19341124_Minutes.pdf

3581

A. meeting of the Federal Reserve Board was held in atshing-

t°4 on Saturday, Uovember 24, 1934, at 10:00 a. mi.

PRESENT: Er. Eccles,Er. Thomas, Vice GovernorEr. hamlinMr. Millerlit'. JamesEr. Szymczak

Governor

Er. Morrill, SecretaryMr. Bethea, Assistant SecretaryEr. Carpenter, Assistant SecretaryEr. Wyatt, General Counsel

Governor Eccles stated that he desired to recommend that a

461rcliirision be created in the Board's organization, to be called

the Division of Securities Loans which would handle the research

441 adlainistrative work in connection with matters arising under the

61114'itie8 Exchange Act of 1934 which came within the Board's juris-

48'404; that Dr. Carlclt

Research and Statis

40 change in

Vith the approval

8tEttistics such

11°11k of the new

eltployees.

The Governor

13°141tIllent of Dr. Lauchlin Currie44:4 of

Research and Statistics,1411' 8411:414 and that Dr.

41.rieion of Research and

E. Parry, Assistant Director of the Division

tics, be made the chief of the new division

his present salary; and that there be transferred,

of the Governor, from the Division of Research and

of the present

division

employees as may be suitable for the

without change in the present salaries of

also recommended that the Board approve the ap-

as Assistant Director of the Divi-

with salary at the rate of i,8,500

Woodlief Thomas, research assistant in the

Statistics, be designated Assistant Director

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

3582

11/24/34 -2-

the division without change in his present salary; it being con-

teraPlated that under the general supervision of Dr. Goldenweiser,

the director, the work of the Division of Research and Statistics

in 117ing research in the monetary field will cone under Dr. Currie

44d research in banking and business fields under Dr. Thomas.

Governor Eccles stated that Dr. Currie had' been working in the

Ire"urY Department in association with Dr. Viner and had prepared

1‘613()rt cn proposed legislative changes; that he had come in close

"tact with Dr. Currie vile working in the Treasury Department and

telt that it would be desirable for theOf

h&8 Services ; and that, although the Treasury Department hadPi

11

ed to retain him inthe

Treasury Department,

aury as to whether

eerve Board

would enter

O the

Treasury.

Governor

Legislative Program

be 81113xitted in the

Noeipt of the report

9)alraended that there

%/atriittee,

G°L;lellvitiser, Wyatt,

he

Board to have the benefit

the research and statistical division of

he had been given his election by the Trea-

would accept a position with the Federal Re-

if tendered or remain in the Treasury Department, and

the Board's employment with the approval of the Secretary

Eccles

had

then stated that the System Committee on

practically finished its report which will

very near future, and that he felt that upon

the committee should be discharged. Ile rec-

be appointed within the Board's own organization

consisting of the Governor, as chairman, and 'essrs.

LOrrill and Currie, to work under the direction


3583

11/24/34-3-

ths Governor in the preparation of a legislative program which

would be prepared with the view to agreement thereon by the Federal

Reserve Board, the Federal Deposit Insurance Corporation, the Comp-

troller of the Currency, and the Treasury Department, and approval

bY the Secretary of the Treasury and the President, following whichit would be submitted to Congress.

Upon motion by ;;,r. Hamlin, the Governor's recom-mendation -xith regard to the creation of a new division,to be called the Division of Securities Loans, the ap-pointment of Dr. Carl E. Parry as chief of the newcavieion without change in his present salary, and theti.-ansfer, with the approval of the Governor, to the newdivision from the Division of Research and Statisticsof such of the present employees as may be suitable forthe work of the new division without change in thepresent salaries of such employees, was approved un-animously to take effect immediately.

Lan .1pon motion by Lr. Liner, the appointment of Dr.Lauohll21Currie as Assistant Director of the Division°I Research and Statistics, with salary at the rate of08 En

insilaMyrnu m, was approved unanimously, effective

Upon motion by Li-. Szymczak, the designation ofDr- Woodlief Thomas as Assistant Director of the Divi-

tron. of Research and Statistics, without change in hisZell:Elly.aery, was approved unanimously, effective

The Governor was authorized to issue astatement to the press with regard to the crea-n of the Division of Securities Loans and thethee

appointments above referred to.

t, lire Thomas moved that there be appointed a legisla-nfr,e committee consisting of the Governor, as chairman,(1 Messrs. Goldenweiser, Wyatt, Lorrill and Currie.

