal to increase,in connection with examination report, criti-cisms 1/30 241

Stationery, Board members, to be printed with individual names forthose desiring 2/14 352-5

Stevenson, U. S.: (See National banks, Del Rio National Bank)Stock, capital:

Bank of Bethlehem, Delmar, N. Y., ratio of capital and surplusto deposits below requirement of membershipcondition but total capital structure in excessof requirements, no action 2/11 333

Bank of Rosalie, Wash., reduction through retirement of de-bentures below organization requirement for na-tional bank, membership could be forfeited, noaction 1/ 4

California Bank, Los Angeles, Calif., reduction approved 7/15 137-'

Central Bank of Oakland, Calif., reduction, no objection andcompliance with membership condition 18 waived 10/ 3 1823

Citizens Bank and Trust Co., Carthage, Tenn., capital shouldbe increased if present trend of deposits con-tinues 7/23 1422

Citizens State Bank, Puyallup, Wash., retirement of capital de-bentures, no objection 7/30 1451

Collateral to loans, Continental-American Bank and Trust Co.,Shreveport, La., holding of own as, in nonledgerassets, should be disposed of 5/ 2 9,55

Continental-American Bank and Trust Co., Shreveport, La., reduc-tion in preferred stock proposed, no objection 7/24 1432

County Trust Co., White Plains, N. Y., extension of one yeargranted for Bank of the Manhattan Co. to comply

with membership condition requiring disposal of

stock of 9/ 2 1604

Cowlitz Valley Bank, Kelso, Wash., Board not willing to approveretirement of capital debentures 3/19 1.551

Davenport Bank and Trust Co., Davenport, Iowa, review of previous

action in not requiring increase, and determined

that no need exists now for increase 3/ 5 b3-0

Del Rio Ban and Trust Co., Del Rio, Texas, impairment of 3/31 716


423

Pages

Stock, capital: (Continued)Doraiont Savings and Trust Co., Dormont, Pa., additional invest-

ment in banking quarters will exceed capital,

effort to be made to have bank obtain addi-

tional capital 12/ 4 2180

Easton Trust Co., Easton, Pa., reduction through retirement of

preferred stock, approved 2/ 7 315

Farmers and Merchants State Bank, Turkey, Texas, holding of

own stock as additional collateral, not viola-

tion of Sec. 5201, R.S. 6/16 1185

Farmers State Bank, Clifton, Texas, own shares held to prevent

loss on debt, reply to Mr. Evans re applicabil-

ity of Sec. 5201, R.S. 6/17 1186

First Security Bank of Idaho, Boise, Idaho, should be increased

in view of increase in deposits 3/ 2 475

First State Bank, Kosse, Texas, permission to retire debentures,

FRAgent advised to follow instructions in cir-

cular re reductions by banks in towns of 3000

or less to below 150,000 1/31 257

First State Bank, LaCrosse, Wash., proposed reduction would

bring below requirement for organization ofnational bank but not for admission to member-ship, no objection 12/22 2254

/loral Park Bank, Floral Park, New York, capital note retirement

would reduce capital below requirement, letter

to FRBank of New York re11/4, t,gv 2137

T. N. Ireland and Company, Bankers, Maled, Idaho, increase in

cannon, upon retirement of preferred 4/24 869

Lawyers Trust Co., New York, N.Y., extension of time for com-

pliance with membership condition requiring

disposition of own stock held as security for

loans 2/20 397

Manchester Bank of St. Louis, Mo., retirement of preferred stock,

no objection 3/ 5 510

Monongahela Trust Co., Homestead, Pa., to be required to dispose

of natimal bank stock owned or convert banks

into branches 12/29 2300

Mutual savings banks, reply to Mr. Fletcher re attitude of

Board toward requirements, in connection with

membership in FRSystem 3/26 676

Ohio Citi7ens Trust Co., Toledo, Ohio, permission granted to

retire portion of capital debentures, and ad-

RC 7/27 1434vice to

Pan American Trust Co., New York, N.Y., Harbor State Bank to

convert into trust company under above title,



powers, approved 12/ 4 2173

Peoples Bank and Trust Co., Seattle, Wash., action deferred on

retirement of capital debentures until after

next examination, bank has increased capital8/21 1565in accordance with condition


424 Pages

Stock, capital: (Continued)Peoples Bank and Trust Co., Seattle, hash.: (Continued)

No objection to retirement of debentures, in view of pro-gram to conserve earnings and recoveries 11/12 2046

Plaza Bank of St. Louis, Mo., retirement of preferred stockproposed and increase in common stock, no objec-tion, Board will not permit full transfer pro-posed from special reserve to surplus and noaction to be taken to require increase incapital 2/ 6 506

C,uincy Trust Company, u.incy, Massachusetts, sale of new capitalstock to directors and release of guaranties 9/ 8 1662

Reductions:Retirement of preferred stock, debentures, etc., reply to

Mr. Fletcher that letter (X-9480) makes ap-plicable to all banks provision that Board'spermission is not needed where capital is cor-respondinLly increased and does not modifyX-9048 authorizing RAgents to approve certainreductions

State member banks of aggregate (preferred stock, debentures)below mount required for organization of na-tional bank, reply to Mr. Sargent re, and noobjection to retirement of debentures by Bankof Rosalia

State member banks in towns of 3,000 or less, reply to Mr.Case that instructions in letter X-9475 doesnot have reference to reductions of capitalnotes or debentures sold to others than RFCbut does apply to preferred stock

Removal of State member bank from one place to another, replyto 1RBank of San Francisco that Board has ruledremoving bank must have capital sufficient fororganization of member bank in new location

Requirements for State member banks with out-of-town branchesReserve for dividends payable in common stock, reply to Mr.

Fletcher re reporting on Form 105Security Bank and Trust Company of Owatonna, Minn., retirement

of debentures issued to RFC approvedState Bank of Ontario, N. Y., ratio of capital and surplus to

deposits below requirement of membership condi-tion but total capital structure in excess ofrequirements, no action

State member banks:Maintenance of adequate, letter to illiAgents that condition 2

and footnote 8 of revised Regulation H may beapplied to, subject to old condition 15, requestfor annual review of banks in connection withrequirement

Reductions, provision of Regulation H permitting reduction

where capital is eorrespondinaly increased orspecific reserve set up, made applicable to all

banks subject to membership condition that

Board's permission be obtained, advice to allFHAcents

2/13

1/ 4

346

32

2/13 347

10/23 1937

12/ 2 2154

9/12 1695

5/16 1053

2/11 335

2/28

2/ 6 5°6Digitized for FRASER http://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

425

Pages

Stock, capital: (Continued)


Reductions: (Continued)


modify X-9048 authorizing RAgents to approve

certain reductions 2/13 348

Requirements, reduction through retirement of debentures or

preferred stock by banks in towns of 3000 or

less, letter to all FRAgents that where remain-

ing capital is $25,000 or more, Board will not

consider as a violation of FRAct 1/31 256

First State Bank, Kosse, Texas, FRAgent advised to

handle application for retirement of debentures

in accordance with 1/31 257

Summit Trust Co., Summit, N. J., extension of time for disposal

of stock of Summit Title and Mortgage Guaranty

Co., and to continue to act as trustee for ob-

ligations of 5/16 1032

Tompkins County Trust Co., Ithaca, N. Y., insufficient for opera-

tion of branch at Trumansburg, N. Y., bank has

adequate funds to increase and contemplates re-

vision, not to be required to increase at

present 10/22 1929

Wayne County Federal Savings and Loan Association, purchase of

stock of, by Wayne State Bank, Wayne, Mich.,

violation both of membership condition and Sec.

