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:#O9 A meeting of the Federal Reserve Board was held in the office of the Pederal Reserve Board on 71'ednesday, February 26, 1930 at 11:55 a.m. PRESENT: Governor Young Vice Governor Platt Mr. Hamlin Mr. Miller Mr. James Mr. Cunningham Mr. Noah, Asst. Secretary The minutes of the meeting of the Federal Reserve Board held on FebruarY 25th were read and approved. Governor Young stated that he met this morning with the committee recently appointed to make a study of the subject of member bank reserves and hal suggested to the committee that the Board may find it desirable to also. 413Pcint the members of the committee on reserves 4s a committee to study the (level^ vlment of chain, group and branch banking in the United States. He stated that, inasmuch as the committee would have to give considerable thought t0 this subject, in connection with its study on reserves, the members would be willing to serve on both committees should the Board desire to take such action. After discussion, upon motion, Messrs. Goldenweiser and Smead of the Board's staff, and Messrs. 2aunds, Fleming and Clerk, representing the Federal Reserve banks, were appointed as a committee to assemble and digest information on branch banking as practiced in the United States, group and chain banking systems as developed in the United States and elsewhere, the unit banking system of the country, and the effect of ownership of bank stocks by investment trusts and holding corporations. The Governor then presented, and the Assistant Secretary read, draft of 4 Proposed letter to the Chairman of the House Banking and Currency Committee , 114 reply to his letter of February 21st on the subject of chain, group and. 44404 banking; the proposed reply stating that the Board has studied this 2_10 _2- . subject for a number of years and has enlarged the field of its work to a committee, including representatives of the Federal Aeserve banks, but as it feels the matter is one of the most important and most difficult problems in. baaking changes before the country at the present time and as it believes there should be available more complete information regarding the cause, ctreallization and effects of branch, group and chain banking, it refrains fram selecting a representative to appear before the committee; that any member of the Board would be glad to appear before the committee; and offering the services of the Board's esearch and Statistical Division and the cooperation of the Board in conducting its study. After discussion, upon motion, copy of this letter was ordered furnished to each member of the Board. A general discussion then ensued as to the merits of the different systems of banking now existing in the United States, and the causes of bank failures, Dr. Liner stated that it has been called to his attention that the IlePresentative of the banks which recently petitioned the Board to require the Federal iieserve Bank of Kansas City to establish a branch at Nichita, Kansas, has not been officially advised of the action taken by the Board on their petition on February 21, 1930. Upon his motion, the Assistant Secretary was instructed to send a letter to Honorable Chester I. Long, spokesman of the petitioning banks, advising him that the petition had been disapproved. This motion, being put by the Chair, was unanimously carried. aeference was then made to the discussion had at the meeting on February fl 2/26/30 -3- 21st„ regarding the advisability of the Board making a survey of the entire subject of breach Federal Reserve banks with a view of determining under What Orel:meta:aces the establishment and maintenanc e of a branch Federal Reserve bank is justified from an economic and public service standpoin t. After discussion, upon motion, the Governor was requested to prepare a resolution along the lines suggested at the meeting on February 21st for consideration by the Board at a later meeting. The meeting adjourned. at 1:10 p.m. Assistant Secretary. A pproved:
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