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A meeting of the Federal Reserve Toard was held in the office of the Vice Governor on Wednesday, April 18th, at 12:00 o'clock. PRESagT: Vice Governor Platt Mr. Hamlin Mr. Miller Mr. Cri ssinger Mr. Hoxton, Secretary The minutes of the meeting of the Federal Reserve Board held on April 12th were read and on motion approved. The minutes of the meting of the Executive Committee held on April 17th, "re read and, on motion, the action recorded therein was ratified. Mr. rris- singer stated that had he been present he would have voted against the applications of the Pacific Southwest Trust and Savings 'flank of Los Angeles, and the Valley Bank of Fresno, California, to establish branches. The Vice Governor stated that the first thing in order for consideration was the matter docketed as unfinished business, namely the letter of April 13 fl"°r/1 the Federal Reserve Agent at Richmond, enclosing a resolution of the 11°ard of Directors of that Bank petitioning the Federal Reserve Board to Withdraw circular letter X-3688, dated April 7, 1923, subject, "Rules Governing (4rairl5.t ions of State Member Banks", until there can be presented to the Federal aeserve Board the obstacles to the administration of the said rules which °last in the Fifth District. No action. After discussion of the Board's circular X-3688, a recess was taken at one o'clock until two-thirty o'clock. At 245 p.m. the Board reassembled, those members being present who Present at the morning session. The Vice Governor submitted the following telegram from the Federal Ileserve Agent at St. Louis, said telegram being in reply to one sent to Mr. 6-1 CI 61 k.) 4/18/23 -2- Martin in acconiance with action of the Board taken at its meetinfr of Anril 12th: "Replying your wire bid does not include heating and electric wiring. Architects advise that it is not customary nractice to have the general contractor figure these items. 2]stimated cost as follows: Heating, ."245,000, 1"iring1Z., 79,000, total cost of building including these items, 3,401,500. This arnouit , in spite of increasing cost of materia is since Congress set its limit, is viell within the limit set for building in bills passed by the Senate and Tiouse. Our present lease expires -'ebruary 9, 1924, but we have an option for a six months' extension from that time. '7e are facing a very real emergency and in addition unless we get the building under way practically Immo 'lately, the ordinance under which alley is vacated will expire". Mr. Platt called attention to the fact that the urgency of the situation existing in St. Louis has been recognized by both Houses of Congress when they expressed their clear intent by voting in favor of an expenditure for building by the Federal Reserve Bank of St. Louis, of a sum considerably in excess of the bids now submitted. After full discussion, the Secretary was instructed to transmit the following reply to Mr. Martin: "In view o f representations made in your telegram of April 12th to the effect that your lease expires February 9, 1924, with option for renewal exteniing only six months, and that unless you begin building operations practically immed lately the ordinance under which the alley is vacated will expire and in further view of the fact that Federal Reserve service in your district might be impaired by failure of your bank to be properly housed through expiration of the lease, the Board holds opinion that the St. Louis building case presents a real emergency and is therefore not inconsistent with and is a valid exception to the underlying principles regarding present building operations expressed in Board's Wire of March 19th sta .) Board therefore interposes no objection to your accept ing bids and beginning building operations upon basis outlined in your wires of April 12th." Letter dated April 12th, from the Federal Reserve Agent at San Francisco, tkiti rig Preliminary reply to the Board's telegram of Ipril 10th, with ref rence CI I A -3- 4/16/23 to building conditions existing in Salt Lake City, Utah, Ordered held, pending Mr. Perrin's complete reply. Letter dated April 16th, from Mr. J. Brooks B. Parker, one of the directors of the Aviation Syndicate Inc., with reference to the acceleration of bank clearances by means- of ad air service. Ordered circulated. Telegram dated April 18th, from the Chairman of the '-lederal Reserve Rank Of Philadelphia, advising that the Board of Directors of that Bank had today, Subject to the review and determination of the Federal Reserve Board, established a rate of 5% for rediscount of paper drawn for agricultural purposes of matUrities from six to nine months. Approved, Mr. Crissizrer voting "no". Memorandum dated April 17th, from the Vice-Governor, prepared in accord:4110e with the action of the Board taken at its meeting of April 10th, and being la report upon the proposal of the Federal Reserve Bank of Philadelphia to purchase certain property adjacent to the present building at an approximate cost Of 0350,000, as set forth in Governor Norris' letter of April 7th. Upon the recommendation of Mr. Platt, expressed in the above report, it was voted that the Board interpose no objection to the proposed purchase by the Federal Reserve Bank of Philadelphia. The Vice Governor stated taat in accordance with the action of the Ex"Utive Committee taken at its meeting of April 17th, he wished to nominate service upon the special committee of Governors to consider and repOrt 1111°4 the proposed elimination of the controllable function of non-cash items 4/18/23 the following: Governor Governor Governor Governor Governor of of of of of the the the the the Federal Federal Federal Federal Federal Reserve Reserve Reserve Reserve Reserve Bank Bank Bank Bank Bank of Boston of New York of Chicago of.Cleveland of Dallas Approved. Upon motion, Mr. Herson, Chief of the Board's Divisioh of Examination, was designated to attend meetings of the above Committee to represent the Board during discussions of this matter. Memorandum dated April 11th, from the Director of the Division of Analysis 441 Re8earch recommending that Mr. E. Irving Fulton temporarily employed at a saletYof - 1800 per annum, be retained in his present position until July 30th, 4141 memoranduM havi ng been referred to Mr. Miller at the meeting of April 12th. Approved upon motion of Mr. Miler. Memorandum date Apri d l 18th, from the Secretary of the Board advi sing of the reee4 IA Of an advance copy of the Stenograohic Minutes of the last Conference of Ne 1111 Reserve Bank Governors. Noted. Mr. Miller distributed to the menb ers of the Board copies of the first draf t th e forthcoming Review 0 the Mont h. Thereupon there ensued e. discussion of this vlocument and also a disc ussion of discount rates and credit poli cies in view ot ". Platt's.repo rt upon the recent meeting at Philadelphia of the Open Market Itrpe 8tZent Committee for the Federal Reserve System. 4/18/23 -6- OF COMMITTEE NO. 1: Dated April 17th, 18th, Dated April 17th, bated April 17th, ba.ted April 17th, ba.ted April 17th, ‘ Dated April 7th, Recommending changes in stock at Federal Reserve Banks, as set forth in the Auxiliary Minute Book of this date. Approved. • Recommending action on applications for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Approved. Recommending action on application for admission of state bank, subject to the conditions stated in the individual reports attached to the auplication, as set forth in the Auxiliary Minute Book of this date. Approved. RecOmmending approval of the application of Mr. VI. A. Bonynge to serve at the same time as director of the Commercial National 1?)ank, Los Angeles, cal., and of the Golden State National Bank, Anheim, Cal., and of the Federal Trust and Savings Bank, Hollywood, Cal. Approved. Recommending approval of the application of Mr.Malcolm rrowe to serve at the same time as director of the Commercial National Bank, Los Angeles, Cal., and of the ?ederal Trust and. Savings Bank, Hollywood, cal., and of the First National Bank, Compton, Cal. Approved. ' Recommending refusal of the application of Mr. Albert C. Middleton to serve at the smile time as director of the Fi rst Nat to n1 Stat e Bank, Camden, TT. J. ant o f the Camden Safe De,)osit and Trust Couipany, Camden, N.J. Approved. At 4:40 p.m. the meeting adjourned. . Secret ery. 413131loved: Vice Governor.
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