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c cs. A meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Tuesday, December 30, 1924 at 11:15 a.m. PRES:NT: Governor Crissinger Er. Platt Mr. Hamlin Mr. Miller "Or. James Mr. Cunningham Mr. LIcintosh Mr. Eddy, Secretary The minutes of the meeting of the Federal Reserve Board held on December 22nd were read and approved as mended. 2he reading of the minutes of the Meetings of the Federal Reserve Board held on December 18th and December 23rd was dispensed with. 2elet747ram dated December 22nd from the Deputy Governer of the Federal Reserve Bank of New York, advising of the bank's effective buying rates on bills on that date, as follows: thirty-day maturities, 2 3/4%; sixty-day Maturities, 2 7/8 ; ninety-day maturities, 3; four months, 3 1/11';:); five and six months, 3 1/2i;; sales contract rate, 3/J. Noted. Letter dated December 22nd from the Issistant Federal Reserve Agent at Richmond, advising that the Ltlantic Exchange Bank and Trust Company of Baltimore on December 19th opened a branch at 467 North Gay by Street, approved the Board on August 14, 1924. Noted. Letter dated December 24th from the Secretary of the Federal Reserve Bank of Chicago, advising of the election of Mr. Frank 0. Wetmore, President Of the First National Bank of Chicago, as member of the Federal Ldvisory Council to rspresent the 7th District during the year 1925, and advising further of 5104,4 3 0 14/30/24 that bank's appointees to the directorate of its Detroit branch effective January 1, 1925 and the names of officers elected to serve at the head office and branch during the year. Noted. Letter dated Decem)er 18th from the Chairman of the Federal Reserve Bank of San Francisco, advising of that bank's appointees to the directorates Of its branches, effective January 1, 1925. Noted. Report of Committee on ilxaminations on letter dated December 18th, from the Federal Reserve Agent at San Francisco, transmitting and recommending approval of the application of the Pacific Southwest 2rUst and Savings Bank of Los Angeles for permission to close its branch at 131 East Seaside Boulevard, Long Beach, and to reopen it at a later date at 7th Street and Cherry Avenue, Long Beach, when a new building to be constructed is completed; the Committee stating that it sees no objection to the temporary closing and removal of the Branch. Approved. Telegram dated December 22nd from the Federal Reserve Agent at St. Louis, recommending approval of the application of the Fidelity Bank and Trust Company of Memphis, for permission to Lake over the Southern National Bank of Memphis; together with telegraphic reply made on December 22nd, on the initials of members of the Board, advising of the Board's approval of the application. Upon notion, the application was formally approved. e:IF04-4r) t3 -3- 12/30/24 Letter dated December 23rd from the Chairman of the Federal Reserve a Bank of ttlanta, suggesting January 2, 1925 as the date for the opening of Special election of a Class "A" director of the bank to fill the unexpired term of Mr. Oscar Newton, who resigned to accept appointment as a Class'C" telegraphic director and outlining the proposed procedure; together with reply made under date of December 26th, on the initials of members of the Board, advising that the procedure outlined in his letter is satisfactory to the Board. Upon motion, the telegraphic reply above referred to was formally approved. Telegram dated December 23rd from the Chairman of the Federal Reserve Bank of Kansas City, inquiring whether Federal Reserve banks in shipping shipments standard silver dollars are permitted to absorb charges on outgoing to non-member banks as well as to member banks; together with copy of telegraphic reply made on December 23rd, on the initials of members of the Board, advising it is not contemplated that the Federal Reserve banks will make any Change in existing regulations and practices in currency and coin shipments to and from non-member banks. Upon motion, the telegraphic reply was formally approved. Memorandum dated December 23rd from the Board's Fiscal Agent, submitmonths of 1925 tine an estimate of the Board's expenses for the first six 8MO1nting to 092,000, and advising that his estimated unencumbered balance on December 31, 1924 will be c'?20,000, necessitating an assessment on the Federal Reserve banks of ,:072,000 or approximately one hundred fourteen thousandths of 1 per cent of the estimated paid-in capital and surplus of the banks as of December 31, 1924. -4- 