Carried unanimously.

It vas understood that no publicity would beElven to the creation of the Board's legislative


358411/24/34 -4-

committee, and that no publicity should be given bythe Board or the System Committee on LegislativeProgram to the report of the latter committee.

Upon motion by Li-. Hamlin, the Governor wasauthorized, at such time as he thinks advisable, tocall for the report of the System Committee onLegislative Program, and to discharge the committee.

In connection with the changes in the official staffO f the Division of Research and Statistics, the questionwas raised as to the status of "Jr. Winfield Riefler, whoiS serving as Economic Adviser to the National EmergencyCouncil, and whose salary is being paid by the FederalReserve Board, and it was understood that the Governorwould disauss the matter with la-. Riefler and, if neces-sarY, with hr. Donald R. Richberg, Executive Director of

National Emergency Council, on the basis of la-.Riefler returning to work in the Division of Researchand Statistics or being removed definitely from the pay-roll of the hoard.

Governor Eccles then stated that he felt that the Board

111.111t 1"11 give consideration again to the advisability of amending4egUl

at--fl "Q" to reduce the maximum rate of interest on time andavis,

'Igs deposits prescribed in the regulation. He referred to the'reeent

action of the New York Banking Board in fixing a maximumrateinterest of 2;-,0 that may be paid by banking institutions

44d savings deposits in that State and to the action taken

14 Qtller sections of the country to reduce the maximum rate on such

cle143its' and he said that he is interested in the matter not so

4111elifl'cra the banlo3rsi standpoint as from the standpoint of its

bN4atational economic effect. he stated that he felt the Board

elic11/1d ive consideration to the matter, and that it should betake4

11Pth the Federal Deposit Insurance Corporation with the


3585

1:04/34 -5-

Iriewto securing the cooperation of the Corporation in connection

Ivith the maximum rate that may be paid under the regulations of theCorpo

ration by insured nonmember banks on time and savings deposits.

The matter mas discussed at length and Mr. James expressed the opin-

44 that, if action mere taken to reduce the maximum rate, it would

136 advantageous and more effective in producing the results desired

ir theetmendment could be made public at least thirty days before

41411441'Y 1, 1936, to take effect as of that date. The question was

iBed as to whether the Federal reserve banks should be requestedto as

esrt ain. through inquiry of their member banks, the views ofthe bn,„

-"S as to the desirability of lowering the maximum rate, andthe or14

was expressed that it was very unlikely that any infor-

4114t41"muld result from such a survey which is not already availablet 0 4.1..

6" Federal Reserve Board, but that it would be desirable to re-

the viewsof the chairmen and officers of the Federal reservebEtIake

°tore taking action.

Szymczak urged that the matter be carefully considered

6 4et1(3n is taken for the reason that there undoubtedly will beatz,„41g Public reaction to a reduction in the maximum rate.

b°tor

At the conclusion of the discussion, it was un-kmnai+ --48-LY agreed that a telegram should be addressed:4) the Chairman of each Federal reserve bank request-Lug that he advise the Board by mire the views of ther :4:*lrman and governor of the bank with regard to ai!'etion in the maximum rate of interest prescribed111" aegulation "Q"; that Governor Eccles would obtainr:4°1141da from Llessrs. Goldenmeiser and Currie with1,-ard to the advisability of a reduction; that heIcwid discuss the matter also with the Secretary of


358611/24/34

—6-

the Treasury, the Chairman of the Federal Deposit In-surance Corporation, and the members of the ExecutiveCommittee of the Federal Open :kiarket Committee mhichwill meet in Washington on Tuesday of next week; andthat the matter would be made the special order ofbusiness for a meeting of the Board to be held onviednesday, November 28, 1934.

