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A meeting of the Federal Reserve Board was held in the office of the Pederal Reserve Board on Monday, February 14, 1927 at 11:10 a.m. PRESENT: Vice Governor Platt Mr. Hamlin Mr. /liner Mr. Cunninham Ex. McIntosh Mr. Noell, Asst. Secretary Mr. McClelland, Asst. Secretary The minutes of the meetings of the Federal Reserve Board held on February 9th and 10th were read and approved. Letter dated February 11th from the Federal Reserve Agent at Chicago, with reference to the inclusion in his Annual Report of a discussion of bazi failures in the 7th Federal Reserve District during 1926; the Agent referring to the manuscript submitted by him and certain changes suggested bY the Governor of the Board and stating that it may be best to omit all reference to the subject, unless the Board itself wishes something included. After discussion, it vas voted to advise the Federal Reserve Agent that the Board has no objection to the omission from his Report of all discussion of the subject of bank failures. Telegram dated February 9th from the Chairman of the Federal Reserve 84ak of Boston, advising that the board of directors on that day made no °114Age in the bank's existing schedule of rates of disccunt and purchase. Noted. Letter dated Fobruary 10th from the Secretary of the Federal Reserve 844k of New York, advising that the board of directors on that day made no 211ange in the bank's existing schedule of rates of disccunt and purchase. Noted. 1:4 2/14/27 -2- Telegram dated February 10th from the Chairman of the Federal Reserve Beak of Richmond, advising that the board of directors on that day made no Change in the bank's existing schedule of rates of discoant and purchase. Noted. Telegram dated February 11th fram the Chairman of the Federal Reserve Bank of Atlanta, advising that the board of directors on that day made no change, in the bank's existing schedule of rates of discount and purchase. Noted. Telegram dated February 10th from the Chairman of the Federal Reserve Bank of Kansas City, advising that the board of directors on that day made no Change in the bank's existing schedule of rates of discount and purchase. Noted. Memorandum dated February 9th from the Chief Examiner, submitting* l'eport of examination of the International Acceptance Bank, Inc. of New York City, made as at the close of business June 12, 1926. Referred to the Committee on Examinations. Memorandum dated February 9th from the Chief Examiner, submitting l'ePort of examination of the Federal Reserve Bank of LanneaIolis and its Helena Branch, made as at the close of business September 30, 1926. Referred to the Committee on Examinations and Committee on District 49. Telegram dated February 10th from the Chairman and Governor of the Pederal Reserve Bank of San Francisco, requesting the attendance of members Of the Board at the opening of the new building of the Salt Lake City Branch Larch 5, 1927. Noted. 2/14/27 -3- Matter approved, on initials on February 11th, namely, memorandum dated February 10th from the Chief of the Division of Bank Operations, requesting authority for the employment of Mr. Alfred W. Manning for a period not to exceed three months, with salary at the rate of 31200 per annum. Upon motion, the appointment was formally approved effective February 14th. Report of Executive Committee an letter dated February let from the ComPtroller of the Currency, recommending approval of an increase from 16,0O0 to .4;17,0J0 per am in the salary of Chief National Bank Examiner J• W. Pole; the Committee also recommending approval. Approved. Report of Executive Committee on letter dated February 1st from the Comptroller of the Currency, recommending approval of an increase from An.1MOO to 49500 per annum in the salary of Chief National Bank Examiner 77° P. Folger; the Committee also recommending approval. Approved. Report of Executive Committee on letter dated February 11th from the Comptroller of the Currency, recommending approval of a salary of 3,000 per annum for National Bank Examiner Claude L. Stout, assigned to the 10th Federal Reserve District; the Committee also recommending approval. Approved. Report of Executive Committee on letter dated February 11th from the Comptroller of the Currency, recommending anproval of a salary of N3 , 3on -- per annum for National Bank Examiner Charles E. Barthe, assigned t0 the 1st Federal Reserve District; the Committee also recommending approval. 136 2/14/27 Approved. :Aeport of Executive Committee on letter dated February 10th from the C omptroller of the Currency, recommending approval of a salary of ,n;5,000 Per annum for National Bank Examiner W. J. Fowler, assigned to the Comptroller's office in Washington; the Committee recommending approval* Approved. Report of Committee on Salaries and Expenditures on letter dated Pebruary 9th from the Chairman of the Federal Reserve Bank of Boston, ad718ing that Miss Ruth F. Warren of the Transit Department,for 'whom the Board has previously approved an extended leave of absence, has not been able to return to her duties and the Board of Directors of the bank has voted to continue her salary; the Committee recommending approval. Ayrxoved. Report of Committee on Salaries and Ilxpenditures on letter dated Febriaary 9th from the Chairnan of the Federal Reserve Bank of Boston, IB questing al]proval of an increase from c780 to 4,000 per annum in the Salary of Mx. John C. Hunter, promoted from Manager of the Transit Departto Chief Clark, to succeed Mr. Alvin S. Martin, resigned, and an illerase from ,,3120 to ,3300 per annum for Mr. Edward W. O'Neill, promoted f11(31 Assistant Manager to Manager of the Transit Department; the Committee rtioommending approval. Approved. Letter dated February 10th from the Chairman of the Federal IleServe Bank of Cleveland, referring to telephone conversation with the Vi4e Governor and stating that if there is no objection on the part of 137 2/14/27 -5- the Board he would like to leave the bank on or about February 16th for an absence of from two to three weeks. Upon motion, it was voted to advise :Ir. DeCamp that the Board has no objection to his proposed absence. deport of Committee on Examinations on letter dated February 7th from the Federal Reserve Agent at Minneapolis, transmitting application Of The Merchants Bank of Winona, Minn. for permission to take