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tc-mi meting of the 2ederal Reserve Board wzs held in the office of the 2edera1 Reserve Board on 1ednesday, December 10, 19L4 rt 11:10 a.m. PR:3E1.1:2: 1-overnor Crissinger Mr. Platt Mr. Hamlin Mr. Mr. James Ounninham Mr. Noell, Assistant Secretary The minutes of the meeting of the Federal Reserve Board h-ld on rovember 21st were read and approved as (mended. Upon motion by Mr. Hamlin, the Secretary Was instructed to communicate with the Federal Reserve .Bank of Kansas City relative to securing separate figures of the cost of each item of vaults, permanent equipment, furniture and fixtures included in the bids for the erection of buildings at Omaha and Denver, as suggested by Mr. 2rowbridge, the Board's Consulting Architect in these projects Li The minutes of the meeting of the 2ederal Reserve Board held on December 4th wore read and approved. Mr. James referred to the fact that Mr. P. Foote one of the Board's appointees to the N-w Orleans Branch directorate, is a banker and that negotiations were under way with the Federal Resent° Bank of Atlanta Whereby the bank v,)ould appoint Mr. Foote rnd the Board in his place would appoint Mr. L. C. .Amon, a business man in New Orleans, thus complyin:; with its regulations. The minutes of the meetings of the Federal Reserve BoLrd held on December 5th rnd 6th were read and Tproved. 1LT.he Governor stated that he had been advised by the Governor of the Federal Reserve Bank of New York tlit prior to December 15th Shipments Of .old totaling 450,000,000 would be made to (ormcny wrIs being nd that consideration i.ven to the repurchase of a like amount of 2reasury Certificates, 257 12/10/24 -2- Previously allowed to run off, to offset this export. Miller called the Board's attention to the fact that at the recent meotirkl; of the Open Market CoIrnittee, the Committee had been authorized to offset L_old exports up to :;;100,000,000. The Committee on District 2 then submitted its report with reference to the appointment of directors of the Buffalo Branch of the Federal eserve Bcnk of New Yolk. Upon motion, John L. Kloepfer wasreappointed a director of the BrLnch Federal eserve Bank of Buffalo for a term of one y-ar, beinninL7 January 1, 1925; Carlton LT. Smith was reappointed a director of the Branch Federal Reserve Bank of January 1, Buffalo for a term of two years, 1925; .4.rthur lIouc,h of Batavia, M.Y. was appointed a director of the Branch Federal Reserve Bank of Buffalo for a terd of three years, be,,_21nnin-L; January 1, 1925. CunninLham, Member of the Committee on District On the MEtter then reported of the desiL;nation of a Class C Director for the Federal Reserve Bank of Chica3'o and the desiL;nation of a Federal Reserve .,'ent find Chairman. Upon motion by Mr. CunninL,ham, Mr. '7llhiam I.. Ferith was reappointed a Class C Director of the Federal Reserve Bank of Chicago for a term of three 'Lrars, boginninz January 1, 1925 and also redesinated , of the Board of aS Federal Reserve Az;ent and Chairman Drrectors of that bank for a tern of one year, beinnin.:; January 1, 1925. LIemorandum dated December 8th, from the Director of the Division of Research fld Statistics, reconraendinc; that the temporary appointment of L:r. Irt, ns f. 'iclenmann, which expired on November 30th, be extended to include the first six clays of December. iirproved. kJ, /10/24 the Jecre t.ry, recorarnendL Aldum dtAed December 5th, alfp th0 orrriplo,Trient of rzi at s messerk;er in U'ie 3oz.rd's rz.Th Office, sai,lry of ,55 per month, effective December 13, 1924. 