The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
A meeting of the Federal Reserve Board was held in the office of the Federal leserve Board on Tuesday, January 4, 1927 at 11:15 PRESENT: a.. la. Governor Criss inger Liz'. Platt • Hamlin Liz'. killer mr. James 1.1r. Cunningham Liz'. Eddy, Secretary 1.1cClelland, sst. Secretary The minutes of the laectings of the Federal l'eserve Board held on December 30th were read and approved as amended. The minutes of the meetings of the Federal Reserve Board held on Le celaber 31st were read and approved. Latter approved on initials on January 3rd, namely, application of the 'First iIational Lank in hdi11, Okla., for original stock (36 shares) in the Federal Reserve hank of Lailas, effective if and when the Comptroller "f the Currency issues a certificate of authority to cor.unence business. Formally approved. Application for permission to exercise fiduciary powers made on behalf ee The City-National Bank of Corce of Columbus, Ohio, to be formed hreuCh the consolidation of the National Bank of Colliterce and the City 4 _ -L0114 1 f_ 111ittee an of Colu..ibus; together with recommendat ion of the 11317 001.1- that the application be approved, effective if and rhen the con- 01idated bank begins business. Lpproved. IA this point, kr. .1eIntosh joined the meeting. The Governor presented draft of a circular letter to all Federal reel've banks, prepared in accordance with the action of the Board at the tieet, 11147; on December 30th in approving a recommendation of the Codaittee on 1/4/27 -2- 2 District ,:4-10 that the Governor be authorized to send a letter to every Federal Reserve bank, advising that the Federal Reserve Board does not aPprove of compensation or salary allowance to any officer or employee Of any Federal Reserve bank, subsequent to the date on which actual service has been terminated without, the Board's approval first having been obtained and that the Board disapproves of the payment of any compensation whatsoever to any officer or employee of any Federal Reserve bank whose services have been discontinued for cause, beyond the date on which the actual services were terminated. After discussion, Ll.r. James moved that the Board reconsider its action of December 30th in authorizing the t;.,..nsiaittol to all Federal Reserve banks of a letter along the lines of that submitted above. • Mr. James' motion being put by the Chair was carried. Lir. James then moved that the above letter be not transmitted. Mr. Janes' motion being put by the Chair was carried. The Secretary then called attention to the fact that at the meeting On December 30th in considering the report of the Committee on District regarding a probable violation of Section 22 of the Federal Reserve by Mr. ',7aater Robinson while employed as a Federal Reserve Bank Examiner et ICansas City, the Board acted on only two of the recommendations contained the report, namely, in approving t) letter submitted by the Committee, "dressed to the Federal Reserve Agent at Kansas City, regarding payment ()1' compensation to ,.:r. Robinson after his services were discontinued and `PProvin,- a recommendation of the Committee for a general letter to all 3 12/28/26 -3- :Federal 1?.eserve banks, which action the Board has just reconsidered. He stated :that no action Iras taken with reference to the recommendations of the Committee regarding the reporting to the Department of Justice and the local United States District Attorney of 1r. r,Zobinson Is probable violation of the law and with regard to advice to be sent to the Federal Reserve Agent at Kansas City on the subject of filling the vacancy in his examining staff caused by the discontinuance of Er. Robinson's services. Mr. Cunningham then moved that the entire report of the Commiti ee on District, -; 10, submitted at the i.eting on December 30th, be adopted, except, of course, its recommendation for a general letter to all Federal fleserve banks which has now been disapproved by the Board. Mr. Cunningham's mot ion being put by the Chair was carried. The Governor referred to the action of the Board at it a meeting on becember 30th in voting to reconsider its action of December 29th in directing the Secretary of the Board to advise the Federal