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A meeting of the Federal Reserve Board was held in the office of the Pederal Reserve Board on Tuesday, April 8, 1924, at 11:10 a.m. PRESENT: Governor Crissinger Mr. Platt Mr. Hamlin Mr. Miller Mr. James Mr. Eddy, Secretary The minutes of the meetings of the Federal Reserve Board held on April 31 d and 4th rere read and approved. The minutes of the meeting of the Federal Reserve Board held on April 7th were read and approved as amended. The Governor then presented the following telegram dated April 7th addressed to the Comptroller of the Currency by the First National Bank of Terrance, California: "Wish to advise that this bank has not merged with Pacific Southwest Trust and Savings Bank and desire to retain our national charter". Noted. The Governor announced that the special order business would be consideration of the motions made at the meeting on April 3rd, with regard to the report of the Committee on Examinations on matter referred to it at the meeting on April 1st, namely, telegram dated March 28th from Er. Frank P. Flint, of Los Angeles, requesting that the Board reconsider its Previous action in declining to consider the application of the Pacific SoUthwest Trust and Savings Bank for permission to acquire the First National Bank of Torrance and operate it as a branch on the ground that the State Ba4king Department of California is not making standard examinations of the Largest institutions which are simultaneous at the head office and branches. 4/8/24 -2- Mr. Hanlin moved, in view of the telegram, above quoted, from the First National Bank of Torrance, that the Board lay these notions on the table. Carried. Mr. Platt then moved that a copy of the telegram from the Torrance Bank be sent to Mr. Flint in answer to his telegram. Carried. The Governor then announced that the next order of business would be the other matter held over at the meeting on April 3rd, namely, report of Committee on Examinations on application of the Bank of Italy, transmitted bY the Federal Reserve Agent at San Francisco in his letter of March 21st, to acquire the State Bank of Venice, Venice, California, and to establish a branch in its premises; the Committee recommending that the application be voted on on its merits. Mr. Platt moved that the application be disapproved. Unanimously carried. Report of aommittee on Examinations on the application of the Bank Of Italy, transmitted by the Federal Reserve Agent at San Francisco in his letter of March 21st, to acquire the Farmers Bank of Wheatland and to establish a branch in its premises; the majority of the Committee, Messrs. James and Dawes, recommending that the application be voted on on its merits, and Mr. Platt recommending that the application be approved. Mx. Hamlin moved approval of the application. Mr. Hamlin's motion being put by the chairwas carried, the members voting as follows: Mx. Platt, "aye" Mr. Hamlin, "aye" Mr. Miller, "aye" Mx. James, "no" Governor Crissinger "not voting" -3- 4/8/24 Mr. Miller stated that he had voted in favor of the application on the ground that the Bank of Italy already awns the Wheatland Bank. Report of Committee on Examinations on application of the Bank of Italy, transMitted by the Federal Reserve Agent at San Francisco, in his letter of Ilaral 21st, to acquire the San Fernando Valley Savings Bank of San Fernando and its branch at Newhall and to establish branches in their premises; the CoMmittee recommending that the application be voted on on its merits.. Mr. Miller moved that the application be disapproved. Unanimously carried. At this point Mr. Cunningham entered the meeting. Report of Committee on Examinations on application of the Bank of Italy, transmitted by the Federal Reserve Agent at San Francisco in his letter of 14arch 21st, to acquire the Santa Monica Boulevard State Bank of Hollywood atd to establish a branch in its premises; the Committee recommending that the application be voted on on its merits. Mr. Miller moved that the application be disapproved, Carried, Mr. Cunningham not voting, Report of Conzaittee on Examinations on application of the Bank of Italy, transmitted by the Federal Reserve Agent at San Francisco in his letter of Ilarch 21st, to acquire the Arcadia Javings Bank of Arcadia and to establish a branch in its premises; the Committee recommending that the application be Voted on on its merits° Mr. Miller moved that the application be disapproved. Mr. Miller's motion being put by the Chair, the members voted as follows: _4.. 