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A meeting of the Federal Reserve Board was held in the office of the
Federal Reserve Board on Thursday, February 3, 1927 at 11:45 a.m.
PIESzaT.L.:
Governor Crissinger
Mr. Platt
Mr. Hamlin
Mr. Miller
Mr. James
Mr. Cunningham
Yr. Mc Into sh
Mr. Eddy, Secretary
Mr. McClelland, Asst. Secretary
The reading of the minutes of the meeting of the Federal Reserve
Board held aa February 2nd was dispensed with.
Telegram dated February 2nd from the Chairman of the Federal Reserve
Bank of Philadelphia, advising that the board of directors on that day made
40 chan1.7e in the bank's existing schedule of rates of discount and purchase.
Noted..
Telegram dated February 2nd from the Chairman of the Federal Reserve
411k of St. Louis, advising that the board of directors on that day made
40 change in the bank's existing schedule of rates of discount and purchase.
Noted.
Report of Committee on salaries and Expenditures dated February 2nd,
mabmitting a resort from the Controller of the Federal Reserve Bank of
ilichmond on the budget and expenses of the bank for 1926, together with an
4441Ysis of the report prepared by the Chief of the Division of Bank Operat)
.0118;
the Committee stating that the report reflects very favorable upon
the Management of the Richmond bank and suggesting that the bank be so notified.
Upon motion, the suggestion of the Conznittee
was approved and, the report was oidered circulated
for the information of the individual members of the
Federal Reserve Board..
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The Governor then referred to the special order of business for this
morning's
meeting, namely, (1) Recommendation of the board of directors of
the Federal Reserve Bank of Boston that the salary of Mr. K. K. Carrick,
Secretary of the bank, be increased from t7,500 to ,)9,000 for the year 1927;
(2) Request of the board of directors of the Federal Reserve Bank of New York
for moonsideration of the Board's action of December 22, 1926 in disapproving
an
increase from ,7,500 to ,i 9,000 per annum in the salary of Mr. J. H. Philbin,
4s8istant Counsel and Secretary of the bank, and in disapproving an irtrease
fr(3:11 .„;10,000 to g15,000 per annum in the salary of Mr.
w. R.
Burgess, Assistant
Pederal Reserve Agent, for whom the Board approved instead a salary of 413,000
for the year 1927; and (3) Request of directors of the Federal Reserve Bank of
'Philadelphia for reconsideration of the Board's action of December 22, 1926 in
clisaPproving recommendations for an increase from z,',25,000 to ,30,000 per annum
14 the salary of Mr. George
Norris, Governor of the bank and an increase
frft $15,000 to J18,000 per annam in the salary of :Ir. W. H. Hutt, Deputy Governor.
I)
Thereupon ensued a discussion of the recommendations
of the New York directors regarding the salaries of Messrs.
Philbin and Burgess, during which it was the consensus of
opinion that the salaries proposed, particularly that of
the Assistant Federal Reserve Agent, should not be approved
by the Boand until the vacancy in the office of the Federal
Reserve Agent and Chairman of the board of directors of the
New York bank has been filled and the Board has been advised
of the appointee's approval of the recommendations. Accordingly, it was voted to defer action on the two salaries in
question.
The Board then took up the request of the Philadelphia directors for
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2/3/27
reconsideration of its action with respect to the salaries of Govenior Norris
and Deputy Governor Hutt of that bank.
Following a discussion it was moved that the Board
reconsider its action of December 22nd in disapproving
the recommendation of the Philadelphia directors that
the salary of Mr. W. H. Hutt, Deputy Governor, be increased from 45,000 te18,000 for the ,rear 1927.
The motion being rat by the Chair was carried,
Messrs. James and Cunningham voting "no".
It was then moved that the Board approve an increase
from 45,000 to tr;16,000 per annum in Mr. Hutt's salary
for the year 1927.