12/30/24 Upon motion, the following resolution was unanimously adopted: "Whereas, under Section 10 of the act approved December 23, 1913, and known as the Federal Reserve let, the Federal Reserve Board is empowered to levy semi-annually upon the Federal reserve banks in proportion to their capital stock and surplus an assessment sufficient to pay its estimated expenses, including the salaries of its members, assistants, attorneys, experts and employees for the half-year succeeding the levying of such assessment, together with any deficit carried forward from the preceding half-year; and "Whereas it appears from estimates submitted and considered that it is necessary that a fund equal to one hundred fourteen thousandths of one per cent of the total paid-in capital stock and surplus of the Federal reserve banks be created for the purpose hereinbefore described, exclusive of the cost of engraving and printing of Federal reserve notes; Now, therefore, "Be it resolved, Mat pursuant to the authority vested in it by law, the Federal Reserve Board hereby levies an assessment upon the several Federal reserve banks of an amount equal to one hundred fourteen thousandths of one per cent of the total paid-in capital and surplus of such banks as of December 31, 1924, and the Fiscal Lgent of the Board is hereby authorized to collect from said banks such assessment and execute, in the name of the Board, receipts for payments made. Such assessments will be collected in two installments of onehalf each; the first installment to be paid on January 1, 1925, and the second half on 'larch 1, 1925." Letters dated Decnnber 12th, 16th and 18th from the Chairman of the Federal Reserve Bank of San Francisco, submitting amendments to the by-laws of the branches of that bank made necessary by the Board's regulations governing the apPcinttent of Branch Bank directors and providing for several other minor modifications; together with telegram sent on December 24th members on the initials of the of the Board, advising of the Board's approval of the amended By-laws. Upon motion, the By-laws as amended were formally approved. Memorandum dated December 22nd from Counsel, with regard to letter dated December 18th from the Vice President of the Atlantic National Bank of Boston, 4 1, 111 1, t) -5_ 12/30/24 R. Haines, a director of that bank, requesting that the Board permit Mr. Samuel Corporation; to serve at the same time as a director of the Ltlantic National is required in this case and that Counsel st4ting that no formal application on behalf of Mr. Haines should not there is no legal reason why the application be granted. authority Upon motion, it was voted to grant the requested. or of the Federal Reserve Telegram dated December 29th from the Govern of December 23rd on the Bank of Minneapolis, referring to the Board's action authority to make a depreciation closing of books of that bank and requesting the cost of which totaled charge against equipment in the now building, reply, stating that inasmuch 016,697.28; together with draft of telegraphic operation one year, as the heating equipment in the new building has been in exceeding 113 the bank is authorized to set up a reserve on such equipment not Of reserves on other machinery and cost or $12,814.73 but that the setting up of equipment should be deferred until next year. ed. Upon motion, the proposed telegram was approv on the matter referred to Memorandum dated December 23rd from Counsel, l Reserve him at the meetinc: on December 22nd, namely, request of the Federa Agent at of Federal Reserve bank an Francisco for approval of the cancellation stock standing in the name of D. 13tandrod and Company, Bankers, of Blackfoot, the application of Idaho, a member bank which closed on November 30th, 1923, and Federal Leserve bank; Counsel the proceeds against the bank's indebtedness to the accordance with the Federal stating that the procedure suggested is entirely in no legal reason why it Reserve Let and the Board's regulations and there is should not be done. -6- 12/30/24 Upon motion it was voted to approve the cancellation of stock as suggested by the lederal Reserve Agent at San Francisco. Letter dated December 24th from the Deputy Governor of the Federal Reserve Bank of New York, requesting nuthority to =ploy- Mr. John Noble as foremanPainter, at a salary of 050 per week, vice Mr. H. Dunne whose enployment at the same figure was approved by the Board on October 2, 1924. Approved. Letter dated December 26th from the Chairman of the Federal Reserve