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A meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on 2hursday, Jandary 15, 1925 at 11:20 a.m. Governor Criss Inger Mr. Platt 'Er. Hamlin Eiller Mr. James Mr. Cunningham Mr. Eddy, 3ecretary In t ccordrnce with the Botrd's rct ion of Janur :y 5th, the Director of the Board's Division of Research and Statistics entered the meeting and discussed with members of conditions, refer— the Board the trend of business and credit to movements in prices, production, employment and volume of payrolls, to the trend of money rates in I;nw York City and to changes in the earning assets of 2edr3ra1 aeserve banks and deposits in earning assets of retorting MeMber banks. Mr. Stewart also referred to the minutes of the meeting of the C1)°n Market Investment Committee held in ITT.- York on J:nuL ry 9th. After a discussion of the above nr tters during which Mr. McIntosh entered the room, the Director of the Board's Division of Research and Statistics 411.6 -rev; from the meeting. ithe minutes of the meeting of the Federal Reserve 3or rd held on January 13th were read and arproved• Platt stated that after further consideration he was prepared to change his vote .'rom."no" to ":'-,ye" on Mr. Hamlin's proposed amendment to the motion of 14111er, reL:ardin the service of representatives of the Board on Yederal .erlle banks and branch directorates as members of the Federal 2.dvisory Council 111c1 called attention to the fact that this would probably result in the Inssage (It 141.r• Llill or's motion. r--7• - ‘? 1/154'5 -2- Mr. McIntosh not having been present at the meeting on January 13th, the jecrettry was directed to bring the mot ion of Mr. Millcr and the proposT:d amendment of Mr. Hamlin to his attention in order that he might be prepared to vote on the matter which was ordered brought up at the meet ii tomorrow. Lt the request of Mr. Hamlin, the Jecretary was also instructed to advise Mr. McIntosh rearding the motion to increase the salary of the Federal Reserve Igent at Boston, which was lost on a tie vote. Governor Crissin-;er stated that Mr. James Inglis, former director of the etroit Branch under appointment by the Board, had re(luested an opportuni ty of eing before the Board for E discus..,ion of the business of the branch and the Governor stated he had invited L:r. In:lis to come to '::ashin -ton at his e°11v enien5e. The oecretary then re,uested instructions as to the disposition of the 1)1‘°130sed letter to all 2edera1 I:eserve banks on the subject "Publir,ation of 4/Y4rato Mote and Deposit Reserve aLtios" which was referred to a. special comtilittee consisting of Messrs. Miller and Platt at the meeting on .ebruary 15, 1924 and is now being carried on the Board's docket of Unfinished Business. after discussion, the jecretary was directed to bring this matter before the Board at tomorrow's meeting, together with a record of the Board's previous actions re.7 gardin the subject of the letter. Hamlin then stated that no :further action of the Board was necessary C41 th he letter dated Ipril 22, 19:".4 from the Chairmen of the Federal Reserve °f Dallas, enclosing a report with regard to the rediscount of paper emanatite 'orn the petroleum industry and suggesting a form Of financial statement to brzi s, ".1)1Titted by borrowers in that industry which was referred to the Law Committee 29th 54 1/15/25 ci Upon motion, this matter was ordered stricken from the Board's docket of Unfinished Business. Lfter discussion of other matters of Unfinished Business on the Board's cloeket, it was voted that consideration of the question of the introduction of a proposed bill to incorporate the Federal Reserve Pension fund Should be mnde aPeeial order for a meeting on Thursday, January 29th. The Secretary then informed the Board that Governor Strons. of the Federal Reserve Bank of Env; York, who is Chairman of the Governors' Conference, had apDointed 2iessrs. Eardin and No -vris as a committee of two of the conference to confer with the Board's special committee on the subject of the revision of the (Itard's ruling re:;arding Federal Reserve bank holidays. Memorandum from the Secretary recommendinr that the Board amend its Itter-district time schedule so as to put items from St. Louis on Omaha on a Clle-day basis, instead of two days as at present, it being understood that items tIVI1 Omaha on St. Louis are to rein on the present basis of two days. Lpproved. The Governor then stated that the Board would postpone consideration °r its re3ular business for the purpose of conduct inc a hetrinj to show cause why the Coleman State Bank, Coleman, Oklc., Should not be required to surrender its stock in the Federal Reserve Bank of Dallas, and to forfeit all richts and 13tivi1eces of membership in the Federal Reserve System. Uo one appearing in behalf of the Colean State Bank, Coleman, Okla., Itt the said hearing before the Federal Reserve Board, that bank having by a 4so1ution of its board of directors adopted on December 3, 1921-, waived its l'ieht to a hearine; before the Federal Reserve Beard unler the terms of Section 9 55 -4.