Ur. Miller stated that, in accordance with the understand-had with LI-. Everett V. leeks, Consulting Architect, at the

11/eating of the Board on November 15, 1934, Mr. Meeks had requestedthat he ,ePermitted to meet with the Board on November 27 and, in

4 letterdated November 22, 1934, had submitted certain questions

1311171110h he would like to have the advice of the Board at that time.Lir e'4111er said that he felt the Board could reach a decision at

thls tilm on the questions referred to in Lir. Leeks' letter andthereluY

,_avoid the necessity of a meeting with Messrs. Meeks and

4411 on November 27. The questions presented in Mr. Leeks' letter

Vero discussed and it was decided that:

In the program of competition the building should be re-ferred to as the building for the Federal Reserve Board.

The program of competition should state that the FederalReserve Board is holding the competition.

There should be a limited nation-wide competition, thenumber of competitors to be determined at a later date.

The allowance to each of the competitors in the competi-tion should be 0.,000.

'ho foes to the executing architect should be the fees!Netfied by the American Institute of Architects, withZ

12-6 right reserved in the Federal Reserve Board to haveL.,;.3 inspection and engineering work done independently?4 the architect. In this connection, it was statedthat the National Park Service had handled the inspection


(6)

(7)

(8)

(9)

(10)

(u)

3587

and engineering engineering work on a number of projects includingthe reconstruction of the executive offices of the WhiteHouse and will perform similar services in connectionwith the new building for the Department of Interior,and that the services of the National Park ServiceWhich it is believed would be entirely satisfactory,are available to the Board in connection with its build-ing on the basis of the actual cost to the National ParkService.

It was understood that Lr. Miller would re-quest hir. Leeks to consider the advisability ofthe Board arranging with the National Park Serviceto perform the engineering and inspection -work inconnection with the building.

The competition drawings should be delivered to the Fed-eral Reserve Board in Washington.

The jury should be limited to five members consisting oftwo architects and three laymen, one of whom would be amember of the Federal Reserve Board.

he Jury will make the final award, it being understoodln this connection that the award means the selection ofthe architect and does not prevent subsequent alterationsin his design to meet the wishes of the Board.

The names of the members of the jury should be made knownto the competitors.

The competition should be based on a maximum cubage forthe building.

Provision should be made in the plans for air condition-alag the entire building and for private toilet and lavatoryfacilities in the Board members' offices.

G.overnor Eecles then referred to the question of procedure

Ilng the business of the Board and he stated that he had been%lista .

lin er113€ the advisability of assigning certain phases of the-ardt"tivities to individual members of the Board for supervisionbY th

et4 it being contemplated that such method of procedure mould


3588

such changes in order that the

a position of leadership and meet

satisfactory manner their increased responsibilities. He

that so far as he and hr.

11/24/34

811Persede, at least in part, the present method of handling

t11"110. committees of the Board. This matter was discussed

Governor Eccles

should have the careful

JO the personnel of the

-8-

matters

briefly.

stated that another matter which he felt

consideration of the Federal Reserve Board

Federal reserve banks. He said that if the

?sclera]. Reserve System is

necessary that the right persons

ballice; and that, in his opinion,

should not be considered in makingeallbe avoided. He referred to the public dissatisfaction with someetthe

Public

going to

be

do its most effective work it is

included in the personnel of the

sentiment or political expediency

appointments at the banks if that

oPerations of the Federal reserve

confidence

elekr that the Federal Reserve System is

er possible and that such changes will be =de as

be effected in the furtherance of the public interest. He

"(lea that, where it is indicated that changes are necessary, the

13°41,a should not hesitate to make

?"'erel reserve banks may maintain

banks, and said that if

Et

said

viere co:acerned, they were going

1)11-1'i)a the ensuing discussion the

Preeeed agreement with

The Board then acted upon the

Lemorandum dated Eovember

is to be regained it

Lorgenthau, as Chairman of the Board,

to meet the problem with courage

other members of the Board ex-

Governor Eccles

will be necessary to make it

to be operated in the most

' statement.

following matters:

22, 1934, from Er. Goldenweiser,


3589

11/24/34-9-

r)irector of the Division of Research and Statistics, recommending

the temporary appointment of Liss 1:eva E. En as a stenographer in

the d sion for a period of three months, with salary at the rate°

144o per annum, effective as of the date upon whlch she entersPo the

performance of her duties.