9 of FRAct 4/ 3 737

West Side Trust Co., Newark, N. J., loans on own, extension of

time for compliance with membership condition

requiring disposal of 2/ 6 305

Own stock held as collateral to loans 6/24 1226

Woodlawn Trust Co., Aliquippa, Pa., refusal to increase 1/30 241

Stock, corporate:Canton Cotton Mills, extension of time for disposition o

f, by

Bank of Canton 4/ 4 745

Fresh Air Recreation Co., Inc., acquisition of shares of, by

Brooklyn Trust Co., to be disposed of 2/27 444

German, purchase by Manufacturers Trust Co. as part of plan to

realize upon credits and funds restricted under

German Stand-still agreement 1/15 133

Guarantee of signatures on certificates authorizing transfer of,

by member banks, consideration o'f suggestion of

Comptroller that effort be made to stop practice,

Mr. Ransom discussed with President Fleming of

A.B.A. 8/11 1511

Iowa State Bank, Algona, Iowa, purchase of shares of stock of

Algona Federal Savings and Loan Association,

violation of Sec. 9 of FRAct, no objection to

retention of stock until Dec. 31 8/11 1513

Membership condition 7, those carried previously acquired pro-

tection of loans, transfer of authority to

grant extensions of time under, from FRAgents

to Presidents 11/ 4 1995


426 Pages

Stock, corporate: (Continued)

Motor Contract Co., Trust Company of Georgia Associates to bepermitted to retain, Trust Company of Georgiacould not purchase

Purchase by subsidiary Trust Company of Georgia Associates, ofMotor Contract Co., should be disposed of, asinvestment Trust Company of Georgia could notmake under Sec. 5136 of Revised Statutes

Trust Company of Georgia, Atlanta, Ga., stocks acquired in ab-sorption of affiliate, Trust Company of GeorgiaAssociates to be carried in nonbook assets, mayhold stock of Motor Contract Co.

Stock, FRBank:Adjustment because of temporary deficit in surplus, no need for

immediate, reply to Mr. McAdams and copy toother FRAgents

Certificates:Changes in holdings of, advice to presidents that after

transfer of nonstatutory duties of FRAgent tobank, any officer may sign

Countersignature by FRAgent or Assistant, amendment to by-laws of FRBank of Minneapolis to eliminate

Form of, letter to all FRAgents re need for amendment, be-cause of changes made by Banking Act of 1935,and re reconcilement of different forms used

Revised and uniform certificate, letter to all FRBanks ex-cept San Francisco re new form, changes to bemade for various banks having different formsof counter-signature

Computation of subscription, securing of additional share byPeoples National Bank of Claremont, N. H.,through carrying out to fourth dectmal, result-ing in fraction of 4100

Item in nonmember bank's published condition statement in SouthCarolina showing "Corporate stock includingFRBank stock"

FRBank of Boston:Peoples National Bank of Claremont, N. H., subscription,

including one additional share on basis ofcarryinFr, computation to fourth decimal, secur-ing fraction of 4100

FRBank of Chicago:Forms, reply to.Mr. Young that as nonstatutory duties of

FRAgent have been transferred to bank, anyofficer may sign

Valley National Bank, Des Moines, Iowa, absorbed but notyet placed in liquidation, action left toFRBank, dividends on stock to be withheld

FRBank of San Francisco:Non-negotiable receipts issued by, in lieu of stock certifi-

cates, letter to Mr. Sargent re uniform stockcertificate to be used by other FRBanks that itwill not be required to cease use of

5/8 989

3/3 491

9/14 1709

6/ 4 1158

9/ 3 1643

8/1h 1531

3/ 7 535

5/27 11°1

3/7 553

7/29 1448

3/7 535

9/ 1 163°

7/ 3 13°5


Stock, preferred:Continental-American Bank and Trust Co., Shreveport, La., re-

427

Pares

tirement proposed, no objection 7/24 1432

Easton Trust Co., Easton, Pa., capital stock reduction through

retirement of, approved 2/ 7 315

J. N. Ireland and Company, Bankers, Malec', Idaho, retirement of,

end increase in common capital 4/24 869

Manchester Bank of St. Louis, Mo., retirement of, no objection 3/ 5 510

Plaza Bank of St. Louis, Mo., retirement proposed and increase

in common stock, no objection 2/ 6 306

Purchase of called, by State-Planters Bank and Trust Co., Rich-

mond, Va., reply that Sec. 5136, R.S., prohibits

and letter to Comptroller re 5/ 6 981

Reductions:Authority granted to FRAgent at FRBenk of Minneapolis to

approve, transferred to President 8/29 1618

State member banks in towns of 3000 or less, reply to Mr.

Case that instructions in letter X-9475 do

not have reference to reductions in capital

notes and debentures sold to others than RFC

but does apply to 2/13 347

Retirable value different from per value, manner of showing on

condition reports 6/17 1186

Retirement by State member banks, capital, letter to all BRAgents

that banks in towns of 3000 or less, where capi-

tal is brought below 00,000 but is ;;;25,000 or

more, Board will not consider violation of

FRAct 1/31 256

First State Dank, Kosse, Texas, FRAgent advised to handle

application for retirement of debentures in ac-

cordance with 1/31 257

Reply to Mr. Fletcher that letter X-9480 makes applicable

to banks provision that Board's permission is

not required where capital is correspondingly

increased and does not modify X-9048 authorizing

FRAgents to approve certain reductions 2/13 348

Stockholders' meetings:

ERBank of Boston, reimbursement of one representative of each

bank for railroad fare and Pullman accommodation

authorized 10/ 9 1863

Stocks, list of, registered on national securities exchanges, recom-

mendation of Mr. Parry re printing of, question

of charge for, recommendation approved 4/17 818

Stonier, Dr. Harold: (See Graduate School of Banking)

Storch, Oscar T.: (See National banks, First National Bank of

Bloomingdale, N. J.)

Stouffer, R. E.: (See National banks, Citizens National Bank and

Trust Company of Waynesboro, Pa.)

Stuart, Charles E.: (See State member banks, Peoples Bank of

Montross, Virginia, Incorporated)


428pegeS

Studies:Division of Research and Statistics, deposits, report of Messrs.

Goldenweiser and Currie re test study conducted

and proposed procedure, letter to FRBanks and

form of letter to member banks

Surgeon General: (See U. S. Public Health Service)

Surplus:Buckeye Valley Bank, Buckeye, Ariz., reduction not involving

distribution of assets is not violation of mem-

bership condition

Deficit in, temporary, reply to Mr. McAdams and copy to other

FRAgents that it occasions no need for immediate

adjustment in FRBank stock

Surveys of FRBanks: (See Reorganization of FRBanks)

Sutton, Augustus H., reply re effect of recent increase in margin

requirements upon withdrawals of ca 81) from un-

restricted accounts, under Regulation T

Symons, Lionel H.: (See Foreign banking corporations, International

Discount Corporation)

System open market account:

Adjustments in allotments to FRBanks, difficulties experienced

in applying forTiula, action deferred by execu-

tive committee of Federal Open Market Committee

with view to new meeting to make adjustments on

basis of equalization of earnings for last half

of 1936

Profit on sale of Government securities to, reply to FRBank of

Minneapolis on treatment of

(See also Open market operations)

"T"

Taxes:FRBank of Chicago, special counsel employed to contest illegal

part of assessment on building

Holding company affiliates, suggestion of Board that the portion

invested in securities required by law be exempt

from Revenue Act of 1936 adopted

Exemption for those holding general voting permits, those

not holding may desire to obtain before end of

year, letter to be prepared by Counsel request-

ing FRBanks to call attention to regulations of

Bureau of Internal Revenue

Credit to holding company affiliates for readily marketable

assets held, letter to FRBanks re

Social security act, three rulings of Bureau of Internal Revenue

re applicability to national banks, State member

banks and nonmember banks, to be published in

FRBulletin

Taylor, Miller, Busch and Boyden:

Employment by FRBank of Chicago as special counsel in claim

of liquidating trustees of Fletcher American

National Bank of Indianapolis

1/16 149

12/ 9 a96

6/ 4 1138

2/27 44'7

6/23

7/17 1397

8/22 1569

6/ 3 1125

10/30 1980

11/16 2067

10/27 1955

5/ 6 982


429

Taylor, Miller,Busch and Boyden: (Continued)

Payment by 11i3ank of Chicago for services in connection with

claim of Fletcher American National Bank

trustees, approved

Telegrams, confirmations, mailing to RBanks to be discontinued

No objection to FRBank of Dallas and branches discontinuing

mailing confirmations to Board

Reply to IRBank of Kansas City that Board has no objection to

FRBanks and branches discontinuing mailing con-

firmations

Territory:Cin'Jinnati Branch, County of Clark, Ohio, omitted from revised

bylaws, presumably by inadvertence

Thefts:Cleary, Vincent A., letter to Mr. Dillistin re reporting small

defalcation as violation of Sec. 5209, R.S.