Bank of Kansas City, requesting approval of the action of the Executive Conr llittee of that bank in voting to grant Mr. C. K. Boardman, issistant Federal Reserve Agent, leave of absence with full pay until January 21, 1925. Approved. Memorandum dated Decetber 27th, approved by the Secretary, requesting that Miss Josephine E. Lally, clerk in the office of the Fiscal Agent, be granted leave of absence, in excess of the regular allowance, from December 18th to and including December 31, 1924. Approved. Report of Law Committee recommending approval of a fee for Randolph and hrker, Counsel for the Federal Reserve Bank of Atlanta of c:,3500 per annum 1314s an allowance of c,1500 per annum to cover the services of a stenographer. Approved. Report of Law Committee recommending approval of a fee of 05,000 per 44.4 41441 during the year 1925 for judge Andreas Ueland, Counsel of the Federal Reserve Bank of Minneapolis, plus nn allowance of :,4,000 per annum for office exPenses and a fee of .;;',3600 for 1.1r. T. B. Weir, Counsel of the Helena Branch, 671I-4-4f! -7- 12/30/24 plus an allowance of 2400 per annum for office expenses. Er. Hamlin moved approval of a fee of ç5,000 for Judge Ueland, plus an allowance of ;,54,000 for office expenses; with the understanding that the allowance of ?4,000 will be reconsidered when the Federal Reserve Bank of Minneapolis has moved into its new building. Carried, Er. Mill voting "no". Mr. Hamlin then moved approval of a salary of c,t3600 per annum for Er. ':;eir plus an allowance of 2400 per annum :or office expenses. Carried, Er. Miller voting "no". Report of Committee on Salaries, Expenditures and Efficiency on letter dated December 22nd from the Governor of the Federal Reserve Bank of Kansas City, reluesting approval of a budcet of 1.0,000 for welfare and educational work at the Federal Reserve Bank of Kansas City during 1925; the Board's Committee reporting that in its o'inion the amount is excessive and items of F2500 each for "Educttion" and "Recreation" should be reduced by not less than 50%. Upon motion, the recommendations of the Committee were approved. Memorandum dated December 29th from the Committee on Salaries, ExPenditures and Efficiency, submitting a. list of present salaries of the officers of the Board and stating that prior to submission to the Board of budgets covering expenditures necessary to operate the several divisions of the Board's organization during the year 1925, it will be in order for the Board to fix the salaries to be paid to the members of its official staff during the year. 2he Board then went into Executive session. 12/30/24 _8- At the conclusion of the Executive session, the Secretary re-entered the meeting and was directed by the Gover:or to include in the minutes the following memoranda of action taken during the Executive session: Upon motion by Mr. James, seconded by Er. Hamlin, it was voted to fix the salary of Mr. Walter L. Eddy, Secretary, at .11,000 for the year 1925, Mr. Miller voting "no". Upon motion by Mr. James, seconded by Er. Hamlin, it was voted to fix the salary of Mr. J. C. roell, Assistant Secretary, at ;;6,000 for the year 1925. Upon motion by Mr. James, seconded by Mr. Hamlin, it was voted to fix the salary of Er. Walter Wyatt, General Counsel, at 10,000 for the year 1925. Upon motion by Mr. James, seconded by Er. Hamlin, it was voted to fix the salary of Mr. William M. Imlay, Fiscal Agent, at 3455O for the year 1925. Upon motion by Mr. James, seconded by Mr. Hamlin, it was voted to fix the salary of Mr. Walter W. Stewart, Director of the Division of Research and Statistics, at ;11,000 for the year 1925, Mr. Miller "not voting". Upon motion by Mr. James, seconded by Er. Hamlin, it was voted to fix the salary of Er. E. A. Goldonweiser, Statistician, at .;)6500 for the year 1925, Er. McIntosh "not voting". Upon motion by Mr. James, seconded by Mr. Hamlin, it was voted to fix the salary of Mr. E. L. Smead, Chief of the Division of Bank Operations, at c£3000 for the year 1925. Upon motion by Er. James, seconded by Mr. McIntosh, it was voted to fix the salary of Mr. James F. Herson, Chief Examiner, at 0.3,000 for the year 1925, Mr. Miller voting "no". Mr. Miller then submitted the following resolutions: "Whereas the following resolution was voted by the Board et its meeting December 23rd: 'That the Board send back the official salary list Reserve Bank of Richmond, with the comments Federal the of that the bark is over-manned and over-officered, Committee of the and that the official salary