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r~ I__ 192 1927 UNITED STATES EXECUTIVE President _ -Mi, GOVERNMENT OFFICERS Calvin Coolidge (re-elected Nov. 1924, iaugurated March 4, 1925) Secretary of Treasury Andrew W. Mellon (appointed March h, 1921, served until Feb. 12, 1932) Comptroller of Currency J. Secretary of State Secretary of War Secretary of Navy Secretary of Interior Secretary of Agriculture Secretary of Commerce Secretary of Labor Postmaster General Attorney General - W. Mc Intosh (date of appointment Dec. 20, 1924, resigned Nov. 20, 1928) Frank B. Kellogg Dwight F. Davis Curtis D. Wilbur Hubert Work William M. Jardine William F. Whiting James J. Davis Harry S. New John D. Sargent Im 1927 January U. S. G 0 V RIt W 1 1 S ENAT E Banking and Currengom C.ittee 69th Congrese Republioans McLEAN, George P. WELLER, 0. E. NORBECK, Peter EDGE, Walter E. PEPPER, George Wharton PHfPPS, Lawrence C. SACKETT, Frederic M. FRAZIER, Lynn J. http://fraser.stlouisfed.org/ -Federal Reserve Bank of St. Louis Democrats Connecticut Maryland South Dakota New Jersey Pennsylvania Colorado Kentucky North Dakota FLETCHER, Duncan U. GLASS, Carter EDtAEDS, Edward I. Florida Virginia STEPHES, Hubert D. New Jersey Mississippi MAIFIELD,. Earle B. Texas BRATTON, Saa G. TISON, Lawrence D. New Mexico Tennessee I ~-~rrrmsrr~-r~-rrrr~rar I rrr -~ -- -- - : r; i'-: January U. S. G 0 VR HOU&AFOF -4 T EEaMATwi tte Banking and CurrerGe 69th Congress Republicans McFADDe, Louis T. KING, Edward J. STRONG, James G. LUCE, Bobert MaeGREa, Clarence FENB, L. Bart CAMPBUL, Guy E. LEATHERWOOD, Elmer 0. BEED, Carroll L. VILLIAMSON, William HOOPER, Joseph L. ALLEf, John C. GOOWIN, Godfrey G. Pennsylvania Illinois Kansas Massachusetts New York Connecticut Pennsylvania Utah Maine South Dakota Michigan Illinois Minnesota WINGO, Otis STEAGALL, Henry B. BRAND, Charles H. STEVENSON, William F. BLACK, Eugene GOLDSBOBOUGH, T. Alan PRALL, Anning S. CANFIELD, Harry C. Arkansas Alabama Georgia South Carolina Texas Maryland New York Indiana FEDERAL RESERiE BOARD D. R. Crissinger, Governor (resigned September 15) R. A. Young, Governor (effective October 4) Edmund Platt, Vice Governor Ex Officio Members A. W. Mellon, Secretary of the Treasury Chairman J. W. Mc Intosh Comptroller of the Currency Adolph C. Miller Charles S. Hamlin George R. James Edward H. Cunningham Secretary's Office Walter E. Eddy, Secretary J. C. Noell, Asst. Sec. E. M. Mc Clelland, Asst. Counsel's Office Walter Wyatt, General Counsel Sec. Fiscal Agent W. M. Imlay, Fiscal Agent Division of Research and Statistics E. A. Goldenweiser, Director Division of Bank Operations Division of Examination and Federal Reserve Examiner J. F. Herson, Chief L E. L. Smead, Chief 1927 FEDERAL RESERVE SYSTEM FEDERAL ADVISORY COUNCIL District No. (Boston) Arthur M. Heard District No. (New York) James S. Alexander District No. (Philadelphia) L. L. Rue District No. (Cleveland) Harris Creech District No. (Richmond) John F. Bruton, Vice President District No. (Atlanta) P. D. Houston District No. (Chicago) Frank 0. Wetmore, President District No. (St. Louis) Breckinridge Jones District No. (Minneapolis) Theodore Wold District No. I (Kansas City) P. W. Goebel District No. District No. S(Dallas) i (San Francisco) B. A. McKinney Henry S. McKee Walter Lichtenstein, Secretary FEDERAL RESERVE SYSTEM OPEN MARKET INVESTMET COMMITTEE Composed of five Governors of Federal Beserve Banks Boston - W. P. G. Harding New York - Benjamin Strong Philadelphia - George W. Norris Cleveland - E. R. Chicago - J. B. McDougal Fancher 1927 Federal Reserve Bank of Boston (Dist. 1) OFFICERS Governor W. P. G. Harding Deputy Governor W. WW.Paddock Chairman and Federal Reserve Agent - Frederic H. Deputy Chairman - Alien Hollis Curtiss 1927 Federal Reserve Bank of Boston (Dist. 1) DIRECTORS Class A Term Expires Dec. 31 KENNARD, Edward S. (Rumford, Me.) CHAMBERLAIN, Frederick S. (New Britain, Conn.) RIPLEY,Alfred L. (Boston, Mass.) 1927 1928 1929 (re-elected) Class B WASHBURN, Chas. G. (Worcester, Mass.) BOWMAN, Albert C. (Springfield, Vt.) ALLEN, Philip R. (East Walpole, Mass.) 1927 1928 1929 (re-elected) Class C HOLLIS, Allen (Concord, N. H.) Depuy Chairman MANCHESTER, Chas H. (Providence, R.I.) CURTISS, Frederic H. (Boston, Mass.) Chairman and FR Agent 1927 1928 1929 (re-appointed) Federal Reserve Bank of New York (Dist. 2) OFFICERS Governor Deputy Governors - Benjamin Strong - J. L. G. E. Chairman and Federal Reserve Agent - Deputy Chairman - H. F. L. R. Case Sailer Harrison Kenzel Gates W. Mc Garrah (effective May 1) Owen D. Young Fede ral Reserve Bank of NEW YORK 1927 (Dist. 2) DIRECTORS CLASS A. RUNKLE, Delmer (Hoosick Falls) REYNOLDS, Jackson E. TREMAN, (New York) Robert H. (Ithaca) Term Began Dec. 31 Term Ended 1/1/25 1927 1/1/26 1928 1/1/27 1929 (re elected) 1/1/25 1927 1/1/26 1928 (resigned 1/13/27) CLASS B REYBURN, Samuel V. (New York) YOUNG, Owen D. (New York) (Deputy Chairman) 1929 (reelected) WHITMARSH, Theodore F. (New York) /1/27 4/1/27 1928 WOOLLEY, Clarence M. (Greenwich) 1/1/25 1927 McGARRAH, Gates V. (New York) 5/2/27 1928 (Chairman) 1/13/27 1929 (Deputy Chairman) WOODIN, William H. (New York) CLASS C http://fraser.stlouisfed.org/ YOUNG, Owen D. (New Federal Reserve Bank of St. Louis L York) Federal Reserve Bank of Philadelphia (Dist. 3) OFFICERS Governor Deputy Governor - George W. Norris - William H. Hutt Chairman and Federal Reserve Agt. Deputy Chairman - R. L. Austin Chas. C. Harrison 1927 Federal Reserve Bank of Philadelphia (Dist. 3) DIRECTORS Class A DOUGLAS, Francis (Wilkes-Barre, Pa.) COSGROVE, John C. (Johnstown, Pa.) WAYNE, Jos. (Jr.) (Philadelphia, Pa.) Term Expires Dec. 31 1927 1928 1929 (re-elected) Class B HADDON, Chas. K. (Philadelphia, Pa.) JOHNSON, Alba B. (Philadelphia, Pa.) SEWALL,Arthur W. (Philadelphia, Pa.) 1927 1928 1929 (elected) Class C HARRISON, Chas. C. (Philadelphia, Pa.) Deputy Chairman CANNON, H. L. (Bridgeville, Del.) AUSTIN, R. L. (Philadelphia, Pa.)Chairman and FR Agent 1926 1927 1928 (re-appointed) Federal Reserve Bank of Cleveland (Dist. 4) OFFICERS Governor E, R. Fancher Deputy Governors - Chairman and Federal Reserve Agent - George De Camp Deputy Chairman - Frank J. L. Zurlinden B. Williams 1927 Federal Reserve Bank of Cleveland (Dist. 4) DIRECTORS Term Expires Dec. 31 Class A SAMS, 0. N. (Hillsboro, Ohio) LAMBERTON, Chess (Franklin, Pa.) WARDROP, Robert (Pittsburgh, Pa.) 1927 1928 1929 (re-elected) Class B STAMBAUGH, John (Youngstown, WRIGHT, R. P. (Erie, Pa.) CRABBS, Geo. D. (Cincinnati, Ohio) Ohio) 1927 1928 1929 (re-elected) Class C KNIGHT, W. W. (Toldeo, Ohio) WILLIAMS, L. B. (Cleveland, Ohio) Deputy Chairman DeCAMP, George (Cleveland, Ohio) Chairman and FR Agent 1927 1928 1929 (re-appointed) 1927 Federal Reserve Bank of Richmond (Dist. 5) OFFICERS Governor -George C. A. Peple R. H. Broaddus Deputy Governors Chairman and Federal Reserve Agent Deputy Chairman J. Seay William V;. Hoxton - Frederic A. Delano Federal Reserve Bank of Richmond (Dist. 5) DIRECTORS Class A RIEMAN, Chas.E. (Baltimore, Md.) BRASWELL, Jas. C. (Rocky