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

84rWL Reserve Board on Friday, May 29, 1931, at 11:00 a. mi.

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

PRESENT ALSO: Mr. Pierre Jay, Chairman of the FiduciaryTrust Company.

Jay made a statement supplementing the information previously

"brtlitt-ed to the Board in connection with the application of the Fiduciary

Nst act„,_--kvanY of New York City for membership in the Federal Reserve System

ktd1,200 shares of stock in the Federal Reserve Bank of New York. He

(14t1.1 ed1,„in detail the organization and proposed activities of the company

1,14,41

a to open for business next Wednesday and discussed the reasons why,

14 Ills ,it would be appropriate for it to be a member of the Federal

System. A more detailed account of Mr. Tay's statement will be foundth 1,46-°8-1*d's files.

1'11'6 Xalr then left the meeting.

SCAM further discussion followed, atthe conclusion of which, upon motion,action on the application was deferred.

Ile Governor then presented a letter dated May 25th from Yr. Walterthi

41)1„ "'Tieing that because of the condition of his health he will not be

'tot40 'esUmhis official duties, and tendering his resignation as Secretary

aderal Reserve Board.

Upon motion, Mr. Eddy's resignationwas accepted, effective May 31, 1931.

The Assistant Secretary was instructedto prepare a letter to Mr. Eddy, expressingthe Board's regret that it is necessary forhim to sever his connection with it, the

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

;t3

tl

b/29/31-.2-

appreciation of the members of the serviceswhich he has rendered, and their best wishesfor his recovery.

Governor Meyer then left the meeting and the Executive Committee con-tirkeA" in session, with r.r. Taller presiding.

The Assistant Secretary then presented the following communicationsttil(1 re

Ports which were considered and acted upon by the Committee:

Memorandum dated May 29th from the Comptroller of the Currency, sub-

kttillga revised plan for the reduction of the capital of the Springfield

"1 National Bank and Trust Company of Springfield, Mass., from :1,500,000

t0 475°,000, and recommending approval subject to certain conditions.

After discussion, upon motion,it was voted to reconsider the Board'saction of May 4th and to approve theproposed capital reduction, subject tothe following conditions:

(1), That the capital of the bank be immediately increasedt° '1,000,000 through the sale of 250,000 par value ofhew stock for $750,000 - which amount shall be on deposit14 the bank in a special account before the reduction iseffected.

c2) That a reserve account of $1,325,000 be set up inci-Qent to the reduction and subsequent increase of capital.(3) That by July 15, 1931, 811 losses shown in the report?I' the examination of the bank completed on February 15,-4931 which have not already been provided for and estimat-(,21 losses of $188,000 on other real estate, be charged to;sae reserve account.1!4) That by July 15, 1931 the bonds and securities of the

rtk be written down to market prices prevailing on thatIsate and any other known losses not already provided for7! charged to the reserve account.‘0°) That any losses determined during the next examinationrt the bank, by a national bank examiner, be charged to theeserve account at the close of the examination.

The Assistant Secretary was instructedto advise the Comptroller that while theBoard would have preferred to have the7,;373,000 of losses which are to be chargedoff under the plan by July 15th, taken outof the bank now, it is not disposed to pressthis objection against the judgment of theComptroller's office.

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

5/29/31

Repo of of Executive Committee on memorandum dated May 25th from the

C°4113'*°11er of the Currency submitting and recommending approval of a revised

for the reduction in the capital of the Flat Top National Bank of Blue-NIA

West Virginia from $250,000 to ,.)100,000.

After discussion, upon recommendationof the Board's Committee, it was voted toreconsider the action taken on April 7th,and to approve the 'plan now proposed oncondition that the 0150,000 made availableby the reduction in capital, together with:50,000 from surplus, be used to remove0200,000 of criticized assets from the bank,and that immediately following the reductionthe capital be increased to S200,000 by thesale of additional stock.

