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A meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Thursday, February 28th, 1924, at 11:25 a.m. PBESEIIT: Governor Crissinger Mr. Platt Mr. Hamlin Mr. Miller Mr. James Ur. Dawes, Ur. Noell, Assistant Secretary Mr. Eddy advised the Board that in the Weekly Statement of Condition Of Federal Reserve banks discounts for.Intermodiate Credit Banks have in the past been included in "Other Bills Discounted", and that the Federal Reserve Bank of New York had within the last day or two purchased .100,000 of debentures from one of.the Intermediate Credit Banks:re(ruesting instructions as to how these two items should be carried in the weekly statement. After discussion, the Secretary was instructed to add the caption "Other Earning Assets" to the weekly statement, including in it debentures purchased from Intermediate Credit Banks and municipal warrants, to continue carrying discounts for Intermediate Credit Banks under the caption "Other Bills Discounted" and to explain these items in the summary of the consolidated statement.. The minutes of the meetings of the Federal Reserve Board held on February 26th were read and approved. Letter dated February 26th from the Federal Reserve Agent at Philadelphia,requesting approval of the Board to the designation as examiners of nine employees of the bank Who are needed to assist in pending examinations of four state member banks. Approved. . Report of Committee on Examinations on letter dated February 25th from the Federal Reserve Agent at Atlanta, requesting approval of a 2/26/24 111101,c0 1.1. salary of 2700 per annup for Mr, James G. Byrne, an employe of the Nashville Branch, who is to be transferred to the head office as an examiner; the Committee recommending approval. ApprOVed• Letter dated Fr)bruary 21st, from the Chairman of the Federal Reserve Bank of San Francisco, advising that the directors of that bank have voted against the establihment of a branch of the Federal Reserve Bank at Boise, and statin:s that copies of exhibits and of the results of the questionnaire upon which the directors based such action will be forwarded to the Board if desired* Noted, and the Secretary instructed to write for the exhibits and the results of the questionnaire referred to. Memorandum from the Secretary with regard to letter dated February 27th from Congressman Otis Mngo, recrtzesting statistics covering the cost of operation of each Federal Reserve bank aarin!„7 the years 190-1923, separately by items and years; the Secretary stating that statements similar to that published in the February 1924 Bulletin, upon which Conr,7ressman vangols vequest is based, can be worked up, as well as figures showing the volume of business done by the banks durin the same years. Referred to the Governor with power. Leuter dated February 23rd, from the Governor of the Federal Reserve Bank of New York su;;3esting i:onday, April 28th or Monday, May 5th, as the date for the next Confrence of Governors. -3- Upon motion, it was voted to fix lionday, 1.:ay 5th, 1924 as the 'alto for the next Governors' Conference. Report of Committee on District Po. 11 on letter dated February 26th from the Comptroller of the Currency, suggesting that the Board grant yermission to the Federal Reserve Bank of Dallas to rediscount for the Hugo National Bank, Hugo, Okla., paper originating from the Bank of Grant, Grant, Okla., the Committee recommending tho granting of permission for a period of sixty days with the privilege of extension of time, with the Board's approval, for sixty days additional and i.th the understanding that the Federal Reserve Bank of Dallas will take no paper dated previous to today. Upon notion, the report of the Committee on District 11 was approved. Report of Committee on Exa,ninations on telegram dated February 26th from the Federal Reserve -i.ent at an Francisco, advising that the Executive Committee of the Federal Reserve Bank has approved the application Of the ilercantile Trust Company of an Francisco to take over the !Zarin County National Bank and the llarin County javinzs 'Bank., of Jan Rafael,and to establish one branch in the premises now occupied by these banks,which has Previously had the approval of himself and the Jtate juperintendent of Banks; the Committee reconaending approval of the application. Approved. Report of Committee on Examinations on letter dated February 5th from the Federal Reserve Agent at Cleveland, advising that the State 2/424 3nperintendent of Banks, the 2,xecutive Committee of the Federal Reserve bank : nd himself ap:rove of the application of the Cleveland Trust Company for rermission to operate a branch at the corner of Madison Avenue and Hilliard Road, Lakewood, Ohio; the Committee recommendin!; approval in view of the fact that the application has the a preval of all interested parties and the location is within territory contiuous to Cleveland. LDproved. Letter dated 2ebruary 15th, from the President of the Unaka and city National Bank, Johnson City, 2ennessee, enclosin letters addressed by the iederal Reserve Bank of Richmond to the Di kenson County Bank, Clintwood, Virginia, and the Bank of Haysi, Haysi, Virginia, complaining against remittances sent by those banks in payment of cash letters. Upon motion the Jecretary was instructed to transmit the letter of the Johnson city Bank to the Federal Reserve Bank of Richmond Ath the reuest that it suggest form of reply