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74 A meeting of the Federal Reserve Loard was held in the office of the Federal Reserve Board on Wednesday, January 21, 1925 at 11:10 a.m. PREJ3:T: ,;.overnor Crissinger Mr. flatt Mr. Hamlin Mr. Miller Cunningham Li'. Yoell, Assistant Secretary The minutes of the meeting of the Federal Reserve _oard held on January 19th were road and approved as Emonded. Mr. Miller moved that the Board reconsider its action in voting that Mr. Trowbridge be not employed by the Joard in connection -A.th the Birmin,ham building. Carried. Mr. Allor then moved that it is the sense of the Board that, as in all previous building projects, the Board before approving plans for the Birmimtam building, submit them to a consultin:, architect and that for this purpose the Governor ascertain upon that terms Mr. Trowbridge v.111 look over th:t plans of the BirminAlam project when completed, with a view of advising the Board thether there is anything in them that should not be approved. By unanimous consent, action on the above motion was deferred pending the return of Mr. James. The minutes of the meeting of the Federal Reserve Board held on January 20th were read and approved. At this point, Mr. McIntosh entered the meeting. Bond of Mr. Oliver A. Lemon, .tssistant Federal Reserve Agent at the 1ahoma City Branch of the Federal Reserve Bank of Kansas City in the .amount of Z50,000. Approved. Telegram dated January 20th from the Federal Reserve I:ent Et Llinnetpolis, advising of the reappointment of Mr. (3orge E. Prince as member s3f the Federal idvisory Council ft.= the 9th Federal Reserve District for the 75 1/21/25 Year 1925. Voted. Telegram dated January 20th from the Federal -Reserve Agent at Dallas, advising of the reelection of Mr. W. M. McGregor as member of the Federal 4dvisory Council from the 11th Federal Reserve District for the year 1925 and the election of Mr. Andrew querbes President of the First National Bank of Shreveport, La., as alternate member. Noted. Memorandum dated January 20th from the Chief Examiner recommending ac- cleptance of the resignation of Mr. R. U. Chapman as Federal Reserve Examiner, effective January 31, 1925, and requesting authority to fill the vacancy caused 131r lir. Chapman's resignation at a salary not in excess of what he was receiving 1 5000 per annum. 1 ' Upon motion, the resignation of Mr. Chapman was accepted and the matter of filling the vacancy was referred to the Committee on Examinations. Letter dated January 19th from the Comptroller of the Currency, advis11111:t of the resignation of Mr. Otis M. Hester, Assistant Teller in the Federal Iteserve Issue and Redemption Division, effective January 15, 1925. Noted. Letter dated January 19th from the Comptroller of the Currency, advisOf the transfer of Mr. G. A. Gailes, Schedule Clerk in the Federal Reserve 18a49 and. Redemption Division, to the position of Assistant Teller, without 01114.. —4ge in salary, effective January 20th. Noted. ff3 -3- Lettr dated January 19th from the Comptroller of tie Currency, c:.dvising of the arpointment of Lir. J. 2. Felton Ls schedule 61.,,r1c in the Federal Reserve Issue End Redemption Division tt a sLlary of 260 for Lnnum, effective anua-ry 20, 195. IToted, rith zpproval. 1.i'emorandum dz-t,ed Januz,ry 21st from Co=sel, recommendinc apIroval of the Ll ilic. tion of La*. Jzvid 2. 2ot is or permission to serve at the szme time zs :ice President and Director of the Interstate rational Bank of ELnsas city,io., and Ls director of the First ntional Balik of C',:rrizozo, rev: L:exico; the Bozrd in 19_0 hL.vin ,Tanted rr. Bels permission to serve bs Vice resi- dent of the former institution tnd director of the i Uter. IpProved. Liemorandum dated January 20th from r•Jrral Counsel, submfttin: for DIaLlication in the forthcomins .1:]ue of the Federal Posorve ;u1letin a coy:Qf the opinion in the so-clled IscaL:oula Dtional ank case. toL:ether v.ith la brief explLnztory statement. Lpi)roved. Letter (Lted January 17th from Yx. D. eUuPSfl Irwin of Detroit, informtion re:arding the cpen Market transzctions o2 the Feder&l serve banks. referred to the ::;overnor with power. .!,t this point, Mr. McIntosh left the meetin. i'eport of Committee on . z.la.ries, 1.1:xpenditures and L:fficiency on the P`'`"Ea• ( 1/2I/25 -4- matter referred to it ft the meeting on January 19th, namely, letter dated . eserve 137,Lnk of Ltnsas January 16th from the Deputy 30vernor of the Pedr,ral : City, with r-card to continued membership by that bank in the Imerictn :ccePtance Council which has been maintained with the approval of the Board End the rate for vhich during 19.5 will be ,300; the Commiutee callin - attention to the position taken by the Board in rovember 192 that the work of the cruncil wa.s then of considerable importance and its action in votin make no objection to the payment of dues up to to by the Zederal Reserve banks; and submittinc the question of policy involved to the members of the Board