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C1 ! A meeting of the Federal Reserve Board was held in the offtce of the Nieral Reserve Board on Tuesday, April 10, 1923, at 11:00 a.m. Vice Governor Platt Mr. Hamlin Mr. Miller Mr. Crissinger Mr. Hoxton, Secretary MERE WIME LLSO PRESENT BY INVITATION: Senator Smoot of Utah, and Mr. H. L. Remmel of Little Rock, Arkansas. PRESENT: These gentlemen presented to the Board reasons why, in their opinion, the Board should reconsider action formerly taken with respect to Branch bank 111114inge so far as the action affects the proposed Branch bank buildings at Lake. City, Utah and Little Rock, Arkansas, and should permit these two ecilletruction projects to proceed. NM Senator Smoot and Mr. Rommel then withdrew the room. The minutes of the meetings of the Federal Reserve Board held on April 5th end 7th were read and approved. The Vice Governor reporteu the reserve positions of the several Federal Ilefierve banks as at close of business April 4, 5, 6, and 7. Upon motion, it was ordered that hereafter the reading of the reports of the reserve positions Shall be discontinued, and in lieu thereof the members of the Board shall receive each day a report showing a comparative statement of the discounts, investments, note circulation, etc., of the Federal Reserve banks. Letter dated April 6th, addressed by Vice governor Platt to the Chairtalit of the Federal Reserve Bank of Boston, with reference to the proposed estab- 1116,-4vuent of an agency by that Bank at Havana,. Cuba. Ordered circulated, together with a memorandum expressing the opinion of General Counsel on this subject. 400 Telegram dated April 6th, addressed by Vice Governor Platt to Mr. W. G. 110,4 in reply to Mr. McAdoo's telegram of April 5th, requesting infornation 4/10/23 -2- t as to when the Federal Reserve Board is likely to dispose of the pending ques- tion of bank examinations, ani urging that the Board approve the applicat ion cif the Bank of Italy to acquire, through its Stockholders' Auxiliary Corporation, the First National Bank of El Centro, California. Noted, it being the sense of the Board that the Vice Governor should advise Mr. McAdoo that the Board on March 6th voted to disapprove the application of the Bank of Italy to acquire, through its Stockholders' Auxiliary Corporation, the First National Bank of El Centro, California, and had voted not to reconsider this decision. Telegram dated April 9th, from the Governor of the Federal Reserve Bank Or rinneapolis, stating that the Board of Directors of that bank had, subject to the review and determination of the Federal Reserve Board, voted that the ent rate of the bank, namely, 4e, shall also apply to discounts of agri- ellitilrel paper with maturities not in excess of nine months; also, advising that the Board of Directors had limited the acceptance of this type of paper to 5% Of the assets of the Federal Reserve Bank of Minneapolis. Upon motion, the rate recommended by the Federal Reserve Bank of Minneapolis, was approved and the Secretary was instrtzted to advise the Federal Reserve Bank of Minneapolis that the Board will, at a later date, fix the limit of the amount of nine months' paper which maybe taken under discount by Federal Reserve banks. Telegram dated April 9th, from the Chairman of the Federal Reserve Bank clt Dallas, advising that the Board of Directors of that Bank, subject ts the re— IlteNv etzd determination of the Federal Reserve Board, had fixed a rate of 4e On 134134321 Of all maturities incluling bills of exchange payable at siftt or discount, 414 Ithae months' paper made eligible under the recent Agricultural Act, said 4te to be effective upon its approval by the Board. Approved. I 4/10/23 -3- At 1:10 p.m. a recess was taken until 2:7,0 p.m. At. 2:30 p.m. the Board reassembled, those members being present who "Ile Present at the morning session. Mr. Miller moved that the resolution adopted by the Board on April 7th, with reference to the liquidation of open market investments by the Federal Reserve banks as a precedent to an increase in rates, be submitted by the Vice 4"ernor to the Open Market Investment Corrmittee for the Federal Reserve System, at its /meting to be held in Philadelohia on 1/.1.day, April 13th. Carried. Mr. Hamlin presented. the following resolut ion, with the request that it be recorded upon these minutes, but laid aside for the present as Unfinished /34einess: "Resolved: That, in passing upon the establishment of Branches by Member State Banks and Trust Companies, whether de novo or through voluntary purchase of existing Banks, the Board will take into cansiderat ion the need of the cormunity for additional or improved facilities and the effect of the establishment of the proposed Branch on the condition of the Parent Bank. Resolved: That the Board will not undertake to lay down any general policy as to territorial limitations or spheres of influence, but will accept the policy of the State with regard thereto, as determined by the State authorities." Telegram dated April 9th, addressed by the Vice Governor to the Fed"41 Reserve Bank of Cleveland, approving for that Bank, effective April 9th, tile rate of 4.