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meeting of the Federal Reserve 3rd was hold in the office of the Federal Reserve Board an Thursday, December 20th at 10:10 a.m. P.T_ISENT: Governor Cri ssi ni er Mi.. Platt Mr. Hamlin Mr. Miller Mr. James Cunninjiam IL'. Dawes Mr..3ddy, Secretary The minutes of the meetings of the Federal Reserve Board held on December 19th were read and approved. Report of Committee on Salaries and -Expenditures on salary recor:mendaFederal ti°ns, for the year 1924, submitted by the board of directors of the Ileserve Bank of Atlanta for both head office and branches. Upon motion, all recommendations made by the Committee on Salaries and Expenditures were approved both as to head office and branches. Upon motion, the salaries of all officers and employees not covered in the report of the Committee on Salaries and Expenditures ,:;ere approved at present figures. Letter dated December 17th, from the Secretary of the Federal Reserve Ballk of .1:.tlanta, advising that in accordance with the previous understanding the Board the directors of the 2,tlanta bank had not made a recomondation at; to the salary for 1924, c,f the nairman of the board of directors and Pederal Reserve .4.-_:ent at the bank. Upon motion by Mr. James, the salary of La.. McCord fixed at c;12,000 for the year 1924. .is Letter dated December 17th, from the Chairman of the Federal Reserve Bank of Atlanta, advising that at the last meeting of the Board of L'irecters (1 12/20/23 Of -2- that bank Lir. L. C. Adelson was mt re-nominated as Deity Governor of the but was unanimously elected manager of its Cuban .;oncy at a salary of y12,000 per annum with an allo7:ance of )4,000 per annum for foreign service. Upon motion, this matter was referred to the Conmlttee on District 1;16. 20port of Committee on Salaries and Expenditures on letter dated December 15th, fram the Chairman of the Federal Reserve Bank of Ltlanta, reeommendinL; approval of the action of the directors of that bank in electinc Mr. J. B. TutvIler as 1,,ssistant Cashier, at a salary of 04200 per annum. 4proved. Report of Co'nraittee on Salaries and Expenditures on salary recommendations, for the year 1924, submitted by the board of directors of the Federal Ileserve Bank of :.ansas City, for both head office and branches. Upon motion, all recommendations of the Committee on Salaries and Expenditures were approved. Upon motion, the salaries of all officers and eml-loyees not covered in the report of the Committee on Salaries and Expenditures were aproved at present figures. Eemorandum dated December 18th, from the Comptroller of the Currency l'ecoMmending approval of the application of The Citi::ens Uational Bank of Natherford, Texas, for permission to reduce its capital stock from :1.50,000 to 0100,000 on the condition that as much of the amount of tho reduction as is Ileeessary shall be applied to taking out of the bank worthless and doubtful acsots which ac3rccated ;22,971.89 and *13,167.76, reopectively, on the date of the last axaminatiens. Approved, 1 • 12/20/23 Lotter dated December 20th, from the Comiitroller of the Currency recommend in; a salary of 06,000 per annum for National Bank Examiner 'rank E. Rasmussen, to be assigned to the second Federal Reserve District. i.pproved. Letter dated December 19th, fram the Comptroller of the Currency, requesting approval of the appointment of hiss Lulce :Iimest as Clerk-counter in the Federal Reserve Issue and Redemption Division, with salary at the rate of ..;1020 per annum, effective December 21, 1923, ApprOVedo Letter dated December 18th, from the Federal Reserve Agent at Chicago, re.:aesting approval of the appointments of Assistant Federal Reserve Agents at the head office and Detroit branch. Upon the understanding that Ni'. Dawes will investigate the situation at the Federal Reserve Bank of Chicago during his forthcoming visit there, action on this matter was deferred. Letter dated December 17th, Cram the Governor of the Federal Reserve Bank of Richmond, advising that the Board of Directors of that bank at its last meetin, subject to the approval of the Board, authorized the introduction in Con ;ress of a joint resolution permitting the construction of a build1k; to cost not in excess of969,000 for the Baltimure bran,Th. Referred to the Committee on Branches. Draft of letter to the Governor of