Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, January 2, 1924, Volume 11, Part 1

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me9t in

of the '1.‘e..deral•aoserve :30La.(1

held in the o ffico of

the Federal3•oLrd on Wednesday, JanuLry 3, 1934,

11:30 0',71oek.

iovor:or CriSS
Mr• Thm1in
• Lliller
• James
Cunnin:Tham
• Dawcs
:Ir. Eddy, Jecretary.
- s of the Federal riesorve 3o.,rd held on.
'The minutes of the meetin.L:
•

Decemlier28th t.:,21,3_ 39th were read and ai-Troved as amended.
The minutes of the meatin,-; of the 'icaeral 1:aserve Board held on
Dec

r:it v.ore

r eaa

and appr ov ed.

Memo 1--tridum dated December 31st, from the .',.ctilv; Coralt roller of the
• •• el-trrOTIC

Z.:`.dvisin-,

that on Ir.!TU.r

'J.a

January 3, 1934, the Comptroller

call for reports of condition of ITational balf,:s

:;:t the close of business,

1:1011(la1, becem-,,er 31, 11;23.
Koted, and the 3ecrotary v:as instructoL to send out
notice of a call as of the same dai-,e :or ro-__arts of condition of 3..a),,e
Letter dated Decoml)er 31st, from the _,ctiyli; CUL troller of the C--,r, ctivo Deca.iber 31,
dv1s'21,3 of tLe resignation, eff,..,

of nrs.

--.Cat".c.. F. 2. owler, count or in the olederal ::, serve Issue and Hedem;:t ion Division
ith

at the rate of

1260 near annum.

., _cc ept
Lotter dated December 17th, from the 'Federal losorve B. ,ant at Kansas
City, ro__uestin„; approval of the reappointment of Mr. C. L. Boardman, as




1/2/24

-2-

sistant Federal Reserve Acont at the head office for the year 1924, at a
:salary of :)7500 per annum, including also his salary as Jecretary to the :Coard
Of Directors of the bank.

4-oroved.
Letter dated December 29th, from the Federal Reserve Lzent at RidhMond, reuestin

approval of the appointment of Mr. J. C. Seabury, as an

'—:Jniner, effective January 1, 1924, ;:ithout chance in present salary of
2.400 per annum.
_ITroved.
Letter dated December 28th, from the ChLir.:.an of the Federal Reserve
4.3-111: of TTew York, re2jlestin7 approval of the eq. loyment of ::is Harriet Dow

ae• rro.cer of
the cafeteria of that bank, -Ath salcry at the rate of .:3,000
Per annum.
:1.)pr0vede
:lepoit of Committee on Jalaries and Expenditures on letter dated
D ecolaber 28th, from the Federal iosorvo

ent in Chica,:o, recommendin

the

increase to v1200 per annum of the salaries of three steno -raphers detailed
to the office of the Michigan State Baiti:in:
;Department for the copying and
alockincs of ranorts of member bank examinations, the salaries at, the present
tiMo being 0.100,

1000„ and :900, respectively.

,Approved.
Letter dated December 31st, frem the Treasurer of the United States
4(Ivielni that no arTlications have been received from ntional uanks for the




1/2124

sale of' bonds -ander the provisions of jection 18 of the ;;e,deral Z:.eserve
4ct, dur1.212 the

uarter endin; December 31, 19.;3„
:Tot ed..

Draft of letter prepared. by Counsel,. addressed to Mr. Charles H.
lcr of Boston, Massachusetts, in reply to his letter of December 26th,
acivisin,i; of his in',.linat ion to apply to the Circuit Jo-art of Lppeals for a
l'eview of the Board's decision refusin3 Mr. B.

ohicr Belch

remission to

13(}rve on the directorates of the Old Colony ?rust D.ira:any and ITatiorial Union
both of Boston; the proposed letter
to the Board if the
Circuit Court of

that it would be satisfactory

ea1s could be induced to hand down

decision interpretinc; the phrase "substantial coq,etition", as used in jection 8 of the Clayton

et.

