The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
538 meeting of the Federal deserve Board was held in the office of the :ederal deserve Board on :ednesday, December 26, 1927 at 11:30 a.m. -2: Vice Governor Platt Lir. Hamlin Z..r. Liner Mr. James Cunningham Mr. .A.dy, Secretary LeClelland, sst. Jecretary 2he minutes of the meetin., of the Federal deserve Board held on December 22nd were read and approved. The Vice Governor reported that in accordance with the action taken at the meeting on December 22nd he and :Ir.. ::511er discussed with ::r. 3rouciiton, Commissioner of the Public Debt, the matter of continuing on the new form of Federal deserve note a reference to the fact that the note is redeemable in 1/ 7)1d and that ;:r. Broughton is of the opinion that it will be practicable to include on the fact'of the new note a brief legend to that effect. Letter dated December 22nd from the .-1.ssistant Secretary of the Federal Reserve Bank of New York and telegram dated December 22nd from the Chairman of the Federal deserve Bank of Lansas City, both advising that the boards of directors at meetings on that date made no changes in the banks' existing schedules of rates of discount and narchase. Without objection, noted with approval. Memorandum dated December 27th from the Secretary, suumittinrs and recommending approval for payment of a statement presented by :.,:r. .i,.. B. T.rowbrida coverin-7 the balance of A00 due him by the Board on account of Services in connection with the erection of the Detroit Branch buildin. Upon motion, the payment in quest ion was authorized. 539 -2- 12/28/27. Letter dated December 20th from the Chairman of the Federal deserve Bank of Dallas, suDmittin:; an amendment to the By-laws of the Houston Branch bringing up to date the list of counties in the present Houston Branch territory which was changed at the time of the establishment of the San Antonio Branch. Upon motion, the amendment was approved. Memorandum from Counsel dated December 27th, with reference to letter dated December 20th from Messrs. Shearman and Sterling, attorneys for the National City Bank of New York, submitting an application by that bank for permission to establish a branch in Mukden, Manchuria, China; Counsel stating that the application is in proper form and that he knows of no legal reason why it should not be approved. Upon motion, the followin9: was adopted and ordered spread upon the minutes; Mr. Cunningham voting "m5": "THE NATIONAL CITY BANK Oi 1iE3 YUK, having on or about December 22ndi 1927, filed an application with this Board for the purpose of obtaining authority to establish a- Branch in Nukden, Manchuria, CHINA, and the said Application having been considered; and it agp.3aring that the said Application is properly made under the laws of the United States of America and should be granted, Now, tharefore, it is OdDED, that the said Application be and it hereby is approved, and that the said Bank be and it hereby is authorized. to establish a Branch in hUkden, Manchuria, OHIKiL." aeport of Committee on - alaries and Expenditures on letter dated December 22nd from the Deputy Governor of the Federal eserve Bank of De* York, transmitting list of employees' for whom the directors of that bank have approved leave of absence, with pay, on account of illness durin7, the months of October and November, where the total of such absence since 540 -3- 12/28/27 January 1, 1927 has exceeded thirty days; the Bo2rd's )ommittee recommendin- approval of the salary payments involved. Lpproved. deport of Committee on Salaries and Expenditures on letter dated December 19th from the Chairman of the Federal Reserve Bank of Dallas, requesting approval of the action of the board of directors of that bank in voting to extend from December 15th to December 31st, with full pay, leave of absence on account of illness previously granted Miss Marguerite Ferguson, an employee of the Accounting Department; the Board's Committee recommending approval of the salary payment involved. Approved. Letter dated December 17th from the Chairman of the .iederal Reserve Bank of =Jan Francisco, submitting for the approval of the Board an amendment to the By-laws of the Branches of that bank made necessary by the recent reduction in the size of the branch directorates from seven to five members. Approved. Letter dated December 17th from the Federal Reserve Agent at Atlanta, requesting approval of the desimation of Messrs. E. P. Paris and J. J. Byrne as Examiners for the year 1926 and the