Mount, N.C.) JOHNSON, L. E. (Alderson, W. Va.) Term Expires Dec. 31 1927 1928 1929 (re-elected) Class B STRUDWICK, Edmund (Richmond, Va.) GRAHAM, Edwin C. (Washington, D. C. ) COKER, D. R. (Hartsville, S.C.) 1927 1928 1929 (re-elected) Class C DELANO, Frederic A. (Washington, D. C. ) Deputy Chairman LASSITER, Bobert (Charlotte, N.C.) HOXTON, nm.W. (Richmond, Va.) Chairman and FR Agent 1927 1928 1929 (re-appointed) I 1927 Federal Reserve Bank of Atlanta (Dist. 6 ) OFFICERS Governor M. B. Wellborn Deputy Governors - Hugh Foster Creed Taylor Chairman and Federal Reserve Agent - Oscar Newton Deputy Chairman - W. H. Kettig Federal Reserve Bank of Atlanta (Dist. 6) DIRECTORS Term Expires Dec. 31 Class A BLACK, Eugene R. (Atlanta, Ga.) MELVIN, E. C. (Selma, Ala.) WARE, G. G. (Leesburg, Fla.) 1927 1928 1929 (elected) Class B McCRARY, J. A. (Decatur, Ga.) HARTFOBD, W. H. (Nashville, Tenn.) SIMON, Leon C. (New Orleans, La.) 1927 1928 1929 (re-elected) Class C HOPKINS, Lindsey (Atlanta, Ga.) KETTIG, W. H. (Birmingham, Ala.) Deputy Chairman Chairman and FR Agent NEWTON, Oscar (Atlanta, Ga.) 1927 1928 1929 (re-appointed) Federal Reserve Bank of Chicago (Dist. 7) OFFICERS Governor - J. Deputy Governors B. Mc Dougal C. R. Mc Kay John H. Blair Chairman and Federal Reserve Agent - W. A. Heath Deputy Chairman - James Simpson f 1927 Federal Reserve Bank of Chicago (Dist. 7) DIRECTORS Class A REYNOLDS, George M.(Chicago, Ill.) Iowa) McNIDER, Charles H. (Mason Cit, JOHNSON, E. L. (Waterloo, Iowa Term Expires Dec. 31 1927 1928 1929 (re-elected) Class B VOGEL, A. H. (Milwaukee, Wis.) CRAPO, S. T. (Detroit, Mich.) MUELLER, Robert (Decatur, ll.) 1927 1928 1929 (re-elected) Class C HEATH, W. A. (Chicago, Ill.) Chairman and FR Agent BALL, F. C. (Muncie, Ind.) SIMPSON, James (Chicago, 111.) Deputy Chairman 1927 1928 1929 (re-appointed) 1927 Federal Reserve Bank of St. Louis (Dist. 8) OFFICERS Governor Deputy - D. C. Biggs Governor 0. Chairman and Federal Reserve Agent Deputy Chairman M. Attebery Wm. McC. - Martin John W. Boehne 1927 Federal Reserve Bank of St. Louis (Dist. 8) DIRECTORS Class A Term Expires Dec. 31 UTTERBACK, J. C. (Paducah, Ky.) 1927 MARTIN, John C. (Salem, Ill.) LONSDALE, John G. (St. Louis, Mo.) 1928 1929 (re-elected) Class B WELLS, Rolla (St. Louis, Mo.) PLUNKETT, W. B. (Little Rock, Ark.) PERCY, LeRoy, (Greenville, Miss.) 1927 1928 1929 Class C McC. MARTIN, Wn. (St. Louis, Mo.) Chairman and FR Agent DILLARD, Paul (Memphis, Tenn.) BOEHNE, John W. (Evansville, Ind.) Deputy Chairman 1927 1928 1929 (re-appointed) 1927 Federal Reserve Bank of Minneapolis (Dist. 9) OFFICERS Governor Deputy Governors Asst. to Governor - Chairman and Federal Reserve Agent Deputy Chairman - R. A. Young (res. in October) W. B. Geery ( succeeded Young ) - . B. Geery (before October) B. V. Moore Harry Yaeger - John R. Mitchell - Homer P. Clark I 1927 Federal Reserve Bank of Minneapolis (Dist. 9) DIRECTORS Term Expires Dec. 31 Class A McDOWELL, Wesley C. (Marion N.Dak.) LEEMAN, Paul J. (Minneapolis, Minn.) BASSETT, J. C. (Aberdeen, S. Dak.) 1927 1928 1929 (re-elected) Class B OWEN, John S. (Eau Claire, Wis.) MYERS, Paul N. (St. Paul, Minn.) HOLTER, N. B. (Helena, Mont.) 1927 1928 1929 (re-elected) Class C CLARK, Homer P. (St. Paul, Minn.) Deputy Chairman McCORMICK, Geo. W. (Menominee, Mich.) MITCHELL, John R. (Minneapolis, Minn.) Chairman and FR Agent 1927 1928 1929 (re-appointed) 1927 Federal Reserve Bank of Kansas City (Dist. 10) OFFICERS Governor - W. J. Bailey - Deputy Governor C. A. Worthington Chairman and