Ferdinand, letter to Mr. Dillistin re reporting

small defalcation as violation of Sec. 5209,

R. S.

Thompson, C. M.: (See National banks,Colo.)

Time schedules, interdistrict:

Changes approved, Chicago to certain branches

Changes in, by FRBank of Dallas

Changes in, recommended by FRBank of Chicago, approved

Helena to Spokane, change approved, request information re sim-

ilar change approved previously

Hunt enburg,

TitiPs:First Vice Presidents of FRBanks,

"First" should be

Todd, 2, H., inquiry under RegulationChicago for reply

First National Bank, Pueblo,

advice to all FRBanks thatincluded in official titleT, referred to FRBank of

Travel:Cagle, C. E., Assistant Chief, Division of Examinations, author-

ized to travel by plane in connection with

examination of Puerto Rican banks

Graduate School of Banking, expenses of members of Board's

staff attending assumed, such enployees to make

written report re attendance

Travel regulations, Board of Governors: (See Regulations)

Treasurer of United States:Certificate received from Governor Seay which was found in front

of Western National Bank, Baltimore, one of

those which came into hands of public during

recent post office fire, suggestion that they

be destroyed

Work relief checks, report of Mr. Barnes re cost of handling

by FRBanks and calling attention to variation

between maximum and minimum, referred to Mr.

Harrison as Chairman of Presidents' Conference

with suggestion that it be discussed at Transit

Conference

•

Pages

11/10 203210/ 9 1863

10/10 1966

10/19 1916

9/17 1720

5/7 985

5/7 985

1/21 1792/ 6 3099/13 1732

10/23 1940

3/6 531

9/10 1572

1/3 76

4/28 903-5

1/10 100

11/13 2062


430Pages

Treasury Department:Bernstein, Bernard, Office of Counsel, suit to enjoin Board

members and others from further exercise of

right to coin money and regulate value thereof,consulted by Mr. tyatt in connection therewith

Deposit reserves of n?Banks, letter to FRBanks that it will be

satisfactory to, if certified statment is fur-

Devaluation of French franc: (See Currency)nished to, once a year of deficiencies in

Division of Bookkeeping and Warrants, deficiencies in depositreserves of FRBanks, letter to Mr. Smith re-questing if it will be permissible for FRBanks

to make report annually instead of monthly

FRnotes, reimbursement for replacament of 1928 series with1934 series, memo of Mr. Smead re, feeling of

Treasury that time is not appropriate to re-

quest appropriation for

Fiscal agency operations of FRBanks, procedure, question raised

in connection with negotiations with foreign

banks and bankers by monetary agreement between

France, England and U. S., review by Chairman

Eccles of procedure in reserve increase

Report of Mr. Ransom re consideration by senior staff mem-



tween Treasury and Board and FRBanks, Chairmanto take up with Secretary of Treasury

Report of Chairman re conference with Secretary of Treasuryand proposed procedures, Chairman to conferagain with Secretary on Oct. 13 and outline tobe prepared for conference with officers ofFRBank of New York

Chairman and Mr. Ransom to confer tomorrow with Secretaryof Treasury and Assistant Secretary Taylor reprocedure

Messrs. Goldenweiser and Gardner to confer with Messrs. Haas, White and Lochhead and Upham on arrange-ment for exchange of information, periodic con-ferences to be held by Chairman and Vice Chair-man with Secretary and Assistant Secretary ofTreasury

Draft to be prepared by Messrs. Morrill, Wyatt and Golden-weiser, conference with Messrs. Harrison,

Memo of Chairman Eccles prepared in connection with BankSproul and Knoke to be postponed until Oct. 27

Act of 1935Memo prepared by Messrs. Morrill, Wyatt and Goldenweiser,

to be considered Oct. 2310/20

Memo of Messrs. Morrill, Wyatt and Goldenweiser, discussionof, conference with New York officers to beupon broad grounds of responsibilities of Board,memo to be revised accordingly

10/ 9 1857

10/12 1868

2/27 45°

4/17 817

10/ 6 1834-6

10/ 6 1857-8

10/ 9 1857

10/12 1872

10/13 1374

10/13 1874-5

10/16 1895-6

1922

10/23 1935


431

Pages

Treasury Department: (Continued)

Fiscal agency operations of FRBanks: (Continued)

Revised memo discussed and amended, copies to be sent to

Mr. Sproul, arrangements made for early meeting

on Oct. 30 with Messrs. Harrison, Sproul end

Knoke 10/27 1945

Further discussion of memo 10/29 1958

Conference, changes in memo agreed upon, to be referred to

Presidents' Conference, section re FOMC elimi-

nated, to be prepared separately end referred

to FUG 10/30 1967

Leased wire system, letter to Secretary of Treasury reviewing

history of absorption by FRBanks of expenses

of sending Treasury telegrams, and requesting

that after this month payment be made therefor,

or some arrangement should be made under which

Board and FRBanks Thould be relieved of this

expense 7/16 1376

Reply to Mr. McReynolds that upon his assurances of payment

commencing Jan. 1, 1937, expenses will continue

to be absorbed until and of current year, advice

to FREanks 7/31 1468

Lochhead, Archie, Technical Assistant:

Advances by FRBank of New York to Bank for International

Settlements against gold, discussion with Secre-

tary of Treasury and no objection by Treasury 9/28 1784

Present at meeting of Board at which Secretary of Trea-

sury outlined monetary agreement between France,

England and U. S. 9/29 1787

Oliphant, Herman, General Counsel, suit to enjoin Board members

and others from further exercise of right to

coin money and regulate value thereof, to be

consulted by Chairman Eccles in connection there-

with 10/ 9 1857

Reserve requirements of member banks, discussion of June

financing discussed in connection with timing

of possible increase in 4/22 849

S. 4357, to make uncleimed deposits of national banks subject to

escheat laws of States, reply to Mr. McReynolds

that Board expected to make no .report to Congress

re, action in accordance with procedure agreed

upon on Feb. 27, 1925 4/10 790

Upham, Cyril b., Assistant to Secretary, present at Board meet-

ing at which Secretary Morgentheu outlined

monetary agreement between England, France and

U. S. 9/29 1787

Treesury financing: (See Government financing)

Trip, Dr. L. J. A.: (See Bank for International Settlements)

Trust departments:

Farmers and Mechanics National Bank, Westminster, Md., reply

to Brown and Shipley re procedure necessary

for discontinuance of 11/17 2082


432 pageS

Trust departments: (Continued)Northern Bank and Trust Co., Lancaster, Pa., corrections to be

made in connection with membershipState member banks, reply to Purse Co. that Board does not re-

quire reports of, and listing available data reTrust funds:

Connecticut, State member banks, pledge of collateral for thosedeposited or used in bankin department, replyto Mr. McRae that membership condition requiringshould not be held in abeyance

Deposit of collateral:Agency, escrow, receivership and custodianship funds de-

posited by trust department in commercialdepartment of national bank, reply to Mr. Geeryre requirements of Regulation F as to

Commercial departments, consideration of waiving membershipcondition to extent such funds are insured byFDIC, letters to FDIC and Comptroller re possibleamendment to MAct to exempt national banks fromrequirement, opposed by Messrs. McKee and Ransom,referred to latter

Trust department for use of trust funds in conduct of bank'sbusiness, ruling to be published in IRBulletir

11/ 3 1992

5/23 1072

12/18 2239

8/ 4 1486

3/10 546

8/20 3.560Deposits:

