4A meeting of the Federal Reserve Board was held in the office of

the Federal Reserve Board on Tuesday, March 22, 1932, at 11:45 a. m.

PRESITT: Governor MeyerHr. HamlinMr. MillerMr. lamesMr. Magee

Er. Morrill, SecretaryEr. McClelland, Assistant SecretaryEr. Harrison, Assistant to the Governor.

The Board considered and acted upon the following matters:

Report of the Committee on Salaries and Expenditures on a letter

dated March 11, 1932, from the Chairman of the Federal Reserve Bank of Dallas

requesting approval by the Board of a change in the personnel classification

Plan of the bank to provide for the new position of "Typist" in the

Reconstruction Finance Corporation Department; the Board's Committee recom-

mending approval.

Approved.

Reply to a letter dated March 3, 1932, from the Federal Reserve

Agent at Dallas reporting that the Moran National Bank, Moran, Texas, was

continuously deficient in its reserves during the six months period ending,

February 15, 1932; the reply stating that in accordance with the Agent's

recommendation no action will be taken at this time with regard to the matter,

but requesting that he advise the Board of the response made by the directors

to the letters which he addressed to them concerning the bank's reserve

Position. The reply also stated that a copy of the Agent's letter is being

forwarded to the Comptroller of the Currency for the information of his

office.

Reply approved.

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) Reply to a memorandum dated narch 10, 1932, from the Comptroller of1

,ei k

the Currency with reference to the application of the First National Bank of

Northampton, Massachusetts, for permission to reduce its capital stock from

l'!'p300,000 to ,:a80,000 through a reduction in the par value of the stock from

;h00 to :7%20 and the issuance of three new shares to present stockholders

for each share now held; it being the plan of the bank immediately thereafter

to increase the bank's capital from ::;180,000 to :1250,000 by the sale of 3,500

Shares of new stock at $28.50 per share and to credit the 120,000 of re-

leased capital and the .1,29,750 of premium on the new stock to the surplus

account of the bank from which it is proposed to set up a "reserve for loss"

in the amount of .1:150,000. The Comptroller recommended approval of the

reduction and subsequent increase on condition that no money be returned to

the shareholders in connection with the reduction in capital and that the

funds for payment of the new stock be on deposit in a special account before

the reduction is made effective. The reply stated that the Federal Reserve

Board approves the proposed reduction in capital under the plan submitted,

subject to the conditions recommended by the Comptroller, and with the

understanding that the reduction will be authorized by a vote of share-

holders owning not less than two-thirds of the capital stock of the bank.

Reply approved.

Telegram to the Federal Reserve Agent at Minneapolis referring to

the Board's letter of March 10, 1932, addressed to Assistant Federal Reserve

Agent I.:osher advising of approval of the designation of Mr. A. T. Hibbard

as Acting Assistant Federal Reserve Agent at the Helena Branch, to succeed

1]r. J. E. O'Connell, and of Mr. L. S. Hazard as Alternate Acting Assistant

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Federal Reserve Agent at the branch, both effective April 1, 1932; and

stating that in view of the statement contained in Assistant Federal Reserve

Agent Losherts letter of March 2, 1932, that it is contemplated

Agent will have three representatives at the Helena Branch, the

serve Board had approved the redesignation of Mr. Fred. Heinecke

Acting Assistant Federal Reserve Agent at the branch, effective

1932.

The letter of /larch 10, 1932, to the

Assistant Federal Reserve Agent and the pro-posed telegram to the Federal Reserve Agent

were approved.

Reoort of Standing Committee dated March 22,

that the

Federal Re-

as Alternate

April 1,

recommending

of the following change in stock at a Federal reserve bank:

Atalidation for ORIGINAL Stock:District No. 3. Portland National Bank, Portland, Pennsylvania. 86

Shares

Approved.

Thereupon the meeting adjourned.

4

Approve

approval

86

Secretary.

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