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At a regular meeting of the Federal Reserve Board held in the office of the Board on Monday, April 26, at 11.00 a. m. PRESE/TT: Mr. Delano, presiding, Mr. Harding Mr. Warburg Mr. Eiller Mr. Willis, Secretary. The minutes of the meeting of Friday, April 23, were read and approved. The minutes of the meeting of the Executive Com7 mittee of Friday, April 23, were read, and, on motion, were received, and the actions taken by the Oommittee were approved. A telegram from Federal Reserve Agent Perrin with reference to the question whether purchases of 2% Government bonds made by the Federal reserve ban: of an Francisco, would be eligible for conversion into 3% bonds and when; was read by the Acting Governor, who also presented a draft of a reply to Mr. Perrin. On motion this proposed draft was approved. On motion applications for power to exercise the functions of executor, trustee, etc., were approved in the cases of the following banks: First National Bank Greenville National B. Marion National Bank Old National Bank Greeley, Colo. Greenville, Texas Marion, Ind. Grand Rapids, 352 Merchants National Bank Richmond, Va. Beaver Dam, Wis. Old National Bank Battle Creek, Mich. Old National Bank Stanton, Texas First National Bank Colorado, Texas City National Bank Russiavillo, Ind. 'First National Bank Stockyards National Bank Fort Worth, Texas Monroe, Wis. First National Bank Rockford, Ill. Third Itational Bank Norwalk, Conn. National Bank Ind. Richmond, Bank National First Ohio. Youngstown, Bank National First Nolyoke,,Mass. Bank Home National Belvidere, Ill. Second National Bank Ind. Brazil, Bank National RidOell National Bank of Commerce Dallas, Te:ms. 'National Bank of Commerce-Norfolk, Va. On motion the application of the T:etr000litan National Bank of Pittsburgh, Pa., for power to reduce its capital stock frpm .400,000 to ,:200,000 duly recomiended by the Conptroller of the 'Currency, was approved. On motion applications for 114 shares of additional stock in 2ederal reserve banks, were approved as follows: Shares DISTRICT No. 5. Citizens National Bank • Chester, S. C. 39 Wauchula, Fla. 30 Newton, Iowa 30 McVille, N. Dak. 15 DISTRICT No. 6. Carlton rational Bank DISTRICT M. 7. Clark National Bank DISTRICT No. 9. First National Bank 353 Letters from Federal Reserve Agent Miller with reference to pending applications for power to exercise the functions of executor and trustee, were read to the Board, and on motion, referred to Mr. A. C. Miller and Mr. Williams. A letter from Federal Reserve Agent Bosworth suggesting a procedure in those cases where applications for executor and trustee powers have been declined by the Board, was read. On motion the Secretary was directed to write to Er. Bosworth indicating a slightly altered form of statement to be used by him. A letter from Federal Reserve Agent Cur- tiss recommending that the application of the City National Bank of Belfast, Maine, be disapproved for the present, was Presented, and on motion, the Board accepted Mr. Curtiss, recommendation. The question of the eligibility of renewal notes for rediscount was presented to the Board by Mr. Miller, apropos of a case brought to his attention by Mr. Martin. On motion the matter was referred to Mr. Miller and Er. Warburg With authority to send a reply based on the precedent already • established by the Board. On motion the date of hearing of the application of the Wisconsin banks for transfer from the ninth to the soVenth district, was set for May 20. 354 A letter from Mr. Ralph Stone making inquiry about the Board's policy in granting executor and trustee powers, was referred to Counsel with a request that he suggest a reply. Ur. Delano presented a letter from L:r. Eugene E. Prussing regarding the proposed suit of certain trust companies relative to paragraph K of Section 11 of the Federal Reserve Act, and asking that he be supplied with a copy of the brief of Counsel of the Chicago bank on this subject. The Secretary was directed to wire Governor ncDougal suggesting that the latter transmit the opinion, such telegram,' however, to be approved by Counsel first. Ni'. Delano and Mr. Warburg stated to the Board that there had been some discussion of the question of obtaining the services of an advisory or consulting legal counsel who might be applied to for opinions as to certain special and important business. Some discussion then ensued as to the advisability', in view of the many difficult and delicate legal questions with which the Board is being confronted, of the Board's securing the services of such special counsel with whom the Board's regular counsel might consult and advise in drafting opinions on questions of especial importance ara intricacy. It was further stated that in view of the great number of broad legal questions now pressing upon the Board for a3tion, the services of additional counsel would be necessary in ordor to avoid congestion of business. The advantage of having opinions considered from different points of view before being adopted and published by the Board, was also pointed out. Upon motion the subject was referred to the Zxecutive Committee with instructions that it make a definite recommendation to the Board with respect to the appointment of special counsel. In accordance with recommendations of Deputy Federal Reserve Agent Gatch of the Federal Reserve Bank of San Francisco permission to accept drafts or bills of ex- change having not more than six menthe to run and growing out of transactions involving the importation and exportation of goods, was granted to the following institutions: Wells-Fargo Nevada rational Bank of San Francisco Bank of California, N. A., of San Francisco Warburg read to the Board a letter from Federal Reserve Agent Jay regarding the situation in Now York relative to the admission of State banks as members of the Federal reserve system. The Secretary of the Board presented a report from Federal Reserve Agent J. Z. Eiller with reference to the work r§ r•-• 013t) he has accomplished in securing lecislation permittircState banks to join the system, and national banks to exerciseexecutor and trustee powers. On motion at 1.15 n. m. the Board adjourned to meet on "lednesday, April 11.00 a. m. Secretary. APPROVED: .3hairman. •
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