Bankinp- department, reply to Mr. Curtiss in accordance withaction of Board on March 10 re Southington Bankand Trust Co. refusing to waive membership con-dition requiring deposit of security for, toextent such funds are insured 4/ 8 774

Letters to Comptroller and American Bankers Associationre general question involved, suggesting ad-visability of amendingSec. 11(k) of FRAct 4/ 8 "5-6

Member banks in uninsured nonmember banks, reply to Mr.McRae, re case of Union Trust Company of Spring-field, Mass., that such funds are not coveredby insurance

Savings department, reply to Carthage National LxchangeBank re, under Regulations F and Q and re treat-ment of such deposits in reports

Union and New Haven Trust Co., New Haven, Conn., with non-member bank in excess of 10% of capital andsurplus, reply to Mr. Curtiss that membershipcondition and Sec. 19 of liRitet do not apply to

Illinois, condition of membership requiring pledge of collateralfor trust funds deposited in banking department,Board unwilling to waive, State attorney generalIs preparing opinion re right of State memberbanks to make pledge

Insured mortgages, pools of, reply to Southern Arizona Bank andTrust Co. that Board cannot relax membershipcondition 17 to permit investment of trust fundsin

8/18 1536

11/24 2118

6/11 1168

3/ 6 530

1/2 9


Trust funds: (Continued)

Investment by national bank in obliLrations executed by officer

of bank as receiver appointed by Federal

Court, reply to Mr. /enner that Sec. 11(a) of

Regulation F prohibitsbe published in IRDulletin

assets acquired from commercial department, reply

to County National Bank at Clearfield, Pa. dis-

approving

in securities purchased from affiliate by First Na-

tional Bank of Atlanta, Ga., reply to Mr.

Williams re question of violation of Regulation

Puling to

Investment in

Investment

433

Pages

7/22 14178/20 1560

3/5 511

9/12 1695

Lending by bank, ruling to be published in laRBulletin 4/25 893

Loan between trusts contemplated by Charleston National Bank,

Charleston, W. Va., where trust instrument

states trustee is not to be restricted, would

violate Regulation F, but may be made under

court order 10/19 1908

Loans to executive officers from, by own bank and by other

banks, reply to Mr. Austin that Regulation J

is applicable to 3/20 618

Pennsylvania:Investment in mortgages purchased from own commercial depart-

ment to extent permitted by State law, amendment

to Regulation F re, suggested by Lancaster

County National Bank, disapproved 9/23 1753

National banks in, Question of making exception re invest-

ment in mortgages purchased from own commercial

department to extent permitted by Pennsylvania

Banking Code 9/ 1 1627

Pledge of collateral:

Connecticut, Board refuses to waive membership condition re-

quiring, for those used in banking business 10/ 8 1852

Illinois, letter from Mr. Young, memo ofidr. Seitz recom-

mending that Board no longer defer enforcement

of membership condition requiring, approved

and letter to Mr. Young

Membership condition, Board not willing to defer enforcement

in Illinois, Board does not understand that de-

cision in Barrett v. Reuter changes situation 5/27 1091

"Redemption fund" held by City National Bank of Philadelphia,

reply to Mr. Hill that Sec. 9(b) of Pegulation

F requires deposit of security for such funds

deposited in banking department

Southern Arizona Bank and Trust Co., Tucson, Ariz., examination

report reveals use of, in banking department

without full coverage of collateral deposited,

President i4cKinney requested to seek correction 10/ 8 1854

Uninvested:Acceptance of deposits of, by FRBanks, letter to all presi-

dents re action of Governors' Conference, and

requesting views of FRBanks

9/11 1686-7

7/17 1398

4/15 810


434 pages

Trust funds: (Continued)Uninvested: (Continued)

Deposit with 1REank, practice of FRBank of San Franciscoof certifying check against reserve accountwhich is indorsed in blank to trust departmentfor funds of equal amount, no objection 11/25 2138

FEBanks, question of accepting deposits of, memo of Mr.Vest and letter approved to FRBanks authori7inPacceptance under special safeguards, not author-ized to receive from nonmember banks 9/29 1788

Pennsylvania, interest may be paid on demand deposits ofPennsylvania Company for Insurances on Livesand Granting Annuities under State law 4/29 923

Reserves against, memo of counsel that Continental NationalBank and Trust Company of Chicago be requiredto maintain, disagreed with by Mr. Thomas, ruledthat reserves need not be maintained against,Mr. Szymczak voting "no" 1/24 200

Letter to Mr. Stevens advising of action 1/31 262Union Trust Company of Boston, Mass., reply to FRBank of Boston

that agency, safekeeping and corporate accountsmay be used in commercial department withoutPledging security in trust department only ifclearly not involving fiduciary relationship 1/17 156

Trust receipts:American Bankers Association, reply to request of Mr. Djorup

for any rules re, made since July 1, 1934,and any suggestions in connection with studyof Uniform Trust Receipts Act

Trusteeship:Beavers, P. L. T., FRBank of Atlanta, letter to Mr. Parker re,

in accordance with action of Nov. 25, advisingthat Loard is opposed to such service

Board opposed to FRBank officers acting in such capacity, ques-tion raised in connection with appointment ofMr. Beavers, FRBank of Atlanta as trustee inpersonal capacity

Truxel, Tohn C.: (See National banks, Lancaster County NationalBank, Lancaster, Pa.)

Tsouderos, limn.: (See Foreign banks, Bank of Greece)Turner Construction Co., Philadelphia, Pa., to be invited to bid on

Board's new buildingBid submitted by

Typewriters, servicing of, contract entered into with UnderwoodElliott Fisher for balance of 1936, similarplan with other companies to be entered intoif satisfactory

?IUD

8/25 1584

12/ 3 2160

11/25 2126

1/ 21/30

4/25

3234

s96

Underwood Elliott Fisher Co., contract authorized with, coveringservicing of Underwood typewriters 4/25 896


435

Pages

Union Commercial Corporation:

Liquor bonded warehouse receipts, reply to Mr. Reiner on ac-

ceptability as collateral by banksReply to Mr. Reiner re discount of paper secured by and

advising that age of whiskey would have no ef-fect on eligibility

United States Code Annotated:Title 5, Sec. 58, reply to FDIC that provisions are not applicable

to FREank employee and do not prohibit him fromreceiving salary also from U. S. even thoughcombined salaries exceed *2000 6/25 1252

United States Fidelity and Guaranty Co., cash bond deposited inFirst National Eank, Pueblo, Colo., may be clas-

sified as savings deposits 9/22 1749S. Public Health Service:Haworth, Mrs. Margaret G., employee of Board, letter to Surgeon

General stating no objection to negotiation

with, for employment by 3/25 670Resignation of 3/26 675

University of Arkansas, applications for positions with Board, replyto Dean Fichtner re policy of Board as to ap-pointments 4/ 9 785

U.