the Federal Reserve Bank of 'annea-oolis in reply to his letter of December 10th, with regard to penalties on 12/20/23 -4- deficiencies in reserves of member banks. • Approved. • Draft of letter to the Chairman of the Federal Reserve Bank of eallinL' attention to the instructions regarding penalty rates for deficiencies in reserve of member banks laid down in Section 16 Of the Board's regulations. Approved. Letter dated December 18th, from the Federal Reserve Agent at Philadelphia, with regard to the failure of "The Federal Reserve Building and Loan .Lssociation of Philadelphia", to change its title. Referred to Cormittee on District vestigation and report. 3 for in- Telegram dated December 19th, from the Federal Reserve Lfent at San Francisco,' advisIng that the WellsFargo Bank and Union Trust Company, - ord on 7:oveMber trranj2ements for the merger of which were apprwed by the 3 14th, has accepted conditions of memberthip and an-;:lted for stock. Noted. 2,t this point, :Ir. Dawes left the meeting. Report of Law Committee, with respect o action taken at the meting On December 18th, in approving the recommendation of :he Cormittee on Salaries and 2apenditures, that the office of Secretary to General Co-masel DC abolished, 'effective Jane 300 1924; the Law Committee presenting a memoran- 4 12/20/23 dun from General Counsel regalAing the services of Ur, C. S. Bradley now holding that position and recommending that Ur. Bradley's salary be reduced to )1000, to take effect July 1, 1924. Er. Hamlin moved approval of the recommendation of the Law Committee. Ur. UAller moved as a substitute for Mr. Hamlin's motion, that the Board arprove the original recommendation of the Committee on Salaries and Exrenditures that the position of Secretary to General Counsel be abolished on Jane 30, 19240 Ur. =nor's substitute motion being put by the chair was carried, the members voting as follows: ILL. Miller, "aye" Ur. James, "aye" Ur. Cunninelam, "aye" Ur. Platt,"no" lir. Hamlin, "no" Governor Crissinger not voting. Letter dated December 17th, signed by the Governor and Chairman of the pederal Reserve Bank of Atlanta, reuesting approval of the appointment °t la'. T. R. Bennett, Superintendent of Banks in Georgia, as manager of the ljember Bank Relations Department of the Federal Reserve Bank of Ltlanta, at 4 Salary of .(:)7500 per annum. Er. Miller moved that the Board approve the arpointment of Mr. Bennett at a salary of (:,6,000 per annum. Ur. 1:Mier's motion being put by the chair was carried, Ur. Hamlin voting "no" and Govener Crissiner not voting. Letter,dated DeceMber 19th, from Lir. A. B. Trowbridge, Consulting rchitect, reouest big approval of an arrangement whereby his salary, which 12/20/23 -6- is paid. jointly by the Board and the Federal Reserve Bank of row Yort Will be reduced, effective .Tanuary 1, 1924, from20,000 to '10,000 per annum, and whereby he will devote but one half of his time to -rtters relating to the Federal Reserve System giving the re-r.inder to the reestL.blishment of his rxivate practice and recommending also that the salirj of Ton2yek, his Assistant, be not changed at2500 per annum. Upon ration by Lir. Miller, the matter of a change in the present basis of compensation of the Consulting .t".rchitect was referred. to the E.:cocutive Comittee with power, that Cormittee having already boon authorized to consider the discontinuance of the Division of Lrchitecture. Lemorc..ndum dated Decemli a. lath, from the Board's 2isca1 raoliclin3 incr 2 - ase in the salary of Lass Jocei-hine ent recom- Lally, clerk in hls office, from ,1660 to ,„;1600 per Lnialarni, Lir. James explained that there would be a reorganization in the office of the Fiscal Agent, offective January 1, 1923, and upon motion by lir. James, the increase suLzested was disapproved. t..