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ics A special meting of the lederal Reserve Board was held, in the office 1ebruary- 2:3rd, at 11:25 'a.m. ef the Pederal Thserve Board on Friday, ; 1RE;.3.:"-T: Vice Governor ?1 att TTarrlin Fr. Filler Fr. Fit chel Fr. Cr is si nger 7:r. Ho:A on, Secretary rl'he minutes of the meeting of the Federal Reserve Board held on l'..i`elDruary were read and'on motion approved as amended. The Vice Governor stated that the meeting had been called in conform- it yWj th the action of the Board taken at its meeting on •7eonesday, February 21st. The Vice qovernor reported the reserve positions of the several Federal Reserve ban'is as at close of business February 20th. Letter dated Fellmary 16th, from the Federal Reserve Agent at san Frane • 1-eco , lying further in forma ti on with reference to the a,),-)1 at ion of the 'Bank of Italy for the tentative approval of the Federal Reserve Board for Perrninsion to negotiate for the purchase of the Commercial --3.t.onal Bank of Les An$2.,P1e5 and its three branches. "oted. Letter dated February 16th, from the Federal Reserve Agent at San ; 4.--ksco transmitting with favorable recormendation, the ayplict,t ion of the Hank of Italy, San Francisco, to purchase the First rat ional Bank of alinas and_ the `):,- 11inr.s Valley ;4-1vin's Bank, and. to operate a branch in the 9remises T1CV: occupied by these two institutions. Ordered kid on the table. • Fr. Filler moved that the Federal Reserve Board adopt the 2A:5/23 Principle t:,Lt adenuate eyartinations of banks havin7 branches can only be secured throngh the simultaneous exaninat ion of head office and all branches and that the Lew Con-imittee be reauested to formulate the Federal Peserve BaIrd's forral exeression of this principle. Carried, Mr. Hamlin and Mr. 'Platt voting "no", both members voting in the negative stating that they agree in pri ne iple with Mr. Miller's motion, but that in vi en of the stat anent of the Federal 'eserve Paiilc of 3,t-In 'Francisco tIzt exaninations of head office ad branches can be not necessarily simultaneous, that they would prefer to wait until the Federal Reserve rank of San Francisco is heard from in the matter. o f Fr. The Secretary was then in structed, in vi 2errin's letter of 2ebriziry 16th a-Love referred to, to ,ram: transmit the fo 1 low in t el ep. "Your letter -February 15th transmitt hig vith favorable recomnendat ion the applic ri_t ion of the Ba.ik. of Italy fc r quthority to purchase the First 17tional Bp.nk of 3a.linas the ':.;alinas Valley ;airings ank, and to operate a branch in the premises now occupied by those two institutions stop The. BoPrd directs re to call your attention to Board's telegram of December 26th and to reiterate the opinion of the 7,o ard that no action should be taken with reference to additional branches for the large California banks now having numerous branches until the pending question relating to examinations is settl od and to advise you that the Board will not approve further branches for the Cal ifornia banks now having nurvrous branches unti 1 the examination problem is settled stop This also is one reason why the Board refused to rrnke any cormitment looking to the establishmnt of branches based on the purchase of the The Board awaits the Commercial TTational of Los Angel es sto submis.si on from you of a !-)ra.cticable and satisfactory plan of examination based on the principle of simultaneous examinations of head offices and branches and on our Counsel's opinion milled you on February 14th." The Vice Governor stated tat the next thing in order would be consideration Of the sPerial order business doclizted for today under action titken by the Board. 1t 17ednesday, namely, the receipt by the Board. of a report from the Com"On 1`7ornination of Class "C" Directors with reference to the appointment of ruitt 2/23/23 0,0 Federal Tleserve 2..7ert and Chairr..T.,n of the Board of Directors of the Federal rieserve Bank of T ‘ llas. er scme d scussion, l'r. Crit7; sin r:er stated that it wo be necessLry fo r dm to withdraw from the meeting and the natter was ordered redocketed as special order -1)siness for a meetin,7 to be held tomorrow, Saturday morning. Hrmlin stated that he hrd finished his current work u on the IrLke-, bicest of the Federal. Ileserve Bulletin end requested authority to print stetthat the estimEAes which he slibrnitted were based upon the fiF!ures of last Year. A motion granting authority to print was carried. I:r. Hamlin submitted a letter dated February 19th, from Tr. I. F. nakclimen, k ' i 1`9sident of the City rationn.1 Bank of Port Smith, ..1.r1gansas, protesting against the erection of a branch bank builiCnc, for the Little Bock Branch of the :4'elera1 Icleserve Bank of St. he Secretary was instructed to forward a copy of !7r. Nakdimen's letter to the Federal 'Reserve Bank of St. Louis. Letter dated February 21st, from rr. Paul *M. 7arburg, Chairman of the of Directors of the International Leceptance Bank of rew York, with refer'ence to acceptances covering domestic transactions. r?eferred to the Law Co mit tee. L tter dated February 20th, from the Governor of the Federal Be serve , the advice of the Board with regard to the disposition .11.1c of Dallas, reauestinL: I' certain funds accruing from the Bank's blanket insurance, upon the lives of employees now deceased who appear to have left no near relatives. Referred to the Law Cornit tee. - • 2/23/23 -4 Co y of * Lt telegrom transmitted to the Comptroller of the Currency by I:ountjoy and signed by the President of the i'lltional Bank of commerce in St. Louis, advising thtt two nation-11 tanks at St. Oosei)h have been denied th right to act ;Is executors by the Probate Judge there and that the matter it to be co:tested at an early date by mandamus proceedings in the Supreme Q1111 of l'issouri. Upon mot ion, ordered. referred to leneral Counsel instructions to 1)ring about a Suit, if possible, in the ',,edern.1 Cour t. nernorandum dated February 23rd, from the *AssiStant Secret'ry of the Board recMestin ,-; authority in accordance with precedent to transmit to the Treasurer at the United States a check for '.245 in pa vmmt of certain incomplete Federal erve notes received in the redemptions with tIr understanding that the Por.Ird 1111 be reimbursed by the assessment on all Federal Reserve banks in the usual • Approved, it being understood that this is in conformity with the action taken by the Board in April 1921. 'TT. C. ba'tea February 21st, 1 Recommending action on applications for changes in stock. as set forth in the Auxiliary rinute Book of this date. Approved. The meting adjourned at 1:10 p.m. 1)r)ro /Ted: 1-s'ecrettiry. Vice lovt,rnor.
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