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OC) A meeting of the Federal Reserve Board was held in the office of the Pederal Reserve Board on Tuesday, February 10, 1925 at 11:00 o'clock. Present: Governor Crissinger Mr. Platt Mr. Hamlin Mr. Miller Mr. James Mr. Cunnin,q.ham Mr. Eddy, Secretary The minutes of the meeting of the Federal Reserve Board held on February 5th were read and approved as amended. The minutes of the meeting of the Federal Reserve Board held on February 6th were read and approved. Report of Committee on Examinations on memorandum dated February 6th from the Acting Comptroller of the Currency, recommending approval of the application of the City National Bank of Hugo, Okla., for permission to reduce its capital stock from 400,000 to $50,000 on condition that no money be returned to shareholders but that assets to the full amount of the reduction be trusteed for the benefit of shareholders as of the date of reduction; the aOmmittee also recommending approval. Approved. Report of Cozmittee on Examinations on memorandum dated February 9th from the Acting Comptroller of the Currency, recommending approval of the aPPlication of the First National Bank of New Carlisle, Ohio, for permission to reduce its capi;a1 stock from 'i 30,000 to i25,000; the Committee also recomending approval. Approved. Letter dated Febru9ry 7th from the Chairman of the Federal Reserve 130 -2- 2/10/25 Of Atlanta, advising of the election of Mr. T. W. McCoy as Class "A" 1925. director of the bank for the unexpired term ending December 31, Noted. ncy on letter Report of Committee on Salaries, Expenditures and Efficie dated February 4th from the Comptroller of the Currency, recommending approval National Bank Of an increase from 43300 to 43600 per ammmm in the salary of per annum in the Zxaminer Alfred Boysen and an increase from 43,000 to 43,300 also recommendsalary of National Bank Examiner Ralph H. Derr; the Committee ing approval. Approved. on letter Report of Committee on Salaries, Expenditures and Efficiency dated February 5th from the Acting Comptroller of the Currency, recommending salary of aPproval of an increase from $3,000 to 43,300 per annum in the recommending apNational Bank Examiner Charles H. McLean; the Committee also Proval. Approved. ee on Banking Letter dated February 4th from the Chairman of the Committ nt 414 Currency of the House of Representatives stating that he deems it expedie to withdraw from consideration at this session his bill to amend the Kern Amendment to the Clayton Act so as to grant the Board greater discretion in the matter of authorizing interlocking directorates. Noted. y 4th Report of Committee on Examinations on letter dated Februar ftonl the Federal Reserve Agent at Boston, transmitting and recommending _131 2/10/25 approval of applications of the Union Trust Company of Providence, R. I., for permission to establish branches in Woonsocket and Pawtucket; the Committee also recommending approval. Approved. Letter dated January 26th from the President of the International Bureau of Commercial Statistics of Brussels, requesting that he be furnished With complimentary copies of issues of the,spederal Reserve Bulletin beginIling with 1922 and of all future issues. Approved. Report of Committee on Salaries, Expenditures and Efficiency on letter dated February 3rd from the Chairman of the Federal Reserve Bank of San Pl'ancisco, requesting afproval of the action of the executive committee of the bank in voting to participate in and to assume. its pro-rata share of the expense of a Federal Reserve System exhibit to be displayed at the Ilext convention of the American Bankers Association to be held in Atlantic CitY; the Committee reporting that no Federal Reserve bank has proposed to the Board that it undertake to get up such an exhibit and that the Board reserve decision until such time as there comes before it for consideration 4 proposal from some one of the reserve banks to assemble material for a SYsiem exhibit and further that the matter be submitted to the next Conference Qt Governors with the request for a recommendation as to future policy. Upon motion, the recommendations of the Committee were approved. Letter dated February 4th from Honorable Charles E. Lobdell, General I ) ••••„,16(4, 2/10/25 -4- Counsel and Fiscal Agent of the Federal Land and Intermediate Credit Banks, transnitting a statement showing the classification of the loans of the Federal Intermediate Credit Banks as of January 24, 1925. Ordered circulated. Memorandum dated February 9th from Counsel on letter dated February 6th from the Federal Reserve Agent at Boston, transmitting a classification Of banks in Boston to be used in determining the question of substantial competition within the meaning of the Kern Amendment to the Clayton Act; Counsel recommending that the Board adopt the following resolution: "WHEREAS, Mr. Curtiss, Federal Reserve Agent of the Federal Reserve Bank of Boston, has submitted to the Federal Reserve Board a classification of the banks in the city of Boston, Massachusetts, which he suggests may be used in determining the question whether or not substantial competition exists between such banks in considering applications under the Clayton Anti-Trust Act; BE IT RESOLVED, that the Federal Reserve Board will use the said classification of banks in Boston, Massachusetts, as evidence tending to show whether or not such banks are in substantial competition, but it will use classification as evidence only and will not be guided solely thereby; it will take into consideration any othOr pertinent facts and circumstances which mwi be present in each case under consideration." Adopted. Letter dated February 6th from Mr. A. B. Trowbridge, with regard to the Board's inquiry as to service by him in passing upon plans and specifications for the building to house the Birmingham branch when completed; Trowbridge stating that his fee for such service would be ; i 1,250, but that in his opinion the service contemplated is far from being adequate and that in other building projects it has been his practice to have conferences with local architects before working plans were commenced, impressing upon 2/10/25 -5- them the necessity for simplicity and economy with the result that when the plans were completed few, if any, changes were necessary. Referred to the Governor with power. Memorandum from the