19341128_minutes.pdf

3627

A meeting of the Federal Reserve Board was held in Washington

Wednesday, November 281 1934, at 11:00 a. in.

PRESENT: Mr. Morgenthau, ChairmanMr. Eccles, GovernorMr. Thomas, Vice GovernorMr. HamlinMr. MillerMr. JamesMr. Szymczak

Mr. Morrill, SecretaryMr. Bethea, Assistant SecretaryMr. Carpenter, AEsIxtant SecretaryMr. Smead, Chief of the Division of

Bank OperationsMr. Coldenweiser, Director of the Division

of Research and StatisticsMr. Tyatt, General CounselMr. Vest, Assistant Counsel

Governor Eccles referred tolit the -g meet'.1.ri on November

the Maximum interest

and eavings deposits!kssrs.

Goldenweiser

l'ecilletion in the maximumNeral

reserve banks the majorityreduction. He stated that he°t the

executive committee

tr,4 t%el'e-herv of the

-1117°r"le to theDosed

Government

"Lit thethe nzIpci

the question under consideration

241 19341 of the advisability of lowering

rate prescribed in the Board's Regulation Q on time

to 2 1/2%;

and Currie

rate;

to memoranda which he had received from

expressing agreement with the proposed

and to the telegrams received from the

of which were favorable to the proposed

had discussed the matter with the members

of the Federal Open Market Committee and with

Treasury yesterday, and that, although they were all

proposed reduction, they felt that because

financing operations in December which are

of the pro-

to be announced

next few days, any action taken at the present time to reduce

3tI'lled as lack of confidence on

interest prescribed in the Board's regulation might be con-

the part of the Treasury in its financing

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

362811/28/34

-2-

°Perations and as an attempt to influence the market. He said that, inview of these circumstances, he desired to recommend to the Board that

action be deferred on the proposed reduction until the latter part of

11ober with the thought that favorable action will be taken then to

rieduce the maximum rate making the new rate effective possibly as of thefirst of Febr 1 1935.

%es

After discussion, upon motion by Mr.Hamlin, the matter of the proposed reductionwas laid on the table, subject to the call ofthe Governor.

Governor Eccles stated that he had not had an opportunity to dis-the

proposed reduction with the Chairman of the Federal Deposit In-

81111614" Corporation, but that he did not think there would be any objection

pal't of the Corporat!.on to a reduction in the rate of interest pre-aellbed

rict discussed it but was

C14311110r Eccle5.

by it for insured nonmember banks. Mr. Morgenthau said that he had

inclined to concur in the opinion expressed by

Reference was then made to the discussion at the meeting on November4, 19&I,

with regard to procedure in handling the business of the Federal

Iteserire 1)°ard, and Governor Eccles stated that he desired to recommend totIletoard that it

assign tothe various members the supervision of various

Of the Board as follows:141%

Nrmczak:

Mt% Thomas:

(1) Industrial loan matters, (2)Payment bymember banks of interest on deposits,and (3) Cell reports for condition.

(1) Clayton Act matters, (2) Matters arisingunder section 32 of the Banking Act of1935, and (3) Matters arising under theSecurities Exchange Act of 1934.


11/28/34

Mr. James

Mr, Miller:

Mr. Hamlin:

The

3629

(1) Salaries and Expenditures of the Federalreserve banks, including investigation ofthe costs of operations of the Federal re-serve banks and recommendations relatingthereto.

(1) Site for the Board's new building and thedesign and construction of the building, and(2) Organization and development of researchand statistical activities of the Federal Re-serve System; monthly summary of business con-ditions; Federal Reserve Bulletin; and AnnualReport.

(1) Applications for trust powers, (2) Capitalstock reductions, (3) Membership applications,(4) Establishment of branches by State memberbanks; mergers and consolidations, etc., ofState member banks, and (5) Voting per-lits.

Governor stated that his recommendation contemplated that

e°111it-CLiLdn vdth supervision by the various members of the Board ofthe

activities assigned to them, all matters

- there was question or controversy

decision, and that periodic reportsq rsgu4r

l'sPective

Lir

of policy or matters on

would be referred to the Board

would be made by the members

meetings of the Bo-rd with regard to progress made in the

activities coming under their supervision.

"tivity is

be e Pecteddezie,e

Upon motion by Mr. Szymczak, GovernorEccles/ recommendation was approved unanimously,and Messrs. Morrill and Wyatt were requested toprepare the necessary amendment to the by-lawsOf the Federal Reserve Board.

Hamlin raised the question whether, where a particular

assigned to one member of the Board, the other members will

to make as careful a check of the matters going over their

regard to that activity as they have done in the past, or


3630

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whether 4+-Q is to be understood that they may rely entirely upon the

titiElS of the responsible member of the Board without an independentinvestigation of the matter.

This point was discussed and it was agreedthat each member of the Board may accept theinitials of the responsible member or make suchreview of the file in any particular case as hemay wish to make.

