The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
547 A meeting of the Federal Reserve Board was held in the office of the Federal Reserve Boafd on Friday, December 30, 1927 at 12:20 p.m. PRESENT: Vice Governor Platt Mr. Hamlin Mr. James Uunningham Yr. 'McIntosh Mr. Eddy, Secretary Mr. McClelland, Asst. Secretary Letter dated December 29th from the Assistant Secretary of the Federal rs at its meeting Reserve Bank of New York, advising that the board of directo e of rates of dison that date made no change in the bank's existing schedul count and purchase. Without objection, noted with approval. Report of Committee on Salaries and Expenditures on letter dated December 27th from the Controller of Administration of the Federal deserve .90 made to Bank of Chicago reporting a payment in the amount of „:2,054 d in conMessrs. Lyman, Adams, Bishop and DuPee, special counsel employe t to the widennection with an assessment levied against the bank inciden the efing of North LaSalle Street; the Controller stating that through of forts of the attorneys the assessment was reduced in the amount 48,219.60. Upon recommendation of the Committee on Salaries and Expenditures the payment reported above was noted with arproval. The Secretary then presented the following telegram transmitted to initials of members the Federal Reserve Agent at San Francisco yesterday on of the Board: 0 by United "Your wire December 28 re acquisition Fugazi Bank so plan in Change co. Bank and Trust Company Sam Francis Trust and Bank United by that only branches to be acquired 548 -2- 12/30/27 "Company will be in San Fraacisco eliminates all question as to right to acquire out of town branches. If under proposed purchase of Fugazi Bank under Section 31 California Bank .ilct corporate existence of selling bank, a nonmember, is not merged. and continued in corporate existence of United Bank and Trust Company, the buying bank, new application for membership will not be necessary. United Bank and Trust Company however subject to Board's general condition of membership requiring approval of Board before any change in general character of assets or broadening in functions exerciseu such as will tend to affect materially standard maintained and required as condition of membership. If proposed purchase of Fugazi Bank will not effect such a change in character of assets or broadening in functions of United Bank and Trust Company, Board offers no objection to purchase of Fugazi Bank as outlined your telegram. If you are of opinion that a change of kind contemplated by Board's general condition of membership will take place please advise 3oard fully as to nature of such change with your recommendation as to granting of approval by Board." Upon motion, the above telegram was formally approved. Letter dated December 23rd from the Deputy Governor of the Federal deserve Bank of New York, transmitting copies of telegrams addressed to the Board on December 22nd relative to the stabilization of the Italian currency and a press statement issued by the New York bank relative to its participation in the credit arrangement with the Banca d'Italia incident thereto. :;ith his letter the Deputy Liover,lor also transmitted copy of a cablegram received by the Ni York agent of the Italian institute of Exchange from the Italian Treasury. The above letter and enclosures having been circulated among all members of the Board were noted. The Vice Governor stated that the meeting was called primarily for the purpose of holding a hearing to show cause why the Ouster State Bank, Broken Bow, Nebraska should not be required to surrender its stock in the federal deserve Bank of Kansas City, and to forfeit all rights and privileges of 549 -3- 12/30/27 membership in the Federal Reserve System. Broken Bow, Nebraska No one appearing on behalf of the Custer State Balk, the terms of Section at the said hearing before the Federal Reserve Board under Federal Reserve Board 9 of the Federal Reserve Act; and it appearing to the ka, has failed to comply that the said Custer State Bank, Broken Bow, tebras Act in that it has with the provisions of Section 9 of the Federal Reserve Kansas City the reserve failed to maintain with the Federal Reserve Bank of required by the Federal Reserve Act; ing resolution was Upon motion duly made and seconded the follow unanimously adopted: from a consider'Whereas, it appears to the Federal Reserve Board, the Custer State that it, by d receive tion ation of the evidence and informa the with provisions of comply to failed has Bank of Broken Bow, Nebraska, to maintain with has failed it that in Act Section 9 of the Federal Reserve d by the Federal require reserve the City the Federal Reserve Bank of Kansas Reserve Act. l Reserve Board re"Now, Therefore, Be It Resolved, that the Federa ka, under the Bow, Nebras Broken Bank, quire and direct the Custer State to d, as amende surrender its Act Reserve terms of Section 9 of the Federal t all rip:hts and to forfei City Kansas of Bank stock in the Federal Reserve of the date as System Reserve Federal the in and privileges of membership l Board is the of Federa Reserve part the on action on which notice of this received by the said bank." Report of Executive Committee on letter dated December 29th from a salary of the Comptroller of the Currency, recommending approval of assigned to the „?2500 per annum for National Bank Examiner Cecil W. Lyon, al. Tenth Federal Reserve District; the Committee recommending approv Approved. . Stout, The Vice Governor then submitted draft of a letter to Messrs accordance with the Rose, Wells and Martin, prepared under his direction in 28th, transmitting in action taken at the meeting of the Board on December lj 550 -4- 12/30/27 compliance with a request received from the firm a certified copy of the writing whereby the Corn Exchange National Bank of Omaha, Nebraska signified its acceptance of the Fedt:ral Reserve Act; together with a certified copy of the application for stock in the Federal Reserve Bank of Kansas City made by the Corn Exchange National Bank. Upon motion, the letter submitted by the Vice Governor was approved. The Secretary then referred to the action of the Board at its meeting on December 16th in voting to grant to Yr. McIntosh the privilege of later recording his vote on a motion made by Mr. Hamlin that the Board reconsider action taken by it on December 5th and interpose no objection to the publication in the American Year Book of an article prepared by Assistant Federal :Reserve Agent Burgess of the Federal Reserve Bank of New York on the subject of the "Federal Reserve System in 1927". He presented the following memorandum addressed to him by the Comptroller: "With reference to the article prepared by Yr. Burgess for the American Year Book, on which it is desired that I record my vote, you may record me as voting "aye" on the resolution. wish to state that as a matter of policy, I do not favor the publication of such articles except by the Federal Reserve Board, but inasmuch as a similar article was approved by the Board a year ago; and, further, Doctor oldenweiser sees nothing in this article which might interfere with anything that will be said in the Annual Report, the article is, in my opinion, platitudinous and most of its matter could be used in fifty reports without creating comment, Therefore, I do not believe it a consequential matter at this time." The Secretary stated that with the recording of McIntosh's vote the motion made by Mr. Hamlin at the meeting on December 16th stands adopted. The minutes of the meeting of the Federal Reserve Board hela on December 26th were then read and approved as amended. -5_ 12/30/27 .iiEPO;ITs OF STAEDING COMMITTEES: Dated, December 29th, Recommending changes in stock at Federal Reserve banks 30th, as set forth in the Auxiliary Minute Book of this date. Recommendations approved. action on an application for admission of December 28th, Recommending Dated, a state bank, subject to the conditions stated in the individual reports attached to the application, as set forth in the Auxiliary Minute Book of this date. Recommendation approved. Dated, December 27th, Recommending approval of the application of Mr. Frank Hodges for permission to serve at the same time as director of the First National Bank, Olathe, Kansas, and as director of the City Bank, Kansas City, Mo. . Recommendation approved. The meeting adjourned at 12: .m. Secretary. Approved: Vice-Governor.
@FedFRASER