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746 At a regular meeting of the Federal' Reserve Board held in the office of the Board at 11:10 a. m., on Friday, July 7, PRESENT: Mr. Hamlin, presiding Yr. Williams Mr. Delano Mr. Warburg Mr. Harding Mr. Allen, Secretary. The minutes of the meeting of July 5, and the minutes of the Executive Committee meeting on July 6, were rend and approved. There were no further changes in discount rates. Upon favorable report of the Committee on State and Member Banks, signed by Mr. Harding and Mr. Warburg, the application of the Corn Exchange Bank of New York for membership in the Federal reserve system with a letter to that bank, was approved. The informal application of the Am- 747 7erican Trust and Savings Bnnk of Birmingham, Alabama, and a telegraphic report of examination made by officers of the Federal Reserve Bank of Atlanta, was received and upon recommendation of the Committee on State and Member Banks this application was referred to a special committee consisting of Mr. Harding and Mr. Delano with power to act when the formal application is at hand. Mr. Warburg, for the Committee on Operation of the Philadelphia Bank, reported the result of his investigations in connection with the election of a successor as Class "0" director at the bank in the place of Mr. Vance C. McCormick resigned. After discus- sion the election to fill the vacancy was made a special order for the meeting on Tuesday, July 11th, Mr. Warburg to have the opportunity of recording his vote. An inquiry from Chief National Bank 748 /Examiner, James D. Brennan, as to the forwnrd? ing by National bnnks to Federnl reserve banks of duplicates of the report of earnings and dividends sent to the Comptroller of the Currency was read and the Secretary directed to state that Mr. Brennon's interpretation, as contained in his letter of June 26th was cor.1 rect. In this connection it was voted that should any National banks refuse to comply with the request placed in the Circular of June 15, 1916, of the Comptroller of the Currency at the request of the Federal Reserve Board, the Federal reserve banks should be advised that they may call on such banks as do refuse for a report of earnings and dividends. A letter to Governor Hamlin from Mr. Daniel G. Wing, President of the First National Bank of Boston, Massachusetts, was presented in which the inquiry was made, / A u) 14 '4 whether the authorization to accept up to 100% given to this bank by the Federal Reserve Board covered increases of capital and surplus. After discussion in which Assistant Counsel participated, the Board voted to grant authority to the First National Bank to accept up to 100% of its present capital and surplus of ci115,000,000, and to refer the question raised to Counsel for further consideration. On this mo- tion the Board voted three to two, Mr Harding stating in explanation of his vote against the motion that he believed the bank already had power to accept up to 100% of its increased capital and surplus. Upon the statement, that Mr. Ray M. Gidney would be absent from Washington in connection with bank examinations from July 8th to July 17th, Mr. Gidney was authorized to turn over to Mr. Sherman Allen the combination which he holds to the safe in which the cer- tificates evidencing the Gold Settlement Fund are held, together with his pirt in the joint custody of siid certificates. A letter from the Cashier of the Federal Reserve Bank of Now York relative to the practice of that bank as to cashing checks calling for gold bullion, was referred to the Committee on Relations with the Treasury Department with power, that Committee to take up the matter with the Treasury Department. Applications for stock in Federal reserve banks, duly recommended by Mr. Harding as Chairman of the Committee on Member and State Banks, were approved as follows: DISTRICT No. 2. Kerhonkson Nat'l Bank Atnens National Bank Shares. Kerhonkson, New York 12 Athens, N. Y. 8 DISTRICT No. 7. First National Bank Whiting, Iowa 15 _DISTRICT No. 8. Farmers National Bank Newport, Ark. 38 Shares. DISTRICT No. 9. National Bank of Gary, S. Dak. 20 Basin, Wyo. Lovell, "Iyo. 17 18 DISTRICT No. 10. First National Bank First Nntional Bank Applications for additional stock in Federal reserve banks, duly recommended by Yr. Harding, as Chairman of the Committee on Member and State Banks, were approved as follows: DISTRICT No. 7. First National Bank First National Bank First National Bank First National Bank First National Bank First National Bank Atlas Exchange Nat'l Washington Park:Nat'l Elgin National Bank Yorkville Nat'l Bank First National Bank Central National Bank Newman National Bank First National Bank First National Bank of Gibson First National Bank Taylorville Nat'l Whiteland National Farmers National Bank Shares. Villa Grove, Ill. 1 1. Ogden, Ill. 15 Peoria, Ill. 1 Divernon, Ill. Crescent City,I11.2 1 Beason, Ill. 13 