-?;1) for agricultural paper six to nine months, maturities. Upon motion, ordered ratified. k 4110/23 -4Letter dated. April 5th, from Mr. R. C. White, Acting Secretary of the Department of Labor, enclosing a communication from the United Brotherhood of CarPenters and Joiners of America at Jacksonville, Florida, and complaining that there has been a violation of the so-called eight-hour law in the constrUction of the building of the Jacksonville Branch of the Federal Reserve )3ank of Atlanta. Upon motion, the Vice Governor was requested to make the same reply Nth ic h he made in a letter dated March 31, 1923, addressed to the Honorable Park Trammel, United. States Senator from Florida, in reply to the same complaint. Several letters addressed to Mr. Cris singer recommending that Ur. H. Nash, Vice President of the First National Bank of Checotah, Oklahoma, be appointed to the position of Federal Reserve Agent and Chairman of the 4ard of Directors of the Federal Reserve Pank of Kansas City, in the event that Mr. Asa E• Ramsay tenders his resignation. Referred to the Committee on nomination of Class "C" Directors. Draft of letter dated April 5th, prepared for the signature of the Secretary, addressed to the Federal Reserve Agent at Philadelphia, with refto an advertisement issued by a national bank in the Third Federal Reserve 131strict, with respect to the exercise of its fiduciary powers9 Approved. Letter dated April 9th, from the Federal Reserve Agent at Philadelphia, 418ing that the Supreme Court of Pennsylvania has handed down a decision contill:fling the judgment of the Superior Court in the case of the Corn Exchange 114tional Bank of Philadelphia against the Orphans' Court of Philadelphia. Noted. 4/10/23 -5- Draft of proposed circular letter to be sent to the Governors of all Pederal Reserve banks, regarding the existing conditions surrounding the pre- Paration and. mailing of currency shipments by banks, and advising that if rePorts are correct, safer methods should be adopted. Approved. Letter date-t. February 21st, from the Chairman of the Federal Reserve Bank of Kansas City, submitting copies of revised by-laws of the Federal Reserve 8azk of Kansas City and of the branches at Omaha and Denver. Referred to the Law Conmittee. Memorandum from General Counsel dated April 5th, requesting authority to PlIrchase for his office the 1923 Supplement to the Compact :j1dition of the United States Compiled Statutes at a cost of $5.00. Referred to the Law Committee. Mr. Hamlin examined this memorandum and recommended that it be approved. It was thereupon approved. Menorandam dated April 7th, from the Comptroller of the Currency, transkitting with favorable recommendation, and under certain conditions the pppliealion of the Logan County National Bank of Sterling, Colorado, to reduce its c4P1tal stock from :t150,000 to 100,000. Approved. Memorandum dated April 5th, from the Deputy Comptroller of the Currency sing that on April 6th, 1923, the Comptroller of the Currency issued a elEtil for re)ort of condition of National Banks as at the close of business I•lesday, April 3rd, 1923. Noted. 4/10/23 -6- Letter dated April 7th, from Mr. J. Miller, Lincoln, Nebraska, accepting the Board's appointment as a director of the Omaha Branch of the Federal Reserve Bank of Kansas City. Noted. Letter dated April 7th, from the Governor of the Federal Reserve of Philadelphia, advising that the Board. of Directors of that Bank believe that the bank should at this time seci.re a certain property adjacent to the Present building of the Federal Peserve Bank of Philadelphia. Upon motion, the Vice Governor was requested to report upon this matter after his return from his forthcoming visit to Philadelphia. Letter dated April 6th, from the Secretary of the Federal Reserve Bank "Chicago, transmitting advice that the Executive Committee of that Bank had, Ort April 6th, voted to raise the salary of Mr. Pavey, Manager of the Collection 13e0artment, from4500 to $5000 per annum, effective April 1, 1923, subject to the approval of the Federal Reserve Board. Approved. Memorandum dated April 6th, from the Assistant Secretary of the Board, 4418ing that Miss Sue Boot, Statistical Clerk in the Division of Analysis and Iteaearch, salary $1600 per annum, has tendered her resignation, effective April 313th; and requesting authority to employ a Statistical Clerk to fill the vacancy Itt. a salary of $1440 per annum. Upon motion, the resignat ion of Miss Boot was accepted, but a. thority to employ a nee Statistical Clerk to fill the vacancy was withheld* Memorandum dated April 6th, from the Assistant Secretary of the Board, l'eltlesting authority to employ, for a period of two months a telegraph operator * _ 4/10/23 _7- at the rate of 1165 per month, and of a typist at M.50 per evening for service the fdrthcoming vacation period. Approved Copy of letter prepared by General Counsel and addressed to the Cashier pf the Globe National Bank of Denver, Colorado, advising that in view of information te°eived from the State Banking Commissioner. of Colorado, expressing his views