Reserve Bank of 11E17 York that in the opinion of' the Board Ijr. iZoy M. Furman, former Chief I311 the Bank's Credit Department, should be relieved of all duties at the ?ederal Reserve bank and immediately removed from the salary roll of the ba'llics because of certain alterations i.v.de by him in records kept in that iJePartraent. After discuss ion, Mr. Mclnt°Eh moved that the Board approve payment of salary to Mr. Furman for a period of not to exceed sixty days from January 1, 1927. Er. ?lc Int os h I s mat ion be in g put by the Chair was carried, the members voting as follows: 4 1/4/27 -'1- Governor Crissinger, "aye" Mr. Platt, "aye" Mr. Hamlin, "aye" . YzInt osh, "aye" Mr. Miller, "no" Mr. James, "no" Mr. Cunningham, "no" Letter dated December 30th from the Secretary of the Federal Reserve of New York, advising that the board of directors on that day mide no change in the bank's existing schedule of rates of discount and purchase. Noted. Telegram dated December 30th from the ChairLian of the Federal Reserve Bank of San Francisco, advising that the board of directors on that day 111ade no change in the bank's existing schedule of rates of discount and PlIrchase. I Noted. Letter dated January 3rd from the Asistant Federal Reserve Agent at York, advising that the Dank of United States has received authority trom the State Banking Department to open and mainto.in, on or after eeember 31, 1926, a branch at 3783-3785 Third Avenue, Borough of Bronx, York City. Noted. Report of Committee on Salaries and Expenditures on letter dated De"liter 29th from the Federal Reserve A-gent at Dallas, requesting approval c)is an extension until January 15, 1927, vrith full pay, in leave of absence illtIted Miss Anabel Russell, an employee of the Statistical Department; the eciaraittee recommending approval. Approved. Report of Committee on Examinations on letter dated December 29th IA/27 from the Federal l . eserve Agent at San Francisco, transmitting and recomznending approval of application of the iTercantile Trust Company of if or n ia for permis ion to establish branches at 20th Avenue and Irving Street, Filltiore and California Streets and at ',he Fairmont hotel, all in ' 73an Francisco; hr. Platt Chairman of the Committee, recommending approval and ounnincham liakinc no r ec aziendt' - t ion. Following a discussion the above applications were referred back to the Committee on Examinations. P.eport of Coaittee on Examinations on letter dated December 29th frol-a the Federal keserve .,,.,;ent at San Francisco, transmiV:ing and recomraellding approval of an application of the :ercantile Trust Company of California for permission to open a branch at the corner of Fifth and ss ion Streets - 907 'assion Street, San Francisco, in lieu of the Lranch no..7 operated at 2595 iiss ion Street; the Co:1, tittee recom ending aPProvLl. Approved. The Secretary then submitted draft of a proposed statement to the Pre "regarding earnings, e:cpenses and dividend payments of the Federal r!e serve banks during 1926, with information also with respect to amounts trct4p, o sur-lus account and franchise tax paid at the end of the Year. fiftor discussion, the above statement was approved as amended. :fAtt er ordered c irculated at the laeet ing on December 23rd, namely, illeni°1-arldtha fro:a Counsel dated December 17th with reference to the applieE,t -1.1 ofDr. Z.;dsel P. Ford for permission to serve at the same time as 1/4/27 -6- a director of the National Bank of Commerce, The Guardian Trust Company and the Guardian Bank of Detro it, all of Detr oit, Michigan; the Guardian Bank of Detroit being in process. of organization by stockholders of the Guardian Trust Company. After discussion, 1.5-. Hamlin moved approval of the application. Mr. Haralin Is motion being put, by the Chair was carried, the mmbers• voting as follovrs: Governor Criss inger, n ayen Mr. Platt, "aye" Hr. Hamlin, "aye" Mr. licintosh, "aye" Mr. Miller, "no" Mr. James, "no" lir. Cunningham, "no" 1 Draft of letter to the Assistant Federal Reserve •Lgent at New York, Prepared in accordance with the Board's instructions of December 28th, requesting the discontinuance in the Federal Reserve Agent's Department of the bank of studies into long time trends in