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Upon call of the Governor, a special meet in
of the Federal Reserve
Board was held in the office of the Governor on Monday, February 25, 1924,
at 2:45 p.m.
PR.]SENT:
Governor Crissin -er
Mr. Platt
Mr, Hamlin
Mr. Miler
Mr. James
1.1r. Dawes
Mr. 2ddy, Secretary
The reading of the minutes of the last meeting of the Board was
dispensed with.
'Die Governor presented a letter dated February 23rd from 1.1r. John
Llitc'hell, formerly a member of the Board, stating that he sees no reason
Why the Board Should comply with the request contained in letter dated
February 19th, from the Governor of the Federal Reserve Bank of Minneapolis,
that the Board reconsider action taken at the end of the year in disa2mroving
increases recommended in the mtlaries of Deputy Governor
B. Geery and
Issistant Deputy Governor Harry Yaeger.
Noted.
The Governor then presented a letter dated February 22nd from the
Chn'
. of the Committee on Banking and Currency of the Senate, stating
--lnaan
thLt hearins v ill be held on Thursday, February 28th, on S. 2386, a bill
for the "purpose of stabilizing banks and trust companies, restoring public
confidence within communities or states where such confidence has become .
11111-mired, directing the ':;ar Finance Corporation to pay over to the Comptroller
Of the Currency
50,000,000 to be used by the Controller in aid of such
2/25/24
purpose and for other purposes'Isaid letter re:juestin{7 an expression of
the Board's views regardin, this. bill.
Daring discussion as to the advisability of the
Board's expressing an opinion on the measure, in which
it is not directly concerned, it developed that the
Secretary of the 2roasury and the Comrtroller of the
Currency had been re,uosted to express their views on
the bill and action by the Board was deferred pending
consideration of the ronlies of those two ex-officio
members.
iho Gover or then presented a telegram dated February 24th, from the
6uperintendent of Banks of the state of California advising that the Valley
Bank of Fresno which has eight blenches must close today unless taken
over, that the closing of this bank would mean the failure of several small
ones, and re,luesting permission for either or both the Pacific Southwest
7.1
,
.rust and Savings Bank of Los Imgeles and the Bank of Italy of San Francisco
to
tako
over and operate such branches of these banks as he shall designate.
2.fter discussion, Mr. Miler moved that the followtag telegram be sent to the Governor and Chairman of the
Federal Reserve Bank of San Francisco:
"Board authorizes Bank of Italy and Pacific Southwest 72rust
and Savings Bank to take over Valley Bank of Fresno and its
branches, as requested by State Superintendent of Banks, if
in the Judgment of the "].!Ixecutive Committee and either the
Governor or Chairman of the Federal Reserve Bank of San Francisco that is the only practicable method of meeting the
emergency%
Miller's motion being put by the chair was carried,
the members voting as follows:
2/25/24
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Ur. Platt, "aye"
Er. Hamlin, "aye"
Er. Miller, "aye"
Ur. James, "no"
Er. Dawes, "no"
Governor Crissiner "not votin-:"
Report of Committee on District iTo. 1 on letter dated February 21st,
from the Chairman of the Federal Reserve Bank of Boston advisin
Of
the directers of that ,, Jank in
of the action
ranting to 'lovernor HardinE; two months' leave
of absence with pay; the Committee recommendinc: th t the Board approve the
action of the directors of .hat bank in grantin,; leave to Jovernor 1Iardin[7
\dth pay, on account of illness.
,lpproved.
the Secretary then presented a communication dated February Last,
from the Secretary of State to the Secretary of the '..2reasury, requesting
that there be furnished, to .he former Prime Linistor of :lun:ary copies of
the Federal Reserve Ixt and the By-laws of the Federal Reserve banks.
pproved.
Re ort of Law Committee on mutter ref:rred to it at the meetin; on
,obruary 15th, nal.lely, letter dated February 15th :rem the .c.,ssistant Lttorney
ieneral, re[sarding the use of the words "Federal Reserve" in printed matter
isauod by the Shoshoni State Bank of Shoshoni, V:yoming, a non-member bank,
said letter advising tllat the practice has been discontinued; the Committee
aubmittint form of an acRnowledment to the 1,ttorney ,seneral and draft of a
ltter of advice to the Federal Reserve ,,-,;ent at Kansas City.
.2pproved.
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The Committee on Examinations submitted a report on letter dated
February 23rd from the Chairrnn of the Federal Reserve Bank of Richmond,
transmtting the application of the Eastern Bank
nd 2rust Company, New
Bern, North Carolina, for permission to establish a branch at Vanceboro,
Ilorth Carolina, this bank formerly being known as the New Bern Banking and
Trust Company, which at the time of admission to membership was not required
to comply to the condition that it would establish no branches without the
aPproval of the Board; the Committee recommending approval with the underStanding that the application has the approval of the State Bankin: authorities
and of the Federal Reserve Bank of Richmond, and in the belief that examinations made by the above mentioned authorities indicate tat the applying bank
is in such shape that its standard will not be materially affected by the
oPening of the branch.
