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March

  12 , 1933

Curtiss  -  Boston

Case  -  STew York

Austin  -  Phi ladelphia

DeCnnrp— Cleveland.

Eoxton  -  Hichaond Ba il ey  -  Minneapolis

Newton  -  At lant a McClure  -  Kansas City

Stevens  -  Chicago Walsh  -  Dallas

Wood  - S t .  Louis Newton  - San  j?r.~ncisco

TEAilS.  1638 In  cases where  y o u  receive  an  appl i cat ion  f o r  member-

ship from  an  e l i g ib l e State bank  or  trust company  th e  condit ion  and  manage-

ment

  o f

  which

  a r e n o t

  subject

  to

  substant ia l cr i t i c i sm

  and you

  fe el that

  the

Board would

  be

  f u l l y j u s t i f i e d

  i n

  admitting such institution

  to

  membership,

Board will upon telegraphic advice from  you of  essent ia l facts involved  i n

case give prompt consideration thereto

  and

  advise

  y o u o f i t s

  action thereon.

In

  such cases your advice should contain

  a

  statement

  of (A) the

  amount

  o f

applicant bank s c ap ita l stock,  (B)  surplus,  (C )  undivided profi ts ,  (D)

roservos  f o r  l oss es , deprec iat ion  o r  other contingencies,  (28)  aggregate

amount  o f  depos i t s ,  (3P)  l i a b i l i t y  to  Reconstruction Finance Corporation,

(G )  other borrowings,  (H)  total resources,  ( I )  date  e f  last examination

and by  what authority.  On  bas i s  o f  report  o f  such examination  ( J )  amount

amount  o f  depreciation  i n  investments  i n  f irst four grades  o f  s ecur i t i e s

a s  c l a s s i f i e d  by a  recognized investment service,  (N )  amount  o f  deprecia-

t ion  i n  other securities including stocks  and  defaulted bonds,  (0) any

undue concentrations

  o f

  a s s e t s ,

  and (P)

  l i qu id i t y. Also advise

  (Q,) t

what

extent

  and in

  what manner

  any of

  such items have been eliminated,

  and

furni sh  (B)  brief summary  o f  examiners comment  on  condition  and  management  o f

bank,  and (S)  concise statement  o f  your  own  opinion  o f  bank  a n d i t s  management.

and  character  o f  a s s e t s c l a s s i f i e d  a s  slow,  (K )  doubtful ,  (L )  l o s s e s ,  (M)

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I n

  your wire

  s e t o u t

  information requested opposit e res pe ct iv e symbols used

above. Each such tel egr am should be gi n wit h  t h e  code word QUOTE A2TCH0EIST

UNQUOTE meaning QUOTE

 We

  have ap pl ic at io n blank bank

  ( u s e

  A.B.A. tra ns it

number)  f o r  membership  i n t h e  Federal Reserve System,  t h e  condi t ion  and  manage-

ment  o f  which  a r e n o t  subject  t o  su b s t a n t i a l c r i t i c i sm  and we  f e e l t h a t  th e

Board would  b e  f u l l y j u s t i f i e d  i n  admit t ing such inst i tu t ion  t o  membership.

I  concur  i n  recommendation  of  executive committee  o f  t h i s bank t h a t such

act ion

  b e

  taken

  b y t h e

  Board UNQUOTE. Such te le gra phic ad vi ce s hould inc lu de

advice that your counsel  h a s  approved form  o f  a p p l i c a t i o n  an d h as  executed

c e r t i f i c a t e  o f  counse l us ua ll y accompanying membership ap pl ic at io ns  and be

accompanied  b y a  statement from  h im as to  what powers,  i f a n y ,  oth er than usua l

commercial banking powers  t h e  i n s t i t u t i o n  i s  authorized  t o  exercise under  i t s

charter  o r  State  la w, an d a  statement from  y o u a s t o  whicH  o f  such unusual

powers,  i f a n y , a r e  be ing ex er ci se d. Your advi ce should al so incl ude  th e

