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30 Upon call of the Governor a meeting of the Federal eserve Board was held in the office of the Federal Reserve Board on Monday, January 11, 1926 at 11:00 a.m. PAT:SENT: Governor Crissinger Mr. ?latt Mr. Hamlin Mr. Miller Mr. James Mr. Cunningham Mr. McIntosh Mr. Eddy, Secretary Mr. McClelland, Asst. Secretary Mr. Goldenweiser, Assistant Director of the Division of esearch and Statistics am Mr. ?arry, Research Assistant, were also present, and Mr. Goldenweisar read to the Board a proposed letter to the Federal Reserve Agent at New York, prepared in accordance with action taken by the Board at the meeting on December 28, 192o and. reading in part as follows: "Believing that a better understanding of movements in the money market and of developments in the general credit situation will De promoted by the collection of more adequate information concerning the volume of bank loans to brokers at New York City than has hitherto been available, the Board requests you to ask each of the weekly reporting member banks in New York City to include in its weekly report, as memorandum items, the following items of information: Loans to 1. For 2. For 3. For 4. For orokers account account account account secured by stocks and uonds: of this bank--on demand of this bank--on time of correspondent banks--on demand of correspondent oanks--on time. After the system of reporting such loans has been inaugurated at New York City, it is the intention of the Board to extend it to other cities. As soon as satisfactory figures are received the Board will publish the information in the usual aggregate form.' The Board would appreciate receiving the fiPures for the first two report dates in January (January 6 and 13) as soon as you can forward them and for the third report date 31 1/11/26 -2- "January 20) at the same time as the other information covered by the weekly condition report for that date. This will enable the Board to begin the puulication of the figures, with an explanation of their nature and limitations in the Federal Reserve Bulletin for February." After discussion, upon motion by Mr. Hamlin, it was unanimously voted to approve the letter referred to wove. Report of Committee on Examinations on letters dated January 7th from the Executive .Committee and the Federal Reserve Agent at Atlanta, with reference to the application of the Citizens and Southern Bank of Savannah, Ga. for permission to estaulish a branch in Aluany, Ga.; the Executive Committee recommending approval of the application and the Federal Reserve Agent stating ne is unwilling to recommend approval for the reason that the banking facilities in Albany are ample to take care of the needs of the community, and because the establishment of a °ranch at this time would be a serious handicap to the successful operation of the New Georgia National Bank, which has just been organized, to take over the uusiness of the Georgia National Bank; the report of the Board's Committee reading as follows: "The Committee on Examinations recommends disapproval of the application of the Citizens and Southern Bank of Savannah, Ga., for permission to establish a branch office at Albany, Ga., at this time. To grant permission for this branch would not only be contrary to the Board's present Regulation "H", out would be a departure from a policy the Board established long before Aegulation "H" was adopted. This appears to ue an application not to take over an existing bank and operate it as a branch, but to establish a °ranch de novo in competition witn existing institutions. 'biith very few exceptions the Board has never granted its permission for the establishment of de novo branches outside _ 32 1/11/26 -3- "of large citibs and contiguous territory and places where no banking facilities existed. The papers accompanying the application of the Citizens and Southern Bank to establish a branch in Albany do not present any arguments showing additional convenience or necessity of such a branch, and the adverse report of the Federal Reserve Agent, Mr. Oscar Newton, stating 'The establishment of a branch office of the Citizens and Southern Bank in Albany at this time would be a serious handicap to the successful operation of the New G-eorgia National Bank', would seem to be a conclusive reason in accordance with the Board's general policy why this application should be refused. The Board, however, shoula request a full report upon conditions in Albany with a full statement of the reasons which moved the Executive Committee of the Federal Reserve Bank of Atlanta