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1, office of the FedA meeting of the Federal Reserve Board was held in the o'clock noon. eral Reserve Board on Thursday, January 3, 1929 at 12:00 PAM—ENT: Governor Young Mr. Platt Mr. Hamlin Mr. Miller . Mr. James Mr. Cunningham Mr. Eddy, Secretary Mr. McClelland, Asst. Secretary y, application of the llatter approved on initials on December 31st, namel stock (150 shares) in the Omaha National Bank, Omaha, Nebr. for additional Federal Reserve Bank of Fansas City. Formally approved. y, application of the Matter approved on initials on January 2nd, namel original stock (160 shares) in Vandeventer National Bank, 3t. Louis, Mo. for if and when the Comptroller the Federal Reserve Bank of St. Louis, effective authority to commence business. Of the Currency issues a certificate of Formally approved. the Federal Reserve Banks Telegrams dated January 2nd from the Chairmen of boards of direct= at meetOf Philadelphia and St. Louis, advising that their ing schedules of rates of ings on that date made no changes in the banks' exist discount and purchase. Jithaut objection, noted with approval. of the Division of Bank OperMemorandum dated January 2nd from the Chief William J. Mays as clerk in the Divations,recommending the appointment of M. memning on or about January 20th; the ision at an annual salary of ,1600, begin t of the the appointment was made in the budge orandum stating that provision for Division for the year. As -2- 1/3/29 Approved. Reports of Committee on Salaries and Expenditures on lists submitted by the diFederal Reserve Banks of Chicago and Kansas City of employees for whom the illrectors of those banks approved leaves of absence with pay, on account of ness, during the period November 23rd to December 27th and the month of Novem1928 has ber, respectively, where the total of such absences since January 1, the salary exceeded thirty days; the Board's Committee recommending approval of payments involved. Approved. , Memorandum dated December 31st from the Deputy Comptroller of the Currency advising that on Friday, January 4, 1929, the Comptroller will call upon all of conNational banks, and all banks in the District of Columbia, for reports dition as of the close of business Monday, December 31, 1928. Upon motion, the Secretary was authorized to issue a call as of the same date for reports of condition of State member banks. Memorandum dated January 2nd from Assistant Counsel with reference to the time as application of Mr. Lawrence Banks for permission to serve at the same as Vice director of the American Southern Trust Company, Little Rock, Ark., and callPresident and director of the First National Bank, Corning, Ark.; Counsel Louis ing attention to the recommendation of the Federal Reserve Agent at St. believes apthat the application be refused and suggesting that if the Board interest, beproval of the application would be incompatible with the public ity to appear fore its refusal is made final, the applicant be given an opportun at St. before the Board, or, if he prefers, before the Federal Reserve Agent Louis, if he desires to submit additional information. 1/3/29 3- Upon recommendation of the Law Committee, the above application was refused with the understanding that 1.1r. Banks will be granted a hearing as suggested by Counsel. question Lemorandum from Counsel dated December 21st, with reference to a whether certain raised by the office of the Comptroller of the Currency as to e fiduciary National banks in Pennsylvania which are authorized to exercis cates issued powers may properly invest trust funds in participation certifi the Trust against real estate mortgages owned by the bank and transferred to kes to rule upon Department; Counsel suggesting that before the Board underta asking for this question it address a letter to all Federal Reserve Agents tions are permitsuch information as they can obtain as to whether State institu ted to do business of this kind. After discussion, upon motion, it was voted that after submission to and approval by the Comptroller of the Currency, the the proposed letter submitted by Counsel be addressed to lphia, Federal Reserve Agents at Boston, New York, Philade Cleveland, St. Louis and San Francisco. meeting on December In accordance with the instructions of the Board at its the major cases in the 29th, the Secretary submitted a memorandum setting forth senior officers past where the Board has approved extended leaves of absence for of the Federal Reserve banks. Further consideration was then given to letter Philadelphia, requesting dated December 28th from the Federal Aeserve Agent at pay. that he be granted a four months' leave of absence with Reserve Y.r. James moved that the request of the Federal be granted. pay, with , absence Agent for four months' leave of Mr. Miller moved as a substitute for 1:r. James' motion granted that the Federal Reserve Agent at Philadelphia be and two pay with months two four months' leave of absence, months without pay. ‘.1 -4— 1/3/29 Yr. Platt moved,as an amendment to Yr. Miller's motion, that the Federal Reserve Agent at Philadelphia be granted four months' leave of absence, three months with pay and one month without pay. Mr. Platt's motion to amend Mr. Miller's substitute motion being put by the Chair was lost, Messrs. Platt and James voting "aye". 