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351 A meetin of the Federal Reserve Board was held in the office of the Pederal Reserve Board on Thursday, April 15, 1926 at 11:00 a.m. 22Z-27, 31:72: Vice Governor Platt ::r. Hamlin :.`iller Mr. Janes ::r. Ilclntosh Nooll, Asst. Secretary McClelland, Asst. Secretary The minutes of the meeting of the Federal Reserve Board hold on 4111 8th --ere read and ap-oroved. The minutes of the meeting of the Executive Corraittee held on 41)1 '11 14th were read and upon motion the actions recorded therein wore ratifie " "Toon then reportea that Hr. Cooksey, member of the "Jar Finance 00r Poration, had requested jermission to examine reports which are in the -4 ') Possession of the public hearin7:s before the Organization Committee heid. 111 Ilew York and New Orleans in 1914. He stated that Mr. Cook.sey wished to IrerifY his recollection of statements made at these hearings and that asid'e tram the physical difficulty of -ettin; the records out of storage °' would probably be no trouble in complying with the request. Referred to the Vice Governor with power. :.:atter approved on initials this morning, namely, telegrams dated 4corii 11th from the Assistant Federal Reserve Agent and Federal Reserve resoectivoly, of the Federal Reserve Banks of Dallas and Kansas City, Co , -411(L1ng approval of the following changes in Federal Reserve stock 401141, — Of member banks involved in the transfer being made today of V14 a-rlele. and Bernalillo Counties, rewr;exico, from the 11th to the 10th .aeserve District: 4/15/26 352 -2- Albuquerque lfational Bank, Albuquerque, Mew L:exico Surrender of 161 shares in Federal ;:leserve 3ank of Dallas and subscription to 161 shares in Federal Reserve Bank of 7:ansas City. First :Tational Albuc:uercue, Hew -;urrender of 360 shares dn Federal Jeserve bank of Dallas and subscription to 360 shares in Federal :deserve Bank of Kansas City. First ITational Bank of -3elen, Mew ::exico Surrender of 45 shares in Federal Reserve Bank of Dallas and subscription to 33 shares in Federal Reserve 35nk of Kansas City. Formally approved. Zernorandum dated April 12th from the Deputy Comptroller of the Currenc y, advis • 111,3 that the Comptroller would this 2aorning issue a call upon all nationbanizz for reports of condition as of the close of business 'Monday, April 12 1926; together with copy of a telv;ram sent this morning to all Federal - Ivo ants calling for reports of condition of state .1.-_,:niber banks as of tile S atle date. iToted, with ap-oroval. ,deport of awl Committee with reference to the action of the Board on 413111 8, 1926 in withholding apnroval of an a--)Dlic:_.t ion of ilhe Broad and Liark et 1Tationg l Bank of :Tewark, M. J. for lienrlission to exercise (-7eneral -oov,ors; the Oonirittee recoil-mending that the Board f.--r,-yrove the 41)1311----t 1on if and ,;,,hen a proposed increase in capital from 200,000 to 2300 is . Hamlin moved reconsideration of the Board's action of April 3th. Carried. 4 353 4/15/26 -3- Mr. Hamlin then moved that the Board approve the above anplication effective upon an increase in the capital of the bank to not less than 4100,000. Carried. Report of Committee on Salaries and Expenditures on letter dated April 4.4 from the Controller of Administration of the Federal Reserve Bank of Chicago, reporting the appointment of Mr. Nick White, carpenter in the Sel'vioe Department, at an annual salary of v2870, effective llarch 22; the CoMmittee recommending approval. Approved. ileport of Committee on Salaries and Expenditures on letter dated 4131'il 12th from the Chairman of the Federal Reserve Bank of Kansas City, regliesting approval of increases in the salaries of Harry M. 2hornton, C141171 Clerk in the Auditing Departm2rt,from 42800 to ,3,000 and of J. L. 11cOart,.._ LIY, Proof Clerk in the Auditing Department, from q2400 to v2640 allnUm, both effective April 1, 1926; the Oammittee recommending apProvea Approved. Report of Committee on Salaries and Expenditures on letter dated kP11.1 7th from the Federal Reserve Agent at Chicago, requestinr2; authority to en,, "P40Y Mr. Harry L. Brawn as Federal Reserve Examiner at a salary of Ilet to exceed c; i 4800 per annum; the Committee recommending approval. Approved. Letter dated April 12th from the Federal Reserve Agent at Philadelphia, 51 4-11. 16 of a proposed consolidation of the Philadelphia Trust Company and the 2iaelity Trust Company, both member banks of Philadelphia; the Agent 354 V15/26 -4- rePorttngwith reference to the condit ion of the baiiks mentioned, and statina' that it is believ ed that the consolidation will bring about no chadge in the character of the assets of the institutionsor in the score of the functiolls by :oted, without objection. Letter _ated April 9th from the Federal Reserve .._'7ent at with New York, reference to the Droposed absorption of the First National Bank, . Y. by the Mechanics Bank of Brooklyn, N. Y.; the Agent stat- .111C that the details of the proposed consolidation have not yet been 17°Ilkea out and that upon receipt of farther inform ation he will transmit it t0 the Board, but that if the merger should take place it would not any chanr_; :e in the -eneral character of the assets of the Mechanics or in the scope of functions exercised by it as would tend to affect IllateriallY the standard maintained at the time of ad:aission to the System. Noted, without objection. -aft of reply to letter dated A-oril Sth from Mr. Norman Lombard, information with reference to the appointment and. functions °f t' Opea Market Investment Cormit tee for the Federal Reserve System; the Proposed letter settin,c,, forth facts with reference to the appointment "the Coranittee, its personnel and duties. After discussion, Hamlin moved approval of the proposed reply, after amendment so as to transmit in their entirety the ,xesolutions adopted by the Board on March 22, 1923 with respect to the Open Market Investment operations of the Federal *Reserve banks. Carried. 