- 1/15/25 Of the Federal Reserve Let; and it appearing to the Federal Reserve Board that the said Coleman 3tate Bank, Coleman, Oklahoma, has failed to comply - ith the previsions of 3ection 9 of the Federal Reserve .1:ct and the re;guLitions of the Federal Reserve Board m_de pursuant thereto, in that said bank while a member Of the Federal Reserve Jystem has reduced its capital stock from •25,000 to 45,000, the latter amount being less than that which ..(Juld be reluired for the orgaLiztion of a national bank in the place in which said bank is located; Ufon motion duly =de and seconded the following resolution 17 s unanimously adopted by those present: "WIER2,Z3, it appears to the Federal Reserve Board from a consideration of the evidence and information received by it, that the Coleman 3t to Bank, Colem n, Oklahoma, has failed to comply with the provisions of 6ection 9 of the Federal Reserve 'et and that said bank has failed to comply with the rerulttiens of the Federal Reserve Board made pursuant to the provisions of that section. N07;, 21-ER3F3H], 32. 12 RESOLVED, that the Federal Reserve Board require and direct the Coleman State sank, Coleman, Oklahoma, under the terms of Jection 9 of the Federal Reserve Let as amended, to surrender its stock in the Federal Reserve Bank of Dallas and to forfeit all ri;hts and privileges of membership in the Federal Reserve jystem as of the date on which notice of this action on the part of the Federal Reserve Board is received by the said bark." Zhe Board then proceeded with its regular business. 1.1amorandum dated December 27th from the Chief of the Board's Division Of Etalk Operations, approved by the jecr-3tary, recommending certain changes in the Board's weekly statement showing the condition of reporting member banks. Lpproved. Memorandum dated Janua:y 14th from the Director of the Oivision of Research and jtatisties, recommending approval of an addition of •;1600 to the bllast for his Division for the year 1925 to cover additional increases in ries Of employees, as follows: 1/15/z5 Warren, Robert B. Tomas, 7.00dlief Riefler, Dorothy B. Carson, “. 1?. Stark, 7. R. . Riefler, 7infield - .3200 3200 2700 2700 2700 2700 to ,3400 to 3400 to 3000 to 3000 to 3000 to 3000 ITproved. Memorandum from Counsel on lett r dated Janu:.cy 6th from "Jr. JLmes L. 3ellman, re2errin; to the ioard's action of December 30th in voting to approve 113.5 LIDPiicttion to serve at the seine time as director of the National Bank of fi ltimore and the Century 2rust Company, both of 2z1timore, Md. but to disapprove his pplication to serve also the Maryland 2rust Company of Baltimore, and ad- visin?; that he will not stand for reelection at the Century 2rust Company, but desires particularly to continue with the National Bank of Baltimore and the LIE rylLnd 2rust Company; Counsel statinf; that while in his opinion there is sub- stantial competition between the National Bank of Baltimore and the MarAend 7,1rust Company, the 13(Thrd may well, in the exercise of its oven judgment, conclude thct the competition is not substantial within the meaning of the Clayton .ct t'lla proceed to approve the application. 1:r. Hamlin then moved that the Board reconsider its action of December 3Jth and approve the application of 17,r. Sellman to serve at the same time as director of the National Bank of Baltimore and the :ilaryhnd 2rust Company. Carried, :Ir. James voting "no". Memorandum dated January 14th from the Director of the Division of liesearch and Statistics, advising that Mr. L. B. Mann, whose resi -nation from the Division was accepted effective December 31, 1924, remained with the sion durihg the first three days of January at the re.luest of the Director in order to complete certain work upon 1,7.i.ich he was engaged, and recommending -6- 1115/25 that salary adjustment at the rate which he was receiving be mde to cover this additional time. Lpproved. Ilemorandum dated January 13th from the Secretary recommending the appointment of Er. Joserh I. Shafer as extra clerk-typist on the niTht force of Of the lold Settlement Division, effective January 15th, at the rate 3..50 Per evening, vice :1*. John S. Rid,3ely, whose services will be tPrmin. ted on that date. Approved. Letter dated January 7th from the Chairman of the Federal Reserve Bank of San Francisco, advising of officers elected to serv, at the bank and its branches during the year 1925. /Toted. Report of Committee on Salaries, 2.xpenditures and Efficiency on letter dcted January 9th from the Chairman of the Federal Reserve Bank of San Francisco request in approval of the action of the directors in voting to grant leave of 15, Lbsence with full pay on account of illness for 60 days beginning Decemer 1924, to LIr. Ira Clerk, 1,,eputy C,overnor of the bank; the Committee reconncndlfl