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A meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on 2uosday, January 15th, 1924, at 11:20 a.m. PIJiI: Vice Governor Platt Mr. Hamlin Mr. Miller Mr. James Mr. Cunningham Mr. Eddy, Secretary The minutes of the meeting of the Federal Reserve Board held on January 10th were read and approved as amended. The minutes of the meeting of the Federal Reserve Board held on January 12th were read and approved. Letter dated January 1st from the Comptroller of the Currency, re questing approval of an increase from ,,5,000 to $6,000 per annum in the salary of National Bank Examiner John L. Proctor. Approved. Memorandum dated January 12th from the Director of the Division of Research and Statistics, reauesting authority to purchase two calculating loachines for use in that Division to cost .:350 and .25.5 each. Approved. Report of Committee on Salaries and 2apenditures recommending approval of the action of the directors of the Federal Reserve Bank of Atlanta, as NPorted to the Board in letter from the Chairman of the Bank dated January 12th in electing Mr. H. J. Urquhart as Assistant Cashier of the Birmingham Brarich at a salary of :2400 per annum. Approved. Report of Committee on Salaries and Expenditures, recommending ap- Drovai of the action of the directors of the Federal Reserve Bank of Boston,. V15/24 41'8 -2- reported in letter from the Chairman of the bank dated January 10th, in increasing the salary of Mr. William C. Rich from 0,000 to 0,600 Per annum, and that of Mr. Carl B. Pitman from :;4,000 to e4,500 per annum, both effective February 1, 1924. Approved. Repori of Committee on Salaries and Expenditures recommendi dis- aPproval of the action of the directors of the Federal Reserve Bank of Sat Francisco, as reported in letter from the Chairman of the bank dated aarmary 3rd, in increasing the salary of Governor Calkins from ,25,000 to $27,000 per annum and that of Deputy Governor Day from 0.5,000 to 016000 per annum. Upon motion by Mr. Hamlin, the report of the Committee on Salaries and Expenditures was approved and the proposed increases were not allowed. Report of Committee on Salaries and Expenditures on letter dated jatuary 12th from the Chairman of the Federal Reserve Bank of Atlanta, 84/ising of the action of the board of directors of that bank in electing "ricers for the year 1924, and requesting approval of certain adjustments it the salaries of officers; the Committee recommending that action on the salaries proposed be deferred until after the proposed visit to Atlanta of the Chairmen of the Committee on Salaries and Expenditures and the Com-. kittee on District No. 6. Approved. 46 -3- 1/15/24 Mr. Hamlin then submitted a report of the Committee on District II°. 6, recommending approval of the action of the board of directors of the Federal Reserve Bank of Atlanta in fixing the salary of Mr. L. C. Adelson, 11.8 manager of the Cuban Agency, at ,:)12,000 per annum, plus an allcmance Of f4,000 per annum for foreizn s-rvice; the Committee recommending further that consideration of other salaries recommended be deferred until the 1.13-. Posed visit of the Committee to Atlanta. Upon motion, by Mr. Hamlin, the report of the Committee on District No. 6 was apisroved, Meosrs. Cunningham and Miller vOtinc "nou'as to approval of Mr. Adelson's Salary. Memorandum dated January 11th from the Assistant Secretary of the Board recommending approval of the application of the Atlantic Exchange Bealk and Trust Company of Baltimore, Md., for authority to accept drafts and bills of exchange up to 100 of its capital and surplus, said applica- tion having been transmitted and approval recommended in a letter from the Federal Reserve Aent at Richmond dated January 10th. Approved. Letter dated January 11th from the Secretary of the Federal Reserve kak of Cleveland advising of the reappointment for the year 1924 of Mr. es E. Sullivan as a member of the Federal Advisory Council from the Fourth D istrict. Noted. Letter dated January 10th from the Chairman of the Federal Reserve Bank of Boston, advising of the appointment of officers of that bank for 1/15/24 -4- the year 1924, the reelection of Mr. Alfred L. Aiken as a member of the Federal Advisory Council for 1924 and the reappointment for the year of lar. Arthur H. Weed as Counsel, at a retainer of :2400 per annum. Upon motion by LIT. Hamlin, the retainer fixed for Mr. Weed was approved. Letter dated January 10th from the Chairman of the Federal Reserve Bank Of Kansas City, requesting approval of the designation for the year 1924 of Mr. T. Gordon Sanders as Assistant Federal Reserve Agent at Omaha and Ur. Dwight C. Meigs as Assistant Federal Reserve Agent at Denver; both aPPointees being in the employ of their respective branches and to receive a nominal salary of one dollar per annum as Assistant Federal Reserve Agents. Approved. Letter dated January 12th from the Chairman of the Federal Reserve Bank of Kansas City advising of the appointments of officers at the head office and branches for the year 19.4, the reelection of Mr. E. F. Swinney as member of the Federal Advisory Council for the year and the appointments Of Palmer and Palmer as Counsel for the Omaha branch with a retainer of 9100 per month and Mr. James 3. Goodxich as Counsel at the head office with a retainer of 05,000 per annum. The Chairman stated in his letter that 111's Goodrich was retiring from the active practice of law and that he had been reappointed Counsel of the Reserve bank until sadh time as his successor could be elected. Upon motion by Mr. Hamlin, the retainers fixed for Counsel at the head office and Omaha branch were approved. 