19380215_1030a_minutes.pdf

Ameeting of the Board of Governors of the Federal Reserve

8Yetem was held in Washington on Tuesday, February 15, 1938, at 10:30

a. 21.

PRESENT: Mr. Eccles, ChairmanMr. Ransom, Vice ChairmanMr. SzymczakMr. McKeeMr. Davis

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

Consideration was given to each of the matters hereinafter re-

to and the action stated with respect thereto was taken by the

130erd:

The minutes of the meeting of the Board of Governors of the

Nderal Reserve System held on February 14, 1938, were approved unani-

t11011.1313r

Bond, in the amount of 4100,000, executed under date of February

1938, by Mr. Owen D. Young as Federal Reserve Agent at the Federal

Reserve Bank of New York.

Approved unanimously.

Memorandum dated February 14, 1938, from Mr. Goldenweiser,

tl*ector of the Division of Research and Statistics, recommending

tIlat f' -or the reason stated in the memorandum, Miss Caroline Hamm111,

1%0 h.,served as Secretary to Mr. Blattner, be granted a leave of

bnrLe without pay for a period of not to exceed three months from

4bollt February 23, 1938.


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

1.97

2/15/38-2-

Telegram to Mr. Clerk, Pirst Vice President of the Federal Re-

serve Beak of San Irancisco, reading as follows:

"Your letter February 9, 1938, re application 'Cowlitz

ValleY Bank', Kelso, Washington, for permission to retire5,000 capital debentures. In accordance with your recam-

Mendation, Board interposes no objection to retirement by

the Cowlitz Valley Bank of 42,000 of its capital debentures."


Letter to Mr. Swanson, Vice President of the Federal Reserve

13nj of Minneapolis, reading as follows:

"Reference is made to your letter of January 27, 1938,t.ransmitting the supplementary application of 'The First

National Bank of Negaunee', Negaunee, Michigan, for per-mission to act as trustee, registrar of stocks and bonds,

!Issignee, receiver, and in any other fiduciary capacityin which State banks, trust companies or other corporationswhich came into competition with national banks are per-mitted to act under the laws of the State in which the na-tional bank is located; authority to act as executor, ad-ministrator, guardian of estates, and committee of estatesOf lunatics having previously been granted this institution.

. "Consideration has been given to the information sub-

mltted by you and by the Acting Comptroller of the Currency,

from which it appears that the asset condition of the appli-cant bank, other than its securities investments, is gen-

erally satisfactory. It appears further, however, from the

national bank examiner's report of examination as of October18, 1937, and the records of the Comptroller of the Currency,that the bank has been subject to repeated criticism be-cause of its failure to adhere to a sound investment policy

!Ind to the requirements of the law and regulations govern-

ing the purchase of investment securities, although it is

reported that correction of such unsound investment policyhas been promised, and that subsequent to the latest exam-

ination a large volume of the criticized securities hasbeen disposed of. It appears also that there is no very

real need for full trust powers in this community as theaPPlicant bank has had limited trust powers since 1926 with-out developing any very material volume of fiduciary business,


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"and it seems questionable whether it would have an oppor-tunity to exercise to any appreciable extent the additional

Powers requested should its application be approved.

"In view of all the facts and circumstances involved,and of the adverse recommendation of the Acting Comptroller

Of the Currency, the Board is unwilling at this time togrant the additional fiduciary cowers applied for. Youare requested, therefore, to advise The First NationalBank of Negaunee, Negaunee, Michigan, that the Board has

denied its application."


Telegram to Mr. McCravey, Secretary of the Federal Reserve Bank

or Atlanta, reading as follows:

"Retel. No objection your board's holding its regu-lar March meeting in New Orleans."


Letter to the Presidents of all Federal reserve banks, reading

" follows:

"The Board will publish a list of stocks registeredon national securities exchanges, as of January 31, 1938,and three supplementary lists to be issued quarterly duringthe year 1938. These lists, to be Published by the Boardto facilitate compliance by banks with the provisions ofRegulation U, will be similar in form to those publishedbY the Board last year.