-i)licat ion ..1.Thceu,,on, the Governor re-raested action with regard to the . for the establishment at Wichita., Kansas, of a branch of the ,ederal Reserve Bank of Kansas City which was renewed at the hearing on December 18th. Lir. Hamlin moved that the aHlication for a branch Federal Reserve 3ara. at' ,7ichita be approved with the understanding that all expense of maintenance Of such a branch should be borne by the Federal _Reserve Bank of Kansas City. Lir. Film,in's motion being put by the chair was lost, Lir. Hamlin voting "aye" and lovernor Crissinvr not voting. Me matter of advising the a, plicants for this branch of the BT. rd's action was referred to the lover7or with power. it - -7- 12/20/23 Mr. Hamlin mde the following stat ement: "The state of Vansas is a large state and 77ichita is a financial center. In my opinion the prime reason for the Federal Reserve Act was the decentralization of credits and banking power. It is evident that Mchita is losing deposits even to Oklahoma City, not to speak of Eansas City. Personally, I would not worry if every Federal Reserve bank became a con!ral holding bank and all buSiness was done by branches, if such a necessity arose. You will remember that Ur. 4arburg, at the time the Federal Reserve Act was written was inclined toward the establishment of ,about seven Federal Reserve banks with, I think, about sixty branches." Mr. Cunninffhnm stated that he was not in favor of granting the application in view of the fact, according to Governor Bailey's statements, that the service can not be improved except for about fourteen banks, and that the idea that branches should be established in certain Other states is liable to gain ground; stating that he was not prepared to say that branches should be established in every state regardless of the service that can be rendered. Mr. Jams stated thit about the only advantage to be gained by the establishment of the branch would be the oppottunity given banks in. the city of Wichita to adjust their reserves. Thereupon, the election of directors of branch Federal Reserve bariks was considered, and the following appointments were made: PittsburP,5a Cincinnati Baltimore Now Orleans Birminftham Nashville Jacksonville Little flock Memphis Helena Denver Omaha - Charles D. Armstrong and James D. Collery Judson Harmon and John ()make Howard Bruce and 7illiam H. Yratthai P. H. Saunders, A. P. Bush, and F.7.Foote 71. H. Enttig and Oscar 7ells W. H. Hartford and Paul M.. Davis J. C. Cooper and Fulton Saussy C. S. McCain and Moorhead Wright S. B. Ragland and T.K. Riddidk L. IL FOrd and Thomas Marlow Manic) MacKenzie and John livans Carl Gray and J. E. Miller • -8- 12/20/23 Oklahoma City Houston El Paso Los Liv-eles City Salt Lake Spokane Seattle :ortland Thurmond William Mee and 2. Frank Lndrews and fl M. Farrar Turney P. Coles and I. 3. Newton md Henry H. Robinson Lafayette Hanchett and G. G. 7rijit Peter McGregor and G. I. Toevs Charles E. Peabody and Charles E. Clarke Joseph Y. Teal and 'Nathan Straus The matter of election of directors for the Buffalo branch was i,z_ssed over .1)endIng report by the Committee on District .1-2. The =Ater on election of directors for the Detroit branch was passed over pendin, report by Mx. Dawes, Chairman of Committee on Dis,rict -7. The matter of election of directors for the Louisville branch was passed over pending re: ort by :a.. James as to the possibility of arranging with the Federal Roserve Dank of 3t. Louis to appoint :r. 2. 2. awearinTen, at present a Board appointee, thus leaving Mr. George man, formerly appointed I:orton, a business the bank, free for arpointmcnt by the Loard. Memorandum dated December 19th, from qeneral Counsel on the subject, "Ri,f,nt of Board to $z:amine -ar Finance Departments of Federal Reserve banks" this opinion being based upon the request of the Manainc Director of the ,-ar Finance Corporation, to have the Board's Division of Examination undertake the auditing of War Finance Corporation activities, operated and located *in som of the Fedora i Reserve banks. Upon motion, the ':.:aestion of the advisability of undertaking this work was referred to the Law Colainittee, and Hr. Cunninham was reuested to consult with the Committee in the matter. -9 12/20/23 Ilemorandum dated December 15th, from Counsel with regard to the legality of.a trustee of a mutual savings bank serving as Class "B" director of a Federal Reserve bank; this opinion referring to the fact that lar. T. F. Whitmarsh recently elected a Class "B" director of the Pederal Reserve Bank of New York is trustee of the Greenwich Savings Bank of New York City. Mr. Hamlin stated that Governor Strong had advised him that Mr. Whitmardh is to withdraw from the Greenwich Savings Bank and, upon motion by Mr. Hamlin,' Counsel's opinion was ordered filed without action by the Board* The mooting adjourned at 1:05 p.m.
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