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A special meeting of the Federal Reserve Board was held in the office of the Federal Reserve B - oard on Monday, December 22, 1924 at 10:40 a.m. PRESENT: Vice Governor Platt Mr. Hamlin Mr. Miller Mr. James Mr. Cunningham Mr. Noell, Assistant Secretary The minutes of the meetings of the Federal Reserve Board held on December 17th were read and approved. Upon motion by Mr. James, the reading of the minutes of the meeting held on December 18th was dispensed with. The Vice Governor then presented bond of Mr. Allan Sproul, ;,ssistant Federal Reserve Agent at San Francisco in the sum of c;50,000, Approved. Memorandum dated December 17th from the Director of the Division of Research and Statistics, recommending the appointment of Mr. Marcus Nadler, t° fill the vacancy in the Division caused by the expiration of the temporary aPpointment of Mr. Hans A. Widenmann, at a salary of „,2800 per annum, effective January 1, 1925. Approved. Memorandum dated December 17th from the Director of the Division of Research and Statistics, transmitting and recommending acceptande of the ' l esignation of Mr. Lawrence B. Mann, research assistant, effective December 31, l9L4. Accepted. Memorandum dated December 17th from the Director of the Division of liaaearch and Statistics, recommending the appointment of Mrs. May M. Reed -2- 12/22/24 S statistical clerk at a salary of ;4700 per annum, effective January 1, 1925, Approved. ihe Vice Governor then presented draft of a proposed statement for the press, with regard to the Board's receipt of the report of the Imerican Bankers' .Association Committee on Collection of Non-Cash Items by Federal Reserve Banks, and advising that the question of the revision of its regulations so as to prohibit the handling of non-cash items by Federal Reserve banks is now under consideration by the Board. Upon motion by Mr. Hamlin, the proposed press statement was approved. Letter dated December 15th from the Chairman of the Federal Reserve Bank of Richmond, advising of appointments by the directors of that bank to the directorate of its Baltimore branch. Noted. Letter dated December 17th from the Chairman of the Federal Reserve Bank of St. Louis, advising of appointments by the directors of that bank to the directorates of its Louisville, Memphis and Little Rock Branches. Noted. Mr. Miller then submitted a letter dated December 12th, addressed to the Board by Mr. James Simpson, Deputy Chairman of the Federal Reserve Bank Of Chicago, with regard to the action of the Board in not reappointing Mr. razes Inglis to the diredDrate of the Detroit Branch without notifying ' III% Inglis of the fact that he would not be reappointed. After discussion, upon motion by Mr. Miller, it was voted to refer the above letter to the Governor for re- tSoki 12/22/24 -3- ply and for the preparation of a letter to rx. Inglis, expressing appreciation for his services and regret that suitable acknowledgment was overlooked. Letters dated November 29th and December 15th from the Chairman of the Federal Reserve Bank of Atlanta, with regard to amendments to the by-laws of the branches of that bank made necessary by the Board's regulations governing 'the aPpointment of branch directors; as well as an amendment to the by-laws °f the New Orleans Branch providing that the regular meeting of that Branch beard be held on the Wednesday following the first Friday of each month. Upon motion, the amendments submitted were approved. Letter dated December 12th from the Chairman of the Federal Reserve 4111t Of Row York, submitting the by-laws of the Buffalo Branch amended to e°11fOrm to the Board's regulations governing the appointment of branch directors to make certain other minor changes. Upon motion, the amended by-laws were approved. Letter dated December 15th from the Chairman of the Federal Reserve Bent, °J. Richmond, enclosing by-laws of the Baltimore branch of that Bank, amended to, '°11form to the Board's regulations governing the appointment of branch director . r° End to provide for one monthly meeting of the directors instead of two. Upon motion, the amended by-laws were approved. Letter dated December 15th from the Federal Reserve Agent at San Francisco, th. "ftitting and recommending approval of the application of the Pacific Southwest and Savings Bank to change the location of its branch at 85 'East Colorado 8tre et, Pasadena, to the southeast corner of 3ast Colorado Street and ilarengo 12/22A4 —4.