special condit ions

  o f

  membership

  i f a n y

  which

  i n t h e

  opinion

  o f

  y o u r se l f

  and

executive committee  o f  your bank should  b e  prescr ibed  i n  addi t ion  t o  those  c o n -

ta ined  i n  Trans  1 6 1 9 . I n  case  o f  banks exercising trust powers, furnish  c o n -

cise statement regarding condit ion  and  management  o f  trust department.  As  l a s t

word  o f  telegram re s ta te A.B.A. tr a ns it number  o f  bank.  I n  acting upon  a p -

plications under such circumstances  th e  Board wi l l necessari ly rely  to an  unusual-

l y  large extent upon your recommendation  an d  that  o f  executive committee  o f  your

bank. Accordingly,  t h e  most careful consideration should  b e  g iven  t o  whether

er

  n o t  condi t ion  o f  i n s t i t u t i o n i n v o l v e d  i s  such

 as

  t o

 warrant

  i t s  admission  t o

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membership.

  I n

  th is connection

  i t may be

  noted that

  t h e

  Board does

  n o t

  f ee l

usual standards  f o r  admission  t o  membership should  be  relaxed  i n  these cases.

I t i s  understood  o f  course tha t  in any  such case  y o u  will forward  t o  Board  a s

soon

  a s

  pos sib le bank s appl icati on

  a nd a l l o f

  papers usually accompanying

such  an  appl i cat ion .  In  advising  you by  wire  o f  approval  of any  appl ication

submitted through telegraphic advices from  y e u ,  Board will  u s e i n  such wire

word QUOTE MCHORIVET UNQUOTE fo l lowing name

  o f

  bank in vo lv ed . Such word

w i l l mean QUOTE Appl icat ion  o f  such bank  f o r  membership  h a s  been approved  b y

Board subject  t o  f i r s t  14  conditions  s e t  for th  i n  Trans  1619 and  special

cond itio ns st at ed he re af te r. Ple ase advi se such bank  of  Board s approva l  and

conditions  of  membership pre scr ibe d, tog ethe r with exp lana tio n thereo f  c o n -

tained

  i n

  Board s w ire Trans

  1 6 1 9 .

  Letter containing de ta ile d advice regard-

i n g  such approval will  b e  forwarded bank through  y o u a s  soon  a s  poss ib le ,

When  y o u  have re cei ved ce rt if ie d copy  o f  reso lut ion  o f  board  o f  d irectors  o f

such bank accepting conditions  of  membership prescribed  by  Board together with

advice

  o f

  compliance with

  any

  spe cia l conditions

  to b e

  complied with prior

  t o

admission  t o  membership,  t h e  Federal reserve bank  i s  authorized upon payment

therefor  t o  issue appropriate amount  o f  Federal reserve bank stock  and to

acce pt requ ired re ser ve s. Pl ea se adv is e Board da te upon which membership

  e f

bank becomes effective

  and

  amount

  o f

  Federal reserve bank stock issued

  t o i t ,

forwarding copy  o f  resolution accepting condit ions  of  membership  and  advising

o f  compliance wi th  any  conditions  to b e  complied with prior  t o  admission.UNQUOTE

Morril l .

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March

  12 , 1 933

B U SS. J630_

  Information requested In Trans  1 6 2 8 should include in each

case after respective symbol advice as to  ( I )  any affiliation,  u d

subsidiaries of bank and D) Branches, if any, located outside of corporate

limits of city in which hank is located and date of establishment of each

such branch. Information requested in Trans  1 6 2 8 with reference to  Juote

chat powers, if any, other than commercial tanking powers Unquote are held

or

 exercised

 by

 bank

 is

 intended

 to

 develop whether bank

 is

 authorized

 to

exercise

 and the

 extent

 to

 which

 it has

 exercised

 any

 powers such

 as

 trust

powers, surety, title Insurance, sale

 of

 mortgage securities with

 or

 without

guarantee or recourse or other broad powers not coming within usual meaning

o f  term banking powers.

Morri l l .