Approved.

Llemorandum dated November 15, 1934, from the Committee on

Salaries and Expenditures, submitting a letter dated November 1,19241 frem Ir. Attebery, DepUty Governor of the Federal Reserve Bank

Louis: which requested approval of changes in the personnelein •-csatication plan of the bank to provide for two new positions of

"Pa .ge 111 the fiscal agency department and fiscal agency department

(Peda,.—al Farm Lortgage Corporation division) at the head office, the

Ilewpositions of "custodian" in the collateral & custody & fiscal

ktelleY dePartment and "clerk" in the transit and accounting depart-434t

EL the Memphis branch, the discontinuance of the position of

odlan (part time)", and changes in the salary ranges of the

P4itioxis of "recorder" and "clerk", in the collateral & custody &

deeer.

111e4:15ti°7a of Work and qualifications required for several positions.41° Wadum stated that the committee had reviewed the proposed

11114ee andvikle

— recommended that they be approved. The recommendation

1311(37°(1 by five members of the Board on November 23, 1934.

Approved.

e.gelleY department at the Lemphis branch, and changes in the


359011/41/34

-10-

Telegram dated November 23, 1934, approved by five members

Ot the Board, to Mr. Case, Federal Reserve Agent at the Federal Re-

eerlm Bank of New York, stating that the Board has given considera-

to the application of the "Hoboken Land and Improvement Corn-

Hoboken, New Jersey, for a voting permit under the authority

f4ection 5144 of the Revised Statutes of the United States, as

414e4ded, entitling such organization to vote the stock which it

°141113 Or controls in "The First National Lank of Hoboken",tow j

and has authorized the issuance of a limited permit tothe

'PPlicant for the following purposes:

At any time prior to April 1, 1955, to take such action,_8 Shall be necessary to consummate a merger of The First1

1,ta.tional Bank of hoboken, Hoboken, New Jersey, with The Firstilltional Bank of Jersey City, Jersey City, New Jersey, undertO Plan mhich provides for the assumption of the liabilitiescreditors of The First National Bank of Hoboken by Thelrst liational Bank of Jersey City, and to act upon a pro-13).?sal to place The First National Bank of Hoboken in voluntary1!-Taidation and to do all things necessary to effect such_(11-15-dation, all in conformity with a plan which shall be

40Proved by the Comptroller of the Currency and the FederalReserve Agent at the Federal Reserve Bank of New York."

1141q..ov„uant CftPany, a limited voting permit in accordance with the

t IA-grkm also authorized the agent to have prepared by counsel

the v. Federal reserve bank, and to issue to the Hoboken Land and

Hoboken,

„-vgrazit.

ter—ve"414 Of Kansas City, reading as follows:

Approved.

Letter dated November 23, 1934, approved by six members of

ELI'd, to 14r. Worthington, Deputy Governor of the Federal Re-


11/24/34-11-

3591

"Upon receipt of your letter of November 2, relating tothe attitude of Dun 64 Bradstreet with reference to creditratings of concerns that have mortgaged their real estate andPlant equipment and, in some instances, made assignments ofrecei

vables to secure industrial loans, we called hr. Rounds,7:110 is in charge of making industrial loans at the Federal Re-serve Bank of new York, and asked him whether he had encoun-:tered

obstacles similar to those set forth in your letter.4" Rounds advised us that similar difficulties had not beenetcountered by his bank, but that he would be glad to contact°Ile of the officers of Dun & Bradstreet, not for the purpose_?! influencing the company's rating procedure in any ray, buttor the purpose of finding out the extent to which its ratings

serv:ftclitcesd. by the industrial loans made by the Federal Re-

it,ter

l'or your information, there is inclosed a copy of a lot-fromre la-. Rounds, under date of November 13, in

rileh he sets forth the result of his discussion with la-.oulk, Vice President of Dun & Bradstreet, Inc.is understood from your letter that the Kansas CityaCer of Dun & Bradstreet is submitting the facts in the.etIZ you mention to his New York office, and it is assumed

oUtlihe'will receive a reply in harmony with the positionned in Lis. Rounds' letter. This would seem to make it11414" essary for either your bank or the Board to take theIllatter up formally with Dun & Bradstreet, Inc."

