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89 A meeting of the Federal Reserve Board was held in the office of the Federal Aeserve Board on Tuesday, January 26, 1926, at 11:30 a.m. PA7,3EITT: 1 Vice Governor Platt Mr. Hamlin Yr. Miller Mr. James Mr. Cunningham Mr. McIntosh Mr. Eddy, Secretary Mr. YOClelland, Asst. Secretary The minutes of the meeting of the Federal Reserve Board hold on January 2b, 1926 were read and approved as amended. Telegram dated January 25th from the Chairman of the Federal Reserve 1 BkIlk of Atlanta, requesting approval of the procedure outlined therein R°verning the election of a Class "A" director of that bank for the unexpired terra Of Mr. P. R. Xittles, deceased. Approved. Letter dated January 20th from the Federal Reserve Agent at San Prancisco, advising that Mr. Louis H. Moore, Assistant Chief Examiner in his Department,has tendered his resignation, effective as of February 1, 1926, Noted. 23rd, Report of Committee on Examinations on letter dated January transmitting and fr"1 the Assistant Federal Reserve Agent at aichmond, rcen— and City Bank and qu ending approval of an application of the State ' Trtia u Company, Richmond, for permission to consolidate with the Planters ochni Bank of Richmond; the Committee also recommending approval. Approved. 90 1/26/26 -2- deport of Committee on Salaries and Expenditures on letter dated tjarivarY 20th from the Chairman of the Federal deserve Bank of Philadelphia, requesting approval of the action of the board of directors of that bank 14 voting to grant a leave of absence not exceeding three months to Mr. John 1)*Uaguire, an employee of the Accounting Department; the Committee also 1'0001:unending approval. Approved, deport of Committee on Salaries and Expenditures on letter dated jalluarY 21st from the Chairman of the 2ederal deserve Bank of Aichmond, l'ecluLesting approval of the action of the board of directors of that bank 14 v°ting to grant leave of absence, with pay, until March 1, 1926, to 111'• George D. Baylor of the Accounting and Planning. Department; the Committee also recommending approval. Approved. Letter dated January 23rd from the Governor of the Federal deserve Ballk Of Minneapolis, with reference to the authority of one Federal deserve batik to rediscount with another Federal deserve bank collateral notes disd. for its member banks; the Governor expressing the opinion that a ' 41 aeserve bank may rediscount such notes with another Federal deserve barlit 114aer Section 11 of the Federal Reserve Act, but suggesting that if thib interpretation of the Act is not correct Section 11 should be amended that One iederal deserve bank can rediscount such notes for another Ped,43 ' 1 41 deserve bank and suggesting further that Section 11 be amended so 91 \t / -/ 26/26 as to provide that one Federal deserve bank may discount for another its awn 40te collateraled by eligible paper, United States government obligations or itember bank notes collateraled by eligible paper or government obligations. Aeferred to Counsel. Letters dated January 18th and 21st, respectively, from the lairmen Of the to ap2edera1 Reserve Banks of hansas City and Dallas, with respect Plioations for transfer from the 11th to the 10th Federal Aeserve District tiled with the Board by the First National Bank and the Albuquerque National 1144t of Albuquerque, New Mexico, and by the First National Bank of Belen. 14texico. Ordered circulated. Report of Committee on salaries and Expenditures on letter dated a411114rY 25th from the Chairman of the Federal Aeserve Bank of New York, bank l'elleting approval of the action of the board of directors of that ill granting two months' leave of absence to Mr. L. F. Sailer, Deputy Governor; t40 Committee recommending approval. Approved. to the Llemorandum dated January 23rd from Counsel, with reference 1)13l ioation of the First National Bank of ,est Point, Georgia, for permission defer action t° act as trustee; the 3oard on January 7, 1926 having voted to executor, application of the bank for permission to act as trustee, Ilistrator, registrar of stocks and bonds, guardian of estates and corn' opinion that the 8- of estates of lunatics; Counsel expressing the right to act as 44141'cl has lirral authority to grant to a national bank the 92 v26/26 -4- trustee for any mortgage bond issue, rather than trustee generally, which act is recommended by the law iomrnittee in the case of the First National 3kat of West Point, Ga. After discussion, it was voted to refer application to the comptroller of above the for recommendation. iurrency the Report dated January 19th by the Special Committee, consisting of litesers. :Aller and James, appointed at the meeting on January 11th, to l'ePort a revision of the Board's Regulations with respect to the appointment circular 414 service of directors of Branch Federal deserve banks (Board's 4tter, hs Y.-3956, January 25, 1925); the Committee recommending that Paragrap 1 arid, 6 Of the above letter be amended to read as follows: "(1) Boards of Directors of Federal eserve Branch Banks shall consist either of seven members or of five members, as may be Uetermined by the Federal Reserve Board in consultation with the Federal Reserve Bank of the District concerned. ithere the Boards of Directors of Federal Reserve Branch Banks consist of seven members, four shall be appointed by the Federal Aeserve Banks and three by the Federal Reserve Board; where the Boards consist of five members, three shall be appointed by the Federal Reserve Banks and two by the Federal Reserve Board. . (6) The full term for other Directors shall be three years where Branch Boards consist of seven members and two years where iranch Boards consist of five members. in order to make practicable an orderly rotation of Branch Directorships the terms of Directors other than the Managing Director shall be so arrang9d that two will expire each year - one, the term of a Director appointed by the Federal deserve Board, the other, that of a Director appointed by the Federal Reserve Jank. (While the Federal "deserve Board feels it to be desirable to have rotation in office of Branch Directors the rule is not mandatory.)" 93 1/26/26 -5- After discussion, ir. namlin mov3d that the proposed revised Paragraph I be further revised to read as follows: "Boards of Directors of iederal deserve Branch Banks shall consist either of seven members or of five members, as may be determined by the Federal Reserve bank of the District concerned, subject to the approval of the Federal Reserve _Board, etc." Mr. Hamlin's motion beinp: put by the Chair was unanimously carried. Hamlin then moved approval of the proposed revision Of the Board's letter,,-.-3956, as amended above. Carried. Letter dated January 21st from the Chairman of the Federal deserve dank °f 3an irancisco, requesting approval of the action of the board of directors °I. that bank in voting to approve for r. H. S. McKee, member of the Advisory 3Linc11 from that District, the sum of c750 as compensation and allouance to cover traveling expenses for each Federal Advisory uouncil meeting in ‘"lashington which he attends. Approved. r he Vice Governor then stated that special order business for this t Itortlinws meeting was consideration of the report dated January 19th, subttted a, 4ssrs the meeting on that day by the Special 6ommittee, consisting of . -iller, James and Platt, appointed to recommend a revision of the by,la WS Of the Board; copies of the revised draft of the By-laws recommended bY th '20 - Committee having been distributed among the members of the Board. The 'ioard then considered separately the various . sections of the Committee's revised draft and tentatively 94 1/26/26 -6- adopted same with certain amendments; the Committee being requested to prepare a redraft of the By-laws, including the amendments suggested by the Board,for submission at a later meeting. tqlros OP STANDING COMMITTEES: Dated, January 25th, Recommending action on application for admission Dated, January 25th, of state bank, subject to the conditions stated in the individual renort attached to the application, as set forth in the Auxiliary minute Book of this date. Approved. Aecommending approval of the application of Mr. Samuel Tabak for permission to serve at the same time as director of the Bridgeport National Bank, Bridgeport, pa. and as director of the Montgomery Trust Company, Norristown, Pa. Approved. • The meeting adjourned at 1:25 p.m. Vice Governor.
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