Secretary on letter dated January 27th from the Cashier of the Federal Reserve Bank of Cleveland pointing out that the Board's requirement that applicant's for reduction in reserve require- mast have been members of the Federal Reserve System and in operation as eudh for a period of one. year prior to date of application, might work against the System in securing the membership of outlying state banks which have been in operation some years and might work a hardship on newly organnational banks located in outlying districts in which there are also located other member banks who have been allowed to reduce their reserve reSlirements; the Secretary stating that while he doubts whether the Board Should change its ruling with respect to newly organized national banks located in outlying districts, or newly organized state banks which desire to become members, he thinks there should be sufficient elasticity in the aPPlication of the ruling to permit of the Board granting the reduced resellie requirements to state banks in outlying districts which have been in °Peration for more than a year and which desire to join the System. After discussion, Mr. Hamlin moved that the Board rescind the limitation of one year in the case of banks which have been in operation for more than a year which desire to join the Federal Reserve System. Mr. Cunningham moved as a substitute that the Seeratary be instructed to secure information as to the size, management and character of business of the Lorain Street Savings and Trust Company of Cleveland, one of the banks being -6- 2/10/25 solicited for membership and also regarding other banks in the same territory which have already been granted a reduction in their reserve requirements. Mr. Cunningham's substitute motion being put by the chair was carried. Memorandum from Counsel dated February 6th on the subject of surrender Of Federal Reserve bank stock by the First National Bank of New Wilson, Okla., which closed and the liquidating agent for which, the City State Bank of New Wilson, has also been closed; Counsel recommending that the Board issue an order for the cancellation of the stock held by the First National Bank, with instructions to the Federal Reserve Bank of Kansas City to adjust the accounts between the Federal Reserve bank and the First National Bank in accordame with the law and to hold any proceeds due the liquidating bank to be paid over to the duly authorized agent of such bark Upon receipt of proper proof of the appointment of such agent. Upon motion, the recammendations of Counsel were approved. Memorandum dated February 10th from the Secretary, with regard to letter dated January 31st addressed to Er. Milton E. Ailes,,President of the Riggs National Bank of Washington, by Shearman and Sterling, Counsel for the National City Bank of New York, requesting advice from the Board as to whether a certain transaction involving Russian rouble exchange could have been consummated on April 4, 1919 in view of the then effective ling of the Board that "Until otherwise instructed the exportation or importation of Russian roubles, or the transfer of funds for their purchase bY persons and dealers in the United States, as described under the 3 t_j, 2/10/25 -7- executive order of the President, January 26th, 1918, is prohibited". After discussion, the Secretary was requested to prepare a latter to Mr. Ailes for submission to the Board. Thereupon ensued a discussion of the matter held over at the meeting on February 6th, namely, draft of the annual report to the Board of the Federal Reserve Agent at New York covering operations during the year 1924. Honorable G. B. Winston, Under Secretary of the Treasury, and Dr. Stewart, Director of the Division of Research and Statistics, entered the meeting and discussed with the members of the Board the general scope and phrasing of the report. After several changes in the phrasing of the report had been suggested, Mr. Platt moved that a letter be sent to the Federal Reserve Agent at New York stating that the report has been brought to the attention of the Board and accepted and may be released for publication with the several textual revisions suggested by the Board. Mr. Platt's motion being put by the chair was carried, Messrs. James and Cminingham voting "no". Mr. Cunningham explained his vote by stating that he had no objection to accepting the report but did nbject to its publication, and that in view of the fact that the foregoing resolution moves both acceptance and publication, he was forced to vote in the negative. Thereupon ensued an informal discussion as to the legality and. necessity of Federal Reserve banks purchasing government securities and acceptances under repurchase agreement, particularly from so-called dealers. The Governor stated that the Secretary of the Treasury and the Comptroller of the Currency Usired to be present at any meeting of the Board at which formal action on this subject was taken. 2/10/25 Report of Committee on Examinations on letter dated February 6th, from the Assistant Federal Reserve Agent at Chicago, transmitting an application for reduction in reserve requirements from 13 to 10;70 of demand deposits on behalf of seven member banks considered to be located in outlying districts Of the central reserve city of Chicago and entitled to carry 10 reserves en demand deposits; the Committee recommending that the Federal Reserve Agent be advised that upon receipt, through him and with his recommendation, of individual applications originating with the outlying banks in question, the Board will give them con.ideration• Upon motion, the recommendation of the Committee was approved. REPORTS OF STANDING COMMIT=S: Dated, February 5th, 6th, 7th, 9th, Dated, Februscy 2nd, 4th, 6th, 10th, Dated, February 10th, Dated, Recommending changes in stock at Federal deserve banks, as set forth in the Auxiliary Minute Book of this date. Approved. Recommending action on applications for fiduciary pacers 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. February 5th, Recommending approval of the applicat'on of Mr. John E. Potter to serve at the same time as irector and President of the Potter Title and Tru t ompany, Pittsburgh, ent of the First Pa. and as director and Vice P Pa Finleyville, National Bank, Approved. e meeting adjou Q 'ø1ook Secretan • APProved: d at 1: Governor.
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