Letter dated May 28th from the Secretary of the Federal Reserve Bankot

-"Jrk advising that the Board of Directors, at its meeting on that date,ktie

° change in the benlc's existing schedule of rates of discount andktcheae.

Without objection, noted withapproval.

Ilemorandum from Counsel dated May 27th on letter dated May 20th from

kt (lel'al Reserve Agent at ahicago advising that since the Guardian NationAl

crk.-Llcago was absorbed by the Union National Bank on September 29, 1930,

.tilEl kktt 1,bkhip.

e- of securing an application for the surrender of the Federal Reserve

-'4tocikheld, by the bank to the Comptroller of the Currency. With his nem-

kkol co

44PD 4flael submitted draft of letter to the Comptroller of the Currency

that unless the bank is placed in liquidation within a reasonablytitle

It is desirable to have a receiver appointed under the provisions4Q1i

agent has been appointed, and recommending that the Board refer

ct 6 of the Federal Reserve Act in order that its Federal Reserve bank

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

V29/31

EltockY be cancelled.

-4-

Upon recommendation of the LawCommittee, the proposed letter wasapproved.

I

Memorandum from Counsel dated May 26th on letter dated May 21st from

the A .

4'4alstant Federal Reserve Agent at Chicago, advising that the liquidatinE

agelitthe Atlas Exchange National Bank of Chicago, which went into liquid-

414°4 en August 1, 1930, has duly executed an application for the cancellation

the Federal Reserve bank stock held by the bank, but that the President of

tlIebatk refuses to forward the application until after July 1, in order to

*t4114 the full six months dividend. With his memorandum Counsel submitted

citEirt et letter to the Federal Reserve Agent at Chicago, stating that after

°1181deration of the facts presented the Board has ordered the cancellation of

tIlestocks and requesting him to see that the stock is promptly cancelled andthe

accounts between the bank and the Federal Reserve Bank of Chicago properly

Upon recommendation of the LawCommittee, the proposed letter wasapproved.

clktefi RePort of Executive Committee submitting draft of reply to letter

'1* 21st from the Federal Reserve Agent at St. Louis advising of the

''411.Pth "' an application for membership in the Federal Reserve System fromNe

Qkelle Bank, Pickens, bliss., and stating that because of certain con-

tlt:148fliaelosed by an ex 'nation of the bank, the Federal Reserve Bank'sC()

ttee °A Admission of State Banks had suggested that the application be1 1.(1

%017 "eYance; the proposed reply stating that the Board has noted with

111 the action of the Committee.

Upon recommendation of the Board's

Committee, the proposed letter was approved

and ordered transmitted.

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

eVe-1

p36

b/29/31

FCPC)IITS OF STANDING COMITTEES:kted, may 2ath.

Recommending action on application for fiduciary powersas set forth in the Auxiliary Minute Book of this date.

te IRecommendation approved.

laY 26th Recommending approval of the application of Mr. Harry S.Sisk, for permission to serve at the same time as directorof the First National Bank of Factoryville, Pennsylvania,and as director of the Anthracite Trust Company ofScranton, Pennsylvania.

4164) May Approved.

28th Recommending approval of the application of Yr. Charles D.Wynne, for permission to serve at the-same time as officerof the Atlantic National Bank of Jacksonville, Florida, asofficer and director of the First Atlantic National Bankof Daytona Beach, Florida, and as officer and director ofthe First National Bank of Gainesville, Florida.

Approved.

klptoved:

-5-

The meeting adjourned at 1:00 p.

Assistant Secretary.

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

(r.'xecutiveectznit tee) XXILI41-1Y MIEUT-2.5

(liay 29, 1931.)

aePort of Jtanding C.ommittee dated 1:..ay 28, recommending action on14uication for fiduciary powers by the followin bank:

oze„4/21.,

415Drove

DISTAILT 110. 1. 001O2ICUT:

The LVstic Aiver iationa1 Balm. of Listic. (3353)

Lember 2xecu ive Comnittee.

assistant Jecretary.

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