10Veti. Letter a.,ted Decrmier 1st frola the .,1.3sistcant Zeder1 T serve t 2rLncisco, Ldvisinz t. hL.1; the Bank of Italy on roveMber 29th opened its brLnch t 5137 LaS31011 Street, 3ZA1 i?rtHicisco, approved by the Lord on June 139 1924, lrot ed. Letter ch.tod December 5th from the Ch:_irmn of the :federal Ti'eserve :3611k of 1:a.nsas City, a dvLsin Director of the Br.:nk elcss of the reelection of Lir. J. f. Liitchellz,s s C. 3yrne as Class B id L:r. Director, both for terms of three years, be, innin,: January 1, 1925. Not ed, ael,ort of Committee on 2.crsinations on memorandum dated December 6th, from the tln,; Comptroll z - of the i'urrency, recomme 3 in: applica tion01: thc., ter s :,rovl o: the t jonal ;-)).: nic of Thito. riht, fexs, for sion to rodu'e its erl .r1 stock from 'Imo 000 to is- '3, on cndi.t ion thct a portion of the reduction bo isod for tr -:in • out certain itn,3 Lsnets; the Corrait tee also recommendin ci,provr-lo dTroved. Memorandum dtted Dece,Lthor nth from the Secretary re,luestin,; authority to furnish for newsr,i.rer publication fiuros on chanes in state and national Ilk membership in the System dunn 1924. gs potpull KAI S..1,24oaoorO sw pu unopo OAJOSOK 4uo, rG possoapp sTtll fr'urlsons f:ans -,10aJ. oTT4 Jo sTq rzT f43uo.tr Jo- JOAO ,L) o4 sT11 UT JOJ piu4 osoql oq —qso aq4 aupTsuou puu qun00071 EJATOOOJ J0j Tgacituo fati4o.lociF otiq oq vzruT-Ig tfO11OJ stiotiz it qunoop, : quou=aed q Jo 4uotullsIT 00060g pmeopo,:T, ow, 172u,1 Jo qsonloaOt aulqui ollq JO 11OUloA0 zopo OAJOSO IT0V:IIIIX011dd-11 JO 4ISOaop txTflsonloa squatil suol^,a.;ao Jo 400Mns uql uo Exrtscw 01/4 ;0 jo /No° .7uTqTwsu-1.Xq '74.1041. 0111 JO 7,7u27 woa: , T446 aorluzoou pop aoqlol .poAoaddv TluoTssoaAtoo s ai:u.T.Twoo OoIAJU soot' Jo gsoo O f; uoTTI.Taosqns sp.tOr stuir uoTq, laocIa00 e tt4 .TuTpNewmooa 'oollTmuloo : - otiq Jo el/4 : , , -ulaouot; uca: 14q97 aocituaAoll poqp turl)u13Jo-Jun 1 6Tosuno, . 4?(I poAoadd, •pcm.o.x (I(1:q grumao; svpA i:Taoa uTTI:;au-pq oqa 'uoTqoul uodn nt jo sucympuo) Jo 411 TT t“ poaopTsuoo ea, oq sT oarCTJ sTip, qlV1tT puo 0q4 MTITTI:104 g:GI 1103 ITi •ar.:a0;7 oove JO uor.sunL ollq 1-71.11 SuTpm)qsaopun city, panc: . otopaM. TIT jo oql p..1!or otiq :o sa'aquic)m Jo topA, aGq405-704 :tut73 aaa uo qqg aoqi000c uo opul L!Tdoa ou poiTu:, Jo ssoupoqqopuT Jo uow,pIni)TI eql 1[414 4; cor .i'L::- Jo laqus Jo uoTlouuuo0 TIT `IT -111 quoLIZoiduz 015,1 JO T0A0.-CrTh2 :5ItTptiOtlaa000.1 apqmoaa polrlp aoqqol Taappcij oto WOJJ OAJOSi'iK 6S,IIITIC 43 oT Toy. oTil, u-c.toq oqq 'uoT1o7 uodn pozTaoliqn.; sn ./a;4.1oo --vVot/z1 260 12/10/24 -5- fiscal aency matter at the request of the 5ecretary of the Treasury. Lfter discussion, Lir. Hamlin moved that the Governor confer with the Secretary of the Treasury regarding the matter and report to the Bohrd. Carried. Letter dated December 4th from the Chairman of the Federal Reserve Bank of San Francisco, transmitting memorandum addressed to the directors of that bank by the Chi et Examiner ':ith regard to examinations of state Member banks by the California State Banking Department, based upon observation of the examination made of the Bank of Italy as of October 11, 1924 in which simultaneous entry was made of all offices of the lit nk; the Chairman advising that the Jan Francisco directors have voted approval of examinations made by the State :uthorities and the acceptance of 5ach examinations and the reports thereof in lieu of excminat ions made by examiners sele-,ted or tiProved by the Federal Reserve Board. Referred to the Committee on -1xaminf tions. 