designation as 3pecial Examiners of the following officers of the bank: '3ard Albertson .Creed Taylor d. S. Johns J. W. Honour H. .P. Conniff 7. K. Bowman J. A. walker Approved. _ - ..ssistant 2edera1 Heserve Agent Deputy -_Awernor General Auditor Lssistant Auditor Assistant Cashier Assistant Cashier Assistant Langer, Lew Orleans Branch 541 -4- 12/28/27 Letter dated December 15th from the Federal .teserve Agent at San Francisco, requesting approval of the redesi7nation of the following Examiners for the. year 1928: G. Sargent, Chief Examiner _,. S. Jernegan, i.sst. Chief Examiner H. A. Sonne, Examiner J. P. Read, Examiner H. D. Swengel, Examiner John F. Prahl, Examiner C. R. Huff, Examiner E. 3. McBride, Examiner G. A. Snow, Examiner San Francisco San Francisco San Francisco San Francisco Los Angeles Los Angeles Salt Lake City Spokane Portland Approved. Matter approved on initials on )ecember 27th, namely, teler7ram dated December 10th from the fssistant 'iashier of the Federal deserve Bank of Minneapolis, requesting approval of a change from three clays to two days in transit time from Minneapolis to Baltimore. Formally approved. Taphic : Matter approved on initials on December 23rd, namely, teler reply to telegram dated December 22nd from the Federal Reserve Agent at. San Francisco, with reference to a promsed consolidation of the United Bank and Trust Company of San Franciscc, a member bank, with the Banca Popolare Fugazi, a non-member bank of San Francisco; the reply stating that if the corporate existence of the constituent banks is continued in the merged bank the latter may retain and operate all branches established and in operation on February 25, 1927, that the head office is not technically a branch out may be converted into a branch if it is within the corporate limits of the same city as the head office of the merged bank, and that where the non-member bank merges with the member bank an auplication for membership must be filed by or on behalf of the merred bank. 542 -5- 12/28/27 Upon motion, the telegraphic reply was formally approved. Latter approved on hiitials on December 23rd, namely, letter dated December 23rd from the Comptroller of the Currency recommending approval of increases effective January 1, 1928 in the salaries of employees of the Federal Heserve Issue and aedemption Division, as follows: Lrs. -. 1. Burchard L. Cranmer :1rs. hrs. Dora I. Fox :Irs. . C. Poston - j1080 1440 1440 1500 to .„;1500 to 1500 to 1500 to 1560 Formally approved. Latter approved on initials on December 23rd, namely, memorandum witeu December 15th from the ..ctinF7 Jomptroller of the jurrency, reco:rnmending approval of an application of the Haskell National Bank, Haskell, Okla. for permission to reduce its capital from 4;50,000 to .25,000 on condition that no money be returned to the shareholders, but that the doubtful amount of the reduction be credited to undivided profits, that property assets in the amount of 020,000 be charged off but remain the of the bank and that .5,000 be transferred to surplus. Formally approved. um l_atter approved on initials on December 23rd, namely, memorand Act from Counsel dated December 23rd, recommending approval of Clayton L. Blaffer, applications of Messrs. James A. Baker, James A. Baker, Jr., d. Ennis Cargill, John L. Dorrance, L.. M. Graves, F. A. Heitmann, and Edwin B. 1:ational Bank and the Guardian Parker, involving the Jouth ?ex.as Jommercial olicLtions of ::.essrs. . . P. ?rust Jompany, both of Houston, Texas and the ap- 543 -6- 12/28/27 Farish and H. C. Schumacher, involving the Union National Bank and the Guardian Trust Company, both of Houston, Texas. Upon motion, the applications referred to above were formally approved. deport of Committee on Examinations on letter dated December 23rd, from the Federal deserve Agent at Dallas, recommending that the Harrisburg ilational Bank, Harrisburg, Texas, a suburb which has recently been merged into the city of Houston, Texas, be granted the privilege of carrying reserves of 7, against demand deposits, instead of 10,,; the Board's Committee recommending approval. Approved. Letter dated December 22nd: from the Secretary of the Federal deserve Bank of Cleveland, requesting approval of a salary of :4,000 per num, effective January 1, 1928,.forMr. Paul G. Looney,, employed for the purpose of managing the bank's cafeteria which is to be reopened on that date. Approved. 