for a decision. Lfter full discussion of the matter, it a.s referred back to the Committee on Jalaries, Expenditures and Efficiency with the sikfgestion that the opinion of other ederal Reserve banks be Secured. Letter dated January 19th from the Deputy ;overnor of the s?ederal Reserve Bank of ri.v York, advisins that on that date .,125,000 in United .3tates old coin was earmarked for account of the Badische Bank, Ezrlsruhe, ;ermany. roted. Report of Committee on Examinttions on letter dated Janu ry 19th from the Federal Reserve Lent at Richmond on the subject of the proposed con5o1idation of the Baltimore frust Company and the itlantic ]xchan7e and 2rust eemrt.ny, both of Baltimore, under the name of the Baltimore 2rust Company; the Board's Committee recommendini; approval. Lpproved. Memorandum dated January 19th from the Division of 2xamimtion approved bY Counsel, on letter dated January 16th from the 2ederal Reserve /gent at d 1/21/25 Richmond, referring to the Board's action in approving the absorption by the Home Bank of St. Matthews, S. C. a member bank, of the Farmers Bank and Trust Company of St. Matthews, a non-member bank, and advising that the consolidation will be effected under the name of the member bank but with a Ilew charter; the memorandum recommending that the Federal aeserve Agent be advised that the membership of the Home Bank of St. Matthews terminated with its old charter and that an application from the new bank should be required if it desires to become a member of the System. Upon motion, the above recommendation was approved. The Law Committee then reported on the matter referred to it at the meeton January 6th and submitted a memorandum dated January 17th from Counsel 071 the subject of the date upon which organization certificates of the Federal Reserve banks were filed; Counsel recommending adoption by the Board of the following resolution: "WHEREAS, one of the Federal Reserve banks wishes to be advised as to the expiration date of its charter; and WHEREAS, under the provisions of the Federal Reserve Act a Federal reserve bank is authorized to have succession for a period of twenty years from its organization which is completed upon filing of the organization certificate with the Comptroller of the Currency; NOW, THEREFORE, BE IT RESOLVED that the Federal Reserve Board hereby requests the Comptroller of the Currency to advise the said Board on what date or dates the organization certificates of the several Federal reserve banks were filed with him as shown by the records of his office, or, if not so shown, then to advise the said Board of the date or dates upon which the said certificates must be considered to have been so filed, in the light of any evidence to be found in the correspondence on file or in the records of the several Federal reserve banks." Adopted. C. 0 1/21/25 ii Memorandum from the Secretary on letter dated January 10th from the Assistant Secretary of the Treasury, transmitting a memorandum from the Commissioner of the Public Debt on the subject of control over paper currency issues; the Secretary pointing out that the procedure outlined in the memorandum requires the approval of the Board to continuing as at present its cooperation with the Treasury Department in the matter of assisting the Treasury in the distribution of its paper currency issues among the Federal Reserve banks and branches, in the form of daily deposits with the banks and branches to the credit of the Treasurer of the United States and further as to the service of the Secretary of the Board on the Control Currency Board, the other Members of which are the Assistant Secretary of the Treasury in charge of fiscal matters and the Commissioner of the Public Debt. Approved. Memorandum dated January 21st from the Secretary on letter dated December 29th from the Governor of the Federal Reserve Bank of Minneapolis on the subject Of cancellation of stock of the First National Bank, Bisbee, North Dakota, the Citizens National Bank, Jamestown, North Dakota, the Citizens National Bank, Sisseton, South Dakota and the First National Bank of Taylor, North Dakota; the Secretary recommending (1) With reference to the reserve bank stock awned by tho First National Bank of Bisbee, North Dakota, and the Citizens National Bank, of Jamestown, North Dakota, both insolvent, that the Federal Reserve Agent at Minneapolis be not required to insist at this time upon applications for surrender of stock in view of the fact that the officers of the Minneapolis bank appear to have good reason to believe that both of these institutions will reopen, but that the Agent be advised, that unless the banks are reopened on or before June 30, 1925, steps must be taken to cancel the stock. 