19360525_Minutes.pdf

A meeting of the Board of Governors of the Federal Reserve System

as held in Washington on Monday, May 25, 1936, at 11:30 a. m.

PRESENT: Mr. Eccles, ChairmanMr. BroderickMr. SzymczakMr. McKee

Mr. Morrill, SecretaryMr. Bethea, Assistant SecretaryMr. Carpenter, Assistant SecretaryMr. Clayton, Assistant to the Chairman

Consideration was given to each of the matters hereinafter referredto an,

u the action stated with respect thereto was taken by the Board:

The minutes of the meeting of the Board of Governors of the Fed-

al Reserve System held on May 19, 1936, were approved unanimously.

The minutes of the meetings of the Board of Governors of the Fed-e1 Reserve System held on May 20, 21 and 23, 1936, were approved unani-

IY, and the actions recorded therein were ratified unanimously.

The minutes of the meeting of the Board of Governors of the Fed-ezea R

eserve System with the Federal Advisory Council held on May 19, 1936,

aPProved unanimously.

Telegrams to Mr. Leach, President of the Federal Reserve Bank of

ehmo""u, and Mr. Walsh, Chairman of the Federal Reserve Bank of Dallas,

414A11,-g that the Board approves the establishment without change by the

zI

esPecti--"re banks today of the rates of discount and purchase in their

Nst ing schedules.

IdEly

Approved unanimously.

Renewal bond, in the amount of $50,000, executed under date of

131 1936, by Mr. William Hunter Nolte as Acting Assistant Federal Re-

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ye Agent at the Pittsburgh Branch of the Federal Reserve Bank of Cleve-

land.

Approved unanimously.

Memorandum dated May 18, 1956, from Chairman Eccles recommending

that) because of Mr. Ransom's illness, Mr. Morrison's absence from the

"ace) and the vacancy still existing in the case of the seventh member

c'f* the Board, the services of Messrs. Szymczak and Broderick on thePers

°nnel Committee be continued for the months of April, May and June.

Approved unanimously.

Letter to the board of directors of the "Farmers & Citizens BF,ne,

41k city, Wisconsin, stating that, subject to the conditions of member-

4114 numbered 1 to 3 contained in the Board's Regulation H, and the

f°11c3wing sPecial conditions, the Board approves the bank's application

fOrmembershiP in the Federal Reserve System and for the appropriate

1114°1-1nt of stock in the Federal Reserve Bank of Chicago:

n4.Such bank shall make adequate provision for deprecia-tion in its banking house and furniture and fixtures.

Prior to admission to membership, such bank, if ithas not already done so, shall charge off or other-wise eliminate estimated losses of $722.12 as shownin the report of examination of such bank as ofApril 21, 1956, made by an examiner for the FederalReserve Bank of Chicago.

Within one year from date of admission to membership,such bank, through the introduction of new funds,Shall increase the aggregate amount of its capitaland surplus by not less than $25,009."

Approved unanimously, together with a letterto 71r. Young, Assistant Federal Reserve Agent atthe Federal Reserve Bank of Chicago, reading as

follows:

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"The Board of Governors of the Federal Reserve Systempproves the application of the 'Farmers & Citizens Bank',bauk City, Wisconsin, for membership in the Federal Re-serve System, subject to the conditions prescribed in theinclosed letter which you are requested to forward to theboard of directors of the institution. Two copies of suchletter are also inclosed, one of which is for your files

rd the other of which you are reauested to forward to the

information.°Ilmissioner of Banking for the State of Wisconsin for his

"It is stated in the report of examination of the sub-ject bank, made as of April 21, 1936, that Mr. A. E.larguardt, in his capacity as director, owns only one share

the bank's common stock (par value $100). In this connec-itolon, section 221.03(4) of the latest compilation of theanking laws of the State of Wisconsin, which the Board hasamOng its records, provides that a director of a State bankalust own 'not less than one per cent of the capital stockof the bank if it has less than fifty thousand dollars

ZTital stock, or of stock having a par value of not lessdi"11 five hundred dollars if the bank has fifty thousanddo

fiveor more of capital stock', but that 'any person

isperving as a director of any bank on January 1, 1932, shall,e

asfor re-election annually thereafter if he meets

91e requirements in force prior to that detei. Under the

State law requirements in effect prior to January 1, 1932,41rector must own 'not less than one share of stock in the

aril°. As you know, the subject bank has common stock71°11nting to 30,000 and it has sold 1:;30,000 of capitalneuentures to the Reconstruction Finance Corporation. It is..,°t entirely clear from the papers submitted with the bank's.1?Plication whether Mr. Marguardt was serving as one of1 P-s.directors on January 1, 1932, and, in the circumstances,•ls assumed that, if you have not already done so, you

/7111 Satisfy yourself that Mr. Marguardt is not now dis-qualified to act as a director of the bank."

