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A meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Saturday, January 7, 1928 at 11:00 a.m. PRESENT: Governor Young Mr, Hamlin Mr. Miller Yr. Cunningham Mr. McIntosh Mr. Noell, Asst. Secretary Mr. McClelland, Asst. Secretary The minutes of the meeting of the Federal Reserve Board held on j4rillary 5th were read and approved. Letter dated January 5th from the Assistant Secretary of the ?sclera' Reserve Bank of New York, telegram dated January 6th from the Secretary of the Federal Reserve Bank of Cleveland, telegram dated January 6th from the Chairman of the Federal Reserve Bank of Chicago and telegram clated January 5th from the Chairman of the Federal Reserve Bank of San 4ancisco, all advising that their boards of directors at meetings on the Utes stated made no changes in the banks' existing schedules of rates of discoun t and purchase. Without objection, noted with approval. Letter datea January 6th from the Deputy Governor of the Federal Reserve Bank of New York, advisinc, of revised percentages of participation c/f the Federal ;Oserve banks in foreign accounts during 1928, based upon eaPital and surplus of the banks as of the opening of business January 3, 1928 Noted. Letter dated January 5th from the Secretary of the Federal Advisory advising that the next meeting of the Council will be held in Wapl, —AlzFton on Friday, February 17th, and requesting a list of topics 16 -2- 1/7/28 which the Board desires the Council to discuss. Referred to the Executive Committee. Report of Committee on Salaries and ,,,]xpenditures on letter dated Janu4th from the Chairman of the Federal Reserve Bank of Boston, advising Of the action of the directors of that bank in votinfr to extend until their next meeting leaves of absence on account of illness previously granted 14r. Joseph Buckley, Miss Dorothy M. Roberts and Mr. Albert G. Vir:neau, lar. Buckley and Liss Roberts to receive half pay and Mr. Vigneau full pay; the Board's Committee recommending approval of the salary payments involved. Approved. Memorandum from the Assistant Secretary dated January 6th, advising Of the election of Mr../alter .,. Smith as a member of the Federal Advisory C ouncil from the Eighth District during the year 1928 and the fixing of his compensation at .;1,000 per annum; the Secretary also reporting advice Of the appointment of members of the Council from other Districts as follOWS: Boston Philadelphia Richmond Chicam Mr. Mr. Mr. Yr. Yr. Arthur L. Heard L. L. Rue J. F. Bruton C. E. Rieman (alternate) F. 0. Wetmore The appointment of the several members of the Council was noted, and upon motion, the compensation fixed by the directors of the St. Louis bank for Yr. Smith was approved. Memorandum from Counsel dated January 3rd, submitting draft of reply to letter dated December 28th from the Federal Reserve Agent at Chicam, illquiring whether that portion of the Board's new Regulation D, which prothat whenever a m.--mber bank has an average deficiency in reserves for 17 1/7/28 -3- l each reserve computation period during six consecutive months the Federa e Board Reserve Agent shall pramptly report the facts to the Federal Reserv With a recommendation as to what action should be taken, applies to any six months' period of continued deficiencies ending after January 3rd, the affective date of the Regulations, or anly in cases where such six months' reply statPeriod has commenced on that date or thereafter; the proposed period of ilag that the provision is intended to apply to any six months' continued deficiencies ending after January 3, 1928, whether or not it began prior to that date. Upon motion, the proposed reply was approved. ting draft of raply Memorandum from Counsel dated January 5th, submit at San Franto letter dated December 29th from the Federal Reserve Agent °is co, inquiring (1) s dhether a Federal Reserve Agent should make report l °f violations of the criminal provisions of Section 22 of the Federa Reserve Act and Sections 5208 and 5209 of the Revised Statutes in the case (2) Of national banks as well as in the case of state member banks, and ions of criminal hether upon receipt of unofficial information of violat Federal Resstatutes by member banks or their officers arid employees, the facts and make erve Agent should follow the matter up to ascertain the a report to the United States Attorney or whether he should await receWt stating (1) of tnformation through official channels; the proposed reply make reports (414t the Board does not desire Federal Reserve Agents to al banks, because Of violations of criminal statutes in the case of nation General or the local slIch reports are customarily made to the Attorney his examlitlited States Attorney by the Comptroller of the Currency or b7 _ 18 V7/2s -4- iners; and (2) That the Board does not desire the Federal Reserve Agent to follow up all unofficial rumors which come to his attention, but that in exceptional cases where the facts are widely known and the matter is aa important one the Agent, if he deems advisable or appropriate, may undertake to ascertain the facts officially and then report the matter to the United States Attorney or to the Board. Discussion ensued during which Mr. Hamlin suggested that in cases of national banks where the Federal Reserve Agent obtains information which may not come to the attention of the National Bank Examiner such information should be reported by the Agent to the National Examiner. Upon motion, the proposed letter was referred back to Mr. Hamlin for revision along the lines of his suggestion. Memorandum from Counsel dated January 5th, recommending that the Board authorize the publication of a new edition of 3,000 copies of its book containing a diest of the published rulings of the Board, the text of the Federal Reserve Act, the Regulations and other related matters; Counsel stating that if the Board approves he will bring up to date the material contained in the last issue and add the text of the National Bank Act, as amended to date, and the printed instructions of the Comptroller of the Currency relative to the organization and powers of National Banks. In - his memorandum, Counsel also stated his belief that by selling the new book at about y2.00 a copy it will be possible to defray all cost of Printing and binding. Upon motion, it was voted to authorize the publication of a new Digest of Rulings, as recommended by Counsel, and the printing of 3,000 copies thereof, to be sold at a per copy. price of 19 4 11, IF -5- 1/7/28 The Governor then submitted letters prepared under his direction, addressed to the Federal Reserve Agent at Kansas Gity, with respect to the condition of the Farmers State Bank, Genoa, Nebraska and the Oakland 3tate Bank, Oakland, Nebraska. Upon motion, the letters were referred to the Committee on Examinations. Ttzao,, OF STANDING COMITTRES: Dated, January 5th, 6th, 7th, Dated, January 3rd, Dated, January 5th, Recommending changes in stock at Federal Reserve banks as set forth in the Auxiliary Minute Book of this date. Recommendations approved. Recommending action on application for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Recommendation approved. Recommending approval of the application of Mr. N. D. Thatcher for permission to serve at the same time as director and officer of the First National Bank, Pueblo, Colo., as director and officer of the Pueblo Savings and Trust Company, Pueblo, Colo, and as director of the First National Bank, Denver, Colo. aecommendation approved. The meeting adjourned at 12:30 p.m. Assistant Secretary. A pproved:
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