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

l'ecleral Reserve Board on Wednesday, May 20, 1931, at 11:30 a. m.

PEESENT: Mr. Miller, PresidingMr. HamlinMr. JamesMr. MageeMr. PoleMr. McClelland, Assistant Secretary.

PRESENT ALSO: Mr. Rounds, Deputy Governor of the FederalReserve Bank of New 'Fork.

The Assistant Secretary stated that Mr. Rounds was present, at theklage

"ion of Governor Meyer, to discuss with the members of the Board thetwitter

on which action was deferred at the meeting yesterday, namely,

4taien44--"Aon of the Bank of Jamestown, Jamestown, New York, for permission,

°ne of its conditions of membership in the System, to absorb the

- and Mechanics Bark of Jamestown and the American National Bank ofthel c

itY; approval of which is recommended by the Executive Committee ofthe 1.,e

%teed

be

eed off and that any recoveries on account of charged off assets be

4" 48ide in

)̀111 time to

cl"al Reserve Bank of New York on condition that estimated losses

to by the officers of the Bark of Jamestown, aggregating 31,236,000,

a reserve account to be applied as the state examiner shall

time direct.

14x. Rounds recited the conditions in Jamestown and vicinity and the

lat 4-°11a which led up to the proposed merger. He was advised that the

:11" Objection in the Board on the ground, particularly, that it fails

1:°Iricie for 3.90,000 of the bond depreciation as of April 4, 1931, and

or losses on loans set up by the examiner and that members of theQoerci t

olitttecieel that the balance of the bond depreciation, at least, Should be

Etelainst the undivided profits account of the merged bank which,

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6/20/31

Ile"qa authorized to state that with the elimination of the additional

kg0.0„' " of depreciation the Board would be disposed to approve the merger.

Mr. Rounds then left the meeting.

The Assistant Secretary presented the following matters which were

-2-

111*3r the plan submitted, will amount to '459,000. Mr. Rounds pointed out

that the plan contemplates a real-estate charge off of 446,000 not required

bY' the examiner, and explained why, in his opinion, it would not be desirable

t°1‘equire further charge offs at this time. He stated, however, that he

a° 4° Objection to advising the Bank of Jamestown that, in the opinion of

tll( 13°811, an additional ;T,190 000, covering bond depreciation, should be

clhareed Off against undivided profits incident to the merger and stated thathe wo

-/1-4 take the matter up, over the telephone, with those in charge of

er and advise them of the attitude of the Board. At his request,

eotialA"l'ed and acted upon by the Board:

Matters informally noted with approval by the Executive Committee

:11r 19th, ely, telegrams dated May 19th from the Chairman of the"(terel

Reserve Banks of Atlanta and San Francisco and the Secretary of the

el161111 Reserve Bank of Minneapolis, advising of the extension of their

err"tiIre' 11rtiim buying rate of 16,; to cover bankers' acceptances maturing

9° days, and the establishment of an effective repurchase rate of

telegram from the Chairman at San Francisco also requesting approval

t4:0141141112411 authorized buying rate of 1%, which was informally approved by

There being no objection, theInformal action of the Committeewas ratified.

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Telegram dated May 20th from the Chairman of the Federal Reserve

44k or St. Louis, advising that the Board of Directors, at its meeting today,

t44 11° change in the bank's existing schedule of rates of discount and

131.Lteblt8es except to extend its effective mininum buying rate of 1% to coverba/14rAt

- acceptances maturing within 90 days.

Without objection, noted withapproval.

Telegram dated May 20th from the Chairman of the Federal Reserve Bank

,411ade1phia, advising that the Board of Directors, at its meeting today,

11° change in the bank's existing schedule of rates of discount and1)14.01411e.

tkae

Without objection, noted withapproval.

g

Letter dated Nay 12th from the Chairman of the Federal Reserve Bank

°t 1413111eaP0l18, advising that it was the consensus of opinion, at the meetingor the Board of

Directors on that date that there was nothing in the general

41t44t1on in that district which would justify a reduction in the discount

l'E4(1 (4 the bank and no change was made in the existing schedule of rates"

clieeolult and purchase.

Theletter, having been previous-ly circulated among the members of theBoard, was, without objection, notedwith approval.

Letter dated May 16th from the Federal Reserve Agent at DallasNy,

Ike continued reserve deficiencies on the part of the Farmers NationalExt “

-4;(1815 Plains, Texas, from November 1, 1930, to April 30, 1231; the

'uerve Agent recommending, in view of the circumstances outlined

tilcit the matter be referred to the Comptroller of the Currency with

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4 re,'illest that the bank's attention be called to the importance of its main-

t4illing reserves in accordance with legal requirements.

11,

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Upon recommendation of the Committeeon District No. 11, draft of letter tothe Comptroller of the Currency, in accord-ance with the Federal Reserve Agent'srecommendation, was approved and orderedtransmitted.

Draft of letter, prepared in accordance with the action taken at the

"tile or the Board yesterday, to Mr. F. R. Jones, Vice-President of the

National. Bank in Sioux City,toIowa, advising that the Board is reluctant

Unlimited authority for the exercise of trust powers to a newly0/U44

J'48(1 national bank until the bank has been examined by the Comptroller

the ClIrrencY, but that the Board will consider at this time an applicationto

) e*41134ater-any trusts which the First National Bank in Sioux City may de-to

--,e over from the old First National Bank of Sioux City; the letter

tt4° statithat as soon as the new bank has been examined, the Federal Re-

to°41'd will be glad to consider its application for the unlimited right

e the powers enumerated in Section 11(k) of the Federal Reserve Act.

Upon motion, the proposed letterwas approved.4100

01' STANDING coltarTEEs:1:14ted.

1)4teci

44"nrea:

19th

aoth

Recommending changes in stock at Federal Reserve Banks,as set forth in the Auxiliary Yinute Book of this date.

Recommendations approved.Recommending action on application for admission of a statebank, subject to the conditions stated in the reportattached to the application, as set forth in the AuxiliaryMinute Book of this date.

Recommendation approved.

The meeting adjourned at 12:40 p.

e(ilAssistant Secretary.

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

UILIYLINU$(;.lay 20, 1931)

etn -Reports of Standing Committee datod :.Iay 19, recommending changes invck at Federal eservo Banks, approved as follows:

A-cation for4L Stock: Shure

ent Savings Bank & Trust Company,Ciacinnati, Ohio.

4 tons for JUIC$EiLit of Stock:

trict No. 2.e°11allbus National Bank, Paterson, N. J. (Vol.

Lig. as. by Jocend National Bank ofPaterson)

L)1.8tr et -0l' r4r • •

st National Bank in Forest City, N. 0. (vol.Lig. ilbs. by Union Trust Company, Shelby,11. 0.)

tr et No. 9.4111t lins.4enal BA --4-ank, Ivanhoe, Minn.rat 1\T (insolvent)i

-ational 3arik, Scranton, N. Bak. (Vol.41q. as. by Bank of Scranton)

is4 r t rat No. 10." 1,A

.latiOnal Bank, Carthage, Lb. (Vol. Lig.S. by Central National Bank)

Diaf t No. 11.

gatianal Bank, Winnfield, La. (Insolvent)

222 222

165 165

33 33

21

27 48;

120 120

29 29Total 395

of Standing Committee dated i:ay 20, recommenling action onkkbjec4tItiort for admission to membership by the following state institution,

t0 the conditions stated in the report attached to the application.A4k,„

41'r eltea:

iiarne

Sundance State Bank, Jundance, ';;yoming.

Lember ;xecutive Committee.

Shares F. Bank

24 Kansas City

ssistant Secretary.

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