1:emortndum dated December 8th from Counsel, with re-Lrd to the application of the ;tlantic National Bank of Boston for permission to purchase (N, 9, 00,000 additional stock in the Jtlantic Nat lanai Corporation of Boston; Counsel stati47 that there appears to be no legal reason why this application should not be granted. Upon motion, the application was approved. Letter dated November 26th from the President of the Federal :Avisory Council, transmitting coj les of recommendations =de to the Board at the last meeting of the Council; together with a copy of reply addressed to him 7 O t<SU_A_ 12/10/L4 -6- bY the Vice 7rGi ernor of the ;:ot fllOrni suestinj; ti : t the 1.uestion of the in of the 17z t ion:: 1 :,z- nkin: Let, whie], the `,.!euriell, ho m• de topic for its next :‘ 3f; rsod upon by 1.nt in,:. discussion of th so-rz nod 2hereupon ens-ted ii; ws r(Torted to the which durin,: 1,rer:-. rin :,n za!z.1„si3 "ounr;e1 i3ord ti,Lt Denr 1 rimendm,aits. of the bill yith z 11 :diler then raoved th:.1; coldes of the -bill 1, .13 to the Counsel's : nz-aysiS, be with to,;eth er Li-ith the Counc civisory 1 . the of :1-1'e31dent there!•oport ith • filrni:_hed be rd. ]',o: the t th request in eitil,)r Council the uf Committee „ixeeutive the on by z,nd m t in or ori ily further tint oopies of these documents be for..Lrded to li ::leder,71 :',eserve binks or n expreb.,ion of their opinion. Letter dz..ted Doc:ember 4th from the ChLirmz•n of the L;'ederzal ,leserve °f ith re:::.rd to procod-are followed to tvoid tsar: t the recent election of 42'1(11nd; the Cht.irmn stz:t1 ossible cui.:1-21z int Clz,sz; :3 Director of thz:t 'unni: v3 i2Tprop 3.1,t followin n 0 ffic,i 1 c: ss of brllots in the presence of rei,resent t Ives of both cndiito3, stt is 'c,ct ion h:.d br,en exPressed by :11 concerned. :Tot ed with .12,,rovt--1. Letter (1.•_ ted Decem.)or 6th from the Cht..irrm,n of the Federal Deserve nk cir Cievelt nd, zldvisinL; of Lppointments raLde by the Directors of the ':L.71:` to the direetomt es of the isittsbur :la • nd Gine 1.nnz„t L brnches. 'Toted. 1 :ieserve . Letter (1; ted .December 9th, from the fovornor of the .:'ederz eff 1:ew York, .:(1visin2 thz:t the next m Otiflf of the. Open 11 rket Investment Tnittee \111 be he -1 1 in 7.','z.Lshin ton on December 19th, rt.ther thin in ITew York z s previously 12/10/24 -7- reported but will be preceded by a preliminary meetin:; of the members in row York City. Yoted. Letter dated December 4th from Konorzble d. R. Cooksey, Director of the -:ar 2imnce Corporation, with reard to the Corporation' s recent reiuest tht aKz.liners of the 2ederal Reserve Board audit at the time o: their excminrtions of Federal Reserve banks, the 7ar Finance Departments of such bans al41 their branches servin., :s custodians for the Corporation, and enclos in3' a letter addressed to the Board's Chief aminer by the chief auditor of the Cornorttion, -ivinz in some detail the charac t-r o: information which would be desired in such an audit. Referred to the Committee on Examinc,tions. Memorandum dated December 9th from the Director of the Avision of Research and Statistics, referrin17 to letter dated Yovember 26th from the Chaim; n of the federal Reserve Bank of Chicao, with regard to a request Of the Illinois Bankers :ssocintion that the Federal Reserve bank cooper ate v:ith a committee of that IssJcition in a study of mrnin.s and expenses of Member banks in Illinois; the Director of the Board's Division su2,1;estinthat instead of authorizin2 the Chicz ;o bank to proceed indepe ndently in tho matter the Board ask it to communicate with the Division of Research 11(1 statistics and that the Division outline the study along certain standardized lines that will permit of comparisons with banks of other s ections of the countr y. 111,on motion, the suggestion of the Director of the Division o: Research and Statistics was approved. 