A meeting of the Executive Committee of the Federal Reserve Board

Ives held in the office of the Federal Reserve Board on Wednesday, April 22,

19319 at 12:00 noon.

PRESENT: Governor MeyerMr. HamlinMr. JamesMr. McClelland, Assistant Secretary.

The Assistant Secretary presented various communications and reports

ilich were considered by the Committee and acted upon as follows:

Xatters noted with approval on April 21st, namely, telegrams dated

AP111 21st from the Deputy Governor of the Federal Reserve Bank of New York

441i the Chairman of the Federal Reserve Bank of Atlanta, advising of the

estabii-84Ament, effective immediately at New York and on April 22nd at

41enta, Of the following schedule of buying rates on bankers' acceptances:

1 to 45 days 146 to 90 days 191 to 120 days 1121 to 180 days 2,Repurchase 1

3/8p1/2;;5/8i;

Op;

There being no objection, theinformal action of the Committee wasratified.

Telegram dated April 22nd from the Governor of the Federal Reservetkialt

Of 6t. Louis, advising of the establishment of the following schedule

(4 effective

kee wi

buying rates on bankers' acceptances:

1 to 45 days 1 3/8'i;46 to 90 days 1 1/2,1;91 to 120 days 1 5/8/;121 to 180 days 2,0

Without objection, noted withapproval.

Draft of letter to all Federal Reserve Agents, prepared in accord-

th the action taken at the meeting yesterday, requesting that the

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t10111ts hereafter supplement each application for trust powers transmitted

t 0 theBoard, with a statement as to the reasons for the recommendation made

14' their Executive Committee or Board of Directors, and specific information

Ss to the qualifications and experience of the person or persons selected to

cliecharge the duties of trust officer of the applicant bank.

Upon motion, the proposed letter wasapproved and ordered transmitted.

Letter dated April 21st from the Federal Aeserve Agent at New York,

l'esubmitting with the favorable recommendation of his Executive Committee,

the application of the American Union Bank, New York City, for permission,

1114er its conditions of membership in the Federal Reserve System, to reduce

its capital stock from 42,000,000 to 41,000,000, on which action was deferred

t the meeting of the Executive Committee of the Board on February 20, 1931;

414/tcva1 being recommended on condition that no part of the reduction be

rettiriled to the stockholders, but that it be used in charging off 4940,000

108ae on loans and 4125,000 of the 4263,000 depreciation in the invest-

4°14 account of the bank.

After discussion, upon motion, theproposed reduction in capital was approvedas recommended.

Xemorandum from Counsel dated April 17th, advising that, in accord-

444 With the action taken at the meeting of the Executive Committee of the

114" 011 February 13th, on the occasion of a recent examination of the

444°41 Capital Bank of Washington, D. C., an investigation was made to

(iltertille whether the bank has acted as registrar of stocks and bonds under

qle authority granted by the Board on December 11, 1930, from which it

1%4ra that the bank has not accepted any trusts under the authority granted;

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Q(1141401 also stating that he knows of no reason why the Board should not now

(1°711PlY with the bank's request for cancellation of its authority to exercise

*/14t powers and issue a certificate in the following form:

"Pursuant to the authority vested in the Federal

Reserve Board by Subsection (k) of Section 11 of the Act of

Congress approved December 23, 1913, known as the FederalReserve Act, as amended by the Acts of Congress approved

September 26, 1918, and June 26, 1930, the Federal ReserveBoard hereby certifies that the National Capital Bank of

Washington, D. C., has duly surrendered the right to act as

registrar of stocks and bonds heretofore granted to it bythe Federal Reserve Board pursuant to the provisions of the

Federal Reserve Act and that the said National Capital BankOf Washington, D. O., is not now authorized to exercise anyOf the powers granted by Subsection (k) of Section 11 of the

Federal Reserve Act."This certificate is issued an April 22, 1931, pur-

suant to a resolution duly adopted by the Federal Reserve

Board an April 22, 1931, and duly recorded in its minutes."

After discussion, upon motion, the

form of certificate submitted with

Counsel's memorandum was approved and the

following resolution adopted:

pea "WHEREAS, pursuant to the provisions of Section 11(k) of the1.-era1 Reserve Act, the Federal Reserve Board on December 11, 1930,„:suea to the National Capital Bank of Washington, D. C., a special04rmit granting said bank the right to act as registrar of stocksalla bonds;

40„ "WHEREAS, the President of said bank has filed with the Federaloth'erve Board a certified copy of a resolution adopted by the Boardor