4/8/24 Mr. Platt, "aye" 1.1r. Miller, "aye" Mr. James, "aye" Mr. Cunningham, "aye" Mr. Hamlin, "no" Governor Crissinger "not voting" of the Federal Reserve Bank Telegram dated April 7th from the Governor willing to make Of Atlanta, advising that the War Finance Corporation is Reserve District providathremces to certain member banks in the Sixth Federal st any loss, and ed the Federal Reserve bank guarantees the Corporation again ting the proposal they would like Stating that while they have no idea of accep to have the Board's views in the matter. al Reserve Upon motion it was voted that the Feder Board knows of no Bank of Atlanta be advised that the s giving a guarantee. authority for a Federal Reserve bank' L. Cannon of Bridgeville, Delaware, Letter dated April 3rd from Mr. Harry Class "C" r tendering to him the position of rePlying to the Board's lette expiring Director of the Federal Reserve Bank of Philadelphia for the term advised of his duties as such before 1)ftember 31, 1925, and requesting to be aiCnifying his acceptance. ve Agent at Mr. Hamlin moved that the Federal Reser Mr. Cannon with touch in get to Philadelphia be requested and explain his duties to him. Carried. 1) tary of the International Acceptance Letter dated April 4th from the Secre a resolution adopted by the Board of knit, Inc. of New York City, quoting t amendmemt to that portion of the directors of the bank ratifying the recen which relates to reserves. bank's agreement with the Board Noted. -5- 4/8/24 Letter dated April 3rd from the Assistant Attorney General, enclosing copy of a letter addressed to the Comptroller of the Currency, with regard to the First National Bank of Poplar, Montana, which is closed, and quoting a t elegram addressed to the Poplar Commercial Club by oenator Wheeler, stating that a director of the Federal Reserve uank has given assurance that collections will not be pressed. Upon motion, it was voted that a copy of the letter of the Assistant Attorney General be sent to the Federal Reserve Bank of Minneapolis. Letter dated April 4th from the Chairman of the Federal Reserve Bank Of Cleveland, requesting approval of the action of the directors of that bank voting to grant to Governor Fancher two months' leave of absence with Pull PaY. Approved. Letter dated April 2nd from the Chairman of the Federal Reserve Bank °I' Atlanta on the subject of analyses of statements of comercial houses. Referred to Law Committee. Letter dated April 4th from the Governor of the Federal Reserve Bank c)f Chicago, requesting approval of the action of that bank in rediscounting tc).r the City-Commercial Savings Bank of Mason City, Iowa, a member bank, paper bearing the indorsement of the Greenville Savings Bank, Greenville, Iowa, and the Farmers Savings Bank, Cartersville, Iowa, non-member banks, Approved. Letter dated March 31st from the Federal Reserve Agent at Philadelphia, requesting approval by the Board of the designation as Assistants to Examiners °t nine employees of the bank named therein. Approved, -6- 4/6/24 Letter dated April 5th from the Federal Reserve Agent at Boston, on enclosing report of the Federal Reserve Agents' Cormittee on Reserves matter referred to it at the meeting-on March 6th, namely, letter dated March 3rd from Congressman Fulmer, enclosing a bill introduced by him to reduce the reserve requirements of country member banks from 7% of demand deposits and 3% of time deposits to 5% of demand deposits and 2% of time deposits. Ordered circulated. Memorandum dated April 8th from the Secretary, referring to memorandum dated March 26th from the Director of the Division of Research and Statistics stating that the Division is prepared to undertake a study of the question Of branch banking, and submitting a plan for such study; the Secretary in- qUiring whether the Board wishes to direct the Division of Research and Sta- tistics to proceed with the study. Mr. Platt moved that the Director of the Division of Research and Statistics be directed to proceed with the study of branch banking along the lines of his memorandum. Carried. Reserve The Governor then presented letters from the Assistant Federal Agent, the Governor, and the Deputy Chairman of the Federal Reserve Bank of accordlatmaeapolis, replying to the Board's recent communications, written in authoralace with action taken at the meeting