Approved.

Letter dated November 23, 1934, approved by six members ofthe Board, to 16:r. Stevens, Federal Reserve Agent at the Federal Re-aerire t

of Chicago, reading as follows:

taoetober "Consideration has been tiven to 1.r. Young's letter of 20,--, 1934, regarding the application of Mr. David A.01,.titr under the provisions of section 32 of the Banking Act

tolioiTEIZalsai peermit to serve as a director of the Marine Na-alof Iilwaukee and as director and officer

Ytioeidggail'eltIcciez:1 & Co., both of Kilwaukee, Yasconsin. 1:1r.copy of a letter from —r. Fitch, Vice Pres-rot c't the national bank, and certain statistical informaion

tet4

erred to therein, showing that the bulk of the transactionsraerenithe bank and the dealer were in United States Govern-that .:;''igatiens. Ir. Fitch maintains that this data showsaz .'dde dealings between the bRnk and the firm were not suchPoiTlettend to influence the bank's credit and investmentan lts relations with its customers in a manner


3592

f

11/24/34

It

-12-

incompLtible with the public interest. Mr. Fitch also statesthat the bank has a strong desire to have Mr. Edgar continueto serve on its board of directors because of the valued ad-vice which he gave regarding investment natters.

"Lr. Young expresses the opinion that the informationwhich has been submitted is not such as to lead to a differentconclusion from that previously reached by the Board in connec-tion with this application, and the Board is in accord withthis

opinion.AS you know, the Board believes that it was the intent

Of Congress in enacting section 32 of the Banking Act of 1933:c_o terminate relationships of certain types between memberc!triks and dealers in securities because of the possible unde-sirable effect which such relationships might have upon thetlember bank's investment policies and its policies in dealingnth its customers. The Board has therefore taken the posi-lon that, except in unusual circumstances which are clearly

rol°t 'within the intent of the law, it should not gram permitst°vcring relationships which fall within the prohibitioLs of_44t section; and its action in connection with ir. Edgar's

aPlication was taken pursuant to this interpretation, which

ofstbeen applied consistently with respect to all applicationssame general type.

Of course, the denial of an application under these cir-cUnictn e‘nces does not imply that the particular relationship has;iclrally been characterized by any of the undesirable practices?li led the Congress to enact section 32, but signifies onlythat the Board is of the opinion that the particular relation-

of a kind to which the Congress referred in section 32vIlich the Board believes the Congress intended to terminate

ti;a5J to avoid the dangers which it had in mind in enactingII r

to m, information which has been submitted does not tend7th0 .0-fy the facts appearing in the application, upon which?ard's previous action was based, since it still appearsat pat: l'he dealer is a retail distributor of securities, partici-ng occasionally in undermritings. The Board has therefore

you denied Lr. Edgar's application; and it will be appreciated ifwill advise him accordingly."

Approved.

Letter dated liotember 23, 1934, approved by five members oftha t

°Etrd, toLr. Curtiss,esr.ve Federal Reserve Agent at the Federal Re-

Of Boston, reading as follows:

"On August 27, 1934, the Board granted a Clayton Act


359311/21V34

I!Permit to Er. Norman E. Beattie, 40 "Water Street, Boston,

Liassachusetts, to serve at the same time as an officer of TheShawmut Bank of Boston, Boston, Massachusetts, and asan officer of The Winchester National Bank, i1nchester, Lassa-ohusetts. The latter bank is a subsidiary of the Shaumut

4asociation, which is an affiliate of the first named bank.The report of examination of The Merchants National Bank ofualem, Salem, Massachusetts, another Shammut Association sub-sidiary, as of July 12, 1934, referred to Er. Beattie as theofficial group representative of the interests which controlthis bank and stated that, in this capacity, hr. Beattie isPresent in the bank at least one day a week to follow itsaffairs and that the sum of 01,800 a year is paid for his ser-ices, the Payment being made to The National Shammut Bank ofBoston by The Merchants National Bank of Salem.