Letter to the board of directors of "The First State and Savings

stating that, subject to the

e("Itions of membership numbered 1 to 3 contained in the Board's Regula-

11, and the following special condition, the Board approves the

Of Holly, Michigan", Holly, Michigan,

aPPlication for membership in the Federal Reserve System and forthe

1.13Propriate amount of stock in the Federal Reserve Bank of Chicago:

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Such bank shall make adequate provision for deprecia-tion in its banking house and furniture and fixtures."

Approved unanimously, for transmissionthrough the office of the Federal Reserve Agentat the Federal Reserve Bank of Chicago.

Telegram to Mr. Walsh, Federal Reserve Agent at the Federal Reserve

8411k Of Dallas, stating that, subject to the conditions of membership

1111gibere ,J- to 3 contained in the Board's Regulation HI and the following

IsPecial conditions, the Board approves the application of the "GuarantyBoro

State Bank", Tomball, Texas, for membership in the Federal Reserve

87atern- anu for the appropriate amount of stock in the Federal Reserve

844k of Dallas:

"4. Such bank shall make adequate provision fordepreciation in its banking house and furnitureand fixtures.

nR,Prior to admission to membership such bank, ifit has not already done so, shall charge off orOtherwise eliminate estimated losses of $416.64as shown in the report of examination of suchbank as of April 7, 1956, made by an examiner forthe Federal Reserve Bank of Dallas."

14 telegram also stated that the report of examination of the Guaranty

84ats Bank as of April 72 1956, indicated that the bank was carrying

title

Texasa nonmember bank, in excess of 10% of its capital and surplus and

that

certificate of deposit of the Citizens State Bank of Hempstead,

it was requested that the Federal reserve agent call the specific

%IAiOn of the bank to the applicable provisions of section 19 of the

?e,zieral Reserve Act.

Approved unanimously.

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Letter to Mr. Parker, First Vice President of the Federal Reserve

BanIkof Atlanta, reading as follows:

"This refers to your letter of May 15, 1936, askingWhether it will now be in order for you to forward copiesOf the by-laws of your bank to your directors with the,ttement that no objection thereto has been interposed bythe Board of Governors.

"The Board of Governors has no comments or suggestionsto make regarding the provisions of the by-laws of the Fed-eral Reserve Bank of Atlanta as revised at the meeting ofY°ur board of directors on March 13, 1936, a copy of whichwas inclosed with Mr. Clark's letter of March 16, 1936, and,accordingly, there is no reason why you may not forward!topies of the by-laws to your directors with the statement

ILItt no objection thereto has been interposed by the Boardof Governors."

Bostori,

?tti

Approved unanimously.

Letter to Mr. Curtiss, Chairman of the Federal Reserve Bank of

reading as follows:

1- "This refers to your letter of February 20, 1936, inwtaulch you stated that it had been informally agreed that a;aft of amendments embodying the Board's suggestions with4eT3trd to the by-laws of the Federal Reserve banks, con-;Taned in the Board's letter of February 14, 1936 (X-9495),nould be prepared and submitted to the directors of yournink for their consideration and that the Board would be ad-

ad later as to any action taken by your board of directors.It will be appreciated if you will advise whether the

;:slderation of this matter has been completed and whatif any, has been taken by your board of directors

J-th regard thereto."

Approved unanimously, together with similarletters to Yr. Dillard, Deputy Chairman of theFederal Reserve Bank of St. Louis, and Messrs.Thomas and Walsh, Chairmen of the Federal ReserveBanks of Kansas City and Dallas, respectively.

Telegram to Mr. Fletcher,

el.1 Reserve Bank of Cleveland,

1966) that the Board offers no

Assistant Federal Reserve Agent at the

stating in reply to his wire of May

objection to the distribution to member

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the Fourth Federal Reserve District of analysis of earnings and

of member banks in that district for the year 1935.

Approved unanimously.

Letter to the Business Finance Company, Jersey City, New Jersey,

l'eacling as follows:

"This refers to your letters of May 9 and May 18, 1956,requesting that you be furnished with a list of the names andaddresses of all banks in the State of New Jersey which arericT in liquidation. The Board does not supervise the liquid-

of banks and cannot undertake to furnish the information!:equested. It is suggested that, in the case of national(u,allks which are in liquidation, you communicate with theComptroller of the Currency and, in the case of State banks,the information might be obtained from the proper State super-visory authority.

May 16, is also made to your letters of May 15 and

14e-Y 16, 1956, inclosing notices of appearance in the matterOf the liquidation of the Citizens National Bank, New1?1:unswick, New Jersey, and the Chelsea National Bank ofatlantic City, New Jersey. Since, as indicated above, theTatter of liquidation of national banks does not fall withinhe jurisdiction of the Board, no action All be taken by the

Board with respect to such notices of appearance."

APProyed:

Approved unanimously.

Thereupon the meeting adjourned.

Chairman.

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