to recommend approval." After discussion, upon motion by Mr. Hamlin, it was voted to adopt the recommenaations of the Board's Committee and to aisannrove the application in question. dated Report of Committee on Salaries and Expenditures on memorandum January 7th from the Assistant Director of the Division of Research and Researgh Statistics, recommending the appointment Of Mr. N. J. Wall as February Assistant in the Division at a salary of c3800 per annum, effective 1st, and'recommending an increase in the salary of 1.1r. W. J. Carson, Research the Assistant, from 7;3600 to .i6800 per annum also effective February 1st; Committee recommending approval. Approved. Memorandum dated January 9th from the Secretary, approved by the Governor authority be and the Committee on Salaries and Expenditures, requesting that operators in the granted for the employment of two additional comptometer ely 0.500 per annum, and Division of Bank Operations at salaries of approximat _ 1/11/26 33 -4- requesting also an increase in the budget for equipment for the Division from c,;600 to 4;1100 to permit the purchase of an additional comptometer machine. Approved. Letter dated January 9th and telegram dated January 11th from the Governor of the Federal eserve Bank of Cleveland, advising of the action Of the board of directors of that bank in voting to appoint mr. J. C. Nevin, at present Cashier and Secretary of the bank, -0 the office of Managing Director of the Pittsburgh Branch at a salary of ,i;1.3,500 per annum, and to aPpoint Mr. H. F. Strater, at present Assistant Cashier, to the office of Cashier and Secretary to succeed Mr. Nevin at an annual salary of 4;10,000 Per annum, both effective January 15th. Upon motion by Mr. James, it was voted to approve the Above salary for mr. Strater, that for Mr. Nevin having previously been approved. Report of Committee on Salaries and Expenditures on letter dated alluary 7th from the Deputy Governor of the Federal Reserve Bank of New Y°11c. requesting approval of the employment of Mr. J. A. Sedgwick, as Fore- 111411 Carpenter, with salary at the rate of $50 per week; the Committee also teC ommending approval. Approved. Letter dated January 6th from the Federal Reserve Agent at Kansas eitY, requesting approval of the action of the Executive Committee of that • in granting Mr. Hiataro Tsuji, an employee of the Transit Department, 1344k leave of absence for three months on half pay. Approved. 34 _5- 1/11/26 Letter dated January 6th from the Chairman of the Federal A3serve Bank of St. Louis, advising that at the meeting of the board of directors office Of the bank held on that date all of the present officers of the head and three branches were reelected. Noted. Letter dated January 6th from the Chairman of the Federal Aeserve Bank of St. Louis, advising of the reelection of Mr. Breckinridge Jones as member of the Federal Advisory Council Srom the Eighth District for the Year 1926, with compensation of „A,000 per annum. Noted, with approval. Letter dated January 8th from the Chairman of the Federal Aeserve Bank of Atlanta, advising of the election of :Ir. ?. D. Houston, President of Advisory the American National Bank, Nashville, Tenn., as member of the Federal Council from the Sixth District during the year 1926. Noted. Letter dated January 8th from the Chairman of the Federal eserve Bank of Dallas, advising of the election of Mr. B. A. McKinney, Vice Presiof the dent of the American Exchange National Bank of Dallas, as member year 1926. Pederal Advisory Council from the Eleventh District for the Noted. Aeserve Letter dated January 9th from the Chairman of the Federal of that bank Bank of Atlanta, advising of the action of the board of directors IleIA voting, subject to the approval of the Board, to increase the Miami an increase in volving Currency Fund from :„;2,000,000 to ;0,000,00O, with 35 1/11/26 the collateral securing same from0,000,0J0 to 11,000,000. Approved, Letter dated January 8th from the Federal Reserve Agent at St. Louis advising of names of Examiners, both regular and special, at that bank and requesting a change in the designation of Yr. J. L. Geiger fram Assistant Examiner to Examiner. Upon motion, a change in M. Geiger's designation was approved. Letter dated January 8th from the Chairman of the Federal Reserve Bank of Chicago, with reference to the action of the Board in approving salaries of officers and employees of that bank, subject to the condition that any compensation paid to any officer or employee while on leave of absence in excess of the regular allowance must be approved by the