Before this letter was considered by the Bo-,
-d, Mr. Hamlin stated
tilt it was necessary to decide whether the Board v.ants to cooperate in scourjuG a court decision int erpretirv; the term "substantial com-2etit ion" and ma,- ad
"'Mat the Board. is
to cio;rate with Mr.
2yler in order that the term "substantial competition"
may be defined by the Courts and that the Law Committee
is authorized, as far as possible, to use all testimony
now before the Board and, by a3reement, to make it a
part of the record."
Mr. Hamlin's mo':, ion beinii; put by the chair was lost, Mr. Hamlin
IrCnillr
..
; 'layett e

?hereupon, the proposed later to Mr. ?yler was referred back to the Law Committee for revision.
Memorandum dated December 51st, from qenoral Counsel, ref err in,-;




-4-

1/2/24

to a memorandum dated December 14th, from the Deputy Comptroller of the C-arreney re,ardin; the action of the Drovers rational Bank of :iast Jt. Louis,
Illinois in rediscountinj with tho 'Federal Reserve Ban:: of it. Louis, paper
emanatin6. from non-member banks, but not b !arins. the endorsement of such
rion-member banks; the memorandum transmittia; drafts of letter on the. subject
addressed to the Deputy Comptroller of the Currency and the Governor of the
Federal Reserve Bank of St. Louis.
Upon motion, the forms of lettersrecommended by
Counsel were approved.
Repo it of Coraaittee on Emarainat ions on natter referred to it at the
xneetin

on December 27th, namely, letter dated December 24th, from the Ls-

8iStant

Federal Reserve Pontjp

at Cleveland recoramendin; approval of. the ap-

Plication of the Union Savincs Bank and 2rust Com:any of Cincinnati for perSalon to take over the Ewa° Javings Bank Conpany and operate it as a branch;
the Comndttee recommending that while there seems to be no objection to the
F;ranting of the application, it should be presented by the Federal Reserve
ACent in more complete form, j.vinj full ini'ormation as to the banks involved
in the transaction and showing; what invest i;ation has been made, and what action
taken by the officers of the Federal Reserve 'Bank of Cleveland.
Upon motion, the report of the Commit tee on Examinations as approved.
Report of Committee on Examinations on matter referred to it at the
ille°tinL,s on December 29th, namely, telegram dated December 26th, from the Fed-

,;,ent; at Can Francisco, inquiring whether the Board's permission
el Reserve.i.,




to the Bank of Italy to take over the.IJA_rican Javins Bank of Long Beach
illeluded the takin, over of the branches of that bank at forth Long Beach and
Compton, and their operation as branches of the Bank of Italy; the Committee
110:Porting that it has no recommendation to offer in the natter but that it
is one

to be determined by the Board as a whole.
Mr. Hamlin moved that the Board's permission th.ould be =tended

to include the taktn

over by the Bank of Italy of the bramhes of themerican

Savincs Bank at forth Long Beach and Com)ton.
Mr. Hamlin's motion being put by the chair
lost, the members voting as follows:

as

Governor Crissiner, "aye"
Mr. Hamlin, "aye"
Er. Miller, "aye"
Mr. James,"no"
Mr. Cunningham, "no"
Mr. Dawes, "no"
Mr, Hamlin then moved that this action be reconsidered by the
Board at the first future meeting when all mmbers are present.
Carried.
Letter dated December 31st, from the Federal ]:eserve 1_2ent at

Chicago,advising of the inability of the Iowa State Banking Department to
examtne Taring 1923 all sta,e member banks located in that state, due to the
fact that the Cr 'ater part of the e::amining staff is engaged in looking after

the affairs of banks already closed, and statirr, that efforts are being made
to work out a plan -;hereby the 2ederal Reserve
oz.zaminrtion3 of state

banks with the consent and approval of the State

.
Banking Dep::!.rtraont•




liners will make independent

:Toted.