list will have to be adjusted before it is approved by the Board.' wtJ -9- 12/30/24 Whereas, resolutions of similar tenor were voted by the Board with regard to the Federal Reserve Banks of Philadelphia, Chicago and St. Louis; Whereas, the aforesaid resolutions were adopted by the Board upon recommendation of its Committee on Salaries, Expenditures and Efficiency; and Whereas, the four banks referred to in said resolutions, through such representatives as they may appoint to confer with the Federal Reserve Board with respect to the adjustment of their respective official salary lists, should have the benefit of the detailed criticisms, comments and suggestions of the Board's Committee on Salaries, Expenditures and Efficiency; and Mereas, no official salaries can be paid in any of the aforesaid banks in the year 1925 until such peyments have been approved by the Federal Reserve Board; Therefore, be it resolved that the Committee on Salaries, Expenditures and Efficiency be instructed to meet representatives of any of the aforesaid banks for the purpose of conferring and working out a solution of the adjustments referred to in the aforesaid resolutions; and Be it further resolved that the Committee not later than January 15th, submit to the Board an offitial salary list for each of the above named banks which it recommends for approval by the Board." lir. Cunningham moved that the proposed resolutions be amended by striking out the entire preamble. Carried, Messrs. Crissinger and Miller voting "no". Mr. Hamlin then moved that the resolutions, ts amended, be adopted with farther amendment so ES to read as follows: "Be it resolved that the Committee on Salaries, Expenditures and Efficiency be instructed to meet representatives of any of the aforesaid banks for the purpose of conferring and working out a solution of the adjustments referred to in the aforesaid resolutions; and Be it further resolved that the Committee submit a report to the Board on some date prior to January 15th." Carried, Messrs. James and Cunnin'tam voting Memorandum dated December 29th from the Division of Examinations, with .regard to letter dated December 24th from the Federal Reserve Agent at Dallas enclosing copy of a resolution of the directors of the Coleman State Bank of J -10- 12/30/24 Coleman, Okla.., to reduce the capital stock of the bank :rom ,25,000 to ::15,000, below the leal reluirement for member banks, and stating that while the bank is entitled to a hearinz before the Board to show cause why their stock in the Federal Reserve bank should not be cancelled and membership forfeited they desire to waive this riOlt; the memorandum recommendinL; that the mrtter be referred to the Board's General Counsel for the preparation of a formal order of expulsion from membership and that when such order is issued the Federal Reserve Y cient be directed to cancel the bank's stock and make appropriate refund. Referred to the Law Committee. tsf Letter dated December 22nd from the Jecretary of the Federal Reserve Bank of Cleveland makin:,; certain inc,uiries with re;ard to the Board's letter Of December 19th (X-4221) on the subject "Determination of Outlying District for Purpose of Reserve Reduction". Referred to Counsel. Report of Law Committee submitting draft of reply to letter dated .o, subDecember 12th from the Chairman of the Federal Reserve 'Bank of Chica: mittin: for the Board's information form of resolution which the directors Of the Marshal and Ilsley Bank of Milwaukee propose to pass at their next meet in:;, roiluestins :the Board's approval of their action in establishing t' trust department; the proposed reply statin that the resolution appears to be sufficient and requesting the Federal Reserve /..2ent to obtain from the bank an application pursuant to the resolution for approval of the trust powers now being exercised by the bank. 12/30/24 -11- Upon motion, the proposed letter was approved. Draft of reply to letter dated December 16th from the President of the Burnes rational Bank of St. Joseph, Eissouri, inquiring whether his bank is authorized to serve ES one of three trustees in the administration of a charit- able trust by the terms of which no compensation can be paid to the trustee; the proposed reply stating that the Board knows of no reason why the bank should not undertake to serve in the administration of the trust, if in the judgment of the officers of the bank it is deemed proper and advisable. Approved. Draft of statement for the press with regard to the hearing granted the