- Avenue where c new building has been erected. Approved.. Letter dated December 15th from the Federal Reserve /gent at San Francisco, transmitting and recommending approval of the application of the 13aCifie Southwest Trust and Savings Bank for permission, to consolidate its two Fresno branches, located at the corner of Mariposa Street and Broadway, " ld at the corner of Mariposa and "J" Streets, and to move the consolidated bl'aneh to a new building at the southeast corner of Fulton and Mariposa Streets. Approved. Letter dated December 20th from the Assistant Federal Reserve Igent at Cleveland, advising that the Guardian Savings and Trust Company of Cleveland on December 10th opened the branch at the intersection of Coventry Pow. and. Lancashire Boulevard, approved by the Board on April 8, 1924. Not ed. Letter dated December 17th from the Federal Reserve Arent at Dallas, 1;ecille3ting authority to employ Mr. Raymond Gee to succeed Mr. J. R. Nail, in c°1121ection with the collection of paper of failed banks, with salary at the tate Of 47500 per annum; together with copy of telegraphic reply made on DeceMber 20th, on the initials of members of the Board, stating that the Board has Lb no objection to the bank's nerotiating with Mr. Gee on a mximum salary basis °I% °500 per annum for the year 1925, with the understanding that his continuance 14 the bank's employ at any salary figure up to :.7500 which may be agreed upon 11111 be reviewed and determined in the 1.5.:ht of circumstances at the end of the years 0,n t‘vdti.iif 12/22/24 -5- Upon motion, the telegraphic reply above referred to was formally approved. Report of Committee on 72xaminations on the application of the Irkansas Bank and Trust Company of Newport, Irkansas, for permission to reduce its capital stock from 0200,000 to ?100,000, the capital thus released to be used to orga nize another corporation to take over real estate and some of the 810;7 and doubtful paper of the bank; the Committee recommending approval in view of statements contained in a letter dated December 15th from the Federal Reserve ',gent at St. Louis that it is not the purpose to permit the bank to reduce its capital to t7,100,000 and thereby reduce the stockholders' liability to that amount, unless the stockholders contribute eno101 additional cash to Put the bank in satisfactory shape. Upon motion, the reduction in the capital stock was approved. Letter dated December 16th from the President of the ircadia National 8arlk of Newark, New York, with regard to the question of increasing time de1/°8its in national banks and the desirability of a revision in reserves on 81101 deposits. Upon motion, the above letter was referred to the Special Committee on Reserves appointed at the recent joint conference of Governors and Federal Reserve /cents. Letter dated December 18th from the Governor of the Federal Reserve 86-nk of New York, submitting certain comments and suggestions with regard to the so-called McFadden Bill. Upon motion, a copy of Governor Strong's letter was ordered sent to the Comptroller of the Currency and the original referred to the Board's Counsel. 12/22/4 -6ifter discussion, Mr. lailer moved that the McFadden bill be referred to the Law Co!nmittee for the preparation of a report that may be used as a basis for consideration of the bill by the Board, so thE.t it may be prepared in the event its opinion of the contemplated legislation is requested. Mr. Miller's motion being put by the Chair was carried, Messrs. James and Cunningham voting "no". Report of Committee on Examinations dated December 17th, submitting draft or n letter to the Governor of the Federal Reserve 'bank of New York, replyto nis connunications of December 8th re:-ardin=: items called to his t,t tention by the Board's Examiner at *,he time of the recent examin:tion of the t)nk. Upon motion, the proposed letter was approved. Llemorandum dated December 19th frpm the Board's General Counsel, submit"413 rmterial for publication in the January issue of the Federal Reserve , r.pro ved Report of Committee on acaminatLons on letter dated December 8th from the F ederal Reserve iGent at $a n Francisco, transmitting a request from the l'tesident of the liraoricEn Bank of Ban Francisco that the Board reconsider its l'ecent action in disapproving the application of that bank for permission to est`'blish three de novo branches in Oakland; Mr. Platt reporting that there eetris to be no good reason for refusing to grant this applic: tion and Mt. km°s recommending that the liestion should not be reopened. ifter discus.3ion, Mr. James moved that consideration of this matter be deferred for a full meet in,: of the Board. Carri ed. t , 12/22/24 -7., Report of Committee on Examinations with regard to the matter ordered Circulated at the meeting on November 19th, namely, correspondence with the Chairmen of the Federal Reserve banks of Chicago and Minneapolis, with regard to delay in receiving copies of reports of examinations of Michigan state mamber banks; the Committee reporting that both Federal Reserve banks are "cepting Michir7an reports, though protesting at the delay, and recommending that the matter be left in their hands until such time (s they think it necosee27 to take action. Upon motion, the recommendation of the Committee was approved, Mr. Cunningham voting "no". Report of Committee on Discount and Open Market Policy with regard to action of the recent Federal Reserve Yo'ents' Conference on the question of Mlether the time has come for Federal Reserve banks to consider investing some °t their funds in foreign bills; the Committee reporting that no action of the 8aard is necessary in view of the fact that the Board on November 12th approved he recommendation of the Governors' Conference, contained in the report of its Ol)erl M * arket Committee, "that action on the recommendation of the Ldvisory Council relative to th,, purchase of foreign bills be deferred until such time as we ra4 be in position to know more about the development of conditions relating to tclreign exchanges; and that the System mice no purchcses of such bills /14til that time." Upon Motion by Mr. Miller, the Board affirmed its action of November 12th, approving the recommendation of the Governors' Conference. Report of Law Committee on letter dated December 8th from the Federal . 