It was also understood that the member towhom a particular activity is assigned for super-vision will be free to call upon any or all ofthe other members of the Board for advice orcounsel with regard to any matter, and that allmatters establishing policy or involving contro-versy will be submitted to the Board for decision.

In connection with the newthat it

would be desirable to holde4ch week, it being understoodt4ttme set would beIf thie,

suggestion14hY the

members44iglied to them, and(1('Ilaion

required.

ti t,

procedure, Governor Eccles suggested

a weekly meeting at a specified time

by all of the members of the Board that

kept free on the members' programs. He said that

were adopted reports could be made at the weekly meet-

of the Board with regard to the particular activities

that special meetings could be held whenever the

The matter was discussed briefly, andit was understood that the Governor woulddetermine the most satisfactory time for themeeting and make a recommendation to theBoard.

There 4ts presented a letter dated November 27, 1934, from Mr.Wi1I 4

'el3erve 2 Wairman and Federal Reserve Agent at the Federal

bank of Cleveland, reading as follows:


11/28/34-5-

terdere.a his r

esignation in order to accept the chairmanship of The

1114'4461 City Bank of Cleveland, and that as it was necessary for him

te.a8/1 e his new duties immediately hetak had not had an opportunity to

the Inatter

3631

"I present this as my resignation, effective atonce, from the several offices of Class C director, Chair-man of the Board and Federal Reserve Agent to which youhave in the past designated me at the Federal Reserve BankOf

Cleveland."This action on my part is accompanied by the deepest

regret, since it removes me from official and personal re-lations with members and officers of the Board who have ineverY instance been both indulgent and helpful toward men PY post. The warm kindness of each of then will neverbe forgotten."The reason for this step lies in my desire to enterothe r Work through an opportunity which must be availed

°I at once. May I again express my grateful acknowledge-

rnt to the several members and officers of the Federal

41srve Board for their confidence in the past, and foru ell' kindly helpfulness to me in my office?"

Governor Eccles stated that he understood that Williams had

11P with the Board previously.

to r2he Governor was requested to address a letterWilliams stating that his letter had been pre-

sented to the Board and that his resignation had been6:X:d with deep regret, and expressing the Board's

to appreciation of the service rendered by himthe Federal Reserve Bank of Cleveland and the FederalReserve t System during the period of his membership ontile board of directors of the bank and particularlyRi ethill:el l)retr.iod of his service as Chairman and Federal

Governor Eccles stated that the Governor, Deputy Chairman, and

AsNve sistant Federal Reserve Agent at the Federal Reserve Bank ofland

are in r „,41..),aington„ and that, if agreeable to the Board, they.k be

advise,,u. that the Deputy Chairman should act as Chairman, and


363211/28/34

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tile Assistant Federal Reserve Agent should act as Federal Reserve Agent

PeMing the selection by the Board of a successor to Mr. Williams.

The members of the Board indicatedagreement with the Governor's suggestion.

The Governor then stated that he hoped that within the course01* the Ilex.,

two weeks he would be able to submit definite recommenda-tic'rls to the Board with regard to the matter of policy and procedure ine°1111ection with the personnel at Federal reserve banks.

At this point the Secretary of the Treasury left the meeting.

Mr s Szymczak stated that Mr. Albert M. Creighton, Chairman of

theInclustrial Advisory Committee of the First Federal Reserve District)

811ggested that another meeting of the chairmen of the Industrial

AdIri8017 Committees be held, and that he had requested Mr. Creighton todiaellss the

matter with some of the other chairmen. He said that as a481at (3f this

suggestion Mr. Creighton had addressed a letter to him11114r date

of November 26, 1954, stating that he had conferred with the

°f the Industrial Advisory Committees of the New York, Philadelphia,Chicago d

istricts, all of whom felt that such a meeting would be help-414

suggesting that the meeting be called for Tuesday, December 18)19 4.

Mr.-Ymozak also presented a telegram dated November 27, 1954,

l'1'°"ePU5r

Go"t -Irernor Fleming of the Federal Reserve Bank of Cleveland re-

tob g that a joint meeting be held in St. Louis on December 4, 1954,e att„d„.1

tiltirge by the representative of each Federal reserve bank activelyr loans to industry and a representative of the Industrial


363311/28/t4

-7-Ildvisory Committee who is actively engaged either as secretary or other-Se to the committe

of the advisory comm

As a related

him to the Boardglies

received from

telegram of July 1441't of the

expenses

Liclustrial Advisory Committees,

ize the Federal reserve

1/18cITY Committees for

%zzittee as follows:

BY payment ofthe Committee

e in procuring

ittee.

matter, Mr. Svmczak presented a memorandum addressed

and preparing information for the use

under date of November 28, 1934, referring to the re-

eleven

1934,

of the Federal reserve banks to the Board's

asking for suggestions with regard to the pay-

of, or a per diem allowance to, the members of the

and he recommended that the Board author-

banks to reimburse members of the Industrial Ad-

their expenses while engaged on business of the

actual expenses incurred or, if a member ofSO elects -

BY payment:

a. Where travel is unnecessary, of 45 per diemto cover incidental expenses.

b. Where travel is necessary, of $10 per diemto cover subsistence and incidental expensesduring the time the member is absent from hishome city, plus reimbursement for actualtransportation expenses such as railroad andPullman fare.

