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AL. L meet in of the-Federal'Reserve Board was held in the office of the Federal 2cserve Board on 2uesday, December 2, 1924, at 11:15 a.m. P1JE172: Governor Crissinc;er Ur. Platt Ur. Hamlin Ur. hillier Jr. James Ur. Cunninjiam Ur. Eddy, Secretary Zhe reading of the minutes of the meetinc; of the Federal 'Reserve Board held on i-oveMber 21st was dispensed v.ith. The minutes of the meetinG of the Federal Reserve Board held on November 25th were read and approved. Letter dated November .8th from Conc;ressman Theodore E. Burton, referring to his previous communications to the Board and tmnsmitir.; letter addrcsod to him by 1.1r. Frank ..... DonL,hman of Itlanta, protestin„; against the appointment of Ur. Oscar 1Tawton as Class "C" Director and Chairman of the Federal Reserve Bank of Ltlanta. Referred to Oommdttee on District 6. 2e1egram dated Eovember 28th from the Deputy Governor of the Federal Reserve Bank of New York advising of changes in the bank's buyin rates on bnkers acceptances, effective as of that date. roted. Uemorandum dated December 1st, approved by the secretary, recommending that stock in the Federal .1eserve Bunk of Ban Francisco in the name Of the Jefferson L;ounty National Bank of Rigby, Idaho, which went into voluntary, liquidation in June 1923, be cancelled but that the proceeds be rlaced in the 2'ederi1 2,eserve bank's expense account until the Amptroller of the ; 1<ge 4_.% 12/2/24 Currency has received ap-oroved the re,luired resolution of the share- holders fo=lly plcin; the 1)11k in lijuidation. Upon motion, the above recommendation was rpproved. Letter dated NoveMber 28th from the Comptroller of the Currency, recommending approval of an increase from .;;2,250 to ,3,000 per annum in the salary of L3sistant National Bank :xminer Charles P. Weigand, during the period of n thirty day appointment as National Bank :Ixaminer, ending December 31, 1924. Upon motion, the above recommendation, thich was approved by the Executive Committee on rovember 28th, was formlly approved by the Board. Letter dated November 2nd from Nathan Lubcr, submitting his r ,si nation as messmier in the Board's 2e1egraph Office, effective December 15, 1924. .ccepted. Report of Comittee on Jalaries, Expenditures and ..fficiency on the Matter referred to it at the meeting on November 25th, namely, recommendation Of the federal '1. oservo ACent at Ban franciseo that 1,:r. Harry Allan Jproul be tPDointed :_ssistant federal Reserve -, ont, effective Jecemb-r 1st, to succeed Lir. Henry C. Brock, resined, and that Mr. ,Troul's slary be increased frem C4,000 to j5,000 per annum, effective January 1, 1925; the Committee also recommending approval. Approved, Mr. Miller voting "no". Report of Committee on Examinations on memorandum dated November 25th fl'O/11 the Acting Comptroller of the Currency, recommending approval, sub:iect to conditions, of the application of the first National Bank of Edgewood, 2exas, for permission to reduce its capital stock from ,50,000 to ,25,000; the Committee : recommending approval. Approved. -3- 1V2/24 ..).01,ort of Committee on 7_:xaminations on memoranda dated November 22nd from the J,ctinF; Comptroller o: the Currency, recoLimending approval of the application of the first rational Bank of 2ah1e4uah, Okla., for permission to reduce its capital stock from c:80,000 to .50,000, and the application Of the Liberty ::tional Bank of 2ahlequah for permission to reduce its capital stock from 50,000 to :A0,000 per annum; the Committee recommending approval of both aplaicLtions. 4proved. Report of Committee on Examinations on matter referred to it at the meetin on November 25th, namely, telegram dated November 22nd from the Ls- sistant eederal :leserve .1;;ent at San erancisco inquiring rhether Oakland, Berkeley and idameds, the corporate limits of rhich are separated from the City of Jan erancisco by Jan erancisco Bay, are considered contiguous to 6a1i erancisco; L'Ar. Platt stating that it is his understanding that these municipalities are regarded as contiguous, and fl.r. J:mes recommending that the mLtter s.:,,ould be considered atmeeting of the full Board. ;fter discussion, :Jr. =or moved that the Board rule that the cities of Oakland, Berkeley and Alameda are contiguous to the city of Jan eranciseo. Carried, over2,or Crissin er voting "no". Report of Committee on i;Ixaminations on letter dated rovember _5th from the Assistant Pederal Reserve font at Ban era-ncisco, transmitting and recommending approval of the application 0: the Lmerican Bank of San erancisco l'or permission to establish three de novo branches in the city of Oakland; Lir. Platt, Chairman of the Committee, reco!mending approval. r) f %of eve,\ 12/2/24 -4- After discussion, Mr. Hanlin moved that the 3oard arpreve the application. Mr. Hamlin's motion LeinG aut by the chair the members voted as follows: Mr. Platt, "aye" Mr. Hamlin, "aye" Mr. Miller, "aye" qovernor erissincer, "no" Mr. James, "no" Mr. Cunningham, "no" 2he Chairman then stated that the motion was lost on a tie and the application stood disapproved. 