Federal .deserve Board; the Chairman advising of the opinion of the Executive ComMittee of that Dank that this is a matter which properly comes within the Province of the local board of directors. Noted. Report of Committee on Examinations on letter dated January 7th from the Federal eserve Agent at Chicago, transmitting resolution of the board of directors of the nonticello state Bank, Monticello, Iowa, applyfor formal approval of its action in absoroing the Jones County Trust and Savings Bank of Monticello; the Committee recommending final approval Of the consolidation, which was tentatively approved on December 31st, on irlitials, confirmed at the meeting of the Board on January 5th. 36 1/11/26 -7- Upon motion, the above application was formally approved. Mr. Liiller then reported he had been advised that consideration was being given by the Federal Reserve Bank of Minneapolis to the question of converting the branch of that bank at Helena, Montana, into an agency. He stated that the Federal Reserve bank had requested that the Board postpone the appointment Of a director at the branch to succeed Mr.. H. M. Rowley until a decision in the above matter has been reached. After discussion, Mr. Platt moved that the appointment of a director at the Helena Branch be oostponed pending a possible change in the status of the branch. Carried, and Mr. Miller requested to so advise the Federal Reserve Agent at Minneapolis. At this point, Mr. McIntosh left the meeting. Mr. Miller then called attention to the Board's circular letter of 1 January 25, 1924 (X-3956) advising the Federal Reserve banks of rules and l'egulations adopted by the Federal Reserve Board with respect to the apP0intment of directors of Branch Federal Reserve banks. Yr. Miller moved that Paragraphs 1 and 6 of these regulations be 4mended to read as follows: “(1) Boards of Directors of Federal Reserve Branch Banks shall consist either of seven members or of five members, as may be determined by the Federal Reserve Board in consultation with the Federal Reserve Bank of the District concerned. Where the Boards Of Directors of Federal Reserve Branch banks consist of seven members, four shall be appointed by the Federal Reserve banks and three by the Federal deserve Board; where the Boards consist of five members, three shall be appointed by the Federal Reserve Banks and two by the Federal Reserve Board. -37 -8- 1/11/26 or u(6) With the exception of the ManaginP' Direct term full whose term of office shall be one year, the seven for Director6 where Branch Boards consists of of number Directors shall be three years; where the , years.' Directors is five the term shall be two After discussion, it was voted to refer the above proposed amendments to a special committee consisting of Messrs. 'Miller and James for a revision of the Regulations in question. the Federal The Secretary then presented telegrams and letters from Atlanta and Chicago, .leserve Banks of New York, Philadelphia, Cleveland, e in effect.at submitting schedules of all rates of discount and purchas y 5th, those banks, in accordance with the Board's letter of Januar (X-4493). Following's discussion of the above schedules, Mr. Inner moved that the minimum rates for the purchase of bankers acceptances in effect at all Federal deserve banks be advanced to 3 1/4 . After further discussion, this motion was made special order business for a meeting of the Board to be held on Wednesday, January 13th. y 9th, with reference The Gover or then presented memorandum dated Januar the Federal deserve to the teleran dated January 8th from the Chairman of Bank of San Francisco advisin that a fifteen day extension has been ob- building and inquirtained from bidders on the proposed Salt Lake City for that building' whether the Board approves plans and specifications Consulting Architect in ing, subject to the modifications suggested by its expressing his report dated January 6th; the Governor in his memorandum should be advised the opinion that the Federal Reserve Bank of San Francisco 38 1 -9- 1/11/26 (1) to have plans and specifications revised in accordance with the suggestions made by the Board's Consulting Architect; (2) to submit same to litm for final approval; and (3) to ask for new bids, the Board to pass on the revised plans and specifications, however, before the new bids are asked. After discussion, Mr. miller suggested the following telegram be addressed to the Chairman of the Federal ieserve Bank of San Francisco: "Board will defer action until it hears from you, after you and your construction manager have had opportunity to