After discussion of the three matters referred to by"ezak$ the following actions were taken:

The Secretary was requested to address a telegramt0 the chairmen of the Industrial Advisory Committees(e3.1; the respective Federal reserve districts stating that,.. the suggestion of several chairmen of the Industrialry

Committees, the Board is calling a conferenceor the committee chairmen in Washington for Tuesday,


3634

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December 18, 1934, that a letter containing topicssuggested by the Board for consideration at the meet-ing will be forwarded as soon as possible, and that itwill be appreciated if the chairmen will send to theBoard promptly any topics which the committees feelshould be considered at the meeting.

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

"One of the Federal Reserve banks has suggestedthat a conference be called at St. Louis, beginningTuesday, December 4, to discuss procedure in handlingaPplications for industrial advances and commitmentsfrom time of receipt to final action thereon, eachFteitzlily Ziemegebtai bank to be represented by person ac-

industrial advances and eachIndustrial Advisory Committee by person actively en-gaged, either as Secretary or otherwise, in procuringand preparing information for use of Committee. Con-ference would consider organization set-up of both bankand committee, the character of information required toPass upon applications, the sources of such information,1nd the expenses connected with handling the applications.It has been suggested that both representatives bringWith them sufficient copies of all forms and, if possible,written memoranda covering procedure, for distribution toall conference members. Board feels that such a conferencewould be helpful and will appreciate advice as to whetherY.,(311 approve, and the name of representative of your bankwho

of representative of Industrial Advisory Committeewill attend conference if called."

Mr. Szymczak was requested to prepare a letterto the Federal reserve agents at all Federal reserve,1),anks stating that the Board has approved the reim-Tarsement of the members of the Industrial Advisoryuommittees as follows:

(1) A member engaged on business of the committeein the city in which his place of business islocated may be reimbursed for actual expensesincurred by him.

(2) A member engaged in the business of the com-mittee outside of the city in which his placeof business is located may be allowed a perdiem of '1.0 a day plus his actual transporta-tion expenses, or, if he so elects, he may bereimbursed for actual expenses incurred by him.


363511/28/34

In connection with the latter action particular consideration

1113 given to section 15b(d) of the Federal Reserve Act, as amended, which

Pl'Qvides that members of the Industrial Advisory Committees shall servewithout

compensation but shall be entitled to receive their necessarye)cperise8 while engaged in the business of the committee or a per diem

allox41tnee la lieu thereof to be fixed by the Federal Reserve Board.

484ex Governor Eccles stated that the Secretary of the Treasury recently

Pressed an objection to the location of the new Federal Reserve8(4" builri4

an the site proposed on Constitution Avenue, and had re-

the d him to

investigate the possibility of locating the building nearerzr

ea81117 DePartment, possibly on the site of the Cosmos Club-Belasco

'Neste

Ileatli 6 ProPertY at East Executive Avenue and H Street, N. W. He said

e had

c

submitted the matter to Mr. Miller as Chairman of the Site°11itt

y eteel wh

40t o had prepared a memorandum which he (Governor Eccles) had

the --c4 an opportunity to read; that he would consider the matter at

TN:::::::°:::: :ty and would take it up with the Secretary of the

t4 tio in the meantime, he felt no change should be made intIle:d's

present plans or the activities now in progress looking toward

ttd eti°n of the building on the Constitution Avenue site.ded He alsothat

he understood that the Secretary of the Treasury had made noItt stigation of

sole the matter, but that his suggestion was based an the

Il eervec3tisicieration that because of the close relation between the Federal

that

e 3Yetem a-,lettlt LIQ the Treasury Department the Board's building should be

the q,—,veasury Building.

zietirer


363611/28/34

-10-

The Board then acted upon the following matters:

Letter dated November 27, 1934, from Mr. Sproul, Secretary of the

?ederal Reserve Bank of New York, advising that, at a meeting of the board

dit'ectors on that date, no change was made in the bank's8ehedille of rates of discount and purchase.

Without objection, noted with approval.

DIAri . Memorandum dated November 24,

-Lsloh of Bank Operations,

re8ignation of Mrs. Geraldine

clivision, effective at the close of business

1934, from

existing

Mr. Smead, Chief of the

submitting and recommending acceptance of the

E. Woolschlager as a comptomet'ar operator in

on November 50, 1954.