2eport of Law Committee, submitting draft of reply to letter dated ITovember 24th from the Chairman of the Federal 2eserve Bank of Chicago, regarding the application 02 the Livestock National Bank of Jioux City, lava, for permission to exercise trust powers; the proposed reply stating that it Will be satisfactory to tLe Board for the Federal eserve bank to su est to the applicant that it re4uest that formal consideration of the applicL. be postponed until another examination has been made. Upon motion, the proposed letter vas approved. lteport of Law Committee on letter dated rovember 19th from the Federal Reserve 1ent at .,Aston, transmitting and recommending approval of the auplication of the Union 2rust Company of -.11sworth, Maine for permission to establish a trust department; the Committee recommending approval. pp roved. - ,eserve Letter dated rovember BOth from the Chairman of the Federal 2 421k Of rev York, advising that beginning December 1st meetings of the Board Directors of the bank will be held each. 2hursday and of the ..;xecutive Committee each Monday. 2° -5- 12/2/24 Noted. 2he Govr'rnor then presented the matter approved on initials on November 29th, namely, application of the Home Bank of St. Matthews, South Carolina, for permission to absorb the Farmers Bank and 2rust Company of St. Matthews; approval of said application having been recommended by the Federal Reserve Lgent at Richmond in his letter of November 24th. Upon motion, the application was formally approved. Letter dated November 21st from the Chairman of the Federal Reserve Bank of St. Louis, advising that Mr. W. C. Montgomery, director of the Louisville Branch, has been appointed Chairman of the Road Commission of Kentucky, and inquiring whethr this appointment makes Mr. Montgomery ineligible to serve as a Branch Director. After discus.;ion, Mr. James moved that reply be made to the above letter, advising that Mr. Liontgomery will be ineligible for reappointment as a director of the Louisville branch. Carried. Discussion then ensued as to the scope of the Board's circular letter Of December 27, 1915, advising that in the opinion of the Board persons holdLig political or public office or acting as members of political party committees, caU not consistently with the spirit and underlying principles of the Federal Reserve 2.ct, serve as directors or officers of Federal Reserve banks. Mr. Hamlin moved that the circular be referred to the Law Committee with directions to report back a new draft thereof. Carried. 12 124 -6- Ur. Mill,r then moved that the Committee in amending the circular extend its scope to include ccAidates for political so office :.nd to make it clear that it pertains to directors, o2ficers ::nd employees of branches as cli as head offices. Mr. Miller's motion being put by the chair was lost, the members voting as follows: Governor Crissirkzer, "Lye" hr. Miller, "aye" Ur. Cunningham, "ye" Ur. Platt, "no" Mr. liamain, "no" Mr. James, "no" _ale Committee on 2esearch and Statistics then reported on the llytter referred to it at the meeting on November 25th and sub;Atted an amendment to the principles adopted by the Board governing research, statistical and Publication activities of the 2ederal Reserve banks and the 2ederal Reserve Board, providing that the ;?ederal Reserve banks by Lpril 1, 1925 are to crrtn_;e to infko a charge sufficient to cover costs :or copies of monthly letters delivered in bulk for distribution and that the question of imposing a charge for single copies shall be deferred for ifurther consideration. Upon motion, the amendment submitted by the Committee was approved and the principles stand adopted in the following revised form: Ifb "cope and Purpose. - 2he purpose of the work of the research and statistical divisions of the Pederal reserve banks and the Board is to collect and digest information bearing on the problems with which the ;:lederal Reserve Jystem is concerned, eithor as a matter 12/2/24 -7- "of current op'retion or as the basis of Federal reserve policies. :11 such ork is to be under the general supervision of the Federal Reserve Board acting through its Division of Research and statistics. Mile research studies and scientific investigations may be undertaken on the initiative of the Federal Reserve banks or of the Federal Reserve eoard, the Federal Reserve banks, before any expense is incurred for their prosecution, are to secure the approval of the Federal R - eserve Board. It is not intended, however, that approval be awaited before studies of small scope are undertaken which involve no consiuerable expense. in conducting such studies, the Director of the Board's Division of Research and Statistics may make assignments to one or more of the Federal reserve banks of such portions as may seem desirable. Publications. - beginning with January, 1925, the monthly pulications of the Federal reserve banks are not to exceed ei ;ht pages, as a standard, but during 1925, which may be considered a year of readjustment, the number of pages is not to exceed twelve. Free distribution of such publications as a mtter of course shall be made only to member