over certain assets of the Merchants Trust Company of Winona; the Federal Reserve Agent stating that the Merchants Bank will be examined by his examiners early in :larch, and suggesting that it might be advisable for the Board to defer granting its permission in the matter until the report of this examination has been received. Upon motion, it was voted to defer action in line with the suggestion of the Federal :leserve Agent. Letter dated February 9th from 11r. Gates W. McGarrah, formally accepting appointment as Class C Director of the Federal Reserve Bank of ' rem York for the unexpired term ending December 31, 1928 and designation as Chairman of the Boord of Directors of the Bank and Federal Reserve Ag.ent, effective as of May 1st. Noted. Letter dated February 11th from the Secretary of the Federal Reserve Bank of New York, advising formally of an amendment to the By-laws Of that bank adopted by the board of directors eliminating from Section 4, 41 'tic1e III of the By-laws a provision that the Governor of the bank shall 138 2/14/27 -6- be the Chairman of the Executive Committee. Noted, with approval. Letter dated February 10th from the Federal aeserve Agent at Chicago, adVising of the execution of a lease for the rental of space on the ground floor and in the basement of the bank's building; the lease being executed for a ten year term at the rate of ,,116,700 per annum, increasing the bank's aanual revenue from the building to about .:,349,000. Noted. Letter dated February 7th from the Vice President of the Vandeventer Trust Company of St. Louis, referring to previous correspondence with the Board and mpeating certain questions regarding the guarantee of bank dePosits. Referred to the Vice Governor for the preparation of a reply. ileport of Committee on Salaries an/ Expenditures on letter dated Pebruary 5th from the Deputy Governor of the Federal Heserve Bark of New York, requesting approval of promotions in grades, under the bank's standard- 12ed salarj plan, for Messrs. -2homas C. Nealis and Ly.ian. C. Lord; the ComMittee recommending approval. Approved. Letter dated February 7th from the Federal Reserve Agent at Dallas, r.eferring to previous correspondence with Lir. Cunningham on the subject of the rolicy of that bank in the matter of purchases of Federal Intermediate Credit Bank debentures. In this connection, Mr. CunninRham explained to the Board the nature of the correspondence which he carried on with several 2/14/27 of the oth,!1. Federal Reserve banks. Ordered circulated. Memorandum dated February 9th addressed to the Secretary of the Board bY the General Counsel, with reference to the Board's action of January 19th in voting to request Mr. Yohe of the Department of Agriculture to appear before it in connection with the recommendation of the last Governors' Conference that the Board amend its Regulation A so as to make eligible for rediscount and purchase by Federal Reserve banks bankers' acceptances drawn by an elevator or warehouse company and secured by terminal warehouse receipts of the elevator or warehouse company that draws the draft; Counsel stating he has been in communication with 1.1r. Yohe who before aypearing desires to develop certain additional information on the subject, after which he will again take the matter up with the Board. Noted. Draft of letter to the Chairman of the Federal Reserve Bank of Cleveland, prepared by the Committee on Examinations, with reference to the Matter referred to the Committee at the meeting on February 9th, namely, letter from the Chairman with reference to the City Deposit Bank, the Rigilland National Bank and The First National Bank of Etna, outlying banks Of Pittsburgh,which have been carrying out authority from reserves on demand deposits with- the Board. After discussion, upon motion, it was unanimously voted that the Board approve of the three banks mentioned continuing to carry reserves of 7A against demand deposits. Upon motion, it Was then voted to arprove the proposed letter to the Chairmen of the Federal Reserve Bank of Cleveland submitted by the Committee. F() Letter dated February 10th from the Federal Reserve Agent at Kansas City, submitting copy of a court opinion to the effect that no bank being Operated, by the Guaranty Fund Caumission of the State of Nebraska can be compelled to pay any depositor. Ordered circulated. Letter dated February 8th from the Chairman of a special committee Of the San Antonio Clearing House Association, requesting a hearing before the Board with respect to an application for the establishment at San Antonio of a branch of the Federal Reserve Bank of Dallas; the letter stating that the committee will be glad to appear at any time the Board believes preferable, realizing that it may be best to await final action of Congress on Pending legislation. In this connection, the Vice Governor submitted a letter dated February 11th from the Chairman of the Federal Reserve Bank Of Dallas, advising of the approval by the Board of Directors of that bank °f the application for the establishment of a branch at San Antonio arid submitting a detailed history of the application. After discussion, it was voted that action on the above application be deferred and the letters above mentioned were ordered circulated and referred to the Committee on District 411. '-..-4X012.TS OF STANDING CO:MITTEES: Dated, February 9th, 10th, 11th, 12th, 14th, Recommending changes in stock at Federal Reserve Banks as set forth in the Auxiliary IIinute Book of this date. Approved. 141 2/14/27 -9- 13a2ORT$ OF STANDING COMMITTEES: (Contld) Dated, February llth, 12th, 14th, Dated, February 11th, Dated, February 12th, Recommending action on arplications for fiduoiary powers as set forth in the Auxiliary Minute :Book of this date. Approved. Recommending action on application for admission of state bank, subject to the conditions stated in the individual reports attached to the arplication, as set forth in the Auxiliary Minute Book of this date. Approved. liecommendtmg approval of the arplication of Mr. Allen T. West, for 9ermission to serve at the same time as director of the First National Bank, St. Louis, 21o. aid as director of the St. Louis Union Trust Compaay, St. Louis, Mo. Approved. The meeting adjourned at 12:30 p.m. Assistant Secretary. Approved: Vice Governor.
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