Approved.Le tter

dated November 27, 19540 approved by five members of thetozt,to lAr. ,

oargent, Assistant Federal Reserve Agent at the Federal ReserveEttkOf se.

t Francisco, reading as follows:

"Reference is made to the report of examination ofrfe 'Seattle Trust Company', Seattle, Washington, as oftfil 2) 1934, and the information submitted in connectionb'rewith. The Seattle Trust Company was admitted to mem-se,1,:shiP in the System on December 4, 1935, and information

in connection with its application indicated thatac! --stitution operated an insurance department which trans-a. broke

no business with the general public but acted solely inmarbrtokerage capacity in connection with the bank's own

it .age loans and the properties and mortgages handled byprels11 a ibeAtrust capacity. Membership condition numbered nineteen

cr - LT the Board and which was accepted by the bankPrcvsides that

(-3-.01 bank shall not engage in the tusiness of solicitingc; writing insurance as agent or broker for any insurancetheY even though such acts may be authorized underw.s ,_provisions of its charter or the laws of the State of

The - nlngton.the 11;elp°rt of examination as of April 2, 1934, indicates thatthe :Ink continues to operate an insurance department, whichor ci,,,nner states does not represent any insurance companies

with the general public but acts solely in a brokerage


363711/28/s4

8(14rd,

It

-11--

capacity in connection with its first mortgage loansand the properties and mortgages handled by it in atrust capacity, which activities it would appear are indirect violation of membership condition numbered nineteen.

"It will accordingly be appreciated if you will deter-mine whether the Seattle Trust Company continues to operateits insurance department in violation of condition numbered

T:

nineteen and, if so, forward your recommendation as to the.which should be taken by the Board with respectaction

e "The report of examination as of April 2, 1934, indi-

cates also that Directors Baillargeon and Winslow own a con-trolling interest in the Baillargeon Winslow Investment Com-PanY. No information is available as to the character of thebusiness transacted by the Baillargeon Winslow Investment;'°mPa457 but it is assumed that you have determined whetherthe business transacted is of such character as to requirethe filing of applications by the two directors involved forpermits under the provisions of Section 32 of the Banking Actof 1933•

With airs appreciate definite advice in connection1:7=t=Approved.

Letter dated November 27, 1934, approved by five members of theto

"The National Exchange Bank and Trust Company of New York,"New York, reading as follows:

by ,7his refers to the resolution adopted on January 3, 1934,de,re board of directors of your bank signifying the bank'shav'Lre to surrender its right to exercise trust powers whiche,i een granted to it by the Federal Reserve Board.

been The Federal Reserve Board understands that your bank has

wit scharged or otherwise properly relieved in accordancethe ""e law of all of its duties as fiduciary. The Board,tyjaefore, has issued a formal certificate to your bank certi-ridLthat it is no longer authorized to exercise any of theof .1.,-"417 powers covered by the provisions of section 11(kiclo "e Federal Reserve Act, as amended. This certificate s0:d

herewith. n-

that In this conrection, your attention is called to the factRese; under the provisions of section 11(k) of the FederalbY th:e,Act, as amended, when such a certificate has been issuedshall

Federal Reserve Board to a national bank, such bank ,(1)Of then° longer be subject to the provisions of section 11(,c)'ederal Reserve Act or the regulptions of the Federal

oard made pursuant the7eto, (2) shall be entitled to


I 11/2s/343638

"have returned returned to it Any securities which it may havedeposited with the state or similar authorities for theProtection of private or court trusts, and (3) shall notexercise any of the powers covered by section 11(k) of theFederal Reserve Act except with the permission of theFederal Reserve Board."

Approved.

Letter dated Novo Yibcr r.7, 1934, approved by five members of

the 1° d, to ?Ir. Case, Federal Reserve Agent at the Federal Reservekraz ofNew York, reading as follows:

"Receipt is acknorledged of Mr. Dillistints letterof November 20, 1934, with enclosures, in rogard to the pro-Posed reduction in the common capital stock of the 'MutualTrust Company of Westchester County', Port Chester, New York.

"The Board has reviewed the informatioll submitted in con-nection with this transaction, from which it appears that thereleased Capital will be used to eliminate the loses estimated

iLhe examination of Septelber 6, 1934, and to augment thebanct surplus account. In the circumstances, the Board willinterpos e no objection to the reduction in the bank's capital,Pr°71ding the assets charged c'f in connection therewith re-

the property of the bank, and with the understanding, of13°117'e, that the transaction has the approval of the State2r1kInZ Department of the State of New York, and that your

ruelns -s satisfied as to the legality of the proceedingspn c'nnection therewith. It will be appreciated if you will-La°rd copies of the amendments to the bank's charter whichre adopted in connection with the adjustment of capital."

1304111

Approved.

Letter dated November 27, 1934, approved by five members of the

Mrs °IConnor, Comptroller of the Currency, reading as follows:

Rese -L11 accordance with your recommendation, the Federal

rve Board ;, approves a reduction in the common capitaltoock vl The West Hempstead National Bank', Hempstead, New17.1.1(;) from $50,000 to 25,000, pursuant to a plan which pro-

cores that the released capital shall be used to eliminate abalzsponding amount of the least desirable assets in the--) including all losses and depreciation in securities, all


11/ 2 8/ 3 4-13-

11as set forth in your memorandum of November 14, 1934."

