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3,12 A. meeting of the Executive Committee of the Federal Reserve Board was held in the office of the Federal Reserve Board on 'Wednesday, April 14, 1926 at 11:00 a.m. .PIESENT: Vice Governer Platt Hr. Hamlin Hr. Miller Hr. Noe11, Asst. Secretary Mr. McClellani, Asst. Secretary Matter approved on initials on April 9th, namely, application of The 4841.1101am Nat lona' Bank of Frazii7)ghan, Mass. fo r pe rmi ssion to exercise getteral fiduciary powers, Formally arproved. Matter approved on initials on April 14th, namely, memoranlum from tha 7,4 j•j4vision of Examination, recommending approval of an application of the Citizens National Bank of Muskogee, Okla. for original stock (72 shares) 14 t a Federal Reserve Bank of Kansas City, effective if and when the Cotalptroller of the Currency issues a certificate of authority to commence bilaitess, Formally approved.. Telegram dated April 9th from the Secretary of the Federal Reserve tabk °I Cleveland., advising that the board of directors on that day made no ch44 ee in their existing schedule of rates of discount and purchase. Noted. Telegram dated April 9th from the Chaim= of the Federal Reserve Atlanta, advising that the board. of directors on that day made no ae in the bank's existing schedule of rates of discount and Eurchase. Noted. 343 til 4A4/26 -2- Telegram dated April 9th from the Chairman of the Federal Reserve Bank Of St. Louis, advising that no change was made in the bank's existing schedule of rates of discoant and purchase at the meeting of the board of airectors on that day. Noted. Telegram dated April 8th from the Chairman of the Federal Reserve 84rik of Kansas City, advising that the board of directors on that day conirmj the bank's present schedule of rates of discoant and purchase. Noted. Tel egram dated April 13th from the Chairman of the Federal Reserve 8410:k of Dallas, advising that the board of directors on that day made 14° change in the bank's existing schedule of rates of discount and purchase. Noted. Llemorandum dated April 13th from the Chief of the Division of 84njc Operations, requesting that the temporary appointment of Miss Louise 84112"a, comptometer operator in that division with salary at the rate "ra300 per annum be extended, at the same salary, for a period of not to e ceed three months from April 22nd. Approved. ilemorandum dated April 13th from the Chief of the Division of Bank °Perations, recommending that the temporary appointment of Miss Helen 0141'.1c, comptometer operator in that division, salary .1300 per annum, ilich terminates on April 16th, be made permanent at the same salary 41141 that the temporary appointment of Mrs. Edith M. Zobel, comptometer 344 III 4/14/26 -3- °Perator, salary,i;1200 per annum, be extended. for three months from April 12th, and that her salary beginning April 16th be fixed at the rate of .1;1440 per annum. Approved. Letter dated April 12th from the Federal Reserve Agent at New YOlt, informal advising that the Bank of the Manhattan Company has received EtipPlWal from the State Banking Department for the establishment of a branch ill Woodside, Borough of Queens, New York City. Noted* Letter dated April 12th from the Federal Reserve Agent at New York, Bank of the 44visille that the State Banking Department has authorized the 14allhattan Company, New York City, to open and. maintain a branch, on or after April 15th, at 190-02 Jamaica Avenue, Hollis, Queens Borough, upOil the discontinuance of a branch heretofore maintained at 189-19 Jamaica 47ellue, and that the Corn Exchange Bank, New York City, has been authorized to oPen a branch, on or after I.:ray 16th, in the New York Telephone 13115.1d-111g* Barclay and. West Streets, Manhattan. Noted. of Letter dated April 12th from Er. Frank 0. Wetmore, President the Federal Advisory Council, advising that the next meeting of the Council Will be held. in 7ashinf,rton on May 21st and. requesting a list of the. topics Which the Board desires to have discussed at the meeting. lieferred to the Vice Governor* Chicago, Letter dated April 12th from the Federal Reserve Agent at With reference to application filed by the Grand and Sixth National Bank, 345 4/14/26 -4- Wig. for a reduction in reserve requirements from 10,; to 7% "ezand deposits; the Agent advising that the bank is but three blocks 4ista11t from the busiest corner in MilwaUkee and can in no sense be con- an outlying bank, and further, that he has advised the institution thathe can not recommend granting the application but will forward same to the Board for consideration if the bank desires. Noted. Letter dated April 7th from the Federal Reserve Agent at Chicago, el sting consideration by the Board of the advisability of having banks witbdrawing Illetibe rah from the Federal Reserve System return their certificates of p • Referred to Counsel. Letter dated April 10th from the Federal Reserve Agent at Chicago, re13471ng to the Board's letter of April 8th with reference to the appoint41elat o2 hr. Arthur L. Olson. as Assistant Secretary to the board of directors; the 4goat stating that he himself made the recommendatinn for Mr. Olson's 413Pointnaent, although he is in full agreement with the expressions contained 14 tbe Board's letter, and requesting thst the appointment be permitted to eta4i for the present, for the reason that as soon as he can secure and yvxat competent additional help in his office the appointment of Mr. Olson Will Probably be rescinded, as he recognizes that, as a settled practice, the 4PPointment of the Governor's confidential secretary is not in accord Illth the Board's "Outline of Organization". Noted, without objection. 