2he Secretary advised the Board of the receint of the stenographic report of the hearings held beginning December 12th before the board of airectors o: the Zederal deserve Bank of Dallas in connection with complaints made by certain member bankers in the 11th District against the • policies and administration of the Dallas bank. He stated that the hearings were adjourned until January 6th, and in this connection presented a telegram dated December 27th from the Chairman of the Federal deserve Bank of Dallas, requestinF: that the Board authorize an additional expenditure by that bank sufficient to absorb expenses incident to the adjourned meeting. 544 -7- 12/26/27 Upon motion, it was voted to approve the expenditure referred to with the understanding that the amount will not be in excess of that authorized in the ori:7inal hearinr-:. Memorandum dated December 27th from the Jhief of the Division of Bank banks Operations, submitting statements of exoenditures by iederal deserve r and for educational and welfare work, etc. lurinf7 the month of lovembe for the eleven month period ending November 30th. Ordered circulated. The 3ecretary then presented letters from the various Federal Reserve ,gents, requesting approval of the designation of Assistant federal deserve ....r,eltts to serve during the year 1928: Upon motion, the proposed designations were approved as follows: Boston Jharles F. Gettemy Ilew York iandolph Burgess Herbert S. Downs H. Dillistin , Post ,rthur *-1. Ernest C4 Hill J. Prank 21ehiuss (LctinE:) Jlevoland W. H. Fletcher B. Anderson A.chmond j. G. Fry L. 3hepherd (ctin) ,:ard ;abertson Chicago 3t. Louis H. ,hite ,ilarence L. L-itewart 3. 7ion Panin (.:,cting) ,urtis L. Losher F. L. ')ailoy Lansas Jity 545 12/28/27 Dallas Charles C. Hall 3. J. Evans iari Francisco S. G. Sargent ;ullan Sproul Upon motion, it was also voted to approve the redesignation of Mr. Glenn Kirk to act for the Federal . Reserve Agent at Chicago in the receipt and delivery Of Federal Reserve notes and in the receipt and delivery of other currency and coin. The Vice Governor referred to a request received over the telephone from the Chairman of the board of directors of the Federal Reserve Bank ent of of New York that the Board waive, for the y_ar 1928 the requirem the the by-laws of the puffalo Branch that the director appointed by as ChairBoard whose term expires with the current year shall be selected man of the Branch Directorate. Upon motion, it was voted to approve the request. Secretary The Vice Governor then presented a letter addressed to the the ,merican of the Treasury by a student in the ::_ilwaukee Chanter of Institute of Baning requesting. information with respect to the recent reduction in the discount rate of the Federal Reserve Bank of Chicago. Referred to the Vice Governor with power. Memorandup dated December 27th from Counsel, with reference to letter attorneys aated December 15th from 1:_essrs. Stout, .Lose, :ells and ::_artin, filed by of Omaha, Nebraska, requestiK- a certified cony of the document ce of the the Corn Exchange National Bank of Omaha signifying its acceitan Federal Reserve Act and its desire to became a member of the Federal the Board's Reserve System; Counsel's memorandu:.: stating that it has been by court order. The policy to decline requests of this kind except when made 546 -9- 12/28/27 Vice Governor stated that, the document in question is on file and that he sees no reason for refusint to comply with the request. Upon motion, the matter was referred. to -ne Vice Governor with power. 2.EP0“' OF STI.:1".DII;G C=I2TEE3: Recohlmending changes in stock at Federal aeserve banks as set forth in the Auxiliary Linute'Book of this date. aecommendations'approved. ing action on applications for fiduciary aecammend liated, December 20th, set forth .in the .luxiliary'Linute Book as powers 28th, of this date. Recommendations approved. ng approval of the application of Lr. ecommendi Dated, December 23rd, .1nil A. Stake for permission to serve at the same time as officer of the First National Balk, Chicago, Ill. as director and officer of the First 2rust Joint Stock Land Bank, Chicago, Ill, and as director and officer of the First Trust Joint 3tock Laud Dated, Jecember 23rd, 27th, 28th, Dated, December 23rd, Bank, Dallas, Tex. Recommendation approved. ecommending approval of the application Howard F. Barker for permission to serve same time as director of the Hih Street Providence, a. I. and as director of the I. Bank of Commerce, Providence, 2.ecommendation approved. of :Ir. at the Bank, National ?he meetinr; adjourned at 12:15 Secretary. Vice-Governor.
@FedFRASER