0 -(- 1V10/24 Report of Committee on Jlaries, :axponditures Lnd 7:]fficiency, recommonai tTprovL1 of the followin3' recomendttion of the recent Conference Of 2odera1 Reserve Y.L;ents: "Adjustments on capital Stock holdinL;s of member banks sh_11 be cride semi-annually instead of.111arterly, except in cases vhero a consider&ble amount is involved and s follows: 'Mile voluntary arrlications to increse or reduce stock should be handled as Lt present, -the 2ederal reserve ban;:s should only reuest adjustments of capital stack twice instead of four times a year as at Present, subject to the approw-1 of the 2ederal Reserve)ord.'" Lpproved. P oit of Committee on jalaries, Expenditures c.nd Efficiency, recom mondiw, uoprovz.1 of the action of the recent Governors' Conference in rei errin: to the ,lovernors' Lersed -ire Commi tee, in collboratic)n with the StEndiiv Committee on Collections, the question of the reconcilement of provisions of tele2rnphic t2t nsfer eirculr rs of Pederal Reserve banl7s ith the re,TulLtions embodied in the 3oard's letter (x-4039) on the subject .; the Use of 2edev 1 Reserve Leased 'Ares"; "Revised ReL;u1 t ions "-overnin' the Conference ht vin,: instructed the Co lmitteos to .- tudy the liestion and rnrke such recemmendi.tion to the Bcr rd as ii ht be necessz- ry in order to reconcile the practice of some reserve 1.)1137.3 rith existin elae to Mr lie rn?rcirrit te tions or mendments to the rel tions. ,ip-nroved. - 1xpenditures :nd -,f.fieiency, with Report of Committee on itlaries, . l'o-ard to the recommend: t ions o f the recent Conference of 'overnors and Or. c 12/10/24 -9_ Federal Reserve Igents on the subject of charges against surplus by 2ederal Reserve, banks; the Committee recommending as follms: "The Committee on iLlaries, ::xpenditures recommends that the 3onrd in considering definite action on this topic first establish the principle that irrespective of earnings all legitimate charges should be mz.de and that as n matter of 3ystem policy only true values should be reflected in the balance sheet. If the Board is in ecord that this policy should be established, then the Committee recomends (1) Reserves to cover annual depreciation of bank premises should be set up and any deficit arising out of insuffishould be charged to surplus. cient (2) Charge-offs for the purpose of reducing book value of bank buildings to approximate replacement costs should be made and any deficit arising out of insufficient earnings should De charged to surplus account. 2he final ad!ustment of these chn.r,3o-offs should be mtde in the year in Thich the building is completed. In the event that there are now any completed buildings upon which this chargeoff has not been fully mot, the charge should be made as of the time of closing of the books, December 31, 1924. (3) Cost of furniture and equipment should be charged off in the year in which rurchased. in case the earnings are insufficient to cover such charge, then it should be made against surplus. (4) Dividends should be paid and if earnings are insufficient to cover the dividends the deficit should be charged to surplus account. " After discussion, Mr. Hamlin moved approval of the recommendation of the Committee on 3a1nries, Expenditures and Efficiency that the Board in considering definite action on this topic first establish the -principle that irrespective of earnings all legitimate charges should be made and that as a matter of 3ystem policy only true values should be reflected in the balance sheet. Carried. 