Unsafe practices:Perth Amboy, N. J., banks, review by Mr. McKee of situation,

letter from FDIC agreeing to procedure suggestedby Board, request of FDIC for file, Mr. McKeeauthorized to call conference of representativesof Board, DIC, RFC and New Jersey banking au-thorities

Useless records of Board of Governors, destruction, letter to house

Committee on Disposition of Executive Papers

advising of destruction rather than sale, tobe transmitted when papers have been destroyed

Utah:Condition reports, publication of, extra copies of 105e to be

furnished State banking department to bring

about single publication

T.: (See National banks, National Bank of Logan)(See National banks, First National hank, Keystone,

W. Va.)Financial Statements", advice to Mr. Broad, Ameri-

can Institute of Accountants that Board nolonger issues and that it refers all requests

to Institute(See also Publications)

Vermont:Maximum interest rate payable by national banks, reply to FRBank

of Boston

Valentine, Mark .Vaughan, H. D.:

"Verification of

8/ 7 1501

9/ 3 1642

9/ 4 1651-2

7/ 8 1329

6/ 1 1110

8/18 1540

6/25 1248


436 Pages

Vermont: (Continued)M482iMUM interest rate: (Continued)

Postal savings funds, reply to President YoungMr. Ellenberger on

Time and savings deposits, letter of 1RBank ofadvising member banks of effect ofapproved

re reply to

BostonState order

Violations:Criminal provisions of banking laws, letter to all FRAgents re

procedure in reporting, and that State memberbanks should be impressed with importance ofreporting promptly

Executive orders re gold coin and certificates, Dallas Bank andTrust Co., Dallas, Texas, report to Secretaryof Treasury re certificates and coin in tellers'cash, certificates surrendered to Ma.. Philpott 5/13

Farmers State Bank of Flandreau, S. Dak., criminal, reply toMr. Peyton re possible harm to understandingwith State authorities by reporting to LocalU. S. Attorney, to forward report to Board forsubmission to Attorney General

Iowa State Bank, Algona, Iowa, purchase of shares of stock ofAlgona Federal Savings and Loan Association,violation of Sec. 9 of FRAct, no objection toretention of stock until Dec. 31

Law, or safe and sound practices, letter to presidents andFRAgents on reporting

Public Utility Act, reply to FRBank of Cleveland that it is notrequired to analyze reports to ascertain viola-tions of Sec. 17(c)

Regulation T, Sec. 5(a):Manheim, Dibbern and Co., memo of counsel re possible and

reco ending report to Securities and ExchangeCommission and to Attorney General, approved 3/11 556

FRBank of San Francisco may cooperate in investigationof 3/21 663

9/25 1764

12/22 2257

1am

1/22

2/17

8/11 1513

8/29

12/19

186

1016

362

1620

2246

Sec. 9 of FRAct:Wayne State Bank, Wayne, Mich., purchase of stock of Wayne

County Federal Savings and Loan Association inviolation of 4/ 3 737

Sec. 14(g) of FRAct:FRBank of New York, failure to secure permission to conduct

negotiations with Banco Central de Reserve de ElSalvador 9/ 4 1646

Sec. 22(g) of FRAct:Bank of Romney, W. Va., loan of trust funds to G. W. Arnold

an executive officer, which increased his in-debtedness to the bank beyond statutory limit 9/25 1761

Brownfield State Bank, Brownfield, Texas, by four officers,reply to Mr. Walsh that as it was subsequentto Aug. 23, 1935, criminal provisions not ap-plicable, but may be violation of Sec. 5209, R.S.,and report of, to Attorney General 1/31 267


439

Pages

Violations: (Continued)

Sec. 22(g) of FRAct: (Continued)

Dallas, James, Brownfield State Bank, may also be viola-

tion of Sec. 2509, R.S., reported to Attorney

General 1/31 267

Dallas, W. H., Brownfield State Bank, may also be violation

of Sec. 5209, R.S., reported to Attorney C;eneral 1/31 267

First National Bank of Clifton Forge, Va., reply to Mr. Fry

as to whether loan to Vice President Emmett con-

stituted, copy to Comptroller 1/15 140

Hamenway, Charles, Marine Midland Trust Co., Binghamton,

N. Y., through increase in indebtedness incurred

June 8, 1934 to cover advances for taxes made

by bank for own protection, not necessary to

report to U.S. Attorney 12/21 2249

Hilyard, N. B., former officer of Brownfield State Bank,

reported to Attorney General as possible viola-

tion of Sec. 5209, R.S. 1/31 268

Holmes, Leo, Brownfield State Bank, may also be violation

of Sec. 5209, R.S., reported to Attorney General 1/31 267

Indebtedness of inactive vice president to national bank,

reply to Mr. Wood that it constitutes, question

of prosecution subject to discretion 1/13 120

Interpretations of Regulation 0: (See Executive Officers)

Loan by Phillips National Bank of Helena, Ark., made prior

to passage of Banking Act of 1935, question of

violation for determination of Department of

Justice 1/16 151-2

Miltenberger, Alex, President, _Tower Grove Bank and Trust

Co., St. Louis, Mo., possible violation should

be reported to U. S. District Attorney and

Department of Justice 12/ 2 2159

Overdraft for executive officer not in excess of 30 days'

advance salary, reply to Mr. Peyton that it

would constitute violation of, and Regula-

tion 0 1/15 141

Regulation 0, interpretations: (See Executive officers)

Stuart, Charles E., inactive Vice President of Peoples Bank

of Montross, Virginia, Incorporated, increase in

indebtedness to bank, letter to Mr. Fry re ap-

plicability of Sec. 22(g) of FRAct and Regula-

tion 0 3/20 620

Sec. 5136, Revised Statutes:

Miami Deposit Bank, Yellow Springs, Ohio, overinvestment

in bonds, board will not require immediate dis-

posal 11/12 2049


Farmers and Merchants State Bank, Turkey, Texas, holding of

own stock as additional collateral to loan is

not violation 6/16 1182


438 Pages

Violations: (Continued)


Ludlow, Clifford W., reply to Mr. Dillistin that as his in-

formation re violation at branch of Manufacturers

Trust Co. is not official and Federal Grand Jury

has taken action in matter, there is no need to

report 12/ 7 2188

Springville Banking Co., Springville, Utah, certifyinz ofchecks by officers when there were insufficient

funds in accounts, to be reported to Department

of Justice 10/10 1866

Sec, 5209, Revised Statutes:Brownfield State Bank, Brownfield, Texas, violation of Sec.

22(g) of 1,1-act may also constitute violation of,

report to Attorney General 1/31 267

Corn Exchange Bank Trust Co., New York, N. Y., letter to

Mr. Dillistin re reporting nall defalcations

by V. A. Cleary and F. Huntenburg 5/ 7 985

Henser, Henry J., former employee of Irving Trust Co., reply

to Mr. Dillistin that 7lisapproprietion was sub-

stantial enough to report to Attorney General 12/22 2260

Zimmerman, T. S., attorney for Bank of Romney, W. Va.,failure to nand over proceeds of note collected

for bank may constitute violation of 9/25 1761

Failure to pay proceeds of note collected on behalf of

Bank of Romney, W. Va. 10/12 1869

Sec. 7(c) of Securities Exchange Act of 1934:

Manheim, Dibbern and Co., MEMO of Counsel re possible,drafts of letters to Securities and Exchange

Commission and to Attorney General reporting,

telegram to Mr. Sargent to report to U. S.

Attorney, approved 3/11 556

FRBank of San :Francisco may cooperate in investigation of 3/21 633

State Bank, Winfield, Kansas, violations by officers of crimi-

nal provisions of banking laws revealed, should

be reported even though statute of limitations

may have run 5/27 1100

Vogt, Arthur C., reply that Board does not know that "CheckmasterPlan" used by hational Safety Bank and TrustCompany in New York, N. Y., violates any lawswhich came within the jurisdiction of the Board 5/21 1067

von Windegger, F. R.: (See State member banks, Plaza Bank of St.Louis)

Vouchers: (See Board of Governors, Administration)

Voting pennits:AImours Securities, Inc.:

General permit, Ocala National Bank and _Florida Bank atChOley, information re should be furnished

to supplement application and extension of

time for issuing 1/21 '178

Anglo National Corporation, San Francisco:

Limited permit granted to vote stock of First National Bank

of Chico


439

Pages

Voting permits: (Continued)

Anglo National Corporation, San Francisco: (Continued)

Limited permit authorized Dec. 19, reply to Mr. Sargent

that compliance by Mnters National Bank with

requirements relating to appreciation and de-

preciation will be satisfactory 1/11 110

Limited permit granted to, and to Consolidated Securities

Company, to vote stock of six national banks 12/28 2296

Atlantic National Bank of Jacksonville, Fla., agreement

amended to eliminate requirement that Board

approve investment changes 4/ 4 752

BancOhio Corporation, Columbus, Ohio:

General permit, reply to Mr. Fletcher re interpretation of

certain paragraphs of agreement, modifications

not approved 1/10 94

General permit granted 12/24 2274

Readily marketable assets required to be kept free and

clear, reply to Mr. Fletcher re 8/ ? 1503

Bank of San Rafael, Calif., determined not to be holding company

affiliate and general permit heretofore granted

is void 3/11 552-3

Citizens and Southern National Bank, Savannah, Ga., amendment

to agreement to eliminate requirement that

Board's approval be secured for investment

changes 4/ 4 753

Citizens Shareholders of Arcade, Inc., Arcade, N. Y., determina-

tion that it is not holding camp-my affiliate

of Citizens Bank of Arcade and general voting

permit is no longer effective 10/ 2 1816-7

City Certificates Corporation, Baltimore, Md., determined not

to be holding company affiliate of Union Trust

Company of Maryland, permit void 4/27 898-9

Consolidated Investment Trust, Boston, Mass., determined not to

be holding company affiliate of Union Trust

Company of Boston, permit is void 4/15 807-8

Consolidated Securities Co., San Yrancisco:


of Chico 1/11 105

Limited permit authorized Dec. 19, reply to Mr. Sargent

that compliance by Winters National Bank with

requirements relating to appreciation and de-

preciation will be satisfactory 1/11 110

Limited permit granted to, and to Anglo National Corpora-

tion, to vote stock of six national banks 12/28 2296

Credit allowed by Revenue Act to holders of general, letter to

all FRBanks re, in accordance with action of

Oct.'60 11/16 2067

Discussion by Mr. Hamlin of matters of interest with regard to 1/ 2 9

First Bank Stock Corporation, Minneapolis, Minn.:

General, agreement, letter to Mr. Peyton inclosing letter to

Mr. Wilson answering uuestions re, and extension

of time for issuance of general permit 2/ 5 300


440

Voting permits: (Continued)First Bank Stock Corporation: (Continued)

Limited permit granted to vote stock of certain nationalbanks to effect capital changes, Board not will-ing to grant limited permit for routine businessat annual meetings of subsidiaries as generalpermit has been authorized

Memo of Mr. Wingfield that action did not modify Board'spolicy of not granting limited permits whengeneral permits had been authorized

First National Bank of Louisville, Ky., amendment to agreementto eliminate requirement re securing Board'sapproval for investment changes

First National Company of Bradenton, Fla., determined not to beholding company affiliate of First NationalBank of Bradenton, general voting permit pre-viously granted is void

First Securities Corporation of Syracuse, N. Y., voted stockof North Syracuse National Bank without permitwhile still holding company affiliate, copiesof correspondence furnished Comptroller

First Security Corporation of Ogden, Utah, general permit,agreement, reply to Mr. Sargent on inquiry of,that it contemplates present and future stockinvestments in subsidiaries

Reply that Board cannot grant limited permit where generalpermit has been authorized, special directors'meeting could be held, or subsidiary's meetingadjourned

Determined not to be holding company affiliate and nofurther consideration to be given to applicationto vote stock of First National Bank of SaltLake City

Purchase of additional shares of stock of First NationalBank of Salt Lake City, Utah, makes organizetionagain holding company affiliate, reply to Mr.Sargent that it must file new voting permit ap-plication

Florida National Group, Inc., general permit, Ocala NationalBank and Florida Bank at Chipley, informationre should be furnished to supplement applicationand extension of time for issuing

General:Agreement, standard form, request of Shawmut Corporation

and National Shawmut Bank for amendment as torequirement that Board approve changes in in-vestments, memo of Mr. Baumann recommendingdisapproval, amendment authorized as to nationalbanks and Agents to be advised

Corrections, question raised by Mr. McKee as to whetherBoard might issue permit then require, pointedout that intent of Congress was that correctionsshould be condition precedent

Pages

1/4 38

1/4 40

4/4 753

1/31 258

3/2 475

1/ 2 11

1/ 4 42

5/23 1071

10/ 8 1851

3/25

12/31

667'8



General: (Continued)

Income tax exemption allowed by Revenue Act of 1936 to

holders, holdinE, company affiliates may desire

to obtain, letter to be prepared by Counsel

requesting FRBanks to call attention to regu-

lations of Bureau of Internal Revenue

Mr. McKee opposed to granting general permits without

limitation on effective time, possible revision

of standard agreement to be taken up by Board

December 4

Certification, reply to FRBank of San Francisco and

copy to other FRBanks, re procedure in submis-

sion of facts and information relating to

Limitation as to time of effectiveness, Mr. TdKee unwill-

ing to issue without prescribing

Limited permits not to be issued where general have been

authorized, Board to adhere to policy and

.MBanks to be notified

Refusal of limited permits to Transamerica Corporation

and Inter-America Corporation in accordance with

policyStandard agreement, question of making any changes, Board

will reconsider upon presentation of any.infor-

mation justifying

Revision of, question to be considered by Board on De-

cember 4Amendment, report of Mr. McKee re discussions with hold-

ing company affiliate representatives, to meet

with other members of Board if desired

Report of Mr. McKee re further discussions, and recom-

mendation that agreement be amended, approved,

FRBanks to be advised

Advice to FRBanks of action

Execution of, question of policy raised by Marine

Bancorporation which eliminated two requirements

because of compliance therewith, Board adheres

to position that whole agreement be executed

Hamilton National Associates, Incorporated, Chattanooga, Tenn.,

general permit, Board unwilling to grant in

view of criticisms and unsatisfactory financial

condition, limited permit granted, applicant

should furnish Exhibits L and N for Morrison

TurninE Co. and Eason-Norwood Co., Inc.

Howard County Liquidating Corporation, Ellicott City, Md.,

determined not to be holding company affiliates,

permit previously issued is void

Inter-America Corporation, San Francisco, Calif., limited per-

mit application refused as organization has

not obtained general permit authorized, new

application now necessary for any further con-

sideration

441

Pages

10/30 1980

11/25 2134

12/30 2341

11/25 2134

12/28 2280

12/28 2281

10/30 1981

11/25 2134

12/ 1 2150

12/ 4 216712/ 7 2187

12/31 2346-7

1/4 35

4/6 760

12/28 2281


442 Pages


Investment and Securities Co., Spokane, Wash.:

Limited pernit aranted to effect retirement of preferredstock of First National Bank in Spokane

Limited permit granted to vote stock of Old National Bankand Union Trust Co. and First National Bank,Spokane

Limited, policy of Board re not granting when general permithas been authorized, memo of Mr. Wingfield thatlimited permit granted to First Bank Stock Cor-poration to effect capital reductions of national

banks does not modify

Issuance not to be authorized where general permits havebeen authorized, Board to adhere to policy andFRBanks to be notified

Refusal of limited permits to Transamerica Corporation and

Inter-America Corporation in accordance withpolicy

Marine Bancorporation, Seattle, Wash., general permit, Board

cannot grant limited permit when general hasbeen authorized, reply to Mr. Sargent, and reobjections of organization to certain of pro-visions of agreement

Interpretations of standard form of agreement, letter toMr. Sargent requesting that copies be furnished

to Mr. PriceAgreement executed with paragraphs one and two omitted as

requirements had been complied with, discussion

of policy involved, Board not willing to eccept,Mr. Price advised by Mr. McKee of action and

assurance that standard agreement will be ex-ecuted, permit authorized

Marine Midland Corporation, general permit, reply that Board

cannot grant limited permit where general per-mit has been authorized, that organization has

had sufficient time to execute agreement and

that Board does not feel reasons advances arevalid for altering agreement

Hearing requested by Mr. Pope, to be held by Mr. Hamlinand Mr. Macpherson of Hart and Dice to be em-ployed to make stenographic transcript

Report on hearing, opinion that Board has no right to re-quire agreement, desired modifications, telegramto Mr. Case that Board is not willing to modify,and advice for corporation re requirementsunder agreement