thereto. Memorandum dated A3bruary „:7th, from Counsel with regard to the conersion into a national bank of the New Bedford Safe Deposit -nd 2rust Company of New Bedford, Massachusetts, a stae :amber bank which had been authorized to is >lie acceptances up to 100„; of its capital and surplus; Counsel suA;estin that while it is unnecessary as a matter of law, the Board might rule that a bank so converting should make a new application for Permission to accert up to 1.)0, in its now name. Upon motion the memorandum was referred back to Counsel for the rreraration of'a letter to the bank in (raestion, advising that it should file a new application fJr permission to accept 117 to 100d. _5- 2/28/24 Lemorandum dated February 25th, from Counsel referring to letter dated February 5th from the Chairman of the Federal Reserve Bank of Can Francisco in:!uiring (1) Mother examinations of national banks made by Federal Reserve banks should be conducted by examiners selected or apiiroved by the Federal Reserve Board; ,:hether special examiners should be granted certificates of authority valid throuhout tie year;and (3) Mother examinations made by Federal Reserve banks may be conducted unier the direction of other officers than the C'hief Examiner; Counsel stating that the last two 2uestions are purely ones of policy and yTactice and su:xestins' that the first question be answered to the effect that there is no legal re,luirement :hat examinations made of national banks by Federal Reserve banks should be conducted by examiners selected or approved by the Federal Reserve Board. Referred to the Committee on Examinations, Letter dzted February 27th, from the Governor of the Federal Reserve Bank of Richmond, enclosing copy of an opinion by Counsel of that bank with regard to the recent decision of the Supreme Court in the "Malloy Case" and suggesting the amendment to Regulation "J" so as to Provide not only that checks may be sent directly to the banks upon w_ich they are drawn, but that remittance therefor may be received in the form Of exchange draft or otherwise. Referred to the Committee on Clccrings, 2/20/A 2elegram dated February 20th. from the CI-overnor of the Federal . Reserve Bank of Kansas City,statin.; that if the re-ent decision of the Supreme Court in the ":alloy Case" is permitted to stand, that bank will be in constant jeopardy in their par collection activities. Referred to the Committee on Clearings. Report of Committee on Branches on matter referred to it at the meeting on February 20th, namely, letter chted February 16th from the Consulting Architect making certain inquiries with regard to tho proposed buildings for the Denver and Omaha branches, the Committee submitting draft of a letter to the Consulting Architect to the effect that the rroposed buildings are to be erected "nt a cost each of not to exceed :A50,000, including the cost of the vLulta Lnd Permanent e‘luipment, but excluding the cost of building, site, furniture and fixtures". Upon motion, the proposed letter was approved. The Law Comuittee reported on matter referred back to it at the meeting on January 16th, namely, letter dfited JannLry 11th from the ovec;lor of the Federal Reserve Bank of Jt. Louis with further reference to the action of the ',rovers 1Tational Baa.k of Ilast Jt. Louis, Illinois, In rediscounting with the Federal Reserve bank raper emanating from nonmember banks but not bearing the endorsement of such non-member banks; the Committee submitting form of a reply stating that paper of this kind can not hereafter be considered eli:ible for mdiscount with the Federal Reserve bank and reluesting him to exrlz'in to the Drovers National bank the -7- 2/28/24 reasons influencing the Board in this matter, as set forth in the letter. Upon motion, the proposed letter was approved. Memorandum from the Board's Chief osaminer dated February 15th, Prepared in accordance With action taken at the meeting of the Board on January 31st, settin forth a plan for the si-tultaneous examination of the Bank of Italy, the Pacific Jouthwest 2rust and 3avings Bank, the rust Company and the Jacurity 2rust and Javin's Bank and Mercantile giving an estimate of the time and expense involved in such examinations. Ur. Hamlin moved adoption of the plan suggested by the Chief Examiner, and that the Board proceed with examinations of the banks mentioned along the lines set out therein. Ur. James moved, as a substitute for lir. Hamlin's motion, that the memorandum of the Chief Examiner be laid on the table. James' motion being put by the chair was carried, the members voting as follows: Governor Crissiner, "aye" Er. Miler, 'aye" Mr. James, "aye" Ur. Platt, "no" liaml in, "no" Letter dated February 25th, from the Federal Reserve.gent at Dallas advising that the Fir rational Bank of San Angelo, 2axas, vhich reduced its surplus ;2.5,000 and surrendered seventy-five shares of Federal Reserve bank stock on October 18, l9.;,3, has now made claim for a reissuanee Of that stock. Referred to the Law Committee. -8- 2/20/24 11r. Hamlin thenemoved that the natter referred to the Law Committee at the mooting on 2ebruary 20th, namely, .reparation of rogulatios regarding the establishment of branches by member banks, be made special order of businossfor a meeting to be held tomorrow morning at 10:30 o'clock. Carried. 4.'he meeting adjourned at 1C) p.m. ;.ss istant Secretary. Approved: Governor,
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