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A meetin .- rve 7oard was held in the office of the of the ?ederal 7es,.? Federal :Peserve :Bonrd on Tuesday, December 12th, 1922, 77,11: t 11:00 a.m. Vice Ctovernor Platt Fr. Hamlin Fr. Filler Cris s 17r. FoNton, Secret:ry. - :'serve Tloard hole on 7)eceriner 1"inutes of the meetin(* of the 1,1edera1 " llth were read and on motion approved. The Vice flovernor reported the reserve positions of the several federal Reserve banks as at close of busi.,ess December 9th. The Vice "rovernor stated that the first thing in order would be the special order business ordered docketed for toda:7 byLetion of the T'oc-rd taken at its litetinP*, on December 8th, nmely, the -dministr.,tion of the /Cern Amendment to the Clayton Ct• the resolution adopted ly the ''o:rd T r Hamlin moved the reconsi derct ion of On 17ovember 29th, with reference to the Iloard's administration of the Kern i_mendrnent to the Clayton Act. then submitted a memorandum prepared by "rell er al Counsel recom— rnending, the adoption of a new resolution which the rirenc.rvl Counsel stctes is Clearly justified under the Attorney reneral's opinion and will op,-rate more 21-lecessfully in iirretice. The new resolution was —oved by Fr. Hamlin and adept ed as fo 11ow s: "In general, two banks will be deemd to be in substantial compet't ion if they acttrily compete for a considerable amount of if El considerable port ion of the *business of each business, is of the same character trid in doine. or seekinP; such business the.7 actually compete for the same customers or prosy;ctive c-ustcrners, reardless of hethi-r or ni_t it is probable or possible that an interlockinc. directorate between them \ ould result in injury 12/12/22 •111,,,,••••. to the pitlic by makin;; credit less available. If the statements of two -tanks :how that each has a considerable amount of the same class of deposits or loans and it appears from the evidence submitted that they are so located. as to be in a position to serve t".r_e se-le customers conveniently, the Board will presume, in the absence of evidence to the cant ary, that they are in substantial This presiznot ion may be rebutted, however, comL)etit1on by ansi evidence sh( v.ing that they are not actually cornthat they actually serve petim• for such business, different classes of customers, that the business in quest ion is not actually sourbt by one bank but is merely idental to its other business, or that competition has already been eliminated through common .stock ownership. The existence of substantial competition, however, may be shown by evidence other thui that described above." Famlin then moved that the 'Trice qoyLrnor be requested to orepare letter addressed to all 7ederal 7es, rve :...cents embodying the attitude of the ,-,leaeral cserve r,oard. in he matter of the administration of the Clayton Lot as eressed in the resolution adopted a; ove, and that this matter be docketed as special order business for the meeting tomorrow. Carried. ,-an Letter dated December 6th, from the Federal Teserve Ar;ent at on of Francisco, transmitting with favorable recomendLtion, the applicati San the Llercantile Trust Company, to establish a branch in the city of this is one Francisco at 1500 Polk Street, with the understandin,o; that .thich tentative a Trova.1 has alOf the, thirty city service stations for , reaGy been given by the eeeeral -"eserve Board. Approved, Ir. Crissinger voting "no". Letter dated December 6th, from the Chairman of the Federal '?(serve with ref 1.(--nce to the Bank of San Francisco, giving certain information other banks. consolidation of the First :Tat ional Bank of San Francisco and :Toted. -3- 12/12/22 Resolution of the Board of D'recters of the Federal P4,serve t'al k , subject to O± San 2ranc is co adopted :"o vemb er 25, 1922, and. C eclarinc, the approval of the Fe eral Reserve T'oard, a dividend for the six months Period ending December 31, 1922, at the rate of 6: per annum on the eaid in capital stock, payable on the 30th day of December, 1522, to all stockholders of the bank as shown by the books of the bank on that date. A yproved. Yemorandum dated December 4th, from the Statistician of the Board requestin ; that authority be granted for the Statistician and the Associate Statistician to attend the meeting of the American 3conomic and the American t Statistical Association to be held in Chicago on December 27th to :50th. Ueon motion, it vas voted that one representative be authorized to attend the meeting, aforesaid at the expense of the ,ederal '),eserve Board, the selection of the representative to be left to the discretion of the Statistician. The Vice 'Iovernor submitted to the Board a letter from the Chairman Of the Federal Pe serve Bank of .:all Franci sco , ecc losing a tentative 2ro- ram to be submitted to the jroposed San Francisco, 7ew York, Chicago and St..Louis croup meeting. To action was taken. The Vice rlov,rnor stated that among the unfinished business of the Board is the letter of 7ovembor 21st, from the Federal -eserveAp.,ent at San Francisco, wIth ref .rence to assessing the cost of examinations against member state banks and enclosin7, hills which have been prepared to submit to the Bank of Italy of..tn Francisco and the Pacific Southwest "rust and c‘, . od..1712.17s Bank of Los Angeles to cover the cost of recent examinations, but 12/12/22 / -4- which have not yet been presented to the banks named. Mr. Hamlin moved that all Federal Reserve Agents, with the exception of San Francisco, be asked to report as to the extent and manner of their cooperation with state banking departments in the examinations of state member banks, said report to include the number of men furnished by the Federal Reserve banks for the purpose stated. rarried. In accoltance with the above the Vice lovernor was requested to prepare a letter for the approval of the Federal Reserve Board desigped to elicit the information contemplated byrr. Hamlin's motidn. Mr. Miller moved the adoption of the follov.Ing amendment to the 'Rep:Illations of the Federal Reserve Board, said amendment to follow at tl-Le end of Part II of ReFulation B, and to form a new paragraph of Regulation B. Mr. Tiller stated that thile he felt strongly that the proposed amendment should be adoptedvithout undue delay, he would not ask for immediate action if the Board desired to canvass the opinion of the. Federal Reserve banks. The ore- Posed amendment was then read and unanimously adopted as follows: "(c) A bankers' acceptance drawn by a grower, or by a cooperative marketing association composed exclusively of growers, of non-perishable, readily marketable, staple agricultural products, to finance .the orderly marketing of such products geovin by such grower or growers and secirred at the time of acceptance by a warehouse, terminal, or other similar receipt, issued by a pnrty independent of the borrower and conveying security title to such products, may be purchased if it has a maturity at the time of purchase not in excess of six months, exclusive of days of grace, provided, that the acceptor remains secured thrcughout the life of the acceptance, and that the acceptance conforms in other respects to the relevant requirements of Regulation A". After the adoption of the above amendment to the Regulations, Yr. n, to Mier stated that he hoped that the Board would give renewed consideratio 12/14:, f October 6, 1921, whereby it was the action ta;cen 2t the meetin'. voted that the pacr of the 2ruit Growers Cooperative Associations should be classed as commercial paper and not as a7icultural paper. remorandum dated December 11th, from riss Irelen Griffin, tenderinP; her resignation as a stenograoher in the office of the Secretary of the Fonra, effective as at close of business necenTher 23, 1922. Acceot Letter dated Decenber 11th, from the Comptroller of the Currency, , df7r F. Allen, advisin'; of the appointment of T'r. : s -ntional Tia-nk 2araminer in the Tenth Federal 'Reserve District, and requestinr; a.)prevnl Of a salary of .121)00 pt-r annum. Approved. better dated --)ecenil er 9th, from the Comptroller of the Currency, recoram . ending increases in the salaries of National Tlank 2xaminers z ssigned to the SecOnd L,`edcral 'Reserve District, effective January 1st, 1923, as follows: Present Salary Name R. 77. Byers James B. 2unsten Burdett Kelly . Maguire .dward J. Zrnest H. 'atson Cole O. Younger Anoroved. M500 4500 3300 2700 5000 3000 New Salary Rec eTnended 4.800 5000 3600 3300 5500 3600 p t.% -6- 12/12/22 717)077.3 7 7.70. OF (7,07.".11ITT,a] Dated December 9th, 9th, 9th, : Or -'iduclary ylleaf; tOilS 0•:1 necorrnendinr1 1:11-;:te 'Rook in the Arosilinry 7forth set as nowers date. of t:iis Approved. At 1:20 p.m. the meetin,f!, adjourned. Secr-tnry, Approved: Viec rlovernor.
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