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102 Lmeeting of the Executive Committee of the Federal _ieserve Board was held in the office of the Federal .ieserve Board on Jednesday, uist 17, 1927 at 10:45 a.m. Governor Crissinger LIr. Platt Lr. James 1.1r. Eddy, Secretary licOlelland, Asst. Secretary Telegram dated illiust 12th from the Chairman of the Federal .ieserve Bank of Chicago, advising that at a meeting of the Executive Committee on that day no change was made in the bank's existing schedule of rates of discount and i;urchase. rated. Matter apnroved on initials on ugust 15th, namely, telegram dated -L'gust 13th from the Chairman of the Federal Reserve Bank of Richmond, advisin- that the board of directors of the bank on that date voted to establish a rediscount rate of 3 1/24; on all classes of paper of all maturities, effective ,lui,ust 16th. , 2orma1ly approved. hatter approved on initials on ':.11ust 12th, namely, te °gram datod 4ugust 12th from the Chairman of the 2ederal eserve Bank of .tlanta, ' to advising that the board of directors of the bank on that date vot, establish a rediscount rate of 3 1/2, on all classes of paper of all maturities, effective the first business day following that on which al).?roved by the Federal .eserve Board; the Chairman also advising of II/ the adoption of the following scheiule of rates for purchases of acceptances: 1 to 15 days 16 to 45 days 3 103 8/17/27 -2- 91 121 to 90 to 120 to 183 days days days 3 l/4;i 3 3/8/3 3 3/4 Formally approved. Memorandum from Counsel dated July 27th, with reference to the Clayton Lct a2plication of r. Joseph C. Specht, involving the National City :an;t and the German American Savings Bank, both of Los Angeles, California; Counsel stating that the banks are in substantial competition for savings deposits and suggesting (1) That the application be temporarily refused with the usual opportunity to the applicant to furnish additional Information if he so desires and (2) That the time within which the applicant shall notify the Board whether he desires to furnish additional inzorr!lation be limited to thirty days, with the unUerstandin that if the Board Is not notified within that time its refusal will became final. After discussion, it was voted to aoprove Counsel's recommendation with the understanding that the Vice Governol would prepare a special letter to Ur. 3pecht regarding the character of information which the Board would like to have regarding the apparent canpotition between the banks involved in his application. Vlbuorandum from Counsel dated August 8th, with raforence to the Clayton ct anplication of 1:ational T:enry O. Thornton,involvia7 the Continental and the Bankers 2-rust Company, Loth of Indianapolis, Ind.; Cowasel recommending (1) That the application be temporarily rofased Jith the usual opportunity to the applicant to furnish additional infortion and (2) That the time within which the applicant shall notify the Board whether he desires to furnish additional information be limited to twenty days, with the understanding that if the _oard is not notified within 104 _3— 8/17/27 that time its refusal will become final. After discussion, it was voted to approve Counsel's recommendation with the imaerstanding, in this case also, that the Vice Governor would. prepare a special letter to the applicant regarding the nature of the additional information which should be filed by the Board if he desires to supplement that tranamitted with his application. Letter dated August 11th from the Assistant Federal Reaerve Agent at 3an Francisco, advising that the Pacific Southwest Trust and savings over Bank, under the authority granted by the Board on July 28th, took the business and assets of the Bank of San Fernando at the close of business August 6th and consolidated them with the bank's e:...isting San Fernando Branch. Noted. Letter dated August 13th from the Chairman of the Federal aeserve na k of Atlanta, advising of the election of Miss :Lary E. Mahon as ,.ssistant Cashier of the Jacksonville Branch, at her 'present salary of 2100 ,)er annum. noted. 2,e-oort of Oommittee on Salaries and Eroenditares on lotto': dated of ::ew August 15th fron the jefuty Governor o2 the Federal _ieserve Bank bank York, trausmittinC list of employees for whom the directors of that have approved leaves of absence, with pay, on account of illness durin'f the month of July, where the total of such absences since January 1st has exceeded thirty days; the Committee recommending approval of the salary payments involved. Approved. 