interpretation of the provisions of the Colorado law Which relate to the capital requirements of state banks and trust companies exercising trust powers in a Cit y Of the size of Denver, that the Board is of the opinion that it is authorize d 11 Section 11 (k) of the Federal Reserve Act, to grant permission to exercise tidlloiary powers to the Globe National Bank, provided the aggregate of its capital 4" allorplus is not less than 10'70 of its average deposits for the last preceding ealender year. The above letter was, upon motion of the Chairman of the Law Committee, approved. Mr. Miller stated that the statement for the tress issued by the Federal ileael've Board on March 27, 1923, with respect to certain rumors as to the Board's corw. ‘arlIplated actions, had been sent to all upon the general mailing list of the toall as well as to the newspapers, and moved that hereafter when the Federal liese„ *ve Board issues statements to the press, such statements are to be distribAtea to the press representatives in Washington, and are not to be sent to the tlaln ea ttPon the mailing list. Carri ed. After a discussion of the representations made earlier in the day by Senator 41°0t and Mr. Remmel, it was voted that action upon the Little Rock proposal be 414 _ unter until Mr. Mitchell's return; and with respect to the Salt Lake City case, the v. lee Governor was authorized to transmit the following telegram to the Chairman Ot tv‘ _ '4'.e Federal Reserve Bank of San Francisco: 4/10/23 -8"It has been represented to the Board by persons familiar with Salt Lake condit;ons that building costs there have not advanced as in other m.rts of the country, that there is little building in progress, that nn are out of work, and that nothing would probably be gained by postponing erection of branch bank building there. 7111 you investigate and report to :Board." Letter dated April 5th, from the Comptroller of the Currency, recommending Pprov , cu. of an increase in the salary of National .5ank ..t;xam.in.er 4200 to lred S, Mansfield 4500 per annum. Approved. 11'411 ---____ RTS OF C 01WITTiL ' , MO. 1: rjated April 4th, 5th, 6th, 9th, 10th, Aoril 3rd, 4teci April 3rd, 6th, 9th, 4ted April 6th, 4tect April rd, Acril 6th, Recommending changes in stock at Federal Reserve Banks, as set forth in the Auxiliary Minute Book of this date. Approv ed. Recommending action on applications for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Approved. Recommending action on applications for admission of state bank, subject to the conditi ors stated in the individual reports attached to the application, as set forth in the Auxiliary Minute Book of this date. App-oved. Recommending refusal of the a plication of Mr. E. C. Hutchinson to serve at the same time as director of the Broad Street National Bank and of the Mercer Trust Cornoany, both of nrenton, New Jersey. Approv ed. Recommending approval of the applic ion of Mr. Claude A. Simpler to serve at the mme time as director of the Pennsylvania Trust Company, T‘TItional Bank and as of2icer of the Land Tutle both of Philadelphia, Pa. Approved. Recommending approval of the application of Mr. H. H. Porter to serve at the sane tine as director of the First National Bank, of the State Bank of Clearing and of the First Trust and Savings Bank, all of Chicago, Illinois. Approved. (Board decides latter institution not within its jurisdiction, therefore, consent of Board unnecessary.) 4/10/23 -.9- , 11_21) ORTS OF COMITT'itE NO.]. (Cont ,d) Dated April 6th, Recommending approval of the application of Mr. B. F. Mechling, Jr., to serve at the same time as director of the Nat icmal Bank of Germantown and of the Pelham Trust Company, both of Philadelphia, pa. Approv ed. Dated April 6th, Recommending approval of the application of Mr. Robert W. Bartlett to serve at the same time as director of the Ventnor City National Bank, Ventnor City, New Jersey, and as o ffic er of the At lant ic safe Depo sit and Trust Company of Atlantic pity, N.J. Approv ed. Dated April 9th, Recommending approval of the application of Mr. W. L. Seaman to serve at the same time as Vice President and director of the First National Bank, Fort Smith, Ark., and. as Chairman of the Board of Directors of the National Bank of Mansfield, Ark. Approved. Dated April 6th, Recommending afproval of the applicat ion of Mr. Victor S. Fisher to serve at the sane time as director of the Ventnor City National Bank, Ventnor City, N.J., and of the Atlantic Safe Deposit and Trust Company, Atlantic .City IT. J. Approved. Dat ed April 9th, Recommending approval of the application of Mr. Wallace I. Stimpson to serve at the same time as director of the National Union Bank, Boston, Mass., and of the Home National Bank, rillford, Mass. Appro'v ed. Dated April 7th, Recommending approval of the application of Mr. G. Ayres Swayze to serve at the same time as director of the Southwestern National Bank and as president of the Jefferson Title and Trust Company, both of :)hiladelphia, Pa. Approved. The meeting adjourned at 4:30 p.m. Secretary. 41314.°1red: Vice Governor.
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