1/4/24

lir. ;diner )_)resented a letter dated -Deco:foe/. -:6th from the PresiCent
Of

refr;rrin.; to his

the .;ecurity 23.-ast and Lavinjs :an:: of Los

Di`ovious letter to the Board dated Docanber 4th and renE37.14:.; the roost
Made tl _rein ;hat'

proaTarn

o

.;eneml
rior to 'Ilebrury 1st, the :

the Board

the Iletro_ olitan district

branch e;mansion

Los

1 .:111 down in tint
letter.
of erred to Committee on

- esent
2
- r

/here follo,.7ed a discussion
r;ard, to the eL'ionsion of branch

xninat ions.
with re-

and Lr. Ihmlin moved:

'That the Board'a 01." of __17.-_a1.11-no_,.• be inst im.ct Cd to
report as to the Iresent syctni of examint_t ion o member
ions
at,tte 1.:a.111s and trast corrz....lies 7: ere sta.,e
an_
wit:I4
1lcserv
-3
Banha,
re not ace°. tad b 2edo-,_•a1
,1•0 (3:10:11i; a in the metho :1 of
as to an no ibli,
snia e:-..arainnt ions.
Carried,
Letter

ed January

?zia,

Lull r not vetinc;„
from the 7:Zailwa:i Loan .L.dvisorz.' Commi'• tee

Of the ?oClerz:2.1 7,eserve Board, reo.=lendin:; approval of the form of ebliation
Submitt ed b

t'

caijoard Lir Line hallway Co:': any for a loan of ;.::60 7ED,090,

(in seven installment a, the aarri or elect

this t Imo to tz.77:0 over the

-zevonth 1- :‘art of the loan in the amount of4.-00,0)0) under the

ions of

oection 11. of the 72ra.-:.-isport.ation mt, 10B0 as amendc:d.
..-1):,rovod.
;141- 0:123
Dated,

ry 2nd,




deserve
-,-;:-.1a.nes in stock
uui1ia
ry
7.airate
the
ban's, as set "..'erth in
o
this date.
.._-prov

-7,

C:14 1:1.22_1_43 (Cont

, r\

din L royal of the apr1itiCa of Mr. :4)7:tee
2A-=ted, Decoor 71st, -':ccom
s director of t-,e
21int to serve at the 7xne
I'.31an,
:i
&1
0
ILO
;
11C;
',
of
and
Ban4
7
tionzal
T7iode
rovidenco,
bothOf
2- 3.11st Coln1y,
M.
Dated, Docofier 31st, -coon-ler-At=
17t-L1 of the apnliction o:
as
direc',or
;
ti:n
a:.
the
at
servo
]nqicott to
of Boaton, 1.1,:vsach-asotts, ant.
0:: t 0 i-;st :`L.tional
of :73V.7 Yor:: City.
"if,n77,of the :1,-J,se
DLL 0(1, January 2nd,

Dated, cl*In-L,v-Iry 2nd,

t ed.,

1.

d,

i)at od., .R...nuLry 2nd,

ova1 of the arplioLticin of Lex. 2. ,•:.
:econ2riendin.;
the same time as offiner and director
at
1.::ne to z-zve
,,ank
of the
of
.21d outhTr_
Citi:;ens
the
of
and as director
of
:2L,
rational
first
the
of
and
.
-00r
,;ia
1
aLvannz_h,'
2ernindina,
.4.41,rroved.
ap:pli-ation of Mr. 2. C.
L-.
Tlecom.aondin a-iii)rov:11 of .,Le
time
as officer and director
la
2.,a„:
e
at
servo
aoiriCh to
florida and as
Miami,
of
Ban-.
tional
of the Fi-st
hank of
Mtional
first
Beach
the
of
director
::iami Beach,
roved.
aLy...o-,.-a1 of tile arDlication of Mr. :rank B.
3hutts to serve at the same time as director of the 2irst
Tiian:s. of Miami, .2`lorida and o: the Mr.mi Beach
21rst Mat ioin.1.n,c.:22: of Miami Botch, Aorida.
roved.
of Mr. John 'T..
:1.ecomendins; L.122roval of the a-1)121ic
of the
director
time
came
the
at
servo
to
Claussen
, and of the
first 747z tional tank of Miami, 211
J.ami. Beach, florida.
Miami Beach first rat ional 1-21:411-k
Approved.
2ho ::. 4e

c.,,..cijourn.ed at 1:

:3ecretary
iprov cd:




Jrovcrr