Federal Reserve Agent - M. L. Mc Clure Deputy Chairman - Heber Hord 1927 Federal Reserve Bank of Kansas City (Dist. 10) DIRECTORS Class A PARKS, C. C. (Denver, Colo.) SPONABLE, Frank W. (Paola, Kans.) MULLANEY, E, E. (Hill City, Kans.) Term Expires Dec. 31 1927 1928 1929 (re-elected) Class B BYRNE, Thomas C. (Omaha, Nebr.) BERNARDIN, J. M. (Kansas City, Mo.) PHILLIPS, L. E. (Bartlesville, Okla.) 1927 1928 1929 (re-elected) Class C HORD, Heber (Central City, Nebr.) Deputy Chairman PETRIKIN,William L. (Denver, Colo.) McCLURE, M. L. (Kansas City, Mo.) Chairman and FR Agent 1927 1928 (appointed) 1929 (re-appointed) - -~- -- :r--; 1927 -I-i-- ; i~ Federal Reserve Bank of Dallas (Dist. 11) OFFICERS Governor Lynn P. Talley Deputy Governors R. R. Gilbert R. B. Coleman Chairman and Federal Reserve Agent Deputy Chairman C. C.Walsh - Clarence E. Linz i 1927 Federal Reserve Bank of Dallas (Dist. 11) DIRECTORS Class A FROST, J. H. (San Antonio, Tex.) PATRICK, W. H. (Clarendon, Tex.) SMITH, Howell E. (McKinney, Tex.) Term Expires Dec. 31 1927 1928 1929 (re-elected) Class B KELL, Frank (Wichita Falls, Tex.) NAIL, J. H. (Fort Worth, Tex.) CULBERTSON, J. J. (Paris, Tex.) 1927 1928 1929 (re-elected) Class C PERKINS, S. B. (Dallas, Tex.) WALSH, C. C. (Dallas, Tex.) Chairman and FR Agent LINZ, Clarence E. (Dallas Tex.) Deputy Chairman 1927 1928 1929 (re-appointed) Federal Reserve Bank of San Francisco (Dist. 12) OFFICERS Governor John U. Calkins Deputy Governors William A. Day Ira Clerk L. C. Pontious Chairman and Federal Reserve Agent - Isaac B. Deputy Chairman - Walton Newton N. Moore 1927 Federal Reserve Bank of San Francisco (Dist. 12) DIRECTORS Term Expires Class A WHIPPLE, Howard (Turlock, Calif.) McINTOSH, C. K. (San Francisco, Calif.) RAMSAY, T. H. (Red Bluff, Calif.) Dec. 31 1927 1928 1929 (elected) Class B SESNON, William T. (Soquel, Calif.) COX, E. H. (Madera, Calif.) DOHRMANN, A. B. C. (San Francisco, Calif.) 1927 1928 1929 (re-elected) Class C MOORE, Walton N. (San Francisco, Calif.) Deputy Chairman 1927 SPROULE,William (San Francisco, Calif.) 1928 NEWTON,Isaac B. (San Francisco, Calif.) Chairman and FR Agent 1929 (appointed) 1927 February HEARINGS Stabilization Hearings..on H. R. 7895 before House Banking and Currency Committee. (69th Cong. Ist Sess.) 2 pts. Part II. (Continued from March - April 1926) 1927 February 25 "McFadden Act" LEGISLATION This Act amended the Federal Reserve Act with regard to: Discontinuance of Federal Reserve branch banks. Indeterminate charters of Federal Reserve banks. Conditions of membership for State banks. Branches of State member banks. Limitation on total liabilities of national banks. Thefts by national bank examiners. Real estate loans by national banks; interest on time deposits. Unlawful certification of checks. For summary see Source: Supplement to statement on Evolution of Banking Legislation by Walter Wyatt, October 26, 1939. Exhibit G. 1 FEDERAL RESERVE SYSTEM 1927 May 1927 to November 1927 POLICY ACTION Apparent Intent - Expansionary - For other purposes Open Market Operations - Bought $230 million of Government securities. Buying rate on bankers' acceptances reduced (July-August) Discount Rate - Reduced from 4 to 31/2 percent at all Banks (July September). - Moderate recession in business; lower level of prices, especially farm products; relatively heavy indebtedness of member banks; and a tendency toward firmer conditions in the money market. Also serious credit stringency and threat of renewed foreign exchange depreciation and in stability in