Mellbank Corporation, Pittsburgh, Pa.:General permit, reply to Mr. Fletcher re interpretation of

certain paragraphs of agreement

Withdrawal of application, corporation declared liquidating

dividend of all bank stocks, application to beconsidered as withdrawn without considering ques-

tion of termination of holding company affiliate

relationship, papers may not be returned

1/ 7 69

12/23 2264

1/ 4 40

12/28 2280

12/28 2281

1/11 109

5/11 995

12/31 2346-8

1/ 4 41

1/ 7 65

1/11 106

1/10 94

2/27 446


443

aes


Mercantile National Bank at Dallas, Texas, amendment to agree-

ment to eliminate requirement that Board's

approval be secured for investment changes 4/ 4 753

National banks, amendment to agreement to eliminate necessity

of Board approval for investment changes, be-

cause of legal requirements and supervision of

Comptroller 4/ 4 751

National Shavgnut Bank, Boston, Mass.:

Agreement, request that standard form be amended as to re-

quirement that Board approve changes in invest-

ments, memo of Mr. Bauman recommending disap-

proval, and request that Board determine it

not to be holding company affiliate 3/25 667

Board unwilling to make determination, but agreement

amended as requested, as to national banks, all

FRAgents to be advised of amendment 3/25 668

Amendment waiving requirement that Board approve in-

vestment changes, because of legal requirements

and Comptroller's supervision 4/ 4 748

Satisfied as to modifications, but desirous of elimina-

tion of requirements as to charge offs, Board

not willing to authorize, noted that eliminations

are not considered sound practice and that bal-

ance sheet does not conform to that of SEC, ex-

tension of time for issuance of general permit 6/30 1284

Reply to Mr. McRae giving assurance desired by applicant

that agreement will became inoperative if holding

company relationship is terminated or voting

permit revoked 7/29 1449

Merchants National Bank,Salem,Mass., reply to Mr. Curtiss

that former is not holding company affiliate of,

in connection with election of Class A director,

although latter was included in permit 9/15 1712

Norfolk Corporation of Braintree, Mass., determined not to be,

of Braintree National Bank and permit heretofore

issued is void 4/ 7 768-9

Northwest Bancorporation, Minneapolis, Minn.:

First National Bank of Napoleon, N. Dak., limited permit re-

quested, held not to be holding company affiliate

and permit unnecessary 10/23 1938

General permit granted to vote stock of 32 national and one

State member banks 12/29 2310

Northwestern State Bank of Dawson, Minnesota, limited per-

mit granted to effect absorption of First Na-

tional Bank of Appleton and Northwestern

National Bank of Dawson 7/15 1371

Security Bank and Trust Company of Owatonna, Minn., corpora-

tion to be required to file agreement in con-

nection with approval of membership application 3/ 6 523


444 Pages

Voting permits: (Continued)Northwest Bancorporation: (Continued)

Third Northwestern National Bank of Minneapolis, limitedpermit granted to effect capital stock reduc-tion

1

Limited permit authorized to vote stock of Third North-western National Bank of Minneapolis 1:/23 ::::

Old National Corporation, Spokane, Wash.Limited permit granted to effect retirement of preferred

stock by First National Bank in Spokane 1/ 7 69

Limited permit granted to vote stock of Old National Bankand Union Trust Co. and First National Bank,Spokane 12/23 2264

Peoples Trust Co., Rock Hill, S. C., not necessary

made at present, advice to all Presidents

11/25 2141

Procedure in issuance of general and limited, no change to be12/21 2248

Rawlins Securities Co., Salt Lake City, Utah, general, issuanceon Jan. 9, was authorized within 30 days fromDec. 9, issuance ratified and confirmed 2/18 375

Republic National Bank and Trust Co., Dallas, Texas, limitedpermit granted to, and to Republic National Co.,unsatisfactory conditions, question of issuingpermits before requiring corrections 12/31 2344

Republic National Co., Dallas, Texas, limited permit grantedto, and to Republic National Bank and Trust Co.,unsatisfactory conditions, question of issuingpermits before requiring corrections 12/31 2344

Savannah Corporation, Savannah, Ga., determined not to be hold-ing company affiliate of Savannah Bank andTrust Co., and permit void 4/29 925

Shawmut Association, Boston, Mass.:General permit, consideration being given to request for

amendment to form of agreement and extension oftime granted for completion of membership ofCounty Bank and Trust Co. 6/22 1203

Satisfied as to modifications, but desirous of elimina-tion of requirements as to charge offs, Boardnot willing to authorize, noted that elimina-tions are not considered sound practice and thatbalance sheet required does not conform to thatof SEC, extension of time for issuance of weneralpermit 6/30 1284

Holding company affiliate, Board cannot determine that it is not 4/ 4 749

Merchants National Bank of Salem, Mass., reply to Mr.Curtiss that former is not holding company af-filiate of, in connection with election of ClassA director, although latter was included invoting permit 9/16 1712

Shawmut Corporation, Boston, Mass., request that Board determine it, and National Shamaut Bank not to be holdingcompany affiliates and also that standard agree-ment be amended as to changes in investments 3/25 667


445

Pages

Votiag permits: (Continued)

Shawmut Corporation, Boston: (Continued)

Board unwilling to make determination, but agreement amended

as requested, as to national banks, all liRAgents

to be advised of amendment 3/25 668

Transamerica Corporation, San Francisco, Calif.:

General permit, reply toldr. Giannini in answer to objec-

tions to certain provisions of agreement 1/10 95-7

Limited permit application refused as organization has not

obtained rzeneral permit authorized, new applica-

tion now necessary for any further consideration 12/28 2281

"Trustees***Citizens Union National Bank*** and Fidelity and

Columbia Trust Company***", Louisville, Ky.,

desire for limited or general permit if not

necessary to execute agreement, execution would

be necessary and Board is adhering to policy of

not issuing limited permits where general per-

mits have been authorized 12/18 2239

United States National Corporation, Portland, Ore., status as

holding company affiliate, Board might deter-

mine not to be, corporation satisfied 6/24 1228

Vollmer Security Co., Lewiston, Idaho, limited permit granted

to effect consolidation of banks and operation

as branches by First National Bank of Lewiston

and authorize issuance of stock 1/10 93

Limited permit authorized to effect consolidation of three

banks by First National Bank of Lewiston and

their operation as branches 3/27 693

Determined to be holding company affiliate of First Na-

tional Bank of Lewiston no longer and permit

unnecessary 9/22 1751

Wisconsin Bankshares Corporation, Milwaukee, Wis., general per-

mit granted 12/24 2276

Yakima Holding Corporation, Yakima, Wash.:


of Wapato 1/ 6 55

Subsidiary member banks liquidated, permit not now necessary 12/31 2358

473 Broadway holding Corporation, Saratoga Springs, N. Y.,

determined not to be holding company affiliate

and advised that general permit heretofore

granted is void 3/10 548-9

ItINt?

Wagenfuehr, A.: (See National banks, Boatmen's National Bank of

St. Louis)

Walker, E. A.: (See National banks, Tradesmens National Bank,

Oklahoma City, Okla.)

Ware, Oscar: (See National banks, Farmers and Mechanics National

Bank, Woodbury, N. T.)


446

Warehouse receipts:Liquor, bonded, use as collateral by banks

Liquor, reply to Union Commercial Corporation re discount of

paper by, and advising that age of whiskey

would have no effect on eligibilityreceipts for grain for customer, accound under Regu-

lation T may not be used for(See Iowa Bankers Association)(See Indiana Bankers Association)Inc.: (See quarters of Board)(See United States Fidelity and Guaranty Co.)

Purchase of

Warner, Frank:Warrick, Don E.:Weaver Brothers,Westcott, E. L.:Wheeler, Burton K.:

Folsom, George H., Assistant Examiner of Board, detail to Senate

Committee on Interstate Commerce in connectionwith railroad investigation extended for addi-

tional six months at request of

Whigham, J. H., present at Board meeting and presentation informally

of advice as to factors entering into relative

convenience and cost of trading in American Se-

curities in New York and London markets

Whitaker and Co., business involves some extension of credit, must

file semi-annual report on Form 240

White, W. R.: (See National banks, Citizens National Bank, Ontario,Calif.)

Wilentz, David T., present at conferences re condition of PerthAmboy Trust Co. and Raritan Trust Co., PerthAmboy, N. J.