on March 25th, 1220:airing as to the g ity of Assistant Federal Reserve Agent Mosher in recent statements concernin the so-called McNary-aaugen agricultural billo Ordered circulated. ) -7 4/8/24 meeting The Governor then presented the matter ordered circulated at the On April 1st, namely, memorandum dated March 28th by General Counsel, with - reference to a communication dated March 4th from the Governor of the Federal letter of Reserve Bank of New York, raising certain objections to the Board's and from Federal January 25th (X-3953) on the subject "Currency in Transit to Reserve Banks". Noted, it being understood that the subject of the correspondence will be considered at the forth coming Governor' Conference. Francisco, Letter dated April 2nd from the Federal Reserve Agent at San made by the American advising that application for stock In that bank has been that Bank of Marshfield, Oregon, a recently organized institution, and stating examinaUnless the Board deems it inadvisable the bank will be advised that has been tion and consideration of its application will be deferred until it bank in operation a sufficient length of time to enable the Federal Reserve Intelligently to pass upon the application. Upon motion, it was voted to interpose no objection to the procedure suggested by the Federal Reserve Agent. addressed to him Mr. Hamlin then presented a letter dated March 28th, , enclosing copy bY the Chairman of the Federal Reserve Bank of San Francisco a, stating that since °f a letter from the Superintendent of Banks of Californi his return from Washington he has not granted permits to any branch banks in within the that state in a district that is outside of the territory embraced Francisco or Los Board's definition of contiguous territory, either in San Angeles. Noted. 4/8/24 -8- Report of Committee on Examinations on letter dated March 31st from the Federal Reserve Agent at Cleveland, transmitting and recommending approval of the application of the Commercial Savings Bank and Trust Company Of Toledo, Ohio, for permission to operate a branch at the corner of Monroe Street and Auburn Avenue, Toledo; and advising that the application also has the approval of the State Superintendent of Banks and the Executive Committee Of the Federal Reserve bank; the Committee recommending approval on the con- dition that unless the branch is established and in operation within six months, the peraission becomes null and void. Upon motion, the recommendation of the Committee on Examinations was approved. Letter dated April 2nd from the Federal Reserve Agent at Cleveland, transmitting and recommending approval of the application of the Guardian Savings and Trust Company of Cleveland, Ohio, for permission to establidh a branch at the corner of Coventry and Lancashire Roads, Cleveland Heights, Ohio; said application also having the approval of the State Superintendent Of Banks and the Executive Committee of the Federal Reserve bank. Mr. Hamlin moved that the application be approved. Carried. Mr. Hamlin then stated that he had received a call from Ex-Senator Thomas of Colorado, who stated that he was representing the so-called PittMan Silver Committee of the Senate Which would probably some time in the future call for the Board's records with regard to the exportation of silver dollars to the Orient, -9 4/8/24 Mr. Hamlin moved that copies be made of the Board's records in this matter. Carried. Mr. Miller then advised the Board that he had communicated with Deputy Governor Case of the Federal Reserve Bank of New York, and that the meeting °f the Open Market Investment Committee, which was scheduled to be held in Chicago on April 25th, would be held in Washington on April 22nd. At 12:30 p.m. the Board recessed to meet again at 2:30 p.m. At 2:30 p.m. the Board reconvened, the same members being present who were in attendance at the morning session. Mr. Homer P. Clark, Class "C" Director and Deputy Chairman of the Federal Reserve Bank of Minneapolis, was invited into the meeting. Mr. Clark explained that the purpose of his visit was (1) to obtain from the Board an understanding of his duties as Deputy Chairman in the absence of the Chairman; (2) to urge upon the Board reconsideration of its action in of the Federal Reserve (118aPProving the recommendation of the directors Bank of Minneapolis that the allcmance for office expenses for 1924 of the bank's Counsel, Judge Andreas Ueland, be increased from ::2500 per annum to per 0,4,000 per annum, this in addition to his salary at the rate of5,000 disapproving the annum; (3) to urge that the Board reconsider its action in the salaries of recommendation of the directors of the bank for increases in Assistant Deputy Deputy Governor Geery- from :,;15,000 to 0.6,000 per annum and the Governor Yaeger from 46,000 to .,7,000 per annum; and (4) to discuss with bank Board the present manner in which the publicity work of the Minneapolis 18 handled. 