1/15/24 -J- Letter dated January 3rd from the Chairman of the Federal Reserve Bank of San Francisco advising of the appointment of officers at the head office and branches for the year 1924. Noted. Letter dated January 3rd from the Chairman of the Federal Reserve Bank of San Francisco, advising of the reappointment for the year 19L4 of all Of the bank's appointees to the directorates of its branches. Noted. Report of Committee on Examinations on letter dated JanuLry 8th, from the Federal Reserve Agent at Chicago on the subject "14amination of State Ilember Banks in the state of lova"; the Committee recommending that the Federal Reserve Agent be advised that the Board approves in a general way the suCgest ions made. Upon motion, the report of the Committee on Examinations was approved. Draft of letter to the Federal Reserve Agent at San Francisco in relay to his letter of January 3rd, requesting the Board's approval of the actual amounts charged off at the and of 193 as result of the operations °f the bank for that year; the suggested letter approving the charge offs trade which were slightly in excess of the estimates previously approved bY the Board. Upon motion, the letter to lir. Perrin was approved. Letter dated January 4th from the Chairman of the Federal Reserve ilarik of San Francisco, advising that on February 8th, the directors of 1/15/24 -6- that bank will meet with the directors of its several branches and inviting MEntbors of the Board to attend the meeting. Noted. Letter dated January 3rd from the Federal Reserve Ac;ent at San l'ranciseo suggesting an amendment to the Federal Reserve Act to permit a Pederal Reserve Agent to withhold from the ballot in elections of Class A and B directors the name of any nominee who withdrew his name before the nominations were closed. oferred to Counsel. Letter dated January 8th from the Chairman of the Federal Reserve Bank of San Francisco inluiring Whether a Federal Reserve Bank may conduct e aMinations of member banks with examiners other than those "selected and aPProved by the Federal Reserve Board" as stipulated in Section 9 of the Pederal Reserve Act. Referred to Counsel. Letter dated January 9th from the Federal Reserve Agent at San lacisco advising of the method of selection of the Membership Conniff co of that bank. Noted. Letter dated January 11th from the Governor of the Federal Reserve 13a4k of New York with regard to the cost of the new building of that bank 1/14 the probable relation of income therefrom to its cost of operation. Noted. Ii -7- 1/15/24 Letter dated January 11th from the Governor of the Federal Reserve Bank of New York, with regard to acceptance transactions of the National Park Bank of New York, and enclosing copy of a letter addressed on the same date to the Comptroller of the Currency on the subject. Referred to Law Committee. Memorandum dated Jaauary 12th from Counsel referring to letter dated January 8th from the Federal Reserve Agent at Kansas City regarding the cancellation by the Ponder State Bank of Ponder, Nebraska, of its riotice of intention to withdraw from the Federal Reserve System. Upon motion, Counsel's memorandum was approved. Memorandum dated January 12th from Counsel with regard to letter dated January 3rd from the Secretary of War on the subject of the establishtit at Manila of a branch of the Federal Reserve Bank of San Francisco. Upon motion, Counsel's memorandum was ordered circulated and referred back to the Law Committee for the preparation of a letter to the Secretary of War. The Vice Governor then presented the matter ordered circulated at the meeting on December 27th, namely, a memorandum dated December 18th from Counsel suggesting a form of letter to the Federal Reserve Agent at St. Louis in reply to his letter of October 22nd on the subject "Discount "Sight and Demand Bill of Lading Drafts". After discussion Counsel's memorandum was ordered docketed as special order business for tomorrow's meeting. I, 1/15/24 -8- at New Letter dated January 10th from the Federal Reserve Agent of the Board's Yolk on the subject of advising member banks in his district together with l'esolutions of January 7th on the subject of branch banking; a, form of reply thereto sent out by the ibtecutive Comnittee under date of January 11th. Upon motion the action of the Ececutive Committee in the above matter was formally ratified. Agent Letter dated Jarruary 11th from the Assistant Federal Reserve at Cleveland on the subject of advising the member banks in his district Of the Board's resolutions of January 7th, on the subject of branch banking; ve Committee toeether with a form of reply thereto sent out by the Ibcecuti Under date of January 12th. Upon motion the action of the Executive Committee in the above matter was formally ratified. , cecutive The Vice Governor then submitted copy of a letter which the Cormnittee had, forwarded under date of January 11th to Mr. Charles H. Tyler CI Bost= in reply to his letter of December 26th advising of his inclination to submit to the Cixtuit Court of Appeals the Board's recent decision in refusing to grant the application of Mr. :LI. 3. Welch, of Boston, for Company permission to serve on the directorates of the Old Colony 2rust ' and the ational Union Bank; said letter having been prepared in accordance with action taken at the meeting on Jariar,ry 7th. Upon motion the action of the *f_recutive Committee in the Above matter was formally ratified. 