105 8/17/27 -4- Report of Committee on Salaries and Expenditures on letter dated August 15th fram the Governor of the Federal deserve Bank of _Llichmond, 19.vising of tho action of the directors of that bank in voting to extend for periods of thirty days, with full pay, leaves of absence on account of alness proviously granted :Ass adie ,riijht and Lr. G. .1.. hinter, employees of the bank; the Jommittee recommel:. in:4 approval of the salary Payments authorized by the ilichmond Arectors. Afyoroved. _ieport of Committee on Salaries and Expenditures on letter dated Illgust 13th from the Chairman of the federal .eserve Bank of ii.tlanta, ad- • vising of the action of the uirectors of that baak in voting, subject to the approval of the Boar, to grant an extended leave of absence of tic) months, with full pay, to • J.IL. Sims, 4'1,s sistant Cashier, on account Of illness; the J.ommittee recommondin approval. Approved. Aeport of Committee 0;i Jalaries and Expenditures on letter dated August 13th from the Chairman of the Federal Iesoie Bank of Atlanta, advising of the action of the directors of that bank in voting, subject to the approval of the ,oard, to grant a vacation period of one month, • viith full pay, to Lr. Marcus alker, 1:..anagin 3ranch; the Committee recommendin Director of the New Orleans approval. Approved. aeport of Jommittee on Salaries and 3xpenditures on letter dated City, ist 11th from the Chairman of the Federal lieserve Bank of Kansas • 6/17/27 advisilv1; of the resiation of Mr. A. J. Conway, Cashier of the Denver Branch and requestinn approval of a salary of ,4,000 per annum for Mr. Stanley A. Brawn, who has been elected to succeed Mr. Conway, effective about September 1st; the Committee recommen:lin approval of the salary proposed. Approved. Report of Camittee on Salaries and 2xpenditures on letter dated August 13th from the Chairman of the Federal _ieserve Bank of Kansas City, advisinr; of the action of the Executive Committee of the bank in voting; to grant leave of absence, with full pay until October 15th, to Mr. d. A. Olson, an employee of the bank, who is absent from his duties on account of illa,-.Ds3; the Committee recommending approval of the salary payment involved. A,Jproved. deport of Ca_;.littee on 3xaminations on letter dated Ausust 12th from the Federal Reserve A':ent at Mew York, recommendin7 approval of an application of the Merchants Trust Company of 1:ewark, P. J. fox' permis— sion to establish a branch at Bloomfield Avenue and 6th ,troet, liewark. Upon recommendation of the Committee, the above application was noted with approval. Letter dated August 13th from the Chairman of the Federal eserve Bank of Atlanta, advising of the action of the directors of that barik . in accepting the resignation of Mr. VT. H. Black as Assistant Of the Cow Orleans Branch; the letter advising that Mr. James anar;er ,Talker, former Cashier, has been elected to fill the vacancy of —ssista.it Manager an 107 -6- 8/17/27 Mr. Black has been elected as Cashier of the Branch to succeed hr. Walker; no change in the salary of either officer be in' involved. Noted. letter dated Report of COmmittoo on Salaries and :xrenditures on of Boston, Itust 10th from the nairman of the .Zederal _-.eserve Bank. bank in votinr; to exadvising of the action of the directors ot that absence on teni for a period of one month, with full oay, leaves of account of illness i)reviously granted :Ass Arothy .oberts and hr. half pay, the *James B. Bagley, and to extend for a like period, with - mittee Buckley; the Sa., leave of absence previously granted Mr. Joseph zed by the Boston recommending approval of the salary payments authori directors. Approved. Federal Reserve Letter dated August 14th from the Governor of the made by the Bank of New York, relative to criticism and skzestions tion of the Federal Board's 6'hief 21xaminer in connection with the examina Aeserve bank made as of ::.ay 28, 1927. on The letter having been brought to the attenti noted was tions Examina on ee Conmitt of the Board's and ordered filed. submittinr for Lemorandum dated August 17th from the Jecrotary necessary in the approval by the '3oard, the following' changes found ...eserve Bank at Interdistrict A.me jchedule for the Branch Federal San Antonio, which was arproved by the Board on June 28th: instead of San Antonio - lichmond, both ways, three days four days. . 108 -7- itonio - Portland, both ways, five days instead of four da:-s. Jhicago to Jan -ntonio, three days instead of two days (San Antonio to Chicago remainin,=: two days). Zew York and Buffalo to San 2.Lntonio, four days instead of three days (San Antonio to .Tow York and Buffalo remaining three days). Louisville to San Antonio, three days instead of two days (San Antonio to Louisville remaining two days). 