4?tractors of said bank on January 29, 1931, signifying the desire

4 he said bank to surrender its right to act as registrar of stocks

bonds;pea, "WHE4EAS, the President of said bank has surrendered to thetb.srra1 Reserve Board the certificate issued to said bank certifying

ui."*4orlds; it had been granted the right to act as registrar of stocks and

Ilse, "WHEREAS, the President of the said bank has advised the Federalr. "rye Board that said bank has not exercised its right to act as'eistrar of stocks and bonds;

kare:WHEIVLAS, it appears from an examination of said bank completed

tIle 9, 1931, made by a national bank examiner under the direction of

01144‘'Qmptroller of the Currency, that said bank has not assumed any

tre''es nor accepted any appointments under the authority heretofore

ilted to it to act as registrar of stocks and bonds; and

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"WHE3--,1A9, the Federal Reserve Agent at the Federal Reserve BankOf Aichmond has recommended that the Federal Reserve Board approvethe surrender of the right heretofore granted to the said bank toact as registrar of stocks and bonds;

"NOW, THEREFORE, BE IT RESOLVED, that the Federal Reserve Boardissue to the National Capital Bank of Washington, D. C., a certificate

certifying that said bank is no longer authorized to act as registrarcf stocks and bonds nor to exercise any of the other powers grantedIV the provisions of Section 11(k) of the Federal Reserve Act."

Memorandum from Counsel dated April 21st, regarding a request

received from the National Bank and Trust Company of Chariton, Iowa, for a

formal certificate of the authority granted to the bank by the Board on

41311'1 18, 1930, to act as trustee and executor only in the specific trusts

illwhich the Lucas County Trust and Savings Bank, which was taken over by

the National Bank and Trust Campany of Chariton, had been appointed and was

44tillg; the memorandum submitting a form of certificate for the approval of

the Boara.

Upon motion, the proposed certificatewas approved and ordered transmitted.

Zemorandum from Counsel dated April 20th calling attention to the

tact that notwithstanding the Board's ruling on February 7th, that certain

4P0sit3 made by the Board of Education of the City of St. Louis in the

44141ritY National Bank Savings and Trust Company of that city, should beoilas

blAttcaified as demand instead of time deposits, it appears tkat the member

has continued since that time to classify these deposits as time4150

Ellts; Counsel submitting draft of a letter to the Federal Reserve Agent

at atLouis, instructing him to take the necessary steps to see that

Pronet Penalties for deficiencies in reserve resulting from the failure of

an to properly classify these deposits be promptly assessed from thethe b

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clate the bank received advice of the Board's ruling, and to suggest to the

raember bank that the practice of reporting these deposits as time deposits

11114it possibly constitute a violation of Section 5209 of the Revised Statutes.

Upon motion, the letter to the FederalReserve Agent at St. Louis was approved asamended and ordered transmitted.

i,r. Hamlin then called attention to a suggestion contained in the

N)ort prepared by the Chief of the Division of Bank Operations, under date

of April 4th, on t e4 subject of Federal Reserve branch banks, copies of

which have been furnished to the individual members of the Board, thatthere be

secured from each Federal Reserve bank information with regard tothe

11.w,e, location, and loans and investments of each member bank in its

(48tr1Ct which is not now within over-night mail time from the Federal

"8 baor one of its branches, and a map showing by colored lines the

arles of the territory in the district which is within over-night mailtime rr

a74p,

om the Federal Reserve bank and from each branch, if any.

Upon motion draft of letter to all FederalReserve Agents, submitted by Mr. Hamlin, re-questing the information above referred to,was approved.

P-_± -d IIIG

4t64, April 21st AecommendinP changes in stock at Federal Reserve Banks,22nd as set forth in the Auxiliary Minute Book of this date.

Recommendations approved.

2he meeting adjourned at 12:30

Assistant Secretary.

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(ZxecutiveUommittee)

AUXILIABY MINUTES(April 22, 1931.)

4eports of Standing Committee dated April 21st andchanges in stock at Federal Aeserve Banks, approved

111311e''---t-L9.1IothiND.clA of Stock:

Libertw National Bank & Trust Company in New York," Y. (Decrease in capital and surplus)

443/41_;i2.12Lt

6elraont tjon13ank, Belmont, Ohio. (V.L.Abs. byPirst Lational Bank of Bethesda, Ohio.)

441.11k4_t_1.Q.2_2Leirst I;ational Bank,Bros.

&Jampany)

Austin National Bank, Austin, Minn.,. National Bank of Austin)11'st National Bank, dhitman, North Dakota. (V.L.Suc.by Bank of Whitman)

bistr ict No. 12.(.1it'zAState Bank, Tekoa, Washington. (Cons. with

the Tekoa State Bank)

Butler, Ind. (V.L.Abs. by Knisely

(V.L.Abs. by First

'4DProvea:

22nd, recommend-as follows:

Shares

1,050 1,050

30 30

19 19

81

18 99

24 24Total 1,222

Assistant Secretary.

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