The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
346 A meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Tuesday, April 26, 1927, at 11:30 a.m. PRESENT: Governor Criss inger Mr. Platt Mr. Hamlin Mr. Miller Mr. James Mr. Cunningham Mr. Eddy, Secretary Mr. McClelland, Asst. Secretary The minutes of the meeting of the Federal Reserve Board held on April 22nd were read and approved. 114tter approved on initials yesterday, namely, application of the Citizens and Southern Bank of Savannah, Ga., f cr permission, if and when c°11verted into a national bank, to exercise general fiduciary powers. The Secretary stated that the title of the bank after the conversion will be Citizens and Southern National Bank of Savannah. ' Upon motion, the applicat ion was formally approved. Report of Committee on Salaries and Expenditures on letter dated APril 21st from the Chairman of the Federal Reserve Bank of San Francisco, ' 311g that the board of directors has granted to Mr. 17. N. Ambrose, etshier, leave of absence on account of illness, for the month beginning 4111 15th, with full pay; the Committee recommending approvvl. Approved. Telegrams dated April 25th from the Chairman of the Federal Reserve thtraz Of St. Louis, with further reference to the amount of float being elll'ried by that bank as a result of the disruption of transportation ra.c4, •u-ities due to flood conditions in the district; the last telegram Eita.ting that returns f ran out-of-town banks will result in an improvement 347 4/26/27 Nab,. II. in the situation and that it is believed gross float at the close of business will not exceed $5,000,000. Noted Letter dated April 25th from the Exe cutive Committee of the Federal Reserve Bank of Richmond, replying to the Board's inquiry of April 22nd with relation to the proposal of the bank to purchase the so-called Foster Property adjoining the bank's main building; the Committee submitting a detailed report and sketches with reference to the immediate use to be Made of the property and several proposals as to possible ultimate improvesent in harmony with the existing building which would make it serviceable from an operating point of view. Referred to the Committee on District -1;5 for report. Letter dated April 22nd from the Chairman of the Federal Reserve Bank r Chicago, with reference to changes in the official staff of the Detroit Branch to be made as a result of the resignation of Mr. J. B. Dew, er; the letter requesting approval of an increase from $6,000 to $7,000 Per eznum in the salary of Mr. H. J. Chalfont, now ,Assistant Cashier, who 16 to be'promoted to the position of Assistant Manager, and advising that 111‘. John G. Baskin, now Assistant Federal Reserve Agent, is to be appointed °fishier without change in salary. Referred to the Ccimraittee on District 1,7. Letter dated April 21st from the Federal Reserve Agent at San cla ms referring to the action of \the Board on March 8th in approving ttri a PPlleat ion of the American Trust Company of San Francisco, for perilliesion to move the branch operated at 16th Street and San Pablo Avenue 348 4/26/27 -3- to 20th. Street and Broadway, Oakland, at which location a branch with a skeleton organization was opened on February 19th with the understanding " ' 9 1. the branch at 16th Street and San Pablo Avenue would be closed at an early date; the Agent recoLunending that the Board grant pemission for the "ritinuance of the 16th Street and San Pablo Avenue office until July or Atigtlets at which time the bank's 14th Street and Broadway office will be housed in quarters which will enable it to take care of increased business it is expected will result from the closing of the branch at 16th Street and San Pablo Avenue. Upon motion, the reccmmendation of the Federal Reserve Agent was approved. Draft of letter to the Federal Reserve .gent at Philadelphia, with reference to the application of the Farmers National Ban- of Bedford, Pa., r°1* Permission to exercise fiduciary powers, action on which was deferred t the meeting of the Board on January 19, 1927; the proposed leter stati4 that the report of a recent examination of the bank has been received bit that, while some progress is shown, sufficient time has not elapsed to Just ify r econs ide rat ion of the applicat ion for fiduciary powers. Upon motion, the proposed letter was approved. Al this point, Mr. Nevrton, Chairman of the Federal Reserve Bank of Atlanta, joined the meeting. The Governor reported that he vra.s advised by the Comptroller of the Cill ' rency that the First National Bank, Samson, Ala., has also adopted the 13rEtctice of stamping on the Rice of its cashier's checks the phrase "Not 134.413le through the Federal Reserve Bank of Atlanta". In this connection, L'evion presented copies of letters on the subject exchanged between 349 4/26/27 the -4- , - nstitution in question, the Federal Reserve Bank of Atlanta and th° Chief National Bank Emaminer of