've Agent at Richmond, reporting that a recent examination of the Orangeburg 29( 3 12/22/24 -8- 1141tiona1 Bank, Orangeburg, S. C. discloses that the bank is violating the National Dank Act in that it is exercising fiduciary powers without the permission of the Ped.ral Reserve Board; the Law Committee submitting a memorandum from Counsel, dated December 18th, stating that the matter comes within the province of the COIPtroller of the Currency rather than the Federal Reserve Board and recommendthat the above letter be referred to the Comptroller for such action as he 14184r See fit. Upon motion, the recommendation of Counsel, concurred in by the Lew Committee,was approved. Report of Committee on Examinations on letter dated December 1st from tIle Federal Reserve Agent at San Francisco, requesting authority to cancel 493itrarily 126 shares of stock standing in the name of D. 7. Standrod and ettlilpenY, Blackfoot, Idaho, a member state bank -which closed on November 30, 1923, and to apply the proceeds against the member bank's indebtedness to the l'edel'al Reserve bank;. the Committee recommending approval of the request. Upon motion by lir. Hamlin, it was voted to refer the matter to the Board's Counsel for his opinion as to the legality of the procedure suggested. Letter dated December 19th from the Vice President of the Chase National 86,4k of New York, enclosing application for authority to establish branches in 14341 Panama and Cristobel and stating that the application is in connection It h f he taking over of active branches of the American Foreign Banking Corporation 4eat d e- 4 in those cities. Upon motion, the following was ordered spread upon the minutes: "The Chase National Bank of New York, having on or about December 19, 1924, filed an application with this Board for the purpose of obtaining authority to establish Branches in the City of 12/22/24 "Havana, Republic of Cuba, the City of Panama, Republic of Panama, and the City of Cristobal, Canal Zone, Isthmus of Panama, and the said application having been considered; and it appearing that the said application is properly made under the laws of the United States of America and should be granted, Now, therefore, it is ORDEITLD, that the said application be and it hereby is approved, and that the said Bank be and it hereby is authorized to establish Branches in the City of Havana, Republic of Cuba, the City of Panama, Republic of Panama, and the City of Cristobal, Canal Zone, Isthmus of Panama." Mr. James then referred to the action of the Board on September 22nd, contirmed at the meeting on October 2nd, in votinc to defer consideration of the 131'Pposa1 of the Federal Reserve Bank of Boston to appropriate 4;2500 for the wOrk Of the Bank's Federal Reserve Society pending discussion of the advisability 414 legality of such contributions by Federal Reserve banks at the recent conference of Governors and Federal Reserve Agents. Upon motion, by Lr. James, it was voted to approve of the Federal Reserve Bank of Boston appropriating c2500 for the work of its Federal leserve Society. 02 JaNDIDG C0r.TI22ES: Dat ed, December 20th, 22nd, bated, December 22nd, Piat ed, December 22nd, 22nd, 22nd, Recommending changes in stock at Federal Reserve Banks, as set forth in the Auxiliary Minute Book of this date. Approved. Recommending action on application for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Ordered held. 1:ecommending action on applications for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Approved. rio 12/22A4 IZI9lag I -10— OF STAITDINI; C0111122:23: Cont'd Dated, December 22nd, Recommending approval of the applict ion of Mr. A. E. President and Director Potter to serve at the sa.r.e time as of the Commerce Union of the Broadway National Bank and Bank, both of Nashville, Tenn, Approved. Dated, December 22nd, Recommending approval of the application of lir. Edward time as director of the Trotter, Jr., to serve at the same ent and Director Broadway National Bank and as Vice Presid Nashville, 2enn. of the Commerce Union Bank, both of Approved. n Dated, December 22nd, Recommending approval of the application of Mr. Sherna r office and director Armstrong to serve at the same time as First Utah, Lake City, of the National Copper Bank, 6alt as director and officer and Utah City, Park National Bank, . of the Sirst National Bank, Emmett, Idaho Approved. meet again at At 12:40 p.m. the Board adjourned to 10:00 a.m. 4141nved: Vice-Governor.
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