:3639

Approved.

Letter dated November 27, 1934, approved by five members of the

to m„Stevens, Federal Reserve Agent at the Federal Reserve Bank

°t Chicago, reading as follows:

"This refers to Mr. Young's oral request, made tomember of the Board's staff, for a statement by the

°ard as to whether it would agree to a proposed amend-ment in an application for a voting permit to be filed byClearing Industrial District, Inc., Chicago, Illinois, tovote the stock which it owns or controls of Ile State Bankof Clearing, Chicago, Illinois.

"The proposed amendment to the application reads as

tAAYthing herein to the contrary notwithstanding, thisagr2ement is terminated and becomes null and void upon

a - Tender of resignation from the Federal ReserveSystem by the State Bank of Clearing.

tb 7ritten request of Clearing Industrial District,Inc., to have the Federal Reserve Board immedi-ately rescind its application to vote its stockof the State Bat-11,c of Clearing.

- Upon the termination of the status of holdingcompany affiliate of the Clearing IndustrialDistrict, Inc., through its sale of stock ofthe State Bank of Clearing so that it no longerdirectly, or indirectly, owns or controls 50%or more of the stock of the State Bank of Clearingwhich voted at the last annual meeting of theState Bank of Clearing. '

'As will be noted the name the holding company af-tllate stated in the above amendment is Clearing Industrial

to accept Inc. However, the agreement on F. R. B. Form P-5

:staFr the provisions of section 5144 of the RevisedOf the United States, as amended, which was forwarded

!ehe State Bank of Clearing, was executed by Chicago Transfer

to Clearing Company. This difference of names is mentioned merelyCall the matter to your attention.

com 'Paragraph b of the above amendment would give the holdingby PalW affiliate the right to nullify its agreement at any timeTb_

Federal written request that its application be rescinded.Reserve Board believes that it would not be justified

IIlgree ing to such an amendment.


3640

I 11/28/34-14-

"The Board is of the opinion, however, that it mayproperly agree to the following amendment, to F.R.B. FormP-1, which amendment contains the substance of paragraphsa and c of the amendment submitted for consideration:

'Anything herein to the contrary notwithstanding,this agreement shall be terminated and become null andvoid upon:

'1. Cancellation of all of the Federal ReserveBank stock held by all subsidiary member banks of theApplicant.

'2. Termination of the status of the Applicantas a holding company affiliate of all member banks.'"Although the Board will not object to this amendment,

it feels that such an amendment is unnecessary because theprovisions of the amendment are already effective under thelaw

i "It will be appreciated if you will advise the hold-i_ng company affiliate of the Board's attitude in this mat-

Approved.

Letter to the governors of all Federal reserve banks, read-IN as

follows:

"Refc,rence is made to the Board's letters B-9.17 andB-998 of July 16, 1934, relating to net earnings on indus-trial

advances and reports thereof to be submitted to theFederal Roserve Board.

"Paragraph numbered 6 on page of the regulationsissued by the Secretary of the Treasury pursuant to sub-section (e) of Section 13b of the Federal Reserve Act, as?ended, which were inclosed with the Board's letter4-8034 of October 5, 1934, reads as follows:

. 'The amounts of all payments to be made to theUnited States by the Reserve Bank pursuant to the pro-visions of subsection (e) of Section 13b of the FederalReserve Act shall be comluted in the manner prescribedbY the Federal Reserve Board in agreement with theSecretory. There shall be such an apportionment indeter mining the net earnings of the Reserve Bank for acalendar year derived from the use of the sum paid bythe

Secretary to the Reserve Bank under Section 13b,as the Federal Reserve Board and the Secretory shalldevi just and fair.'

You will note from the above luoted paragraph that"u amounts of all payments to be made to the United


11/28/34

3641

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"States under the provisions of subsection (e) of Section13b are to be computed in the manner .7rescribed by theFederal Reserve Ba- rd in agreement with the Secretary ofthe Treasury. Pending such agreement, it is re-luestedthat reports of net earnings on industrial advances andcommitments be furnished the Board currently each month,in duplicate, on Form B-23, one copy of which will be de-livered to the Treasury Department. A copy of Form B-23is attached, and a supply is being mailed you underseparate cover.

"Reports on Forms B-181 B-19 and B-201 inclosed withthe Board's letters of July 16, may be discontinued. Ex-penses reported on Form B-23 should include an equitableProportion of the expenses of •the provision of space func-tion, rental of furniture end equi-ment (whether owned byFederal Reserve bank or rented from outside agencies),retirement system contributions at the full rate, and allOther ex,)enses incurred in connection with the making ofindustrial advances and commitments under Section 13b, ex-cept such expenses as are paid by the applicants for loans.