directors of the Federal Reserve Bank of Richmond on February 13, 1925 to show cause Why a branch of that bank should be established in the southwestern portiol Of the 5th District. Approved. The Governor then submitted n letter addressed to him under date of Decembe: 23rd by the Federal Reserve Agent at San Francisco, with regard to rotation in the service of directors of the Federal reserve banks and members of the Federal Advisory Council, and advising that the directors of that bank have under consideration the appointment of lir. H. 3. LicKee, one of the Beard's appointees to the Los Angeles directorate, as member of the Federal Advisory Council from that District. Referred to the Committee on District42 for report. Mr. Platt then moved that as a general principle the Board express its ()Pinion that directors of Federal Reserve banks and branches should not be appointed members of the Federal Advisory Council. -12- 12/30/24 motion being put by the chair was lost, Mr. 1.overnor Crissinc:er and Mr. Platt votinguiye". The Secretary rejuested to be advised, in view of his unierstanding that the 3ecretary of the 2reasury wishes to present his vies on the recommendathe tion of the board of directors of the Pittsburgh Brtnch, concurred in by in the salary directors of the Federal Reserve Bank of Cleveland, for an incretse Of the Manager of the branch, whether he should advise the Chairman of the board Of directors of the Cleveland bank of the action taken by the Board on December 23rd in approving the stltry o2 the ',Tanager of the branch at C12,000 for the year 19213, in tccordance with the Board's policy of not approving a salary in excess of 12,000 for any branch Manager. The Governor asked for an expression of the views of the members of the Board and the Secretary was instructed to withhold such advice for the time being. r.I'ORTS OF STINDIII1 COLZIIT.2S: Recommending changes in stock at Federal Reserve Banks, as set forth in the Luxiliary Minute Book of this date. Approved. Recommending action on applications for fiduciary powers as set forth in the fuxiliary Minute Book of this date. Approved. Dated, December 30, Recommendin_; action on applications for fiduciary powers 30, as set forth in the Luxiliary Minute Book of this date. Ordered held. 30, Dated, December 20, Recommending approval of the application of Ur. VI. Hastings to serve at the same time as director of the Commercial National Bank, Muskogee, Okla. and as director of the First National Bank, Tahlequah, Okla. Approved. Mr. O. D. Dated, December 22, Recommendin refusal of the application of of the First director as time same the at Fisher to serve of the as director and 7;ashinL;ton Seattle, National Bank, :ashington. Seattle, Bank, Metropolitan National .Refused. Dated, December 19, Recommending approval of the application of Mr. Felix Agnus to serve at the same time as director of the rational Bank of Baltimore and as director of the Century Trust Company, both of Baltimore, Md. trproved. Dated, December 23, 26, 29, Dated, December 30, 30, 12/30/24 -13- REPORTS OF STLEDIM COLEUT2EBS (Cont'd) Dated, December 19, Dated, December 19, i)ated, Jecember 19, Dated, December 19, Dated, December 19, Dated, December 19, Dated, December 19, Dated, December 19, Dated, December 19, Recommending approval of the application of Mr. Snowden Hoff to serve at the same time as director of the National Bank of Baltimore and as director of the Century Trust Company, both of Baltimore, Md. Approved. Recommending approval of the application of Er. Peter E. Tome to serve at the same time as director of the National Bank of Baltimore and as director and Vice President of the Century Trust Company, both of Baltimore, Md. Approved. Recommending alproval of the application of Mr. Oliver S. Anderson to serve at the same time as director of the National Bank of Baltimore and as director of the Century Trust Company, both of Baltimore, Md. Approved. Recommending approval of the application of Mr. Harry G. Evans to serve at the same time as director of the National Bank of Baltimore and as director of the Century Trust Company, both of Baltimore, ma. Approved. Recommending approval of the application of Mr. John W. Hall to serve at the same time as director of the National Bank of Baltimore and as director of the Century Trust Company, both of Baltimore, Md. Approved. Recommending approval of the application of Mr. John B. H. Dunn to serve at the same time as director of the National Bank of Baltimore and as director of the Century