1/15/24 -9- Mr. Hamlin then reported on the mutter which was held over at the meeting on January 3rd, namely, the appointment of a director of the Baltimore branch to serve with Mr. illiam H. Matthai. Mr. Hamlin presented a letter addressed to ilLn by the Vice President of the Merchants liational Bank of Baltimore, Md., recommending Mr. E. 3tanley Gary, a member of the fin4 of James S. Gary and 'Jons, textile manufacturers and also discussed with the Board the desirability of appointing Mr. Edmund P. Cohill a farmer located at Hancock, Md. Upon motion by Mr. Ounninham, the Committee on Nominations was authorized to communicate with Mr. Cohill, and if he was not available to offer the appointment to Mr. Gary. Mr. Hamlin then brought up the mtter referred to the Committee on Branches at the meeting on December 21st, namely, a letter dated December 17th from the Governor of the Federal Reserve Bank of Richmond, with regard to the action of the directors of that bank in authorizing the int roduction in Conr7ress of a joint resolution permittin; the construction °f a building for the Baltimore branch to cost not in excess of .969,000. After discussion, Mr. Hamlin moved: "That the Federal Reserve Bank of Richmond be advised that the Board has no authority under the Federal Reserve Act to object to the introduction of legislation of this character, but that the Board wishes it distinctly understood that in not objecting to the introduction of the resolution it is in no way implyin approval of the action which is contamplLted, and further that the Board as at present advised, has ;rave doubts as to whether the amount which it has intended to expend is necessary or desirable. " Carried. Thereupon, the matter was referred back to the Law Committee for the preparation of a letter to the Federal Reserve Bank of Richmond to be submitted to the Board. 1/15/24 -10- Mr. Hanlin then brought up the matter of the suggested emrloyment of John W. Davis to represent the Federal Reserve System in the case of the Burnes National Bank of St. Joseph, Mo., regarding the exercise of fiduciary powers by national banks in that state, and moved that the Vice Governor camIllunicate with t,he Governor in New York and suggest that he do not take the matter up with Mr. Davis until the Comptroller has consulted regarding it With the Solicitor General, Carried. Mr. Cunningham offered the following resolutions which were held over for action at the next meeting of the Board: "MEREAS it is deemed desirable for the Federal Reserve Board to be in possession of the fullest possible information with regard to the officers and minor employees of the Federal Reserve banks and Federal Reserve branch banks and with regard to the official duties of such officers and anployees, the work:performed by them, and the salaries paid to them; and UHEREAS it is manifestly desirable to hi/prove as far as possible the efficiency of the Federal reserve banks and branch banks and at the same time to bring about the strictest possible economy in the operation of such banks and branch banks; NOW, THEREFORE, BE IT RESOLVED by the Federal Reserve Board that the Committee on Salaries and Expenditures be authorized and empowered to make a complete survey for the purpose of ascertaining the number of officers of the various Federal reserve banks and branch banks, the duties performed by mach officers and the necessity for such services; the number of employees of such banks and branch banks, the character of services they are rendering and the necessity for such service; and the total overhead expenses of the various Federal reserve banks and their branches; BE IT FURTHER RESOLVED that the Committee on Salaries and Expenditures is hereby authorized and anpomered to employ such experts and other assistants as it might deem necessary for the 1/15/24 -11"purpose of procuring such data and infornttion as will enable it to be fully informed on all ratters involving the management operation and expenses of the various Federal reserve banks and branch banks; BE IF FURTHER RESOLVED, that the Committee on Salaries and 1‘...!,enditures fi.s hereby directed to mke such reco!fmendations as in its judgnent will improve the efficiency of the operat iun of such Federal reserve banks and branch banks and will be instrumental in bringing about and maintaining the strictest economy commensurate with efficient service." 13'.0. IT FIJMYHER IESOLVED that the Committee on Salaries and 1, tpenditures is hereby directed to report its findings and recommendations to the Federal Reserve Board not later than November 1, 1924." ..01ZI'S OF STANDING COMLIITTIS: Dated January 11th, 12th, 14th, Dated Dated Dated. Dated. Recommending changes in stock at Federal Res ,rve banks as set forth in the Auxiliary Minute Book of this date. Approved. January 12th, Recommending approval of the application of Mr. John D. 2veritt to serve at the same time as director and officer of the Brick Church National Bank of Orange, New Jersey and of the Orange National Bank of Orange, New Jersey. Approved. January 12th, Recommending approval of the applicat ion of Mr. Henry L. Holmes to serve at the same time as director and officer of the Brick Church National Bank of Orange, New Jersey and of the Orange National Bank of Orange, New Jersey. Approved. JanuL ry 12th, Recanmnd.ing approval of the application of Mr. George E. Spotteswoode to serve at the same time as director of the Brick Church Nat ional Bank of Orange, New Jersey and of the Orange National Bank of Orange, :Jew Jersey, Approved. * Janiz rpl2th, Recommending approval of the application of Mr. Frederick H. illiams to serve at the same time as director and officer of the Brick Charch Nat ional Bank of Orange, —12— 1/15/24 MO WS OF agANDING COM LOT MS:COM' D New Jersey and of the Orange National Bank of Orange, New Jersey. Approved. The meeting adjourned a Ono Secretary Approved: Vice Gov erno
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