the 6th District. Upon motion, the letters presented by Mr. Newton were referred to the Board's Counsel for transmittal to Honorable Newton D. Baker to whom the Board several days ago referred the similar case of the First National Bank of Hartford, Ala. Mr., Newton then stated to the Beard that the progress being made by the Federal Reserve Bank of Atlanta in the matter of equipping the net7 quarters for the Havana Agency has not been as rapid as was expected. lie stated, however, that vault plans and specifications were being prePared on which competitive bids would be asked and that a report will be inade to the Baird as soon as the plans and specifications are drawn and bids have been received. He then referred to the action of the Board at its meeting on March 411d in voting to hold in abeyance a recamiendation of the board of di rectors of the Atlanta bank for the employment as Manager of the Havana of a man more experienced and better qualified than the present Incumbent of the position. He stated that the Board's action was agree- to his directors as they did not have any particular man in mind he appointment. He stated that the bank desired, however, ultimately to hav • - e in charge of the Agency a man qualified to confer with bankers knd business men in Cuba and keep the Federal Reserve bank informed as t° the trend of conditions there and that later on a recommendation will be illstde to the Board. Ilr• Newton then referred to a proposal of the directors of the Fede ral Reserve Bank of Atlanta whereby the stock of currency carried itt he Havana Agency of that bank would be increased through arrangements 350 4/26/27 -5- to be made for the custody at the Agency of 0. supply of unissued Federal Reserve notes. He referred first to his letter of April 11th transmitting Copy Of a resolution adopted by the Board of Directors of the Federal Reserve Bank of Atlanta by which the Federal Reserve Agent, the Comptroller f the Currency and the Treasurer of the United States would be indemnified 4gainst any loss which might accrue to them through the carrying of the 5.8eued notes at the Agency. He stated that the purpose of this resolu- was to definitely fix the responsibility for the handling of the Illissued notes. He then stated that in his opinion a stock of $30,000,000 vroulA be sufficient at the Agency, $20,000,000 as cash and a reserve of 010 0 3000 in the form of unissued notes. ing the unissued notes as follows:- He outlined the plan for Notes of various denominations 17°111d be deposited in separate compartments of the vault at the Agency tuicier dual control of the Federal Reserve Agent and the Manager of the ' eY. R eee.rve Upon receipt of request for the issue of such notes, the Federal Agentwould wire to the Manager in code his combinaticn of the ectilPa rtment to be released, immediately charging the Federal Reserve benk th the amount of notes in the compartment and taking collateral and gold therefor• He stated that it would be his idea, if possible, to have the tultesUed notes also under control of the bank's auditor and the Board's tler so that it would be unnecessary for the Federal Reserve Agent to 'visit Havana, except for the purpose of replenishing any part of the l'e8e"e Supply which might have been issued to the bank. Following a discussion, Mt. Hamlin moved that the plan submitted by Hr. Newton and the resolution adopted by his board of directors be referred to the Law Committee. Carried. 351 4/26/27 -6- Mr Newton then advised the Board of a request received from the Presi(lent of the First National Bank of Miami, Fla., for thereestablishment of s• currency fund at that point in an amount of ,:,'1,000,000 or :.>1.,500,000. Re stated that at the last meeting of his board of directors the matter was referred to a committee consisting of himself and Director Black for disc . uselon vrith the Federal Reserve Board, and that Mr. Flack and he were agreed that there is no necessity at this time for reestablishing the fund. Re stated that he would, if possible, like to have an expression from the Board. regarding the request. Following a discussion, Mr. Newton was requested to submit the matter back to his board of directors for action and to then transmit it to the Board for consideration. r(132RTS OF STAIIDDIG Dated, Dated, t/ated, April 23rd, 26th, April 22nd, April 22nd, Recommending changes in stock at Federal Reserve Banks as set forth in the Auxiliary Minute Book of this date. Recommendations approved. Recommending action on applicat ions for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Recommendations approved. Recommending approval of the application of Mr. Lrthur V. Hoornbeek for permis sion to serve at the same time as director of the First National Bank, Ellenville, N.Y., and as director of the Kingston Trust Company, Kingston, N.Y. Reccomendat ion approved. The meeting adjourned at one • clock. 4Proved: Secretary Governor.
@FedFRASER