1Lpproved. Letter dated fair;_ist 12th from the Jhairman of the Federal rteserve Bank of Itichmond, transmitting aad recommending approval of an application of the National Loan and xchane Sank of Jolumbia, B. C. for pormis- - sion to accept drafts and bills of exchange drawn upon it up to 100 of its paid-in and unimpaired capital stock and surplus. After discussion of the condition of the applicant bank as set forth in the report of its last examination, it was voted to refer the examination report to 11r. Gilbert for analysis, such analysis and the bank's application to ; of the full Board. be submitted at a meetinr, . The Governor then submitted copies of letters addressed under date of .r.uust l':)th •to the Attorney General of the United 3tates and to the Assistant 2edera1 Aeserve Lr;ent at -A:ew York, with reference to certain apparent violations of Section 22 of the Federal Reserve Act by lir. Bernard Larcus, -Tice ?resident and Director of the Bank of the United States of 1:-ew York tity; the letter to the Assistant Federal ;deserve Asont requesting that all facts in the case be reported to the local United States District Attorney. Noted, with approval. :emoranatun fran (Jounsel dated Auust 11th, submitting draft of reply to letter from the Jashier of the American rational Bank of Danville, Va., inquiring whether notes held by the American National Bank and secured by 0.2 -8- 8/17/27 good readily marketable collateral may be de)osited in the trust department of the bank to secure trust funds donosited in its commercial de1)artmeat; the pr000sed reply stating that the Board sees no objection to the availabilit, of notes which are fully secured by good readily marketable collat:ral for thJ ',..f,tr.00se in question, orovided, of course, that such notes are in fact readily marketable and comply with the other requirements ofthe .3oard's He7antion. The secretary called attention to the fact that the Board on June 31th referred to the Amptroller of the Currency an inquiry receivol from the 1=.ssistant federal -:ozerve agent at Cleveland as to whether a bank could use first mortL'c. 3 loas on real estate as security for trust funds deposited in its coinnerc.,qal department. :e stated that this action was taken in order that no rglinp: by the Board conflict with any ro7alation issued by the Comptroller of the Currency. Accordingly, it was voted that action on the above inquiry be deferred until the Board receives from the COmptroller his report on the matter referred to by the Secretary. -emorandum from 'Jounsel dated ,*.alust 12th, submitting and suggestis inf4 that there be foraarded to all 2ederal eserve bani1:5 copy of a cir- cular letter bein:-: sent out by a collection agency soliciting from banks in the 9th 2ederal ..eserve District claims a;ainst the Federal Bank of :„Anneapolis, r;ro,ain. eserve out of the par collection o: checks by the Federal deserve Bank; this circular bein' the result of a judpent rendered asdinst the Federal deserve Bank of 2,Unneapolis in the case brought against it by the Hu.2).9 State Bank. -9- 8/17/27 After discussion, it was voted to approve Counsel's suggestion that the above circular be sent out to all Federal deserve banks,with the understanding that the letter of transmittal shall contain a statement relative to the present status of the, case referred to. .Lt the request of the Secretary, it was voted to authorize the employmeat of a stenographer to be assigned to assist in the 2rast Avision Of his office, with salary at the rate of 4A500 per annum. 2eport of Committee on District orandum 5 dated Au,-ust 13th submittin:-? a 1:3M- from the Secretary relative to the present status of various mat- ters in connection with the opening of the branch of the Federal eserve Bank of 2.ichmond to be established at Charlotte, . C.; the Committee recommendimg (1) That a copy of the Jocretary's memorandum be transmitted to the Feaeral jeserve Bank of 2,ichmond for their information: (2) 2hat the 30ard 1..ake definite the tentative appointNents of :-ssrs. Lorehead, Cannon and Law, as directors of the Charlotte Brad3h; (:.;) 211'...t the .3ecretary advise the appointees of their selection and,if acce_anJes are received,arrange for simultaneous announcement of the directors appointed both by the Doard and the Federal 2,eserve Bank of _lichmond; (4) That the terms of office for directors of the Branch begin with the date of its formal opening and .expire December 31, 1928,1929 and 1930, according to the term of the respective directors. Upon motion, the recommendations of the Committee were approved. 2EP0.,:23 OF STAILDING COLMITTP, s: Jatea, last 16th, Hecommending changes in stock at Federal deserve Banks as set forth in the Auxiliary L'inute Took of this date. iecommen,,,at ions a.)-oroved. 8/17/27 ;12P0aTS -10- -III 2 : C ont Id.) Dated, July 27th, .iecommending action on applications for fiduciary .L.ugust 6th, poae2s as set forth in the Au:411iary Minute Book of 9th, this date. commendations approved. 11th, Dated, Aust 15th, .,2.ecommenaing approval of the application of 1.1r. Edward A. Davis for permission to serve at the same time as director and Vice President of the National Shawmut Bank, Boston, Mass. and as director and Vice President of the 1:ational fhite aiver Bank, Bethel, Vt. .decommendation approved. Dated, Auust 12th, Jecommencling approval of the application of 2:r. J. L. Mitchell for permission to serve at tie same time as director of the First National Bank, Sioux Oity, Iowa and as director of the American rational Bank, Spearfish, South Dakota. .;ec anmendat ion approved. The meetin- ad:ourned at 1 a.m. secretary A0prOVed: Clovemor
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