Wilkes, W. H., reply re proposed modifications in plans under which

certain banks in Illinois were reorganized,

involving deferred certificates of deposit, in

connection with possible membership

Wilkins, Donald L.: (See Prentice-Hall, Inc.)Wilkinson, J. Harvie, Ir.: (See State member banks, State-Planters

Bank and Trust Co., Richmond, Va.)

Willard, C. H., present at meeting of Board to discuss Regulation U

William Cavalier and Co., grain transactions in restricted accounts,

reply to Mr. Wheeler re inquiry as to applica-

tion of Regulation T to

Williams, Clyde, Regulation U, memo re, reply to Mr. Clark answering

questions reWilliams, R. C.: (See National banks, First National Bank of At-

lanta)

Willis, H. Parker:"America Faces Bankruptcy", article by, condensed by Readers

Digest from American Mercury, letter re, from

Wilson Chemical Co., referred to Treasury for

attentionReply to Mr. C. S. Yeager, on statement re no metallic

backing for currency in circulation

Willits, Joseph H.: (See National Bureau of Economic Research)

Wilson, A. F.: (See Holding company affiliates, First Bank Stock

Corporation)

Pages

8/ 7 1501

9/ 3 1642

6/22 1208

3/ 4

10/29 1958

3/3 489

9/11 1683

5/26 1085

4/22 839

6/22 1209

5/20 1056

497

9/11 1665

10/14 1883


447

Winant, John G.:

Wingo, Otis T.:

Winter, Ezra, to

Wire transfers:Regulation of

Wilson, Howard A.: (See National banks, Citizens National Bank and

Trust Company of FUlton, N. Y.)

Wilson Chemical Co., Tyrone, Pa., letter of Mr. McCorahy re article

of E. Parker Willis "America Faces Bankruptcy"

referred to Treasury for reply

(See Social Security Board)

(See National Institute of Public Affairs)

be employed as artist for map in Board room of new

building

Pages

9/11 1685

6/17 1193

Board, Jan. 3, related only to, reply to RBank

of Dallas, but if proposed circular of MBank

relates also to mail transfers, there is no ob-

jection to changing liability clause 2/ 6 309

Report of Standing Committee on Collections re making for non-

member banks, inclusion of nonmember clearing

banks in par list and revision of rules and regu-

lations covering, approved, institutions main-

taining nonmember clearing accounts which are

not banks 1/ 4 45

Letter to all governors re, and revising rules and regula-

tions re wire transfers 1/ 4 46-9

sconsin:Charters and articles of incorporation of banks applying for

membership, certified copies should be sub-

mitted

Wise, Shepard and Houghton, deposits of liquidating corporation,

reply that they may not be classified as sav-

ings accounts 1/20 170

Withdrawals from membership:

Banco de Puerto Rico, reply to IRBank of New York agreeinfr that

it is inadvisable to comply with request that

decision on membership application be left

pending indefinitely and suggestion as to reply

to Banco re withdrawal of application 7/ 2 1293

Bank of Dawson, Ga., reply to Mr. Parker re personal interest

taken anc conferences held re 11/17 2082

Waiver of notice and permission for immediate, to be de-

ferred until deposits can be insured and per-

mission to FDIC to examine

Bank of Elizabethtown, N. C., permission granted for immediate,

suggestion that termination be deferred until

it can be accepted as insured bank, permission

to FDIC to examine

Bank of Haines, Ore., because removal to Baker makes capital

inadequate, no application received by FDIC

for insurance as nonmember, action deferred

on application

Letter to FDIC authorizing examination in connection with

desire to continue as insured bank

Telera-am to FRBank of San Francisco veivilw notice and

suggesting that action on cancelation of FRBank

stock be deferred until 1DIC could act on appli-

cation for insurance as nonmember bank 11/18 2092

11/ 7 2020

12/31 2356-7

1/7 68

11/13 2056

11/16 2066


4-48

Withdrawals from membership: (Continued)Bank of Hartsville, Tenn., rescission of notice of, not evi-

denced by resolution of directors, but Boardwill not require submission

Brownfield State Bank, Brownfield, Texas, recommendation ofMr. Walsh that president and cashier be re-moved under Sec. 30 of Banking Act of 1933 ormembership forfeited

Citizens Bank and Trust Co., Carthage, Tenn., permission grantedfor immediate, FRAgent to suggest deferring,until it can be accepted simultaneously as in-sured bank and letter to F. D. I. C. authoriz-ing examination

Extension of time to effectWaiver of notice and permission for immediate, Mr. Newton

to endeavor to have withdrawal deferred untilinsurance as nonmember becomes effective

Extension of time forCitizens State Bank of Westbrook, Minn., notice waived and per-

mission granted for immediate, effort to bemade to have accepted as insured bank simul-taneously with withdrawal, to be advised thatpublication of single report of condition willbe accepted by State and Board in future, let-ter to F.D.I.C. authorizing examination

Extension of time for, not requested, Board authorizes toprevent any future question

Farmers State Bank, Winner, S. Dak., waiver of notice and per-mission for immediate

Permission granted F.D.I.C. to make examination, in connec-tion with

Extension of time to effectFirst-Stamford National Bank and Trust Co., Stamford, Conn.,

contemplated because of prohibition in Regula-tion Q against classifying deposits of corpor-ations operated for profit as savings accounts

Forney State Bank of Forney, Texas, proceedings instituted forforfeiture of membership

Authorization to change date for hearing from June 2 toJune 16

Reply to Mr. Evans that it would be appropriate for Mr.Walsh, as FRAgent, to conduct hearing

Advice that bank waives right to appear before Board andtelegram from FRAgent that hearing before himhad commenced

Recommendation of IRBank of Dallas that bank be expelled,actions suggested, recommendation of Mr. McKeeadopted that letter of forfeiture be forwardedeffective in 30 days and if corrections aremade to be withdrawn

Effective date deferred

Pages

10/30 1982

3/ 2 473

3/14 5795/5 969

11/12 2047

12/30 2341

2/12 337

5/ 5 970

7/24 1430

8/13 15229/12 1694

1/22 184

4P79 920

5/4 961

5/12 1005

6/ 8 1156-7

7/15 1:565-78/26 1589


449

Pages

Withdrawals from FRSystam: (Continued)

Le Grand Bank, Le Grand, Calif., permission granted for im-

mediate 3/ 5 509

Manisticue Bank of Manistique, Mich., Board not willing to ap-

prove membership application, suggestion that

it be withdrawn 2/20 396

Marysville-Commercial Bank, Marysville, Ohio, notice waived

and permission granted for immediate 7/16 1373

Peoples Trust Company of Bergen County, Hackensack, N. J.,

contemplated, because of prohibition in Regu-

lation q against classifying deposits of cor-porations operated for profit as savings

accounts 1/22 184

Refual of Board to grant powers requested by member banks,

statement of Mr. Broderick that likelihood of,

should not deter Board from any action it be-

lieves in the interest of the System 11/12 2041

State Savings Bank of Owosso, Mich., withdrawal of membership

application because not willing to increase

capital to required amount 12/31 2358

Worcester, D. K.: (See New York Stock Exchange)

Works Progress Administration project, closed bank study, letter

to governors re supervision at FRBanks' expense 1/17 158

Wrenn Bros. and Co., reply to Mr. Curtiss re repurchase of securi-

ties sold when customer had not made payment

therefor 4/15 809

ttytt

Year, C. S., reply re statement of H. Parker Willis in Readers'

Digest re no metallic backing for currency in

circulation

"Z"

Zecher, Robert C.: (See National banks, Lancaster County National

Bank, Lancaster, Pa.)

Zimmerman, J. S., failure to pay proceeds of note collected on

behalf of Bank of Romney, W. Va., may be viola-

tion of Sec. 5209, R.S.

10/14 1883

10/12 1868


1936_v23_part 1-6 index.pdf

Documents

indexbranch banks

statemember banks

nonmember banks

supervisors of state

right of member banks

federal reserve bank

fraser http

board members