%Idle the Board does not have detailed information vdth,respect to the nature of Beattie's connection with The

1)rohant8 :National Bank of Salem, it appears possible thatle provisions of Section 8A of the Clayton Act are applicabletrl this case. Therefore, the Board requests that you make8,10/1 investigation as is necessary to determine the status of'r Beattie with respect to the provisions of Section 8A."If you find that Mr. Beattie's services with that bankcotr. ulthln the provisions of Section 8A, you are requested

4.0-1/4°Il •

t, se him of the requirements of that section and as toprocedure in making formal application for a Clayton Act

crmit to cover his service with this bank and the other twotns mentioned above. If, upon a consideration of all of the

involved, you are unable to determine to your satis-Boar on the applicability of Section 8A in this case, the

4chei 1=1;.13 ceipt of full information, will be glad to rule

sty,Illatterrj"ease advise the Board of the action taken in this

Ilessr•re Bank

tioll to the

foilovringAct, eald

that, upon thetbzt the i

ssuance of the

1151*Ithe public interest.

-13-

Approved.Letter

to Mr. Case, Federal Reserve Agent at the Federal

of New York, stating

application

basis of

permit

The

that the Board has given oonsidera-

for a permit under

the

the Clayton

information before it, feels

applied

letter

for would be incompatible

also requested the agent to


359411/24/34

-14-

"ftmalicate to the applicant the Board's position in the matter,

alld to advise the Board promptly as to whether the applicant desires

to 811tIllit any additional data, and, if not, as to what steps he pro-

13"es to take in order to comply with the provisions of the ClaytonAct,

Lr DL Kirby, for permission to servo at the same time as83. director and officer of The First National Bank of Bain-

bridge, Bainbridge, New York, and as a director of the First

tonal Bank in Sidney, Sidney, New York.

Letter

the M38.rd, to

Approved.

dated November 23, 1934, approved by five members of

Dir. Williams, Federal Reserve A4-;ent at the Federal Re-

of Cleveland, reading as follows:

t. "The Board has reconsidered the application of hr. William'. Pickering, Greenville, Ohio, for permission under the pro-of the Clayton Act to serve at the same time as direc-tor and officer of The Farmers National Bank of Greenville14 The Second National Bank of Greenville, both of Green-

°hio, and upon the basis of the information before it,eluding that submitted by Assistant Federal Reserve Agent1.1.1letcher in his letter of October 25, 1934, still feels that

vi..t,f,anting of the permit applied for would be incompatibledat" "le Public interest, as indicated in its letter to you

aPP;:ntt:11=1:glly9. 34. You are requested to advise the

Please ascertain and advise as to what steps 14,r. Picker-the 1): Poses to take in order to comply with the provisions of

ayton Act."

Approved.

rt 1.1::tter dated November 23, 1934, approved by five members ofthe Bo

to L. Wood, Federal Reserve Agent at the Federal Reserveot tealL

6." Louis, reading as follows:

"Th ere are inclosed the original and copies of a Clayton


11/24/34-15-

"Act permit granted to Mr. G. F. Eastham, Esto, Kentucky, toserve at the same time as director and officer of Bank ofJamestown, Jamestown, Kentucky, and as director of The Firstliational Bank of Russell Springs, Russell Springs, Kentucky."In considering the application of Mr. Eastham, it wasnoted (F. R. B. Form 94, dated August 29, 1934) that he desig-nated his services with The First National Bank of RussellSPrings as 'director and auditor.' however, in the reportOf examination of this bank as at April 17, 1934, Mr. Easthamis not listed as an officer or employee and the examiningeormittee Of which he has been a member for ten years is re-ported as inactive. In -view of these circumstances, it is not_,ear whether the services of Mr. Eastham with The First ha-t onal Bank of Russell Springs are those of an officer and/fortiplore in addition to those of a director.'Accordingly, before releasing the permit to the appli-cant and copies to the banks involved, you are requested toTiefY Yourself that Mr. Eastham is not an officer or em-1 °Yee of The First National Bank of Russell Springs. If it:ascertained that 1.r. Eastham's permit should include his'163 rvices as officer or employee as well as director of thattr, please advise the Board of that fact and return the per-the 00Pies for correction. In any event, please adviseloard of your findings and as to the disposition of thePermit."