7Jr. l'artt then moved that Items Nos. 1, 2 and 3 in the Committee's report be approved by the Board as legitimate charges. Carried. :ction on Item ro. 4 was deferred. - 20 -10- 1410/24 y, with Report of Committee on Salaries, Expenditures and Efficienc Conreard to zetion of the recent Governors' and Federal Reserve Irrents' expenditures by ference on the subject of the le,3ality and advisability of Federal Reserve Federal Reserve banks for welfare and educational work among bank employees; the Committee's report reAjnr,_7 in part as follows: "The Board's Committee on Salaries, Tapenditures adopt Efficiency recommends that the Federal Reserve Board the have banks Reserve as a matter of policy that Federal purthe for funds their from right to make appropriations employees the mon; work al pose of welfare and education of their respective banks. 7ith regard to .he second question in the topic 'The advisability of reserve banks defraying, wholly or partially, the expense of such welfare and educational work', the qovernors' Conference adopted the following resolution "Whereas welfare work amok; employees of corporations ,enerally is recognized as necessary to a high degree of efficiency, and "Whereas the s.ame principles applicable to those other corporations are applicable to the Federal reserve banks, be it "Resolved, that payments by Federal reserve banks for the purpose of welfare and educational work among their employees should be continued as highly desirable, especially as it would be most detrimental now to eliminate these expenditures which have been made by the Federal reserve banks for a number of years with the approval of the Federal Reserve Board." The recommendations of the Federal Reserve Lents are in harr,ony with the :bove resolution of the Governors. The Board's Committee on Salaries, Expenditures & Efficiency recommends approval of the above resolution with the further proviso that the expenditures for welfare and educational work be budceted in detail and be made subject to the approval of the Federal Reserve Board. " 2C 12/10/24 e% —11— Upon moticin, the recommendations of the Committee on Saltries, l'xpenditures and :fficiency wore approved*. BgEGRTS OF 311:.rD1rG COLIMI2=3: Dated, December 8th, 9th, Recommending changes in stock at Federal Reserve Banks, as set forth in the Auxiliary Minute Book of this date. Approved. Dated, December 10th, Recommendinz action on applications for fiduciary 10th, powers as set forth in the 41uxiliary Minute Book of this date. Approved. Dated, December 6th, Recommending aprroval of the application of Lis. M.Tuttle to serve at the same time as Assistant Cushier of the Paterson rrtional Bank of Paterson, N.J. and as director of the i'irst National Bank of Glen Rock, N.J. Approved. Dated, December 0th, Recommendinz approval of the application of Mr. James B. Vock to serve at the same time as Director and officer of the .farmers National Bank, 2heresa, r.y. and as Director of the Jefferson County *National Bank, 7atertown, r.Y. 2.pproved. Recommendin_; approval of the application of Mr. Roscoe Snr,.;ent to serve at the same time as Director and officer of the 2irst rational Bank, Lacona, IT. Y. and as Director of the Jefferson County rational Bank, 7atertown, A:proved. Dated, December 0th, Rocommendirr7 anproval of the application of Mr. Daniel B. Schuyler to servo at the same time as Director and officer of the Jefferson County Na,ional Bank, 7:atertown, N.Y., as Director of the 2irst National Bank, Clayton, N.Y. and as Director of the 2irst National Bunk, Laconu, M.Y. :approved. Dated, Dece.ber 0th, Recommendin_; approval of the application of Mr. 2dward II. Osgood to serve at the sae time as Director of the Atlantic rational Bank of Boston, Mass., and as Member of the firm of Leo, Higginson & Company, private bankers, Boston, Mass. Approved. The moo journed at 1:15 p.m. Dated, December 8th, 4pproved: A Assistant Secretory.
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