Approved. Report of Committee on '1-Kaminations on letter dated December 30th from the directors of the Federal Reserve Bank. of /Atlanta, transmitting and recommendirr; approval of the application of the Parish Bank and 2rust Company Of Opelousas, L., for permission to establish a branch at 1rnaudvi1le La.; 1/15/25 the Committee also recommendin.:f approvel,as an exception under the Board's Reulation "H". Lpproved, Mr. Cunningham voting "no". Memorandum dated January 13th from the Board's General Counsel, with rEk:ard to letter dated January 5th from Honorable Newton D. Baker regarding the euestion whether any effort should be made to liave, the so-called 7ases:7oula ease lvanced on the docket of the Supreme Court of the United States in order to get an early decision by that court; Counsel, for reasons stated,recommendinz that the Board take no steps to have the case advanced on the docket. Upon motion by 1:r. Hamlin, it was voted to take no action to advance the case. Memorandum from Counsel on the matter referred to him at the meeting on December 30th, namely, letter dated December 22nd from the Cashier of the 'Federal Reserve Bank of Cleveland, making certain inquiries with regard to the Board's letter of December 19th on the subject "Determination of Outlying District for Purpose of Reserve Ileduction"; Counsel submitting draft of reply statin that the Board's ruling, that applicants for reserve reductions must have been members of the Federal Reserve System and in operation as such for a period Jf at least one year prior to the date of such application, applies alike to both now and old member br.,nks,whethcr state or national, and applies both in the case of territory which has previoasly been ruled upon as outlyin.z and territory which has not hereto Core been passed upon by the Board. Upon motion, the proposed- letter was approved. r- -8- 1/15/25 Report ofmintion of the 'Oederal Reserve Bank of Boston as at the close o business ,',3eptember 6th, 1924. Referred to the Committee on 3xaminations and Committee on District Report of L=';xtmination of the 2edera1 Reserve Bank of row York and its Buffblo Branch ts at the close of business October 11, 1924. Heferred to the Committee on :.1xaminations and Committee on District ,2. Report of 'mmination of the 2edera1 Reserve Bank of Philadelphia as at the close of business November 8, 1924. Referred to the Committee on :],)taminations and Committee on District Report of 3.xaminftion of the 2ederal Reserve Bank of litlanta and its 111 branches and agencies, ES at the close of business November 22, 1924. Referred to the Committee on i:bcaminations and Committee on District ;6,. Mr. Miller then referred to the Board's discussion of the minutes of the meeting of the .0oen Market Investment Committee held on January 9th and inglared what action it was intended to take. lifter discussion, consideration of the report was made special order for a meeting tomorrow at 11:00 o'clock. OIL'S oe C01.11.1217,;S: Dated, January 15th, • Recommending approval of the application of Mr. William B. Prenter to serve at the same time as Vice President and director of the Brotherhood of Locomotive Enin,,ers Cooperative rational Bank of Cleveland, Ohio and as director of the Iampire 2rust Company of New York City. Lpp roved. 1/15/25 -9- LtliOR11,3 OF iTII;DIM (Conted) Dated, January 15th, Dated, January 15th, Dated, January 15th, Dated, January 15th, Dated, January 15th, Recommendin: approval of the application of Mr. 7;arren J. Stone to serve at the same time as President and director of the Brotherhood of Locomotive 3nineers Cooperative National Bank of Cleveland, Ohio and as President and director of the Brotherhood of Locomotive !Anineers Trust Company of New York City and as director of the Empire Trust Company of Nev York City. lpproved. Recommendiu,s approval of the application of Ur. Moyer Eussy to serve at the same time as Presidemt and director of the South Side National Bank and Trust Company of Newark, N.J. and as President and director of the 7:est Side Trust Company, Newark, N.J. Lpproved. Recsimmendins approval of the application of :Ir. May .3. Ylayham to serve at the sa:le time as Vice President and director of the South Side National Bank and Trust Company of Newark, r.J. and as Vice President and director of the rest Side Trust Company, Newark, N. J. Lpproved. 2ecommendinz approval of the application of 1:r. 7;i1liam L. Mor3cn to serve at the same time as director of the National Newark & Essex Banking Comi,any, Newark, N.J. and ES director of the South Side National Bank and Trust Company of Newark, Ne7.ark, Lpproved. Recommendin3 approval of the application of Mr. Michael Pilnacek to serve at the same time as director of the Little Neck National BEnk of Little Mock, Lon,: Island, N.Y. and as director of the Bank of 3ur re, Nev. York City. Lpproved. The mcetin2; adjourned at 12:40 Secretary. 1-1)Proved:
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