80 -7- (2) With reference to the Citizens National Bank, Sisseton, South Dakota, which was declared insolvent in March, 1924, and reopened on December 16, 1924, that the action of the reserve bank in refraining from requiring the receiver to file application for cancellation of reserve bank stock within six months following the date of insolvency, be approved by the Board. (3) With reference to the stock held by the First National Bank, Taylor, North Dakota, in voluntary liquidation, the Federal Reserve Board on January 16th, upon recommendation of the Comptroller of the Currency, approved the reserve bank carrying the stock and paying dividends thereon until such time as the Comptroller has issued formal notice of liquidation of the First National Bank of Taylor. Upon motion, the recommendctions of the Secretary were approved. Memorandum dated January 20th from Counsel on the subject of the service °t Mr. 0. H. Cheney on the Pacific Bank, the American Exchange National Bank, 44a the American Trust Company of New York City and the Scarsdale National Bank cst Scarsdale, N.Y.; Counsel pointing out that Mr. Cheney is now serving the four bariks, all of which are within the prohibitions of the Clayton Act, and that in his opinion the Board has already waited a reasonable time for a contemplated terger of the American Exchanrze National Bank and the Pacific Bank, and that Cheney should be required immediately to resign from one of those Institutions 441i to submit an application to serve the other three. After discussion, it was voted that for the present the Board should take no action to force the resignation of Mr. Cheney from any of the banks concerned, The Governor then presented the matter ordered circulated at the meeting °4 January 19th, namely, memorandum dated January 17th from the Board's General ' C Ittzsel submitting copy of opinion in the case of the Capital Grain and Peed St 1/21/25 _8- Company V. Federal Reserve Bank of Atlanta and transmitting an inquiry from COansel of the Federal Reserve Bank whether this case should be appealed in the interest of the Federal Reserve System as whole. After discussion, by unanimous consent, Mr. Miller moved that the matter be referred to the Governor and that he be authorized to consult with special counsel regarding the desirability of an appeal. Carried. Mr. Miller then stated that Mr. Russell Lowry, Vice President of the American Bank of San Francisco Was in the city and referred to the action Of the Board on January 8th in voting to grant to that institution a hearing regarding its application for permission to establish three branches de novo in Oakland, which was disapproved by the Board. Upon motion, the matter of arranging a hearing for Mr. Lowry was referred to the Governor with pourer. Mr. Miller then referred to the stenographic report of the meeting with the Open Market Investment Committee in Washington on December 19th and stated that he had not voted in favor of the motion by Mr. Hamlin that the Board note with approval the report of the Committee, including its proposed future action ae contained in a statement‘of the Chairman, which was recorded as being unanitously carried. Upon motion by Mr. Hamlin, the stenographic report was amended by striking out the word "unanimously". 4 22AT.S OP STANDING COMMITTEES: DEtted, January 19th, Recommending changes in stock at Federal Reserve 20th, banks as set forth in the Auxiliary Minute Book of this date. Approved. ( i -9- 1/21/25 oa23 OF 6"2.:.171= COMUI1i27:51 (Cont'd) Jiated, January 21st, 21st, 21st, Dated, January 21st, 21st, Dated, January 21st, Dated, January A.st, 'Dated, JanuLry 21st, Recommending action on applications for fiduciary powers as set forth in the luxilia.ry lanute Book of this date. Lpproved. Recommendinc action on applications for fiduciary powers as set forth in the luxiliary :linute Book of this date. Ordered held. Recommending approval of the application of Lii. John Russell to serve at the same time as director and officer of the ,shlEnd 'rational Bank, ,shland, Ey., End Es director of the Kentucky National Bank, Catlettsburg, Ky. ,pproved. Recommending approval of the anplication of Lir. Y.alcolm 3. Chace to serve at the same time as director of the Chase rational Bank of rev: York City, and of the Old Colony 2rust Company of Boston, Llass. and of the Phenix rational Bank of Providence, R. I. Lpproved. Recommending approval of the application of Lir. Charles Russell to serve at the same time as director of the Lshland rational Bank of Lshland, hy.and as director and officer of the Kentucky rational Bank of Catlettsburg, Ky. Lpproved. Recommending approval of the application of. 1.:r. J. L. Lewis to serve at the same time as President and director of the.Republic rational Bank, jt. Louis, :.71o. and as Vice President and director of the Franklin Bank of 3t. Louis, Lpproved. Dated, January 21st, Recommending apiroval of the application of 1:r. John C. Jpencer to serve at the same time as director of the -Irving Park rational Bank and of the Portae Park rational Bank, both of Chicago. 4proved. Dated, January 21st, The meeting adjourn •M• Jssistant Jecretary. 4„rev e AO, i j Atti overn 1 — 00111
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