19290320_Minutes.pdf

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

Federal Reserve Board on Wednesday, March 20, 1929 at 11:00 a.m.

The

PRESENT: uovernor YoungMr. PlattMr. HamlinMr. MillerMr. JamesEr. CunninghamMr. Noell, Asst. SecretaryMr. McClelland, Asst. Secretary

minutes of the meetings of the Federal Reserve Board held on March

19th were read and approved.

Telegram dated March 20th from the Assistant Federal Reserve Agent at

advising that the board of directors at a meeting on that date

inacle no change in the bank's existing schedule of rates of discount and pur-chase,

dithout objection, noted withapproval.

Report of Committee on Salaries and Expenditures on letter dated March

'6th from the Deputy Governor of the Federal Reserve Bank of New York, trans-111 ttii -41g a list of employees for whom the directors of that bank approved leaves

(3f ab sence with pay, on account of illness, during the month of February, wherethe ,

uotal of such absences since January 1, 1929 has exceeded thirty days; the

card% 8 Committee recommending approval of the salary payments involved.

Approved.

Letter dated March 19th from the Vice President of the Foreign Trade

4c"ties Company, Ltd., New York City, requesting a further extension for

4 Period of thirty days of the reservation of the title "Foreign Banking and

141/estment Corporation" for the corporation which it is pro posed to organize

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114der Section 25 (a) of the Federal Reserve Act.

I',

_2-

Upon motion, an extension of thirty

aays from March 27th was approved.

Letter dated March 19th from the Assistant Federal :Reserve Agent at New

Y°11c, advising that the directors of the Hanover National Balk, New York, N. Y•

arid the trustees of the Central Union Trust Company, also of New York City, have

'4)ted to recommend to the stockholders that the two institutions be merged under

the trust company's charter, some time subsequent to May 2nd.

Noted.

Memorandum from Counsel dated March 19th with further reference to the

itterlocking directorates of Mr. John E. Buckingham, involving four national

ballks; Counsel recommending, in view of the fact that the question of liquidat-

the First National Bank of Fleming, Ky., one of the institutions involved

Iir• Buckingham's application, or of consolidating it with the First National

4111C °f Jenkins, Ky., is now being considered, action by the Board on the ap-

Plication ue deferred for a period of three months.

Upon motion, Counsel's recommendation was

approved.

Letter dated March 15th from the Federal aeserve Agent at St. Louis ad-

that unaer the proceedings instituted by the Board, on March 12th the

Caftv, •-'1er Of the American Bank and Trust Company, Paris, Ark., appeared

before

4141 to show cause why the bank should not forfeit all rights and privileges

orm_"'wnuership in the Federal Reserve System; the Agent recommending

that the

hellring before him be further continued until Tuesday, March 18, 1930 at 11;00

a.m„ and that before the Board until a week after March 18, 1930 on

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condition: (1) that the bank will collect or charge off on or before April 30,

1929, 4f;16,683 of doubtful items shown on a list attached with his letter; (2)

that it will furnish him monthly reports beginning May 1st, showing progress

Made i-n collecting or reducing .0172,871 of loans contained on another list en-

cl08ed; (3) that liabilities of officers, directors and their interests be kept

at minimum; (4) that the right be reserved to hold the hearing at an earlier

clete if deemed advisable; and (5) that the bank advise over the signature of

tB directors of the acceptance of these conditions. In his letter, the Fed-

Reserve Agent advised that considerable improvement has already been made

ill the condition of the bank, that it is believed that the directors and officers

are earnestly endeavoring to put the bank in satisfactory shape and that it has

realized that unfavorable consequences may develop if the bank were expelled

to membership in the System. He also stated that if continuance of the hear-

is approved an examination will be made shortly before the hearing to deter-

the progress made as well as one in the interim - about August 1929.

Letter

After discussion, upon motion, it was

voted to approve continuance of the Board's

hearing in the above case until Tuesday, March

25, 1930 at 11:00 o'clock a.m. subject to the

conditions recommended by the Federal Reserve

Agent at St. Louis.

dated March 19th from the Governor of the Federal Reserve Bank of

aielym„'lid, transmitting copy of a letter, in connection with the resolution

4''10Pted - by the Federal Advisory Council at its recent meeting, which is being

44t Principally to those member banks in the Fifth District, which at the time

of th e last call report, December 31, 1928, were lending to brokers and dealers

14 se

euritles, whether borrowing from the Federal deserve bank or not.

Ordered circulated.

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(-ad I ,111

The Governor then presented a letter dated March 18th from the Vice

Pl'esident of the National Commercial Bank and Trust Company, Albany, N. Y.,

slAggesting Welnesday, April 3rd, as the date for the proposed hearing in

Connection with the application for the termination of the designation of

Albany as a reserve city.

The Governor called attention to the fact that the

Governors' Conference is being held April 1st to 3rd and

that ordinarily on the last day of the Conference it

meets jointly with the Board.

Upon motion, it was voted to advise the Albany member

bank accordingly, and suggest that the hearing be held on

. April 1st, at 11:00 o'clock, if that is agreeable, or, if

not, one week later at the same hour.

During the discussion, the Assistant Secretary was in-

structed to arrange to have the Chief of the Division of

Bank Operations prepare certain data for the use of the

Board on the occasion of the proposed hearing.

ill'OATS OF STANDING C0ITTEES:

Dated,

Dated,

March 19th,

March

4Pprovsd:

19 th,

Recommending a change in stock at a Federal Reserve bank

as set forth in the Auxiliary Minute Book of this date.

Recommendation approved.

Recommending approval of the application of Mr. William

Murphy for permission to serve at the same time as di-

rector of the Atlantic National Bank, Charleston, S. C.,

and as director and officer of the Citizens & Southern

National Bank, Savannah, Ga.Approved.

meeting adjourned at 12:00 o'clock noon.

rrior•

Assistant Secretary.

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