banks, to other 'Federal reserve banks, to the Federal Reserve :oard, and to firms reporting statistical information, non-member par list banks, and to such others as may be determined through the -oard's Division of Research and Statistics in contact with a committee of the agents to be entitled to it. The Federal Reserve banks by 4ril 1, 1925, are to arrange to make a charge sufficient to cover costs for copies delivered in bulk for distribution. The question of imposinr, a charge for tingle copies Shall be deferred for further consideration. The monthly reviews, published by the Federal Reserve Agents, are to be under the general editorial supervision of the Director of Research and Statistics of the Federal Reserve Board, who is responsible to the Board for the proper conduct of the research, statistical, and publication activities undertaken by the Board and authorized for the several banks." Letter dated rovember 25th from L'ir. A. B. 2rawbridge, Consult mg Irchitect submitting a statement amounting to e1500, to cover 1:.artial fee for his services in connection with the buildir6e3 being erected to house the Denver and aeleha branches of the Federal Reserve Bank of Kansas City. -8- 12/2/24 Referred to Committee on Salaries, Expenditures and Efficiency. Report of Committee on IgriCultural Credits on matter referred to it at the meeting on November 25th, namely, statement on the subject "Relation of the Federal Reserve System to Igriculture", prepared for submission to the Agricultural Commission through the Under Secretary Of the Treasury. liter discussion this statement was referred • back to the Committee with power. Draft of letter to the Assistant Cashier of the National Bank of America, Pittsburch, Pa., on the subject of the exercise of fiduciary Powers by national banks in Pennsylvania; the letter stating among other things that it appears that national banks desiring to exercise fiduciary Powers in Pennsylvania may voluntarily submit to examination by State authorities although they can not be compelled to do so. Upon motion, the proposed letter was approved. for today's The Governor then referred to the special order business Reserve Meeting, namely, the appointment of Class "C" directors of Federal banks and directors of Branch Federal Reserve banks, which was thereupon postponed until tomorrow's meeting. by Mr. Miller then offered the following resolution which if adopted the Board he stated should be communicated to the Federal Reserve Bank of New York over the telephone at the time of the next meeting of the directors Of the banks: "The Federal Reserve Board holds it to be necessary in the present situation of the money market that the open market rate of the Federal Reserve System should be sufficiently above the level of market rates to be .effective. C)t Nt<.•t•-% 12/2/24 -9- "The Board is of the opinion that Federal Reserve Bank rates on n11 classes of open market investments admissible to purchase by Federal Reserve Banks should in present circumstances be not less than 1/4 of 1 rer cent above the actual current (sales) rates on such classes of investments. The Federal Reserve Board would like an expression of views and a recommendation of the Federal Reserve Bank of New York on the subject of a revision of its open market rates in order to bring about a better adjustment of such rates to the trend of rates in.the money market and in order to make its rates effective." After discussion, action on the above motion was postponed until tomorrow's meeting. 2124ORTS 02 32INDING COMMUTEES: Dated, November 26th, 28th, 29th, pat ed., December 2nd, Recommending changes in stock at Federal Reserve banks, as set forth in the Auxiliary Minute Book of this date. Approved. 13a t ed, December Recommending action on applications for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Approved. Recommending approval of the application of Mr. D. Y. Fink to serve at the same time as President and Director of the Commercial National Bank, Muskogee, Okla. as President and Director of the Citizens National Bank of it. Gibson, Okle., and as Vice President and Director of the First National Ban.P. of Porter, Okla. Approved. Recommending approval of the application of Mr. F. E _• Kenaston to serve at the same time as director of the Northwestern National Bank, Minneapolis, Minn., and as director of the Security National Bank of West Minneapolis, Hopkins, Linn. Lpproved. Recommending approval of the application of M r. H. W. Rowley to serve at the same time as director of the First National Bank, Seattle, Wash., and as director of the Midland National Bank, Billinc:s, Montana. Approved. Dated, December 2nd, 2nd, 2nd, 2nd, 1st, 1)ated, November 28th, Dated, November 28th, 12/2/24 -10- L_P0RTJ OP STAID:LIM COMMLLEES: (Cont'd) Dated, November 28th, Recommending approval of the application of Mr. Andrew Earn to serve at the same time as director of the Drovers National Bank, and as officer of the Central Savins Bank 1(1 2rust Company, both of Denver, Colorado. Approved. The meting adjourned a :30 p.m. 3ecretarys
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