Europe, which it was feared would interfere with marketing abroad of farm products, especially cotton. Moral Suasion Surrounding Circumstances Source: Joint Committee on the Economic Report Monetary Policy and the Management of the Public Debt (Patman Report) 1952, Page 217. LITIGATION 1927 of ton 9 provi tional since opbrty rights of sific chooses to come may punislT lacts Wthat, the State'alsd hertinv&ved we*kena; that 06ngre ay ramentalities dfficieney qdodiw, tre c S. 256 (1927) LITIGATION 111- tate tru~j ~ b ee. was held that the case was indistingush Comm-o wealth-Atlantiv National Bank, 249N.E43 In the opinion of -mee coo 4k~t f* th le frmPt1o LITIGATION 13.543. Banking custom as justifying acceptance of drafts. Where a Federal Reserve bank, in the collection of checks, accepts a draft from the drawee bank in payment thereof, instead of money, ti& acce ps ce onhe pa-rtof the Restie bank where the prevailing baunma g custom is to accept drafts in such cases drawn by the d*&B w bank~o 'its 4 espondents. Hicks Co. v. FederalReserve Bank of St. Louis, 174 Ark. 57, 296 S.W. 46 (1927). Nor.-For cases invopg substanti*ly silar facts and holding to the same effect, see Osage NaQonal Bank v. Federal Reserve Bank of Minneapolis, 184 Minn. 11, 238 N. W. 44 (iti) ; ChicaW~,,M* St. Psdt o.v. Federal Reserve Bank of fan Francisco, 70 Utah 310, 2 le .i262 (1927); Grovery. Federal Reserve Bank of nFrancisco, Idaho State Dist.,Ct., July 31, 1926 (ureported). See also Odle v. Baraes, 2 S. W. (2d) 577 (Tex. 1927), where the right to accept drafts in pay ment, in accordance with prevailing custom, was conceded. I f-I - _ __ _ _ _ _~__ LITIATION ; uthorz Cg acceptance,of drafts.-A chlm iA J13.5 of Bank Reserve Federal the to ded r~n was the plaintiff wn S Rclond for collection and the latter bank sent the check to -thlIk which itvias drawi for remitance, e drawee banksnt t rthe amount of the check to the Federal Reserve bank but ethi aft was dihonored for lack of sufficient funds. Thereafter, the drawee bank failed and the plaintiff instituted an action against the drawer of the check and also against the Federal ~Rserve bank alleging that the latter bank had been negligent in accepting ap exchange draft in pay ment of the check and in failing to require payment by a draft bearing the "'I.C." (immediate credit) symbol. While the drawer of the check was held liable for the amount thereof, i' as held that, with respect to the liability of the Federal Resqgve ba#, the case was distinguishable from Federal Reserve BaUc v. MaUoy, 284 U.S.,160, since in the present State statute, was not case the Federal Reserve bank, by virtue chargeable with negligence,in accept an ebnge draft iWpayment ng.tl a draft b of the check, or in failing to require payment "I.C." symbol. Accordingly, judgment in fav, 711 . bank was affirmed. Cleve v. Crav~ ChemiS C., 8 (C.C.A. 4th, 1927). Note: See also 13.541 ____ 1927 .LITIGATION ,13.584. Drawer of check held to have,:no, right to sue.-Th~v plailntiad ceck on funds4 bi&,exedit in. Jirnmitd m b. the tl edraft of tf "Ora 'Reserve Wa refuised and, *98 f"tfr ftp e pn1 f~~*i ofthe State" Pdhk the ch 6rv bank alleging n4*ce inithe t held that the bank to which the check.A for the draft had' not received the ohe een owner thereof; and thet there w as *ui.d entitle the the plaintm atn4dih*at~i plWbWftto bfin suit -agidat the 144ant for neghgened*W collection. 23 .W Ber&-L Federal Reserve Bank of Mhineapohi, 55 I 963 (1927).
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