Chicago, Ill, 6 Chicago, Ill, 3 Elgin, Ill. 3 Yorkville, Ill. 1 Roseville, Ill. 6 Peoria, Ill. 3 Newman, Ill. Downers Grove,I11.1 Gibson City, Ill. Chriaman, Ill. Taylorville,I11. Whiteland, Ind. Trafalgar, Ind. 2 1 1 1 2 752 ,DISTRICT No. 7 (Continued) Farmers National Bank First National Bank City National Bank First National Bank First National Bank First National Bonk National Brookville First National Bank First National Bank First National Bank Citizens National Peoples National Bank First National Bank Clark National Bank Milford Nat'l Bank Security Nat'l Bank First National Bank First National Bank First National Bank First National Bank First National Bank First National Bank Fayette County Nat'l First National Bank First National Bank American Nat'l Bank First National Bank First National Bank Shares, Sheridan, Ind. Mishawaka, Ind. 8 Logansport, Ind. 2 Hartsville, Ind. 1 Freeland Park,Ind.1 1 Boswell, Ind. Brookville, Ind. 3 1 Fremont, Ind. Batesville, Ind. 1 Cloverdale, Ind. 1 Greencastle, Ind. 2 3 Waukon, Iowa 1 Ruthven, Iowa 2 Newton, Iowa 2 Milford, Iowa Eason City, Iowa 6 1 Humboldt, Iowa 1 Inwood, Iowa 1 Klemme, Iowa Rock Valley,Iown 1 3 Williams, Iowa 1 Riceville, Iowa West Union, Iowa 4 Maquoketa, Iowa 15 Northwood, Iowa 1 Benton Harbor, 3 Mich. Richland Center, 1 Wis. 2 Pennimore, Wis. Applications for the surrender of stook in Federal reserve banks duly recommended by Mr. Harding as Chairman of the Committee on Member and State Banks were approved as follows: 753 DISTRICT No. 2. Shards. Citizens Nat'l Bank Patchogue, N. Y. 48 Hammond, Ind. Tama, Iowa Viroqua, Wis. Allegan, Mich. La Forte City, Iowa Kankakee, Ill. 6 15 6 3 6 195 Schuyler, Nebr. 39 Riverside, Cal. White Salmon, Washington 222 DISTRICT No. 7. Citizens German Nat'l First National Bank First National Bank First National Bank First National Bank First National Bank DISTRICT No. 10. Schuyler Nat'l Bank DISTRICT No. 12. First National Bank First National Bank 17 Mr. Williams read a letter from Mr. Daniel G. Wing of Boston, in which objection was raised to supplying the report of examination of the First National Bank to the Federal Reserve Bank of Boston. Upon dismission it was agreed that where duplicates of examination reports of member banks are supplied to the Federal reserve banks these reports are un- q; - - derstood to be for the use of the Federal Reserve Agent and the Governor at the bnnk only and not for the exnmination of the binIn directors or junior officers. In this connec- tion it was also pointed out that if the copy of the report Was not furnished for the use of the federal Reserve Agent and the Governor of the Federal reserve bank it would be necessary for the Federal reserve bank to exercise its right to make an examination on its own account of the member bank. Mr. Delano presented the request of the Comptroller of the Currency for the ppproval of the salary of Mr. Robert C. Houston, appointed a Xational Bank Examiner at n salary of,)‘2,400 as of July 5, 1916, and asked on behalf of the Committee on Audit and Examination for instructions. After discussion of the whole question of salaries for National bank - examiners the approval of this particular sal- tary was referred back to the Committee on Audit and Examination with power to act upon it. A letter from Mr. iarburg to Governor Hamlin, dated July 6, was rend in connection with which there Was submitted suggestions as to cooperation between the Federal Reserve Board and the Comptroller of the Currency in connection with obtaining figures as to condition of National banks and the interpretation thereof by a joint statistical department. There was discussion of the matter at the close of which the letter and memorandum were referred to the Committee of which Governor Hamlin is Chairman to which had been sent an earlier memorandum upon the same subject. Mr. Williams stated that he would today send to each member of the Board a copy of the last "call" upon National banks and requested that each member indicate thereon any suggestions which he might have for additional questions or suggestions that 7,36 any questions be omitted. Governor Hamlin submitted n memorandum on the bill of 2epresentntive Hill of Connecticut as to the investment of savings dope iteheld by National banks and action thereon was postponed, it being agreed that Lr. Warburg should have permission to record his vote If not present. It was agreed, at the suggestion of Governor Hamlin, that no important matter would be taken up by the Board in the absence of its members, without first conferring with them, and that no important meeting would be held during the summer without advice to absentees.This action was specifically stated not to cover matters ordinary business, or that of a routine character. At 1:10 p. n. the Board adjourned to meet at 11:00 a. m., on 'dy, July 11. APPROVED: retnry. Chairman.
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