"It is requested that, in addition to reports on FormB-23m:3k:arnings on industrial advances, and on commitmentsto

such advances, be reoorted as separate items onForm 95 following items 2 and 6, respectively, and that

all expenses incurred in connection with industrial ad-vances and commitments under Section 13b, other th n thosePaid by applicants for advances, be included in the appro-priate expense items on Form 96. Expenses or per diemallowances paid members of the Industrial Advisory Committeeshould be re ,orted following item 7 on Form 96.11

Approved.

Telegram to Mr. Crane, Deputy Governor of the Federal Re-

of New York, reading as follows:

in Your telegram. Board approves action your directorsauthorizing officers your ban': to make advances of nottto? exce-- fifty million dollars outstanding at any one

lnle to B I S secured by refined gold bars of reccgnizedrefiners and assayers in transit to New York or earmarked

York, You abroad free for export pending shi:)ment to New

in anY such advances to bear interest at discount rate11; effect at your bank. It is assumed that as usualivi;,tleiPation in any advances made under this authority-L1 be offered to other Federal reserve banks."

Approved.


11/28/34-16-

3642

Letter dated November 27, 1934, approved by five members of

the B°ard, to 11r.A. E. Demaray, Acting Director of the National

Park Service, Department of the Interior, reading as follows:

"As you know, negotiations are pending for the con-veyance to the Federal Reserve Board of certain propertyincluded in Squsres East of 87 and East of 88, in theDistrict of Columbia, now owned by the United States.Consideration is being given to the form of deed whichShould be used by the Secretary of the Treasury in con-veying the property in question to the Federal ReserveBoard and a draft of a proposed deed has been preparedin the Treasury Department and informally submitted to theBoard for consideration. There is inclosed herewith, foryour information, a copy of this suggested form of deed.Your attention is invited to the following words whichhave been included in the description of the property inSquare East of 87:

'together with all right, title and interest of theUnited States 4n and to all other property comprisingthe said Squsre E-87 and not embraced within the above

. metes and bounds.'similar clause is included in describing the property

In Square East of 88. Before the Board gives final con-sideration to the form of the deed and the description ofthe property to be included therein, it will be appreci-ated if you will advise whether there is any objection onthe part of - the National Park Service to the deed anddescription of the property in the form inclosed herewith,and also whether there would be any objection to the de-scription if the words above quoted were omitted therefromIn each place where they now occur.will 1".),Yao;e:xce in this matter at your early convenience

appreciated."

Approved, together with a letter, also datedNovember 27, 1934, and approved by five membersof the Board, to Mr. T. S. Settle, Secretary ofthe National Capital Park and Planning Commission,reading as follows:

4.. "This rcfers to your letter of September 10, 1934,Which you submitted to the Board a description of the

Property in Squares East of 97 and East of 88 which it is

W4c°4171.: the Federal Reserve Board will acquire for a


11/28/343643

-17-

"The •froceedings for the closing of the street andtwo alleys in Square East of 88, as you know, willDrobz,bly be consummated soon after November 261 1934.Accordingly, consideration is being given to the form ofdeed to be used by the Secretary of the Treasury in con-veying the property in 1,uestion to the Federal ReserveBoard and a draft of a proposed deed has been prepared inthe Treasury Department and informally submitted to theBoard for consideration. There is inclosed herewith forYour inform tion a copy of this suggested form of deed.The description contained therein of the property to beconveyed is similar to the description furnished by youWith your letter of September 10, 1934, but your attentioniS invited to the following words which have been includedin the description of the property in Square East of R7:

'together with all right, title and interest of theUnited States in and to all other property comprisingthe said Square E-87 and not embraced within the above

. metes and bounds.'A similar clause is included in describing the propertyin Square East of 88. Before the Board gives final con-sideration to the form of deed and description of propertyto be used, it will be appreciated if you All advisewhether there is any objection on the part of the NationalCapital Park and Planning Commission to the form of deed-111d description of the property as inclosed herewith, and

V-2° whether there would be any objection to the descrip-l'n if the words above quoted were omitted therefrom in?”h place where they now occur. In view of the fact that

proceedings for the closing of the street and alleys1,71:11 soon be completed, it will be appreciated if you1 advise us with regard to this matter at your earlycon

venience."Letter

e Bou. dated November 27, 1934, approved by five members ofth

to mr • Case, Federal Rese-ve Agent at the Federal Reserve844k of

New York, reading as follows:

"Recei7it is acknowledged of your letter of October 8,1:•_;34, and the inclosed coj:y of a letter from Mr. Maze,cecutive Officer, First National Bank & Trust Company,Pearl

River, New York, which ask whether it is necessarytc"I' member banks operating under the blanket permit referred

in the Board's telegram of June 23, 1934 (Trans. 2015)to submit to you data of the kind referred to in the


3644, 11/28/34

Qf the

the"al Reserve Bank of San Francisco, stating that the Boardhas giv

-18-

IrBourd's letter of July 17, 1934 (X-7963) in connectionwith subscriptions which such member banks enter forobligations of the United States for the account ofdealers in securities.