3595

Approved.

Letter dated hovember 23, 1934, approved by five members ofthe

Board, to 14r. hood, Federal Reserve Agent at the Federal Reserve4111c °I St. Lo u5, stating that the Board has given considerationto tile roilowing

application for a permit under the Clayton Act,

e'llath4t$ UPo n the basis of the information before it, concurs inthe agent's

opinion that the issuance of the permit applied for17°Ulci be

incompatible with the public interest. The letter also'55(111"ted the

agent to communi cate to the applicant t:ie Board's posi-the matter, and to advise the Board promptly as to whether

the

Et a 4PP1iettrit

desires to submit any additional data, and, if not,'e what steps he proposes to take in order to comply with the


35961:4/2V34

Provisions of the Clayton Act.

11‘. Alvin iilson, for permission to serve at the same time asa director and officer of The First National Bank of Oakland

City, Oakland City, Indiana, and as a director of The FarmersLational bank of Princeton, Princeton, Indiana.

-16-

Approved.

Letter to La,. Walsh, Federal Reserve Agent at the FederalReserve Bank of Dallas, reading as follows:

"Reference is made to the Clayton Act application of Ls.liugh Halsell, Dallas, Texas, for permission to serve at the3ame time as director and officer of The Durant iiational Bankin Durant, Durant, Oklahoma, and as director and officer ofthe Atoka State Bank, Atoka, Oklahoma."in considering the application of Li-. zialsell, it was1,10ted that he did not attend any of the 29 meetings held by:c_he directors of the Durant National Bank, and that he at-;.ended only 1 of 40 meetings held by the directers of the

t°ka State Bank, during the past two years. Careful consid-eration has been given to the special circumstances whichIst) present in this case, particularly the fact that whilelialsell lives a considerable distance from the banks, hereported to keep in close touch with the affairs of both.,Istitutions by correspondence and the receipt of regular re-Ves and to be advised of matters relative to the affairs of

si bank through his personal representative, Vice Presidentaughter of the Durant National Bank, who is also a directorOf (18 b°th banks, and that you state that L. halsell's reputation„ljt "

outstanding and successful business man in the South-of the very highest.

sibilihe Board feels that when a person accopts the respon-a Y of the office of director of a bank, he should attend01e4lioient number of directors' meetings to enable him notbutyn 0 keel) in personal contact with the bank and its problems,

8° to participate in his capacity as a director in theaziall'aination at such meetings of the policies of its board,bilithat if he is not in a Position to discharge his responsi-/t a Yin this respect, he should not continue as a director.whiePears, however, that, because of the high standing in

aalsell is held in the respective communities, theilivoitte discontinuance of his services to one of the bankstiltio -(1 night be adverse to the best interests of the insti-

i41' in view of which the Board has issued a permit toii to serve as a director and officer of The Durant


359711/24/34

igatlon0-1 Bank in Durant, Durant, Cklahoma, and as a directorand officer of the Atoka State Dank, Atoka, Oklahoma, for thePeriod ending at the close of December 31, 1935. The originaland copies of the permit are inclosed for transmittal by you:Le 4/. • Halsell and the two banks and a copy for your files.11.en transmitting the permit to the applicant, you are re-quested to call his attention to the opinion stated above andto the expiration of the permit on December 31, 1935. You aretl.so requested to advise him that if he desires to serve theDE.1.nks after that date, the Board will be pleased to give con-??.deration to a new application submitted in accordance withthe

provisions of Regulation L, accompanied by a statement of??8 Intentions with respect to his attendance at meetings ofdirectors of the banks.Si -„

Ilease keep the Board informed of the action taken inthis matter."

-17-

Approved.