consider suggestions of Consulting Architect Trowbridge. You will then be in better position to determine whether it will be necessary or advisable, in order to protect your interests in the matter, to ask for, new bids." Upon motion by Mr. Platt, it was voted to approve the above form of telegram, Mr. Cunningham voting "no". Letter dated January 7th from Mr. John W. Barton, Chairman of the Committee Oii Non-Uash Items of the American Bankers Association, advising that the question- ire sent out by that Committee has been returned by the member banks addressed alad an analysis has been completed, and inquiring when it will be convenient for the Committee to present this analysis to the Board. After discussion, it was voted to refer the above ' matter to the Executive Committee with power. At this point, Mr. McIntosh reentered the meeting. The Governor then presented the matter ordered circulated at the meeting °I1 January 5th, namely, draft of reply prepared by Counsel to letter dated December 14th from the Federal deserve Agent at San Francisco, inquiring Whether banks which are in process of liquidation have the right to partici- Pate in the election of Class 'IA" and "B" directors of Federal deserve banks. - 39 -10- 1/11/26 After discussion, Mr. Miller moved that the Governor redraft the nroposed reply, to be used as a basis for a circular letter to all Federal Heserve banks, to the effect that in the opinion of the Board, banks which are in the process of liquidation are not to be regarded as eligible to vote in elections of Class "A" and "B" directors. Mr. Miller's motion being put by the Chair was carried. memoranMatter ordered cimulated at the meeting on January 5th, namely, dum dated January 4th from Ir. James, submitting letter from the Deputy operation of Governor of the Federal deserve Bank of New York regarding the employees, and a the fund provided by that bank for making loans to needy of the other Memorandum advising of similar plans in effect at several Federal eserve banks. After discussion, Mr. James moved that the Board ascertain whether the Federal Heserve banks not included in the above memorandum have any similar plan for assisting their employees. Mr. James' motion Jeing put by the Chair was carried. dated January Aeport of Law Committee dated January 8th on memorandum 7th from Counsel, with reference to the application of Mr. Charles S. Cheston for permiAion to serve at the same time as a director of the First National .Bank of Dhiladel,-)hia and as a member of the firm of dward 3. Smith and Company, inveetment bankers of Philadelphia; the Committee and Counsel disdeserve Agent at cussing in their memoranda a suggestion of the Federal sary on the ground that Philadelphia that this application may be unneces 40 1/11/26 -11- - lward B. smith and Company are not private bankers within the Board's :a definition of that term. After discussion, upon motion by yr. Hamlin, it was voted to approve Mr. Cheston's application. Aeport of Committee on Salaries, Expenditures and Efficiency on letter dated December 18th from the Governor of the Federal deserve Bank of New York, transmitting a proposed plan for the standardization of jobs and classification of grades of the employees of that bank; the Committee recommending approval of the plan on the following conditions: "1. That the New York bank directors shall have authority to promote employees within a grade, all dhanges during the year to be reported to the Board at the end of the year. 2. ?hat no promotion shall be made from one grade to another where the salary to be paid is in excess of 2,500 per annum, without the prior approval of the Federal Reserve Board. 3. nat the establishment of any now groups or grades shall •be subject to the approval of •the Federal deserve Board. 4. 2hat all salaries to be paid to employees occupying 'appraised positions', except cafeteria employees, and all salaries in excess of ,5,000 shall he subject to the approval of the Federal deserve Board before they become effective." Approved. Mr. James then stated that 1,:r. H. 3. 