346 4/14/26 —5— Letter dated April 7th from the Federal Reserve Agent at Chicago, advising that Mr. Harry Olmstead who is resigning as Assistant Federal Ileserve Examiner and had anticipated making his resignation effective about April 15th, has consented to defer the date of his resignation for the purpose of joining with the State Banking Department in a credit I./west igation of the Bank of Detroit, at the conclusion of which his ' l esignation will become effective . Noted. Letter dated April 10th from the Federal Reserve Agent at Chicago, 847ising that the resignation of Mr. W. C. Schrader, Acting Assistant Paderal Reserve Agent at the Detroit Branch will shortly be filed with hIN effective June 1st or possibly sooner; the Agent stating it will not he necessary to appoint another Acting Assistant Federal Reserve Agent Itt me Branch if some person now there can be authorized to receive, l'aeaiPt for, and deliver Federal Reserve Notes for the Federal Reserve 4gent or in his name, and to act in that capacity during the absence or -.4 of the Assistant Federal Reserve Agent, this procedure having bee ll followed at the Chicago bank in the designation of lin Glenn Kirk t() act for the Agent as described above. Upon motion, the Vice Governor was requested to advise Mr. Heath that there will be no difficulty in securing from the Board the authority desired, when he is prepared to recommend an enployee of the Branch to perform the duties in question. Draft of reply to letter dated April 6th from the President of the "lc°111 Bank and Trust Company, Louisville, Ky. inquiring whether the reserves 1.1 347 4/14/26 Of -6- a member bank must be intact on the date on which a dividend is declared the date on which the dividend is paid in order to comply with the 131‘Wisians of Section 19 of the Federal Reserve Act; the proposed letter etating that the date of payment of the dividend is the date upon which the l'equired reserve balance must be intact in order to comply with the proOf law, but calling attention to the fact that the law contemplates the continued maintenance of the required reserve at all times. Upon motion, the proposed letter was approved. Letter dated April 8th from the Federal 2eserve Agent at San Francisco, tIllnamitting and recommending approval of an application of the American 114171k of San Francisco for an extension of six months' time in which to °Pen the branch de novo on Market Street near Van Ness Avenue, the estab1411ment of which was approved by the Board on October 27, 1925. Approved. deport of Committee on Exmninations on memorandum dated April 9th fl‘°111 the Comptroller of the Currency, recommending approval of an application of The Witt National Bank, 'Aft, Ills, for permission to reduce its from ,50,000 to y25,000 on condition that the entire amount of the l'eclUction be used in removing slow and doubtful assets, such assets to be *Ilsteed for the benefit of shareholders at the date of reduction and 114e Of the reduction to be returned to the shareholders in cash except 48 realized from trusteed assets; the Committee also recommending approval. Approved. 348 4/14/26 Draft of circular letter to the Governors of all Federal Eeserve Bat4 '89 requesting that they communicate to the Board the reasons which actuated their ban1s. in continuing a no-protest minimum of ',;10 and their Present views on a suggestion that the minimum be increased to .,20 made "ms years ago by the Executive Committee of the Clearing House Section °f the American Bankers Association; the information being desired in °rd.sr that the Board may reply to an inquiry on the subject addressed to it by the American Bankers Association. • Upon motion, the proposed letter was approved. Memorandum from Counsel submitting draft of reply to letter dated 41/ il 10th from the Federal 2eserve Agent at Chicago, advising that the iret State Bank of Carsonville, Lichigan, has reduced its capital from 25 9n,, vn0 to •,20,700, which is less than the capitalization required for inerabership save in the case of banks admitted under the amnndment of q, 1923; Counsel submitting draft of a proposed letter to the Federal 4'418 4ve Agent at Chicago, setting forth several courses of procedure which t o 2)08rd may adopt, including steps for the forfeiture of the banks' memb"shiP in the Federal 2teserve System, and requesting a definite recomIllendation from him. Upon motion, the proposed letter was appraved. Letter dated April 8th from the Hanovia Chemical and Manufacturing cot Of ITewark, II. J. submitting a complaint with reference to the tan4e , : 4 in which non-cash collections of that company are handled by the Peae ral iieserve banks, particular reference being made to the collection 1 349 4/14/26 -8- Of a note given the company by a physician in .,iest Virginia which was sent to the Charleston National Bank Charleston, •iest Virginia, rather than to the Kanawha Valley Bank of Charleston at which the notes were made payable. Upon motion, it was voted that the Vice Governor should communicate regarding the above matter with the Federal Reserve Bank of Richmond through whom the specific transaction4 referred to was handled. Letter dated April 13th from the Chairman of the Board of Directors Of the Federal Reserve Bank of Cleveland, recomnending that the Board reveke permission granted by it on November 17, 1925 and December 8, 1925 to the Old National City Bank at Lima, Ohio, to exercise general 21auciary powers; the Chairman stating that this recommendation is based 1113011 the condition of the bank as disclosed by an examination made unrier date of March 15, 1926. Referred to Counsel. 3 OF STANDING COLMITTEES: bated, Dated, April 8th, Recommending changes in stock at the Federal Reserve 10th, banks as set forth in the Auxiliary Minute Book of 12th, this date. Approved. 13th, Recommending action an application for fiduciary rowers as set forth in the Auxiliary Minute Book of this date. Approved. Dated, April 9th, Recommending approval of the arplication of Mr. Arthur L. Hubbard for permission to serve at the same time as director and Chairman of the First April 9th, lz!! 350 A 4/14/26 ,t -9- RTS OP STANDING COMIITTESS: (Gout'di National Bank, Carlisle, Lnd.., and as Presidsnt and Director of the First National Bank, South Bend, Ind. Approved. The meeting adjourred at 12:00 o'clock. Assistant Secretary. itiVroved: Vice-Governor. 14 .
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