"The Board's letter of July 17, 1934 (X-7963) re-quested you to obtain certain inform_ tion regarding theoperations of member banks pursuant to the blanket permitin order that you might inform yourself whether, in yourOpinion, the permit in the particular case is in the pub-lic interest. However, the Board feels that the rackingof subscriAions for obligations of the United States bymember banks for the account of dealers in securitieswould not involve the evils at which section 32 was ap-parently directed and that, therefore, the submission ofinformation regarding such subscriptions would serve nouseful purpose. Accordingly, the Board feels thPt suchinformation need not be submitted."

Letter dated

Board, to Mt.

en

Iltder the

befcfreit/ feels that the issuance of the permit applied for wouldbe

Approved.

November 27, 1934, approved by five members

Sargent, Assistant Federal Reserve Agent at

inc°mPatible with the public interest. The letter also requested1111% s—'u-rgent to communicate to the applicant the Board's position

Ilatter, and to advise the Board promptly as to whether the4PPlicant- desires to submit any additional data, and, if not, as tobat

ste-

111 the

consideration to

Clayton Act, and

the following applicE - ion for a permit

that, upon the basis of the information

Siots ofPs he proposes to take in order to comply with the provi-

the Clayton Act.Mr,

o* C von -m Haas . a R4_ of

m, for permicsion to serve alulu ,rector

t the same timethe Bishop National Bank of Hawaii at Hon%Bish'0 Honolulu, Territory of Hawaii, and as a director of -?.eP Trus t Comany, Limited, Honolulu, Territory of Hawaii.


Etttelifia

364511/28/34

Letters dated November 271 19541 approved by five members

caf the Board, to applicants for permits under the Clayton Act,

71431-4 of approval of their applications as follows:

Mr, wdic F. Frear, for permission to serve at the same time asRo

F.

of the Bishop National Bank of Hawaii at Honolulu,the B' Territory of Hawaii, and as a director and officer of

lshHawaii. oP rust Company, Limited, Honolulu, Territory of

!r. J• W. Waldron, for permission to serve at the same time78 e director of the Bishop National Bank of Hawaii at Hono-lup Honolulu, Territory of Hawaii, and as a director of the131shop Trust Company, Limited, Honolulu, Territory of Hawaii.Mr. G

dire • P. Wilcox, for permission to serve at the same time as

:-c,j

Hctor and officer of the Bishop National Bank of Hawaii

*11,g onolulul Honolulu, Territory of Hawaii, and as a directorTe (ATicer of the Bishop Trust Company, Limited, Honolulu,rritory of

ny Hawaii.

ad-

Approved.

Letter dated November 271 19541 approved by five members

cl*the 41ard, to Mr. Sargent, Assistant Federal Reserve Agent atthep,.'leral Reserve Bank of San Francisco,

ele4rt A 4.°4 permit for transmittal to the applicant, andthat' when trans

mitting the permit to the applicant, Mr. Sargent ad-

inclosing the following

vise hi

la that it is-with the expectation that he will improve his at-te14111

ee at directors' meetings that the permit has been granted, andthat, wh

64 the assistant agent submits his recommendation as a result

requesting

01V I—zils 4ralUal

review of the permit, he report fully as to the applicant'sIlea at

directors' meetings:

14H. A. Baldwin, for permission to serve at tivai:im time, director of the Bishop National Bank ofHono-11°/101ulul Territory of Hawaii, an a director of the°P Trust

Company, Limited, Honolulu, Territory of Hawaii.

Approved.


3646U/28/34

-20-

Letter dated November 27 1934, approved by five members of

theB°ard, to an applicant for a permit under the Clayton Act, ad-

Iri3ing of approval of his application as follows:

George P. Rea, for permission to serve at the same time ,6 a director and officer of the Bishop National Bank of Hawaii

Honolulu, Honolulu, Territory of Hawaii, and as a directorof the Bishop Trust Company, Limited, Honolulu, Territory of

NO Approved, together with a letter, also datedvember 27, 1934, and approved by five members of

tl'e Board, to Mr. Sargent, Assistant Federal ReserveAgent at the Federal Reserve Bank of San FrLncisco,reading as follows:

"There is inclosed for your files a copy of the Clay-ton Act permit granted to Mr. George P. Rea, Honolulu,Territory of Hawaii, to serve at the same time as directorand officer of BishoT) National Bank of Hawaii at Honolulu,and as director of Bishop Trust Com2any, Limited, both ofHonolulu, Territory of Hawaii.