7:ilcox, a director of the Baltimore Branch of the Federal aeserve Bank of iichmond, had communicated with him regarding a proposal to have introduced in Congress a resolution authorizing an expenditure of •1,025,000 in the erection of a building to house that branch. After discussion, Mr. Cunningham moved that Mr. James be requested to take the matter, up with _41 1/11/26 -12- the board of directors of the Federal Aeserve Bank of Aichmond and ascertain whether they approve the proposed resolution or whether they wish to give the Board any further information. Mr. Cunningham's motion being put by the Chair was unanimously carried. Mr. Hamlin, Chairman of the Board's Special Pension Committee, then submitted letters exchanged by Governor Crissinger with the Governor of the Federal Reserve Bank of New York, in the last of which Governor Strong expressed the hope that the Board will take such action as will enable the Pederal aese'rve banks to adopt such a pension clan as proves to be best adapted to their needs even though it involves asking Congress to pass an sznendment to the Act. After discussion as to the advisability of introducing a bill aUthorizing the establishment of a pension fund and whether or not the Board is prepared to approve the pension plan now proposed, upon motion by Mr. Hamlin, it was voted that the following letter be addressed to Governor Strong: "leplying to your letter dated December 10th, you are aware that in the event of the introduction of the pension bill, the committee to which it is referred is likely to request the Federal Reserve Board for an expression of its opinion regarding it. The Board must keep itself free and, therefore, anything you decide is advisable in connection with the introduction of the bill must be done upon your awn responsibility." II1r20113 OF STANDING COMMITTEES: Dated, January 8th, 9th, 11th, ecommending changes in stock at Federal Reserve Banks, as set forth in the Auxiliary minute Book of this date. Approved. ) 42 -13- 1/11/26 OF STAN15ING cala (Cont'd) for fiduciary Aecammending action on applications :linute 300k y liar powers as set forth in the Auxi of this date. Approved. of 1:r. ding acproval of the application mmen Aeco Dated, January 7th, same the at e serv J. G. 3yam, for permission to Bank, onal Nati t firs time as Vice President of the ha neha :Jin the of ctor Minneapolis, Linn., as dire of ctor dire as and ., State Bank, Minneapolis, Minn . Minn lis, eapo the Produce State Bank, Minn Approved. of :Ir. ding approval of the application mmen Aeco 7th, Dated, January the same at e serv to on issi perm .. 3. :.:cLucas, for , 2t. 3ank onal Nati Army the time as director of ctor dire and t iden Pres as and Leavenworth, Kansas 7o. , City as Kans any, Comp t of the Commerce 2rus Aoproved. ication of lecommending arTroval of the appl Dated, January 7th, serve at the same H. Y. Lemon, for permission to the Army National time as :President and director of and as 'Tice President Sank, Ft. Leavenworth, Kans. t Company, Kansas and director of the Commerce ?rus City, :0. Approved. ion of Aecommandingaoproval of the applicat Dated, January 9th, the same at e serv to on issi perm for s, W. 'E. Blis Batik, onal Nati time as director of the LIahoning Plan is Morr the of Youn7stown, 0. and as director Youn,stown, 0. Approved. of Mr. nr_; approval of the application mendi Aecom Dated, January 11th, the same at e serv to on Joe ?oplitzky, for permissi Bank onal Nati s hant Merc time as director of the , Joth Bank s n Savi and t and Hellman Commercial ?rus of Los Angeles, Cal. Approved. of Mr. ing approval of the application mend ecom , 11th Dated, Janu-ry to serve at the same J. A. Talbot, for permission s National Bank and hant merc the time as director of al Trust and as director of the Hellman Commerci cal. Savim,s Bank, Joth of Los Angeles, Approved. Datad, January 11th, 43 -14- 1/11/26 IOM 02 C0==S: (Cont'd) 1ecommendin,3 approval of the application of :r. E. J. Nolan, for permission to serve at the same time as director of the Merchants National Bank and as director of the Hellman Commercial Trust and Savings Bank, both of Los Angeles, Cal. Approved. Dated, January 11th, Recommending approval of the application of Mr. Benjamin Page, for permission to servo at the same time as director of the Merchants National Bank and as director and officer of the Hellman Commercial Trust and savings Bank, both of Los Angeles, Cal. Approved. Dated, January 11th, aecommending approval of the application of L:r. Thomas J. Banks, for permission to serve at the same time as director of the Merchants National Bank and as director of the Hellman Commercial Trust and Savings Bank, both of Los Angeles, Cal. Approved. Dated, January 11th, Aecommending approval of the application of Mr. T. A. Morrisey, for permission to serve at the same time as director and officer of the Merchants National Bank and as director of the Hellman Commercial Trust and Savings Bank, both of Los Angeles, Cal. Approved. Dated, January 11th, The meeting adjourned at 1:10 p Secretary.
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