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A meeting of the Executive Committee of the Federal Reserve Board Ilas held in the office of the Federal Reserve Board on Wednesday, January 231 1924, at 10:20 a.m. PRESENT: Vice Governor Platt Er. Hamlin Er. Eddy, Secretary Memorandum dated January 21st, from the Leting Comptroller of the Currency recommending approval of the application of the First National Bank of New Castle, Texas, for permission to reduce its capital stock from 050,000 to *i325,000. Referred to the Committee on Examinations. Letter dated January 14th, from the Chairman of the Federal Reserve in the Ilank of San Francisco stating that he has advised all member banks Twelfth Federal Reserve District of the substance of the Board's resolutions of January 7, 1924, regarding the establishment of branches by member barks, azd inquiring if the Board desires that the text of the resolutions, as set Out in the Board's letter of January 7th (X-3937), be transmitted to the member banks; together with copy of telegram, requesting him to send °Ilt the temt of the resolutions, transmitted under date of January 21st, On the initials of two members of the Board. Upon motion, the telegram to Er. Perrin above referred to was formally approved. Letter dated January 17th, from the Federal Reserve Agent at Dallas advising that Louisiana and Arizona are the only states in the inquiring 41eventh Federal Reserve District which permit branch banking and 1/23/24 -2- Whether he should advise all member banks in the District of the Board's resolutions of January 7th, regarding the establishment of branches by hiernber banks; together with a telegram requesting him to advise member banks in Louisiana and Arizona, sent out under date of January 21st on the initials of two members. Upon motion, the telegram above referred to was formally approved. Letter dated January 17th, from the Governor of the Federal Reserve laank of Kansas City, advising the Board of the desire of the directors alld officers of the bank that the Board assist in securing the passage bY Congress of resolutions which have been introduced to permit the erection °f buildings for the branches at Omaha and Denver. Referred to Committee on Branches, The Law Committee reported on the matter referred to it at the 'heating on January 15th, namely, a letter dated January 3rd from the ?ederal Reserve Agent at San Francisco, suggesting an amendment to the l'ecleral Reserve Act to permit a Federal Reserve Agent to withhold from the ballot, in elections of Class "A" and "B" directors, the name of any 11°111inee who withdrew before the nominations had closed; the Committee kbmitting a form of letter addressed to the Federal Reserve Agent, statillagthqt the Board does not at this time care to raise the question suggested bY the amendment. Approved. -3- 1/23/24 referred to it at the The Law Committee reported on the matter r dated January 9th from the Meeting on January 16th, namely, a lette the attorney for the former Assistant Attorney General, advising that ny of Richmond, Indiana, recently President of the Dickinson Trust Compa whether a state bank or trust convicted, has raised a question as to Federal Reserve bank, and company has power to subscribe for stock in a attempting to exercise control whether Congress exceeded its power in action by the Bo/ard is over such banks; the Committee reporting that no wledgment to the above letter. necessary and submitting draft of an ackno Approved. r referred to it on January The Law Committee reported on the matte Adams of Salt 16th, namely, letter dated January 10, 1924, from Mr. W. F. managers anployment by member banks of former I4ce City, with regard to the ; the Committee suband assistant managers of Branch Federal Reserve banks stating that the Board has no legal mitting draft of a letter to r. AdaLls and doesrot, therefore, desire to authority to prevent such employment question. enter into a discussion of the ethics of the Approved, as amended. Secretary,on letter dated Nbmorandum dated January ,..3rd, from the of the Treasury with regard to the January 11th from the Under Secretary House Committee on Appropriations suggestion made by the Chairman of the Reserve Board for the rental that a charge be made against the Federal 1/23/24 -4- value of space used at the Bureau of Engraving and Printing for the custody of completed notes held in reserve; the Under Secretary mentioning other items of expense such as receiving, storing, issuing and accounting for paper and the custody of engraved stock held at the Bureau. The Secretary in his memorandum suggested that the Board request the Treasury IN/Apartment to submit a statement of the additional items and exDenses involved in the production of Federal Reserve notes which it may desire to charge against the Federal Reserve banks. Approved. Draft of letter addressed to Congressman William W. Arnold, in reply to his letter of January 18, 1924, with regard to the absorption bY Federal Reserve banks of abrasion on gold coin; the letter stating that in all sub-treasury or fiscal agency matters, such as redemption of gold coin, the Federal Reserve banks act under regulations prescribed bY the Treasury Department