"In the confidential section of his report of examina-tion of the Bishop National Bank as of August 5, 1933, theexaminer noted, among other matters which had produced someunrest among the de:)ositors of this bank, a suit broughtIn Federal Court against the applicant by the United StatesGovernment involving the collection of a sum allegedly dueOfl 1929 income taxes, which claim the applicant disputes.From informLtion available to the Board it appears that nosuit was actually filed against the applicant but thatP"bablY certain stens had been taken to force a collectiontheof amount claimed due, that the applicant had taken the

to the United States Board of Tax Apneals from the,?cislon of which he had not taken an appeal, and that nego-lations between the apprcant and the Bureau of InternalRevenue have been in arocess looking toward a settlementOf the matter./ "In view, however, of the comments made by the examiner,4 1118 report of examination of the Bishop National Bank(41321; August 5, 1933, the Board requests that when you1;1..:-Lt your recommendation as a result of your annual re-

?f this permit you ascertain, if possible, the status';Ll this matter and its effect, if any, on the qualifications:_01, ability of the applicant, on the bank and its deoositorsB°L on the community in general and report fully thereon."


11/28/34

Of the'a-,rui, to applicants for permits under the Clayton Act, advis-

-21-

3647

Letters dated November 27, 1934, approved by five members

Of aPproval of their applications as follows:Mr. j

• Waterhouse, for permission to serve at the same time as:4:Ln-rector and officer of the Bishop National Bank of HawaiitItal Honolulu, Honolulu, Territory of Hawaii, as a director ofIlawaiian Trust Company, Limited, Honolulu, Territory of-L.-Lr;wal.i, and as a director of the International Trust Company,imited, Honolulu, Territory of Hawaii.Mr. _

_' h. Wodehouse, for permission to serve at the same timedirector and officer of the Bishop National Bank of Hawaii

then°nolulu Honolulu, Territory of Hawaii, and as a director of%WM. ir"-lan Trust Comany, Limited, Honolulu, Territory of

%eaC. R. Hemenway, for permission to serve at the same timeRo, ,director of the Bishop National Bank of Hawaii at Honolulu,7,1,, Territory of Hawaii, and as a director of the Hawaiianqst Company,

Limited, Honolulu, Territory of Hawaii.Mr. J.

;001115:e4 c.:,r,Mnergy, for permission to serve at the same time ascI

of the Bishop National Bank of Hawaii at Honolulu,7.1.1440-1-1, Territory of Hawaii, and as a director of the HawaiianCompany, Limited, Honolulu, Territory of Hawaii.

Mr. ,101,.. -as a az Russell, for permission to serve at the same timeRotoiii.14-ector of the Bishop National Bank of Hawaii at Honolulu,711.1_,'±u, Territory of Hawaii, and as a director of the Hawaiian

u°V-11Y, Limited, Honolulu, Territory of Hawaii.

APproved, together with a letter, also datedBuvetber 27, 1934, and approved by five members of thea.r!dy to Mr. Sargent, Assistant Federal Reserve AgentOle Federal Reserve Bank of San Francisco, readingas follows:

Act "There are inclosed for your files copies of Claytonu permits granted to Messrs. J. Waterhouse, F. H. Wode-,4ous.Ro„ ') C. R. Hemenway, J. D. McInerny and John E. Russell,as-icsIflu, Territory Jf Hawaii, to serve at the same timeof i'iijectors and/or officers of the Bishop Nationni Bankthe Hn at Honolulu, and as directors and/or officers of

lian Trust Company, Limited, and/or International


11/28/34

3648

()2

"Trust Comnany, Limited, both of Honolulu, T.H."It is noted from your reports on form 94b, with re-

spect to these applications, that you have been unable toobtain information concerning the character of the manage-ment and the financial condition of the trust companiessince they are o-)erating under territorial laws and are notmembers of the Federal Reserve System. Information avail-able to the Board indicates that the applicants are men ofhigh standing and integrity and that if the calibre of theapplicants is any criterion as to the financicl conditionand management of the trust companies, the latter wouldaPpear to be in good condition. While the Board was re-luctant to grant the above mentioned permits in the absence°A- specific information with respect to the trust companies,

has given consideration to the information availableWith respect to the standing and qualifications of the ap-plicants and is cognizant of the fact that there is a lack

any evidence indicating that the national bank has suf-Iered from its relations with the trust companies and thatthe

desirability of delaying further consideration of these!ses until specific information with respect to the condi-

TY1 of the trust companies could be obtained is question-e.al In the circumstances, the Board re,uests that when

You.submit your recommendations as a result of your annualreview of these permits you report fully such information

Y°u may be able to obtain in the meantime from the ter-r-Ltorial banking authorities with respect to the financialcondition and the character of the management of the trustcompanies "

There were then presented the following applications for

ell"gee in stoC.k of Federal reserve banks:

"ilg.-111,on for ORIGINAL Stock: Shares11°• 10-

Ft-M;rchants National Bank ofWest Point, West Point, Nebraska 36 38A 14

SURR1ME of Stock:mNe17 Raven Bank, N. B. A.,-ew

Haven, Connecticut 360 380

Approved.


3649

-25-

Thereupon the meeting adjourned.

(C.0) trU"M_Secretary.

APP4'°ved:


19341128_minutes.pdf

Documents

federal reserve board

clayton act matters

federal reserve bank

federal deposit

fraser http

maximum rate

allproposed reduction

assistant secretarymr