Trust Company, both of Baltimore, Md. Approved. Recommending approval of the application of Mr. John C. Muth to serve at the same time as director of the National Bank of Baltimore and as director of the Century Trust Company, both of Baltimore, Md. Approved. Recommending approval of the application of Mr. Isaac E. Emerson to serve at the same time as director of the National Bank of Baltimore and ES director of the Century Trust Company, both of Baltimore, Md. Approved. Recommending approval of the application of Mr. Wt. J. Donnelly to serve at the same time as director of the National Bank Of Baltimore and as director of the Century Trust Company, both of Baltimore, Md. Approved. 12/30/24 PORTS OF STANDING COMMITTEES (Cont'd) Dated, December 19, Dated, December 19, Dated, December 19, Dated, December 19, Dated, December 19, Dated, December 19, Dated, Docember 19, Dated, December 20, Dated, December 22, Recommending approval of the application of M. Robert E. Tubman to serve at the same time as director of the National Bank of Baltimore and as director of the Century Trust Company, both of Baltimore, Ed. Approved. Recommending approval of the application of Mr. John L. Whitehurst to serve at the same time as director of the National Bank of Baltimore and as director of the Century Trust Company, both of Baltimore, Md. Approved. Recommending approval of the application of Mr. Herman H. Duker to serve at the same time as director of the National Bank of Baltimore and as director of the Century Trust Company, both of Baltimore, Md. Approved. Recommending approval of the application of Mr. Theodore N. Austin to serve at the same time as director of the National Bank of Baltimore and as director of the Century Trust Company, both of Baltimore, Md. /Tproved. Recommending approval of the application of Mr. Frank J. Caughy to serve at the same time as director of the National Bank of Baltimore ad as director of the Century Trust Company, both of Baltimore, Ed. Approved. hecommendinc approval of the application of Mr. John Hinkley to serve at the same time as director of the rational Bank of Baltimore and as director of the Century Trust Company, both of Baltimore, Md. Approved. Recommending approval of the application of Mr. John Schoenewolf to serve at the same time as director of the National Bank of Baltimore and as director of the Century Trust Company, both of Baltimore, Ed. Approved. Recommending approval of the application of Mr. J. Ma. Middendorf to serve at the same time as director of tbe National Bank of Baltimore and as director of the Century Trust Conrany, both of Baltimore, mi., and as director of the Security Storage and Trust Company of Baltimore, Ed. Approved. Recommending refusal of the application of Mr. Hord E. Young to serve at the same time as director of the National Batik of Baltimore,_of the Mercantile 2rust and Deposit Co., Baltimore and of the Union Trust Company, all of Baltimore, Maryland, Refused. -15- 12/30/24 REPORTS OF siumirl C012.1122ECS (Cont'a) Recommending approval of the cpplicat ion of Er. James L. Sellmcn to serve at the same time as director ofthe Eational Bank of Baltimore, and of the Century Trust Company, both of Teltimore, Ed., but recommending refusal of his application to serve ES director of the Maryland Trust Company, also of Baltimore. Recommendations approved. Dated, December 20, Recommending approval of the application of LIT. John C. Taliaforro to serve at the same time as director of the rational Bank of Baltimore, and of the Century Trust Company, both of Baltimore, Md., but recommending refusal of his application to serve as director of the Calvert Bank, also of Baltimore, Md. Recommendations approved. Dated, December 20, Recommending approval of the application of Er. illen L. Carter to serve at the same time as director of the rational Bank of Baltimore, and of the Century Trust Company, both of Baltimore, Ed., but recommending refusal of his application to serve as director of the Commerce Trust Company, also of Baltimore, Ed. Recommendations approved. Dated, December 20, Recomwending approval of the application of Er. Frederick H. Gottlieb to serve at the same time as director of the rational Bank of Baltimore, and of the Century Trust Company, both of Baltimore, but ecommending refusal of his application to serve a director of the Calvert Bank, also of Baltimore, 1 Recommendations appr Dated, December 20, The meeting adjour at 1:15 p.m Secretary. Approved: Govern°
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