"In accordance with the procedure established last

Year, the Board will furnish one copy of the list and of

each supplementary list free of charge to each member and

nonmember bank in the United states and to all bank exam-

iners and supervisory authorities. The Board will continue

sending additional copies to those in this group who requested

them last year, and will continue sending copies free of

Charge to such national securities exchanges, government

Qfficials, members of Congress, press representatives and

educational institutions as requested copies last year. The

board will also send copies free of charge to any additional

Persons in the foregoing groups who request them for their

own use.


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"The lists will also be supplied to brokers or other

Persons who may request them at a charge of 25 cents forthe annual number and the three supplements. On bulk orders

calling for five or more copies, the rate will be 20 cents

Per copy, and on orders for fifty or more copies the ratewill be 15 cents. The Board will send a notice of the

1938 publication and an order form directly to each personwho subscribed for copies of the lists in 1937.

"Please notify the Board as soon as possible of thenumber of copies of these lists which your bank will re-quire for its own use, including the requirements of its

examiners. Please refer to the Board any requests or orders

which you may receive from other persons."


Telegram addressed to Mr. Wyatt, General Counsel, under date

Of February 8, 1938, by Mr. Stewart, Cashier of the Iederal Reserve

11'44k of St. Louis, stating that the St. Louis American Institute of

131tilking Forum, composed of bank officers, department heads and senior

en1P1oyees, would like to have Mr. Wyatt address a meeting of the Forum

04Februa--1-y 21 or 23, on the subject of the Board's Regulations.

The acceptance of the invitation by

Mr. Wyatt was approved unanimously.

Letter to Mr. Tom K. Smith, President, The Boatmen's National

tankur St. Louis, St. Louis, Missouri, reading as follows:

"I have your letter of the 5th, requesting a list ofthe men who have represented the various Federal ReserveDistricts on the Federal Advisory Council, together withthe period for which each of these men has served.

"I attach hereto the information requested by you."


Memorandum dated February 14, 1938, from :Mr. Vest, Assistant


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2/15/38 -5-

General Counsel, recommending that there be published in the March

Issue of the Federal Reserve Bulletin a statement in the form attached

to the memorandum with respect to the Board's recent ruling on the fol-

lowing subject:

Interpretation of Term "Readily Marketable Assets"

for Purposes of Section 5144 of the Revised

Statutes.


Letter to Mr. Worthington, Iirst Vice President of the Fed-

"al Reserve Bank of Kansas City, reading as follows:

"Reference is made to your letter of January 28,

1938, regarding the applicability of the Clayton Act tothe services of Mr. Hal R. Lebrecht, Mr. R. A. Edlund,and Mr. E. H. Gandy as directors and officers of MerchantsBank of Kansas City, Missouri, and of First State Bank,

Kansas City, Kansas."The Board is sympathetic with Mr. Lebrecht's desire

that the interlocking relationships may continue. How-

ever) as you know, the Board is no longer authorized to

"sue individual permits, and the only question Presented

appears to be whether the two cities are 'contiguous oradjacent' within the meaning of section 2(d)(5) of Regu-

lation L and the corresponding provision of the statute.

"You state that your counsel is of the opinion thatthe two cities are 'adjacent' to each other, but that a

ruaing by the Board is desired. In the circumstances,it will be appreciated if you will furnish the Board witha.description of the area intervening between the two

cities and such other data as you may think pertinent.

"Of course, if the corporate limits of the two cities

actually touch or coincide at any point, the cities are

contiguous', and this would settle the matter, making itUnnecessary to consider the question whether they are 'ad-

Jacent within the meaning of the statute and Regulation



2/15/38

Thereupon he meeting adjourned.

4Proved:

201

A s st ant Secretary.


19380215_1030a_minutes.pdf

Documents

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application cowlitzvalley

firstnational bank of

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