355 4A5/26 -5- Letter dated A-Jril 13th from the Chairman of the board of directors °f the Federal _Zeserve Bank of Cleveland, with reference to the grantiag Of aPplications of national banks for permission to exercise trust noyers; the Chairman, on behalf of the 2xecutive Committee of his bank, (1) ligg'esttlag that the trust departments of these institutions should be under tile S upervision of trust committees consisting of members of the boards of directors of the respective banks; (2) Setting forth the opinion that the r anting of fiduciary powers should carry with it an urgent suggestion to the effect that the management of a trust department should meet with an es4)ecial1y close supervision and that the importance of this de-iartment 4461.11d be impressed unon the board of directors of the applying bank; and (3) Otating that another nhase of the question which they think will come 114clor the immediate concern of the Comptroller's office and the Department Of mination is the matter of providing for proper investigation or exiQ of the department after it is in operation. Lr. James reported informally that he understood the Comptroller of the Currency was giving special consideration to the question of the examination of trust departments of national banks apart from the examination of commercial departments, but that his Plans were not yet far enough advanced to permit a definite report. After discussion, it was voted that a circular letter be addressed to all Federal .eserve baff17_s stating that the proposals contained in the above letter commend themselves to the Board which has felt some solicitude about the operation of trust departments in national banks, and requesting their views and su7;estions in the matter. -es?ort of Committee on Examinations on letter dated April 15th from tile z ederal aeserve AT;ent at Atlanta, transmitting and recommending approval 356 4/1V26 Cif a),olicat ion of the Hibernia Bank and. ?rust Company of :Tow On sans fel? Dermission to establish a branch office at the Bourbon Street entrance or the D. Holmes Company, Ltd.. Department Store, 1Tew Orleans; the Corn- al e30 I'OC.ending approval. ioproved. Lettc.ir dated April 6th from Professor :Torman Lombard, ':::ocutive Director Of tho Stahl° :.:one y Association, Hew York City, advisinr_; that the re1: 1110/Ithly dilmer of the Association will be hold. on :lay 3rd. and re-uosting that a representative of the Board attend. the dinner and. discuss the , uestion fq1,01,7 to what e:c.tent can and should the Federal deserve authorities control the general -.)-Pice level." After discussion, .Hr. :sailer stated. that he mijit find, it convenient to attend the meeting and, the above letter was referred to him. Draft of reply to letter dated. April 14th from 7onorable Ikitea D. Smith, ,. otates Senator, requesting information with reference to the action ta , '4e41 by the Federal deserve banks on Saturday, last, in shining Federal " -e currency to Havana, Cuba to assist in meeting runs which began on that on bankiir,: institutions on the Island; the pruosed reply stating t}10,..t 3eli\)ra-1 4-1ed,e -hew York City member banks purchased. Cuban ea:change friroujl the 274.1. _Zeserve Bank of Boston, to be ],aid for in Havana by delivary of eclorea dOSCl notes; that to oay for the notes, the 2ederal deserve Bank. o throuth. the Gold 3ettlement -7-Luia here in -ashin -ton, transferred. to the Federal deserve Bank of Atlanta aid. that the Atlanta bank, its 111.9'01,r vi• notes on hand in Havana bein7 insufficient to meet the unusual 357 —7-Cleran A shi*Te.1 the necessary currency. Upon motion, the proposed letter was inferred to the Vice Governor with nomr. Letter dated April 13th from Mr. Charles R. Adair of :lint, Michigan, relllesting information vith respect to the Federal aeservo currency policy. _eferred to the Vice Governor for reply. Telecram dated April 15th from the Federal Aeserve Agent at Kansas Cit,y '41qtal2ing whether stock transfers and transfers of balances of member ba ta connection with the Board's order of March 31st transferring , -4444.11110 and Valencia Counties, ITew Mexico from the 11th to the 10th 1. Pecleral 2Leserve District, should be made today or at the close of business this The Secretary stated that the -7,oard's order directed that the transfers be made effective on Aril 15th and upon notion he was directed to advise the Federal ..0serve Agent at Kansas City accordingly. G e ,3: 42ril 14th, Aecommendtac; changes in stock at Federal _loserve banks ' as set forth in the Auxiliary Minute Book of this date. Approved. NIted., Arii 15th, ...ecommending ajproval of the application of Mr. Peter J. Corey for nermission to serve at the sane time as - ;ational Bank of Montclair, director of the Peoples 1 director of the County Trust Company of H. J. and as Haw York City. Approved. I The moot in adjourned at 1: if Assistant Secretary. • 41:111:3r(rsred: era Vice—Governor.
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