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169 4 meetin(; of the 71xecutive Committee- of the -Federal .ieserve Board was '"id- in the office of the Governor on Tuesday, February 21, 1928 at 12:00 °clock. noon. Governor Young Mr. Hamlin Yr. Cunningham HAdy, 3ecretary Mr. McClelland, Asst. "3ecretary Tl emorandum dated February 18th from General Counsel, recommending that there be published in the forthcoming issue of the Federal :eserve Bulletin the recent rulings of the Board (1) that balances payable in dollars due rOhl 1 4merican branches of foreign banks may be deducted from amounts due to 0th_ ur banks by a mumber bank in computiiw its reserves under iection 19 Of the Federal deserve ,,ct; and (2) that a member bank is not reQuired tolflLdlfl reserves against a dividend for the priod intervening between tvie aate Of the declaration of the dividend and the date on which it is Dati, Upon motion, the publication of the two rulings amroved. refrred to 1-teno-f f. of law Committee on memorandum dated February 18th from Counsel, ,rence to apnlication of the T]nderlin 3tate Bank of ,Aiderlin, -fo r th, - surrender and cancellation of 36 shares of stock in the Federal -rve Bailk of iiinneauolis, the Enderlin State Belli having consolidated ' 41th "e Peoples Bank of nderlin, a non-member bank, under the charter or the latter institution; Counsel stating that the Boai. may, if it SO (iires, approve the application but sugesting if it does so that the '.3ecle1.41 serve 1 ..ent at Minneapolis be reGuested to obtain from the for the Federal Bunic of alderlin, in a form approved by Counsel D. 190 2/21/28 —7— Reser7e Bank of Minneapolis, a release from any liability on account of the Cancellation of the stock and the payment of the proceeds thereof to the Enderlin State Bank. Upon recommendation of the Law Committee, cancellation Of 36 shares of stock in the Federal leserve Bank of Minneapolis standing in the name of the Enderlin State Bank was approved and the Secretary was directed to address a letter to the Federal -ieserve Agent at Minneapolis in accordance with the suggestion contained in Counsel's memorandum* orand dated February 16th from the Chief of the Division of Bank °Peratic)ns, submitting statements .of expenditures by the Federal Reserve Ior educational and welfare work, etc. during the month of December 44a for the twelve months' period ending December 31st* Noted* he Secretary then submitted drafts of letters, prepared by Counsel illaecordance with instructions FOmen by the Board at the meeting on 4brliary 16th, addressed to the Federal deserve ,,gent at St. Louis and to the Lawrence County Bank, ialnut Ridge, _Irk., advising of a hearing to be held by the Board at which representatives of the Lawrence County /11t "e requested to appear to show cause why it should not be required to stir renaer its stock in the Federal deserve Sank of 3t. Louis, and to torfeit all rights and privileges of membership in the Federal Aeserve rat6111; the letter also advising that in case the member bank desires to zaive its right to appear before the Federal Reserve Board, it may tIllY9144h its duly appointed representatives appear before the Federal gs,ent on a date to be fixed by him for the purpose of presenting evicienoe as it may care to have transmitted to the Federal deserve 171 *1 2/21128 -3BoEtrd for consideration, 'orovided that reasonable notice in advance is f_7iven both to the Board and to the .,gent of the bank's intention to appear before the Federal eserve _gent. Upon motion, the letters submitted by Counsel were approved and ordered transmitted after Larch 21, 1926 had been Zixed as the date for the hearing to be held by the Board. aeport Of Committee on ':xaminations on letter dated February 16th from the P'xeoutive Committee of the Federal Heserve Bank of Atlanta, reconmend111. that ton, .u.4. the Board approve the action of the :armers 3tate Bank of Lincoln4 I assurAng the liabilities (exclusive of stockholders' liability) °I: the Bank 1/claret's of Lincolnton, Ga. and taking over certain of its assets; the Committee also recommending approval. approved. he Secretary then presented letters addressed to the Board by the Neral tese rve Agents at Cleveland, Aichmond, Atlanta, Chicago, Bt. Louis, 411111eaPolis and Kansas City, submitting reviews, as of December 31, 197, With l'esnect to outlying banks in reserve and central reserve cities in their d istricts which have beeh &ante,i permission by the Board to carry lisciazced reserves against demand deposits under ,ection 19 of the :ederal et; the Federal :ieserve r,gents reeorninting in all cases that the 411th°ritY gl :anteJ by the Board for the carrying of reduced reserves be `t The 3ecretary called particular attention of the Committee t° the ::;econd National Bank of Lalegheny, 2ittsburgh, Pa., the Pennsylvania 1C4tIoliza Bank, Pittsburgh, Pa., and the Highland National Bank, Pittsburgh, which institutions carry de.00sits of other banks euual to 10.3;, 172 National 44(1 6.8 9 respectively, of their total deposits and to the Calumet 1144k and the Northwestern Trust and savings Bank, both of Chicago, w11104 shaN amounts due to banks equal to 1C1 total deposits. and 7, respectively, of their deserve He referred to advice received from the Federal &gents at dormant Cleveland and Chicago that these bank balances are of a )3`arlacter and that there is no evidence that the institutions named are e4tively engaged in the solicitation of bank accounts. After discussion, however, it was voted that letters be addressed to the Federal Reserve Agents at Cleveland and Chicago, calling attention to the fact that the above named banks in their respective districts are doing a considerable of correspondent bank business and requesting that the cases these banks be submitted to their boards of directors for a lirm recommendation as to whether they should be permitted to continue carrying reduced reserves as previously authorized by the Board. Upon motion, it was also voted to recommend to the Board that no action be taken to revoke authority granted to any other banks to carry reduced reserves. 4'.4zg4a..22E STANDING COM.MITTEES: r)4tea, Pebruary ibth, 20th, 21st, 4tecl, February 20th, aecommending chang,les in stock at Federal Reserve banks as set forth in the Auxiliary Minute Book of this date. Aecommendations approved. ion for fiduciary Recommending action on an appli ::,inute Book ary powers as set forth in the Aux of this date. aecommendation approved The eeting adjou/led a Secretary. 411131 oved.: ) Gove
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