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2d Session. J
( No. 1184.

AUGUST 25, 1922.—Referred to the House Calendar and ordered to be printed.

Mr. MCFADDEN, from the Committee on Banking and Currency,
submitted the following

[To accompany S. J. Res. 208.1

The Committee on Banking and Currency, to whom was referred
the joint resolution (S. J. Res. 208) authorizing the Federal Reserve
Banks of St. Louis and Salt Lake City to enter into contracts for
the erection of buildings for their head offices and branches, having
considered the same, report it back to the House with the following
amendments, and as so amended recommend that it do pass:
Amend the first, second, and third lines of the first "whereas" of
the preamble of the resolution by striking out " abridged the right
of Federal reserve banks to enter into contracts by providing" and
insert "provided"; amend the third "whereas" of the preamble by
striking out " a n y " and inserting " a " in the se&ondline; strikeout
"or branches " in the first line on the same "whereas" oil the second
page; in the second line strike o u t " buildings " and insert" building ";
and after "Missouri," on the same line, strike out " and Little Rock,
In the third line of the resolution strike out "Banks" and insert
" B a n k " and after "Saint Louis," on the same line, strike out "and
Salt Lake City are" and insert "is."
In line 5 strike out "the erection of buildings and to authorize"
and in the same line after "of" strike out "buildings" and insert
" a building."
In line 6 after "office" strike out "and branches."
In line 8 strike out "buildings" and insert "building," and in the
same line strike out " 3 0 " and insert "25."
Amend the title so as to read: "Authorizing the Federal Reserve
Bank of Saint Louis to enter into contracts for the erection of a
building for its head office."
Your committee, after full and careful consideration of this resolution, decided it not to be practicable at this time to authorize the
expenditure of moneys for Federal reserve bank buildings other
than for the parent bank building at St. Louis, and the authority for



a building at Little Rock, a branch of the St. Louis bank, and the
authority for a building at Salt Lake City, Utah., a branch of the
Federal Reserve Bank of San Francisco, were therefore eliminated
from this resolution. I t is the purpose of your committee to consider at a later date the proper steps to be taken to authorize the
expenditure of moneys for the branches of Federal reserve banks.
Your committee is convinced of the need of immediate action in
the matter of the building a t St. Louis, their conclusion thereon
having been based upon the following facts:
(1) St. Louis is the only head bank of the 12 Federal reserve
banks t h a t has not erected a building for head office use. At St.
Louis the land was acquired from different owners, commencing
as far back as February, 1919, and the last necessary piece was acquired in March, 1922. The cost of this land was $1,301,166.25.
The bank at St. Louis secured estimates for a building some months
ago, b u t were of the opinion t h a t the cost of building at that time was
so high as to necessitate a postponement in actually letting the contract, as frhey were free under the existing law to do. During the
time they were waiting for a reduction in the price of building Congress passes a law prohibiting the erection of any building costing
more than $250,000 without the direct approval of Congress.
(2) In order to keep real estate purchased by the Federal reserve
bank at St. Louis from being cut in two, it was necessary to have an
ordinance passed by the city of St. Louis vacating an alley absolutely
essential to the construction of the proposed building. This alley
was vacated provided that a Federal reserve bank be under
actual construction to a degree satisfactory to the commissioner of
streets and sewers of St. Louis by May, 1923.
(3) There are absolutely no other quarters available in the city of
St. Louis to house a Federal reserve bank, even under such cramped
conditions as now exist. The present lease held by the bank expires
in 16 months, which means that the owner of the building can ask
any rent that he sees fit. The board of directors of the Federal Re»mvS-3^nk:of&&i:Lsaig:Si!uid h&ve-completed a building--some-tixp»
ago had it been willing to disregard the high cost and to pay any
rices asked for leases covering property purchased. I t refused,
owever, to look at the matter from any b u t a businesslike standpoint and in all things has acted to get a satisfactory building at a
reasonable cost.
(4) At present the Federal reserye bank at St. Louis is occupying
the second floor and part of the sixteenth floor of a building on the
corner- of Broadway and Pine Street. I t also has five floors in the
building contiguous, and four blocks away is occupying the vaults
and quarters vacated by the subtreasury. For its main vault it has
one-half of the safe-deposit vault belonging to one of the St. Louis
banks which, in addition to not being large enough, is unsatisfactory
for the reason that, while it is safe, it is not under the exclusive control of the Federal reserve bank.
The situation at St. Louis warrants the authority to at once erect
a building. I t is proposed to erect a plain, substantial building, five
stories high, with 159,560 square feet of working floor space, with a
vault in said building 50 by 80 feet. The cost of the St. Louis building has been estimated at $3,500,000.