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1' . ' C A meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Tuesday, February 12, 1924 at 11:10 a.m. PRLSErT: Vice Governor Platt Mr. Hamlin Mr. Miller Mr. James Mr. Noon, Assistant Secretary. The minutes of the meeting of the Federal Reserve Board held on Pebruhry 11th were read and approved. Letter dated February 11th, from the Under Secretary of the Treasury, requesting a statement showing the amount of securities and currency shipped bY the Federal Reserve banks daring the last two or three years and the losses incurred. Referred to the Secretary for preparation of a reply. Letter dated February 8th, from the Chairman of the Federal Reserve Bank of Philadelphia referring to the Board's letter of February 7th advising that it has finally disapproved increases proposed by the directors of that bank in the salaries of certain of the officers and inquiring whether this disapproval includes the recommendation for an increase from c73800 to 44000 per annum in the salary of Mr. William I. Rutter, Jr„ auditor of the bank; the chairman stating that the directors of that bank do not l'egard their auditor as an officer. Upon motion by Mr. Hamlin, the increase recommended for Mr. Rutter was approved, but the Secretary was instructed to inform the Philadelphia bank that their auditor should be classified as an officer of the institution. 2/12/24 Letter dated February 5th, from the Federal Reserve Agent at Jan Francisco, enclosing supplemental report of investigation of the 12eific Southwest 2rust and Savings Bank, Los Angeles, made December 11th-14th, 19;33; said report referring to supervision and control of branches. Ordered circulated anu referred to Comittee on Examinations. Memorandum dated February 7th, from Counsel referring to letter dated January 19th from Lir. J. B. Monroe, attorney for the Federal Intertational Banking Company of New Orleans, Louisiana, applying for permission to reduce the capital stock of that company from W,000,000 to .3,150,000; en -unsel in his memorandum stating that there is no legal reason why the arTlication should not be approved, and submitting draft of a letter to 11r. Monroe advising of approval. Upon motion by Mr. Hamlin the application of the Federal International Banking Company for permission to reduce its capital was approved. Ro-oort of Committee on Examinations on matter referred to it at the meeting on February 5th, namely, memorandum dated February 2nd from the 00r ;approval, subject to certain conrIptroller of the Currency recoranenainf of the application of the First National Bank of Mountain ',rove, Llissouri, :or permission to reduce its capital stock from ,50,000 to „:25,000; tile Committee recomuending approval of the applic‘tion subject to the conl'itions suggested by the Comptroller. .-f 2/1424 ,3- Upon motion by Mr. James, the recommendation of the Comptroller was approved. Letter dated February 7th, from the Vice President of the Falconer CoMpany, Baltimore, Md., inquiring whether the Board has any objection to the use, on checks manufactured for member banks, of a shield containIN; the words "Member Federal Reserve System". Referred to Counsel. The Law Committee reported on the matter referred to it at the aleeting on January 31st, namely, draft of a letter to the Chairman of the Committee on Banking and Currency of the House of Representatives, suggest1443 an amendment to H. R. i6145 which will forbid state member banks to advertise that they are under government supervision; the Law Committee kbmitting several objections to the proposed letter. Upon motion the letter was referred back to the Law Committee for revision. In this connection, Mr. Hamlin stated that the above letter had °Iliginally been :presented to the Board, at the meeting on January 31st, //ithout having been submitted to the Law Committee. Mr. Hamlin moved: "That every legal opinion which ultimately requires action by the Board shall be submitted to the Law Committee before any action thereon is taken by the Board." Carried. The Law Committee then presented the application for fiduciary .13°1‘ 'ers Of the Ottawa County National Bank of Miami, Oklahoma; the Committee l'ee°11Inending approval but calling attention to the fact that the bank has -4- 2/1V24 110t accumulated a surplus equal to 20,; of its capital, which is generally a condition to approval of fiduciary applications. Upon motion, the application of the Ottawa County National Bank was approved on the condition that it will carry to surplus from undivided,profits a sufficient amount to bring its surplus up to 207' of capital. Letter dated February 8th, from the Chairman of the Federal Reserve Earik of Dallas, requesting approval of the action of the directors of that bank in electing as Deputy Governor,at a salary of ;;;9,000 per annum, Mr. R. R. Gilbert, at present Cashier of the bank, and in appointing as Cashier, at a salary of :;J6,000 per annum, Mr. R. B. Coleman, the present Manager of the Houston Branch. After discussion, Mr. James moved that the appointments be approved, 414 that telegraphic advice of such approval be sent to the 2ederal Reserve 8atk. of Dallas. Mr. Hamlin moved as an amendment to Mr. James' motion that the ap11"ntments be approved on the understanding that Mr. R. G. Ilmerson,at present to be 1)61/11tST Governor of the bank,is going to leave the bank shortly and is l'eplaced by Mr. Gilbert. Carried, Sr. James' ori:;inal motion as amended by the motion of Mr. Hamlin,being put by the chair was carried. Letter dated February 11th, from the Federal Reserve Agent at Cleveland transmittine; and recommending approval of the application of the -5- Citizens Trust and Savings Bank of Columbus, Ohio, for permission to establish a branch at 1601 North High Street, Columbus; the Federal Reserve Iteent advising that the application also has the approval of the State aqerintendent of Banks and the Executive Committee of the Federal Reserve bank. Upon motion byllr. James, the application of the Citizens ?rust and Javings Bank was approved. Mr. James then submitted a memorandum dated February 9th, reporting °4 the recent visit to Atlanta of Mr. Platt and himself, and recommending aPProval of adjustments in the salaries of officers of the Federal Reserve 1-641k of Atlanta and its branches reoliested in letters from the Chairman of that bank dated December 15th, 1923 and January 12th, 1924; recommending also that the salary of the Chairman and Federal Reserve Agent be increased *ft çl2,OOo to cia5,000 per annum; all adjustments to be effective as of 41411wy 1, 1924. After discussion, action on Mr. James' memorandum was withheld pending a mooting of the full Board. ORLS OF STAr,IN COMMTEES: 13ated, February 10th, 13ated, February 11th, Recommending action on application for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Approved. Recommending approval of the application of Mr. S. W. Hayes to serve at the same time as director of the American National Bank, Oklahoma City, Okla., and of the Citizens National Bank, Chickasha, Okla. Approved. urned at 12;40 p.m. The meet in, Ass stant Secretary. Vice Governor.
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