and not by the Federal Reserve Board. Upon motion by Mr. Hamlin, the proposed letter to Congressman Arnold was referred to Counsel for amendment to the effect that "If gold is merely deposited, and redemption not required, it then becomes the duty of the Federal Reserve banks to redeem the gold, it being light weight". Telegram dated January 22nd, from the Federal Reserve Agent at San hancisco, transmitting and recommending approval of the application of the Security Trust and Savings Bank, Los Angeles, for permission to take over the First National Bank of Monrovia and the Monrovia Savings Bank, 1/23/24 -5_ and to establish branches in the premises now occupied by tilose banks. aeferred to Committee on Examinations. QTS OF a2A:TDIllq cor...ri22s: Dated, Janucry 22nd, Recommending changes in stock at Federal Reserve Banks, as set forth in the Auxiliary Minute Book of this date. Approved. Dated, January 23rd, Recommending action on applications for fiduciary 23rd, powers as set forth in the Auxiliary Minute Book 23rd, of this date, Approved. 23rd, Dated, January 22nd, Recommonding approval of the application of Mr. Horace H. Irvine to serve at the same time as director of the Merchants National Bank and of the Grand Avenue State Bank, both of St. Paul, Minn. Approved. Dated, January ,;2nd, Recommending approval of the application of Mr. Julian B. Baird to serve at the same time as director of the Merchants National Bank and of the Grand Avenue State Bank, both of St. Paul, Minn. Approved. Dated, January 22nd, Recommending approval of the application of Mr. George H. Prince to serve at the same time as director and chairmun of the Merchants National bank and as director and President of the Grand Avenue State Bank, both of St. Paul, Luau., and as director and Vice President of the First National Bank, Cloquet, Minn. Approved. bat January 22nd, Recommending approval of the application of Mr. Paul J. Kalman to serve at the same time as director of the Merchants National Bank and of the Grand Avenue State Bank, both of St. Paul, Minn. Approved. Dated January 21st, Recommending approval of the application of Mr. H. L. Brawn to serve at the same time as director of the United States National Bank, Galveston, Texas and of the Orange National Bank, Orange, Tex. App roved. -6- ZaDo=1:ps OF 2.1.:;DETG COLUITTES: (C-ITT'D) Recommending approval of the application of Mr. Frank Schlick to serve at the same time as director of the Merchants N..tional Bank and of the Grand Avenue State Bank, both of St. Paul, Minn. Approved. January 19th, Recommending approval of the application of Mr. illisha ualker to serve at the same time as director of the Chase National Bank and of the United States ilort ;age and Trust Company and as member of rrivate bankers of Blair and Company, all of New York City. Approved. ; approval of the application of Mr. RecommendinJanuary 18th, M. B. Blake to serve at the same time as Director and President of the Security National Bank, Lawton, . Okla, and as director and Vice President of the Liberty National Bank, Oklahoma City, Okla. Approved. January 19th, Reconunendin approval of the application of Mr. Andrew Hagaman to serve at the same timo as director of the Mariner Harbor National Bank of T:ariner Harbor, N.Y. as director of the Ast New Brighton Bank of est New Brighton, N.Y. and as officer and director of the State Bank of Richmond, N.Y. Approved. Jalluary 19th, Rocommending approval of the application of Er. Josiah W. Place to serve at the same time as director an officer of the Tottonville National Bank, Tot tenville, N.Y. and as director and officer of the :ichmond Boro National Bank of Stapleton, N.Y. Approved. approval of the application of Er. Ilecommendin: January 19th, Alfred B. Potterton to serve at the same time as director and officer of the Tottenville National Bank of Tottenvillo, N.Y. and as director of the Richmond Bora National Bank, Stapleton, N.Y. Approved. approval of the application of Er. Recommending January 19th, Frank C. Ferguson to serve at the same time as director and officer of the Union Trust and Hudson County National Bank, and as director and officer of the E,Jrchants National Bank, both' of Jersey City, N.J. Approved. Dated, January 22nd, Dated, Dated, Lated, Dated, Dated, Dated, 1/23/24 -7- 4POITS OF STANDING COMUITTEE4',.: (CONT'D) ion of Mr. Recommending approval of the Implicat time as same the at e serv Thomas J. Maloney to and Hudson t Trus n Unio the of officer and director the Merchants of ctor dire as County National Bank and National Bank, both of Jersey City, N.J. Approved. ding approval of the application of Mr. mmen Reco Dated, January 19th, same time as Eugene F. Kinkead, to serve at the on County Huds and t Trus n director of the Unio onal Bank, Nati s hant Merc the of National Bank and Jersey City, N.J. Approved. ding approval of the application of Mr. mmen Reco , d, ary 19th Date Janu time as John EL Enright, to serve at the same County on Huds and t Trus n director of the Unio onal Bank, Nati s hant Merc the National Bank and of both of Jersey City, N.J. Approved. Dated. January 19th, The meeting adjourned at 10:4 Secretary. Vice Governor.
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