prices, production, trade, ete's and the discontinuance at the end of the year 1927 of the services Carl Snyder, Statistician, who is engaged in this work. After discussion, Mr. Miller moved that the above letter be not transmitted and that in lieu of the letter the Governor of the Poard be authorized to use his discretion as to the method of communicating to Mr. Snyder the action taken by the Board at the meet ing on December 28th. Miller's motion being put by the was Chair carried, the members voting .as follows: Lir. Platt, "aye" Mr. Miller, "aye" Mr. James, "aye" Mr. Cunningham, "aye" McIntosh, "aye" Governor Crissinger "no" Hamlin, "no" P4,4 1/4/27 -7- The Governor presented an article m the subject "The Federal Reserve SYstem in l926P prepared by P. Burgess, Assistant Federal Reserve Agent at New York, for publication in the .iLmerican Year hook, statinr; that the article has been examined by the Director of the Board's Division of Iesearch and Statistics Irho sees no objection to its putlication. Upon motion, it vras voted to approve publication of the article. The Governor then reported that, in accordance with the action of the Board at its meeting on December 30th, he proposed to appoint Deputy Gcriern _ or Case of the Federal Peserve Dank of New York, Governor Young of the Federal °serve hank of -:anneapolis, and Chairman _artin of the Federal l eserve hank of 6t. Louis, as a comilittee of three to make, a study of the safekeeping function of the Federal Reserve banks. The Secretary reported, in accordance with the instructions of the DO r a d at its meeting on December 28th, with regard to :'alarics paid in Nett York City for positions comparable to those of Building Superintendent and Chief Engineer of the Federal Reserve T3anl: of New York, for which the dir ectors of the New York bank recommended salaries of Ci 10,000 and Per annum, respectively. 7,0u0 The Governor called attention to the fact that a. e imittee of Directors of the A, ,Ciei-al Reserve Bank of New York is exPeete dIn -ashington tomorrow and sunrested that the ratter of the ctle`ries referred to be taken up with the cornittee by the Board's Comrilittee on Salaries and Expenditures. p. Up on motion, the Governor's suggest ion was approved. 1/V27 -8- REPOPTS OF ST.iNDING Dated, January 3rd, Dated, Dated, Dated, 11 °at e Dated, teted, : T!ecetmr:ending changes in stock at Federal l'eserve banks as set forth in the 2.u::iliary Anute Fook of this date. Approved. December 28th, Recommending action on applications for fiduciary powers as set forth in the Auxiliary Ilinute Fool: of this date. Approved. December 28th, Recomnen ding approval of the application of . Charles E. Taylor for permission to serve at the same tinc as direct or of the 'Lurch is on Nat ional Bank, Uilmington, IT. C., and as director end officer of the Uilmington Savings c!1 Trust Corart,ny, 1;ilmington, IT. C. Approved. December 28th, Recommending approval of the application of 7,:r. J. V. Grainger for permission to serve at the same time as director of the ;.:urchison National Bank, Wilmington, H. C., and as director of the ilinton Savings (`,1 Trust Company, Vilmington, N. C. Approved. December 28th, Reco.amending approval of the application of Jr.; Wilmot U. Evans for permission I o serve at the came time as director of the Flue Hill National Bank, _lilt on, I las s as director of the Everett National ., and as director of the First Bank, Everett, Hatimal lank, Post on, :lass Approved. Janua ry Srd, Recommending approval of the applicat ion of :Ir. John T. Cochrane for permission to serve at the same time as director of the Central National Pan1:, New York, N.Y., and as director of the ilerchants Bank, ldobile, Ala. Approved. December 30th, Recommending approval of the application of Jr.5 'Till VT. '.1orrison for permission to serve at the same time as officer of the First National Bank, Bryan, Ohio, and as director of the Ohio Savings Bank and Trust Company, Toledo, Ohio. Approved. December 50th, P.ecommending approval of the applicat ion of Hr. Ectaar d A. Pruden for permission to serve at the same -time as direct or of the L.me r ican Nat ional Bank, Newark, N.J., and as director of the Fidelity Union Trust Cam. any, Newark, H. J. Approved.
@FedFRASER