Letters dated Lovember 23, 1934, approved by five members

"the B°8-rd, to applicants for permits under the Cle.yLon it ad-

g of approval of their applications as follows:Lr 1T" Oxley, for permission to serve at the same time as

Illr.director and officer of the Liberty Trust Company, Roanoke,and as a director and officer of The Colonial-

Bank of Roanoke, Roanoke, Virginia.

*. G.-d.r "hash, for permission to serve at the same time as a

1:ector of The Colonial-American 1;ational Bank of Roanoke,!-noke $ Virginia, and as a director and officer of the Roanokeuustrial Loan Corporation, Roanoke, Virginia.

A

40-(1.1" -• -/lurman, for permission to serve at the same time as• ector of the Liberty Trust Company, Roanoke, Virginia, aslio 'al-rectorP, The Colonial-American National Bank of Roanoke,Iladne"' virginia, and as a director and officer of the RoanokelAstrial Loan

Corporation, Roanoke, Virginia.oac

ordirect ar 4mZe, for permission to serve at the same time, as a,

44:eh

of The Farmers and Merchants National Bank of Fort3 Port Branch, Indiana, and as a director of The Farmers

1°1141 Bank of Princeton, Princeton, Indiana.

Approved.Letters

to applicants for permits under the Clayton Act,


3598

11/24/34-18-

Milisiag of approval of their applications as follows:

„ Edward Griffith, for permission to serve at the same timea director of The First 'National Bank of ;iilkes-Barre,

1,01kes-Barre, Pennsylvania, and as a director of The First Na--clonal Bank of Nanticoke, Lanticoke, Pennsylvania.

14%. vi• •1111am w. Inglis, for permission to serve at the same

itcime as a director and officer of The Kingston Lational Bank,tingston, Pennsylvania, as a director of The First Lational

of Scranton, Scranton, Pennsylvania, and as a director of4110 First National Bank of Wilkes-Barre, Wilkes-Barre, Pennsyl-vania.

hr. Blair C. Seeds, for permission to serve at the same time asa. director and officer of The First 1.ational Bank of Cresson,Pennsylvania, and as a director and officer of theoIrst

National Bank of Williamsburg, Williamsburg, Pennsylvania.

"s B. Christy, for permission to serve at the same time asE.director and officer of The First National Bank of Scottct ltyt

ScottI, Kansas,

o C if, Kansas, as a director of The First Stateand as a director and officer of Ther ()pies State Bank, Tomer, Colorado.

L.r. 0.Coffee, Jr., for permission to serve at the same timea director and officer of The First National Bank of Chadron,Nebraska, as a director of The Sioux National Bank ofEarrison, Nebraska, and as a director of The First41.‘,10nal Bank of Gordon, Gordon, i•ebraska.

Approved.

There were

°4hges it stock

,4,13Plications foruistrict No. 7The Pirst National

paytoh, Iowa

4striet No. 9.Pirst

e

Lational Bank of Rockland,eh liockland, 14ichipmnFir

Lational bankLannesota

of Aermans

then presented the following applications for

of Federal reserve banks:

AD....._DITIOIIAL Stock:

Bank of Layton,

Shares

9

1

8

9

9Total 18


11/24/34-19-

Plieations for SUMILlIDER of Stock: District Lo. 3.

Lational Bank and Trust CompanyBedford, Bedford: Pennsylvaniararmers liational Bank and Trust CompanyReading, Reading, Pennsylvania

Los 4Ihe Wit .—CiiLational Bank,Lit. Gilead, Ohio

671,ilz141._.o. .IllePirs-CilZtrOnal Bank of Liewnan,New,

Georgia

D:IstrietX0, 7.ihe Rush County .ational BankRushville, Indiana

%strict No. 8*Pirst

S Liat

ionarbank in St.te Louis, Lissouri-14 Pirat hational Bazik in

lial:tford, Arkansasge

c Pa.rat Biational Bank of(trlYle, Illinois

APproNred s

of

of

of Rushville,

Louis:

Hartford,

Carlyle,

Approved.

Shares

156

1,201

90

75

48

600

15

99'xotal

rlhereupon the meeting, adjourned.

Governor.

3599

1,357

90

75

48

7142,284


19341124_Minutes.pdf

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