4/8/24 -10- Following a discussion of the manner in which the publicity work of the bank is handled, Mr. Clark pointed out the desirability of a change in the method which would result in the publicity work of the bank being conducted bY the Federal Reserve Agent with the advice and cooperation with the Executive Committee of the directors. Mr. Hamlin moved that Mr. Mosher, senior Assistant Federal Reserve Agent, who is discharging the duties of Federal Reserve Agent in the absence of Mr. Rich, be directed to act with the advice and cooperation of the Executive Committee of the directors of the bank in all matters of publicity. Carried. Then followed a discussion with Mr. Clark of the duties of the Deputy Chairman in the absence of the Chairman of the Board of Directors. It was explained to Mr. Clark that while the Deputy Chairman, in the absence of the Chairman, assumes his duties as such, it was not expected that the Deputy Chairman should perform any of the duties of the Federal Reserve Agent. Mr, Hamlin then moved that the Board refer the matter of increased comPensation for Counsel of the Minneapolis bank to the Law Committee for reconsideration and report to the Board. Carried. At this point, Mr. Clark left the meeting. Mr. Miller then moved that the Board reconsider its action taken at the end of the year in disapproving increases recommended for Deputy Governor Geery slid Assistant Deputy Governor Yaeger. Carried. The Chair then referred the natter of the increases recommended to the Committee on Salaries and Expenditures for report. The two members of the 2a1ary Committee present, Messrs. James and Miller, thereupon made verbal -11- 4/8/24 approved, tsPort, Mr. James recommending that the increases in salary be not favorable considera414 11r. Miller stating that he felt the matter warranted in the Minnetion by the Board in view of extraordinary conditions prevailing aPolis district at this time. Mr. Platt then moved that the Board approve of the directors of the Minneapolis bank increasing the $16,000 salary of Deputy Governor Geary from ;,;15,000 to r Governo Deputy t per annum, and the salary of Assistan es increas both annum, .70oo per Yaeger from ;136,000 to 4 to be effective as of April 1, 1924. Carried, Messrs. James and Cunningham voting "no". with refMemorandum dated April 8th from the Division of Examination, Lgent at San Fransl'ance to telegram dated April 7th from the Federal Reserve of Los Angeles cisco, advising that the Pacific Southwest Trust and Savirr7s Bank 588 shares of has filed application, as liquidating agent, for the surrender of that the stock held by the Valley Bank of Fresno; the mmorandum recommending 4PP1ication for surrender of stock be approved. Approved. York replying to Draft of letter to the Federal Reserve Agent at New lity for purchase by the his letter of April 5th, in,luiring as to the eligibi dollars in the United hderal Reserve banks of German trade bills payable in and by banks and States and endorsed by the new German Gold Rediscount Bank nce with bankers in the United States; said letter being prepared in accorda action taken at the meeting yesterday. Approved as amended. 4/8/24 -12- iir4PORTS GF STANDII:G COMMUTEES: Recommending changes in stock at Federal Reserve Banks, as set forth in the Auxiliary Minute Book of this date. Approved. Dated, April 8th, Recommending action on application for admission cif state bank, subject to the conditions stated in the individual reports attached to the application, as set forth in the Auxiliary Minute Book of this date. Approved° Dated, April 7th, Recommending approval of the application of Mr. Hyman Pearlstone to serve at the same time as director and Vice President of the First National Bank of Palestine, Texas, and as director of the Southwest National Bank of Dallas, Texas. Approved. Dated, April 4th, The meeting adjourned at 4: Seer° ary. APproved:
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