11r. Miller's substitute motion was then put by the Chair and carried. ed and moved Yr. James, Chairman of the Committee on District #6,then submitt adoption of the following resolution: "VHaREAS, the Federal Reserve Bank of Atlanta desires that the ed functions which its Havana Agency is authorized to perform be extend l reserve so as to include authority to exchange, currently, its Federa States notes or other forms of United States paper currency for United d locate coin with the Cuban Treasury and with banks and branch banks the avoid in Havana, Cuba, the purpose of the added function being to ng large handli in d involve expense heavy the ing incurr of possibility transe accumulations of coin, as was the case in the special exchang action with the Cuban Treasury which occurred in May, 1928. Havana NOW, THEREFORE, BE IT RESOLVED, That the functions of the resoluthe in Agency of the Federal Reserve Bank of Atlanta, as defined extendbe 1927, tion adopted by the Federal Reserve Board on January 27, fit or new of ed so as to permit said agency to make direct exchanges c of Republi the of currency for American coin tendered by the Treasurer ng , chargi Havana in Cuba, or by any banking institution doing business nd." thousa per dollar for such exchanges a commission at the rate of one After discussion, Mr. James' motion was put by the Chair and carried. the Federal Reserve Mr. James then discussed with the Board a proposal of to act as a clearing-house Bank of Atlanta that the Havana Agency be permitted for clearing-house banks in Havana. He submitted draft of a letter to the Chairman of the Bank, Governor of the Atlanta bank, suggesting that he or the the Board early next or both, might come to Washington for a conference with certain doubts regarding the week, inasmuch as the members of the Board have A approval thereto at this time. proposal which would make it impossible to secure -5- 1/3/29 Upon motion, 1.1r. James was authorized to transmit the proposed letter to the Governor of the Atlanta bank. Bank of The Governor then reported that the Governor of the Federal Reserve San Francisco will be in Washington on Monday and that arrangements have been Representatives made to have the Committee on Banking and Currency of the 'louse of ze the San Frantake up on Wednesday the joint Congressional resolution to authori Los Angeles cisco Dank to proceed with the erection of a building to house the Branch. Bank of Letter dated January 2nd from the Governor of the Federal Reserve have been made New York, advising that, effective January 1, 1929, arrangements charge a commission With the Bank of England whereby the Federal Reserve Bank will ed for account of , Of one-eighth of one percent for the guarantee of bills purchas purchased for other that institution, the same as it does for guaranteeing bills arrangement is a reciproforeign central banks; the letter stating that while the charge the Federal Reserve cal one; it is understood the Bank of England will not London for account of Bank a commission for their guarantee of bills bought in to so charge other banks the Federal Reserve banks, as it is not their practice Of issue. hoted, with approval. At this point, Mr. Cunningham left the room. the Board at its meeting The Governor then referred to the instructions of Governor of the on December 20th and presented draft of a letter to the Deputy correspondence regarding Federal Reserve Bank of New York, referring to previous tion of the designation the application of member banks in Albany for the termina of Albany as a statement contained in eserve city; the letter referring to the is no difference between the a recent letter from the member banks that there -6- 1/3/29 7c) States banks in that city and hundreds of other cities throughout the United be that are not classified as deserve cities, and •inquiring whether it would list of compossible for the Albany member banks to furnish the 3oard with a parable cities in the State of New York. Upon motion, the letter submitted by the Governor was approved. Upon motion, it was also voted that any further investigations in connection with the Albany application be referred to the Committee on District t2. Lgent at Letter dated December 31st from the Assistant Pederal Reserve New York, advising that a copy of the address delivered recently before the Statistician American Statistical Association in Chicago by Mr. Jarl Snyder, at the bank, will be furnished to the Board in the course of a few days; the jr:) attention of letter also stating that the newspaper report which came to the the 3oard gives a wholly inadequate impression concerning the address. Noted. Reserve Board The reading of the minutes of the meeting of the Federal held on December 31st was dispensed with. AZOATS OF STANDING COMMITTEES: Dated, December 31st, Recommending action on app as set forth in the Aukili Recommendation appr The meeting adjourned a i Approved: cations for fiduciary powers Minute Book of this date. d. 00 p.m.
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