A substitute motion was made that the Board approve
the recommendation of the directors of the Philadelphia
bank that the salary of Mr. Hutt be increased from
415,000 to :,i;18,000 for the year 1927.
The substitute motion being put by the Chair
was lost, the members voting as follows:
Governor Crissinger,
Mr. Platt, "aye"
Mr. Hamlin, "aye"
Mr. Miller, "no"
Mr. James, "no"
Mr. Cunningham, "no"
Mr. McIntosh, "no"
y eft
ffa
The original motion then being put by the
Chair was carried, Messrs. James and Cunninstham
voting "no".
The Board then considered the recommeniation of the board of directors
°f the Federal Reserve Bank of Boston that the salary of Mr.
K. K. Carrick,
Se retary, be increased from '.)7,500 to ,,9,000 for the year 1927.
It was moved that the Board approve for Mr. Carrick
a salary of g9,000 for the year 1927.
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2/3/27
0114=0
Carried, Messrs. Miller and Cunningham voting
"no".
Report of Committee on Salaries and Expenditures on letter dated February
1st from the Chairman of the Federal ileserve Bank of Atlanta, requesting apPromal of a salary of ,;42,500 per annum, effective January 31, 1927, for Mr.
Hugh Poster who has been appointed Deputy Governor of that bank; the Committee
reeammending approval.
Approved.
Memorandum dated February 3rd from the Chief Examiner, approved by the
Cemmittee on Salaries and Expenditures, advising of the illness of Mr. Charles
H. Ball, Assistant Examiner, and recommending that he be granted leave of absence with pay for sixty days beginning February 10, 1927.
Approved.
The Secretary then referred to the authority granted by the Board for
the anployment of Mr. M. D. Smiley as an examiner to be assigned to assist
Gilbert, Supervisor of Examination, and to Mr. Smiley's declination of
the offer made him. He stated that Mr. Gilbert required the assistance of
44 examiner for the purpose of analysing reports of examination in con4setion with the survey he is undertaking and requested that the Board reits authority for the amployment of such an examiner.
Upon motion, the matter was referred to the
Governor with po-Ler, with the understanding that
the salary to be paid would be submitted to the
Board for approval.
The Vice Governor then subnitted draft of a letter to the Secretary of
the
Federal Advisory Council with reference to topics to be discussed at
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2/3A7
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the meeting of the Council on February 18th.
Approved.
The Committee on Salaries and Expenditures
submitted draft of a letter
to the Chainman of the Federal Reserve Bank of Dallas, replying to his letter
Of December 29th
submitting a plan to extend the distribution of the monthly
tagazine published by the employees of the bank so as to include member banks
and to extend its scope so as to include matters of mutual interest to the
reserve bank and its members.
Upon motion, the proposed letter was approved.
The Governor called attention to a letter referred to him by the Fresiclent with respect to a proposal of the Red Elver Valley Trust Company of
Pari st
Texas, a nonmember bank, to make loans to World War Veterans on the
aftarity of their Adjusted Service Certificates provided all such loans made
11
the trust company would be rediscounted for it by the Federal Reserve
ari.lt of Dallas.
The Governor stated he replied to the first communication
Ilecsived from the White House and that there has been referred. to him another
letter on the same subject to which he has prepared a reply for submission
u_
tOtLito
Board at a later meeting.
Upon motion, the proposed letter was referred
to the Law Committee for report.
' 130--TS OF 9UNDING COLIMITTEE :
Dated, February 2nd, Recommending changes in stock at Federal Reserve banks
3rd, as sot forth in the Auxiliary 1,:inute Book of this date.
Approved.
C.
{ti'
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.9.1Q1ZPRTS OF STANDING CCLIMITMS: (Contfd)
Dated, February 2nd,
Recaumending approval of the application of Mr.
N. P. BUll for permission to serve at the same
time as director of the Capital National Bank,
Lansing, Inch. and as director of the Union Stock
Land Bank, Detroit, MiCh.
Approved.
The meeting adjourned at 12:45 p.m.
@FedFRASER