570

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

was held in Washington on Saturday, April 17, 1937, at 11:00 a.m.

PRESENT: Mr. BroderickMr. SzymczakMr. McKee

Consideration was

Mr. Morrill, SecretaryMr. Bethea, Assistant Secretary

Mr. Carpenter, Assistant Secretary

Mr. Clayton, Assistant to the Chairman

given to each of the matters hereinafter re-

to and the action stated with respect thereto was taken by thetocr.d:

Memorandum dated April 16, 1937, from Mr. Morrill referring

the understanding

Base as a voucher clerk in the

1935: arld stating

on which the

to

temporary appointment of Mr. Sampson H.

Secretary's office was made on April 17,

that Mr. Bass was reexamined on October 29, 1936, and

4111 13, 1937, and that on the last report the doctor had stated thatthe di

agnosis of the case was the same as arecnu

__-44ended, for the reasons stated, that Mr. Bass' temporary appoint-

be extended with the understanding

b r of the

Retirement System and that a further recommendation will bemade

on th basis of

year ago. The memorandum

that he will not become a mem-

the Board by the Secretary's office before the end of the year

circumstances existing at that time.

Approved unanimously.

Letter to Mr. Hamilton, President of the Federal Reserve Bank

ansas CitY, reading as follows:

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

571

4/17/37-2-

"Reference is made to your letter of April 9 advising thatMr. Joseph E. Olson, Managing Director of the Denver Branch, isnot in the best of health and that the board of directors of

Governors, bank has approved, subject to the approval of the Board ofG

overnors, the request of Mr. Olson for one month's leave of ab-sence in addition to his regular vacation period in order thathe may make a trip to northern Europe.

"The Board of Governors will interpose no objection to theranting of one month's leave of absence to Mr. Olson for theabove purpose in addition to the regular vacation period."

Approved unanimously.

Letter to Mr. Sargent, Vice President of the Federal Reserve Bankof

San Francisco, reading as follows:

"Reference is made to your letter of April 1, 1937, advis-ing that the 'Cowlitz Valley Bank', Kelso, Washington, had filedan application for permission to retire t2,000 of its outstand-ing capital debentures held by the Reconstruction Finance Cor-1?orati0n

9 and that the bank had been advised that no objectionto such retirement was interposed."In this connection, reference is made to the Board's tele-gram of August 19, 1936, advising that it was unwilling to ap-

Ilove at that time a retirement of capital debentures but thatwould be glad to reconsider the matter after another examina-

tion_ of the bank had been made if the situation at that timeZ7re such that you were willing to submit a favorable recommenda-1;11. Reference is also made to the Board's telegram of July 30,4._;6) interposing no objection to a proposed retirement of capi-

debentures by the Citizens State Bank, Puyallup, Washington,ter which you were advised that the Board's position in that mat-, was based upon the facts and circumstances involved in the

th L'Ilciti;cular case and was not intended to establish a precedent,the

,Focar any similar cases which arise should be submitted to

d for its consideration.cora Both the Kelso and Puyallup cases involved a question ofbejliance with the capital requirements imposed on State membert,o.. 8 10Y the Federal Reserve Act, the Board having previouslyliZen the position that it is contrary to the technical require-belts of the Act for a State member bank to reduce its capitalinl% the amount required for the organization of a national bankthe phe Place in which the State bank is located. Whether or notquir-°ard would require compliance with the technical legal re-

jrnel,Its in any such instance is a matter for its determinationlight of all the circumstances involved in the particular

'-• Such reductions, except in the case of banks located in

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

572

4/17/37

"torns of not more than 3,000 population, are not regarded asbeing within the scope of the authority heretofore given thereserve banks to approve on the Board's behalf, and, therefore,should be submitted to the Board before a capital reduction iseffected. In the circumstances, however, the Board ratifiesYour action in interposing no objection to the retirement bythe Cowlitz Valley Bank, Kelso, Washington, of $2,000 of itscapital debentures."

Approved unanimously.

Letter to Mr. J. F. T. O'Connor, Comptroller of the Currency,

reading as follows:

"Pursuant to the suggestion made in your letter of April8, the proposed changes in the member bank call report formhave been presented to the Board of Governors and the Boardns approved the changes, subject to the concurrence by youroifice and by the Federal Deposit Insurance Corporation.bers"A copy of the Board's Form 105 used by State bank mem-

in submitting condition reports, with the proposed changesindicated thereon as tentatively approved by the Board of Gov-till°rs, is attached. For your convenience, there is also at-bacued a copy of your Form 2130 on which similar changes have

tent made. You will note that Schedule B has been eliminatedatively from the Board's Form 105. The reasons for thisgiven in the attached memorandum. The Board recently ap-proved a revision in the loan classification called for by the

;verm used by member banks in 101 leading cities in submittinghaeklY reports to the Federal Reserve banks. This change, which

the been discussed with Mr. Folger, will be put into effect infr weekly report as of May 12. The changes in the loan classi-

sjiati°n as adopted for the weekly report have been included ined1;11e E of the call report form.

port 'As you understand, the proposed changes in the call re-of,, form were all reviewed thoroughly with Mr. Folger of your0011-71ce before the report form was submitted to the Board offorn°rs. After action has been taken by your office on theFeF 't is intended to discuss the proposed changes with thein_eral Deposit Insurance Corporation with the object of bring-fo,about, if practicable, uniformity in the condition reportBoard

used by all three Federal agencies. As you know, theueed ,_is particularly anxious to have the call report formsbe 'V State bank members and by national banks continue touse1,11115f°M. It is also desirable that the call report formstio' DY the Board and by the Federal Deposit Insurance Corpora-

a be the same in order that State authorities may adopt

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

573

4/17/37

-4-

7similar forms and thus obviate the necessity for State banksto prepare reports on different forms for submission to Stateand Federal authorities, and particularly to avoid the dupli-?ate publication of reports submitted to State and Federal au-horities which differ in form."

APPftved:

Approved unanimously.

Thereupon the meeting adjourned.

Member.

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