FEDERAL RESERVE BOARD WASHINGTON

ADDRESS OFFICIAL CORRESPONDENCE TO THE FEDERAL. RESERVE BOARD

X-4940

Apri l 23, 1924

SUBJ1CT: Revision of Code Word "Archery".

Dear Sir:

There i s enclosed herewith a rev i s ion of

the translat ion for the code word "Archery", neces-

s i ta ted by the adoption of the new Regulation "H",

Series of 1924,

Very truly yours,

J. C. Noell., Assistant Secretary.

(Enclosure)

TO CHAIRMEN OF aLL F, R. BsNKS.

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CO# FOR TELEGRAPHIC ADVICE APPROVAL OF APPLICATIONS OF STATE INSTITUTIONS FOR MEMBERSHIP.

Archery - The a p p l i c a t i o n .of — f o r membership has "been approved by the Federa l Reserve Board sub jec t to the cond i t ions enumerated^ i n Sec t ion IV, Regula t ion H, s e r i e s of 1924, numbered 1 t o 9 i n c l u s i v e , (Should any of the fo l lowing condi t ions be imposed, they w i l l be r e -f e r r e d t o by number):

10. P r i o r t o the payment of a dividend you s h a l l ca r ry to surplus account ne t l e s s tb~v one- ten th p a r t of your ne t p r o f i t s f o r the preceding dividend pe r iod u n t i l your surp lus fund s h a l l amount to twenty per cent of ycur c a p i t a l s tock .

11. Yen s h a l l agree net to pay any dividend u n t i l yen have a s u r -p lus of ($ j , and t h a t t h e r e a f t e r p r i o r t o t he payment of a dividend you sha l l c a r r y to surplus account not l e s s than one-t 'unth p a r t of your net p r o f i t s f o r the preced ing dividend pe r iod u n t i l ycur surplus fund s h a l l amount t c twenty per cent of your c a p i t a l s tock .

12. You s h a l l charge off a t once, cut of undivided ea rn ings , not l e s s than (0 ) from your s e c u r i t i e s account ,and shal l agree t h a t a f t e r admission to the system ycu w i l l charge off from t h i s account annual ly not l e s s than twenty p e r cent of the de-p r e c i a t i o n in ycur investments , u n t i l the "bock and market v a l -ues thereof are mere nea r ly in accord.

13. You s h a l l agree to "bend ycur a c t i ve o f f i c e r s and employees handl ing cash or s e c u r i t i e s or having access to same.

14. Ycu s h a l l dispose of or otherwise secure any loan which may be secured by your own s tock ,

15. You s h a l l agree t c r equ i r e f i n a n c i a l s ta tements wherever pos-s i b l e in connection wi th a l l important l o a n s .

16. Ycu s h a l l agree to reduce annual ly the amount charged t c u n t i l the same more nea r ly r ep re sen t s a c t u a l liquidating value.

17. You s h a l l agree to reduce the amount of your — >" emdemake every e f f o r t t o keep same a t a minimum.

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18. As provided in the Federal Reserve Board's Regulation H,seri.es of 1924, you sha l l increase your paid-tzp and unimpaired capi -t a l wi th in f i v e years a f t e r the approval of your app l ica t ion "by the Federal Reserve Board to $ * For the purpose of providing t o r such inc rease , you sha l l set aside each year in a fund exclus ively appl icable to such cap i t a l increase not l e s s than f i f t y per cent of your net earnings f o r the preceding year p r i o r co the payment of dividends, and i f such net earnings ex-ceed. twelve per cent of your pa?.d-Bg c a p i t a l , then a l l net earnings in excess of s ix per cent of your paid-up c a p i t a l sha l l "be ca r r i ed to such fund, u n t i l such fund amounts to 0 . Whenever such fund sha l l ai.ount to $ , or a t such other tir;.e as the Federal Reserve Board nay.require, such fund or as Lvuuh thereof as nay "be necessary sha l l 'be converted into c a p i t a l "by a stock dividend or used in any other manner permit ted "by S ta te lav; to increase your cap i t a l to the required amount. Such increase in c a p i t a l nay t e provided in xvhole or in pa r t "by the sa le of addi t iona l s tock.

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