Mr. Miller moved that the following telegram be sent
to the Chairman of the Federal Reserve Bank of Richmond:
"Replying to your letter of February 23rd, and with
further reference to Board's letter of February 5th, you
are advised that before informing ,astern Bank and Trust
interpose no objection
Company of Now Bern that Board
to establishment of branch at Vancoboro, you should certify
to the Board that the State Banking authorities of North
Carolina are making examinations of state banks and branches
that are up to standard and that your uank itself is satisfied,
through examination or otherwise, that the establishment of
the proposed branch by the Ilastern Bank and Trust Company
will not tend 'to affect materially the standard now maintained and reiuired as a condition of me.nbership".
Mr. Platt moved that the telegram proposed by Er. Miller
be amonded to read as follows:
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211 5 '
'
74
"Replying to your letter of February 23rd, ard with
further reference to Board's letter of February 5th, you are
advised that before inZormin Eastern Bank z-nd 2rust Gompany
of New Bern that Board will Interpose no objection to establishment Of branch at Vanceboro, you Should certify to the
Board that your bank is satisfied either throu-:h state examination or its own examination that condition o: the bank
Is sound and that establishment of the branch \All not tend
'to affect materially the standard now maintained and reluired
as a condition of membership?".
Mr. Platt's motion being put by the chair was carried,
Mr. Mill r votin,; "no".
IVr.r. Miller's motion, as amended by the motion of Mr.
Platt, being put by the chair was unanimously carried.
Report of Committee on Examini-t ions on letter dated February ..,3rd, from
the Federal Reserve LL,ent at Bt. Louis, advisinc that applications for reduction in reserve ro,rairements may be filed by the Lindell 2rust Company, opened
fer business January 2, 1924, and by the imerican
xchance rational Bank, now
la process of or.7anization, both banks located in outlyin; districts of St.
1411is; the Committee recommending that the Board make it a condition precedent
to the filing of applications for reduction in reserves, that the ap:licant
bank shall have been a member of the Federal Reserve System and in operation
as
such for a period of at least ono year prior to the date of such al)plicaion.
Upon motion by :IT. Platt, the report of the Committee
on Examinations was approved.
The Committee on Salaries and Expenditures reported verbally on the matter'
ref
-rred to it at the mating on February 15th, namely, telegram dated February
11
14th from
the Jovernor of the Federal‘lieserve Bank of Dallas referring to the
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' 2/25/24
ng the appointment of Ur. R. R.
Board's action of February 12th, in approvi
with the understanding that
Gilbert as Deputy Governor of the Dallas bank
that the
no new Deputy Governorship is being created, the telegram stating
lated two Deputy Governors as a
action of the directors of that bank contemp
Committee recommending that the
Permanent feature of their organization; the
directors of that bank In
Board interpose no' objection to the action of the
Governor.
voting to authorize the election of an additional Deputy
Upon motion of Mr. Hamlin, the report of the
Committee was approved.
d verbally on the
The Committee on Salaries and Zapenditures reporte
y
niaLter reforred to it at the meeting on Februar
lst, namely, letter dated
Reserve Bank of Minneapolis,
February 19th from the Governor of the Federal
taken at the end of the
l'equest inc; reconsideration by the Board of action
Governor
rear 1923 in votilv to disallow increases in the salaries of Deputy
of that bank; the Committee recomG8017 and Assistant Deputy Governor Yaeger
M
ending'
disapproval of the request for reconsideration.
ee
Upon motion, the recommendation of the Committ
action
the
d and
on 6a1aries and 3xpenditures was approve
mentioned above
es
increas
the
wing
disallo
in
of the Board
was not reconsidered.
d to it at the meeting
The Law Comittee reported on the matter referre
ller Gen011 February 15th, namely, letter dated February 4th from the Comptro
G1'al Of the United States, replying to the Board's letter of Deco/111)er 4, 1923,
Board
l'ocluesting reconsideration of his previous decision that Federal Reserve
.
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2/25/24
submitting
funds are appropriated moneys of the United States, the Committee
the fact
draft of a letter to the Comptroller General stating that in view of
provisions
he has not announced any definite ruling as to thether the various
Of
law regul-ting the expenditure of public moneys are applicable to the ex-
in the first
Penditure of Board funds, the Board assumes that it must determine
to its own
Instance to what extent these provisions are properly applicable
arise in the
expenditures and will endeavor to determine such matters as they
exercise of its best judgment.
Approved, as amended.
LIBmorandum dated February 25th, from Counsel advising that the
the United
Supreme Court has granted the motion of the Solicitor qeneral of
a brief
States for leave to intervene on behalf of the United States, file
- ational Bank of St. Joseph,
and make an .oral argument in the case of the Burl-Bs r
Missouri
lassouri, which is an appeal from the decision of the Supreme Court of
and that
denying to national banks in that state the right to act as Executor,
banks to
the Court has. granted also the motion of Counsel for the :anal
advance the case and ham zet it for hearing on April 7
Noted.
2he meeting adjournod at 4:25
Secretary.
@FedFRASER