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5 A meeting of the Federal Reserve Board was held in the office of the Federal lieserve Board on '2Tlesday, January 7, 1930 at 10:0 a.m. PRESENT: PRESENT ALSO: Governor Young Mr. Platt Mr. Hamlin Mr. Miller Mr. James Mr. Cunninghat Mr. McClelland, Asst. 3secretary Mr. Smead, Chief, Division of Bank Operations In accordance -2;ith arrangewents previously made, Messrs. Delano, Graham and Rieman, )irectors of the Federal Reserve Bank of Richmond, were also present and presented to the Board a report relative to the enlargement of the nresent InQin buildin of that bank by the erection of an addition thereto, in harmony With the existing building, on the so-called Foster property. In nresentincr the report, hr. Delano pointed out the present unsatisfactory arranement whereby a portion of the bank's personnel is housed in the annex building which it • is desired to dispose of but which cannot be sold until arrangements have been made for the accommodation of employees housed therein. He also stressed the danger of the bank's present procedure of handling incoming and outgoing currency and security shipments in. the open. _Ohre° alternative Proposals were presented by the Committee, together with models illustrating sane: (1) :,dding a new back and a short north wing to the existing building at an estimated cost of .460,000, nrovidinc? 18,000 additional square feet or a total of '36,700 Square feet which would just about meat the requirements of the bank and permit sale of the anne:, building; (2) In wnich the north wing would match the existing :en colonnade at the front, estimated to cost .630,000 Main building with a pro-„, and providing a total of 45,200 square feet; and ( ) A completed building with unuroen colonnade across the entire front, which would provide continuous un- 1/7/3o -2- broken floor areas, giving a total ()I_ 49,000 square feet of floor space, at an estimated cost of406,000. It was brought out that the complete build- proposed by the last alternative would provide floor space beyond the needs of the Federal Reserve Bank of Richmond for some time to come which the Richmond committee stated could probably be rented were it properly arranged. During the discussion of the investment of the Federal Reserve Bank of Richmona in buildings, Mr. Delano referred to the recent charge-off on the annex building which, he stated, has nothing to do with the price which it is hoped to obtain for the annex. He stated that the assessed valuation of the annex is ',275,000 for the building and 410,000 for the land and that as the assessment is two-thirds of the estimated value the latter figure arounts to approximately .,470,000; the charge-off of the Richmond bank being from alpproximately 4390,000 to approximately .300,000. At the conclusion of the discussion, the committee was requested to submit the matter to the Richmond board of directors with the request that they make a firm recommendation to the Board as to the building plan which should be adopted and that the Board also be advised of what additional cost, above the estimates submitted by the committee, would be involved in arranging one or two floors of the completed building so as to make it suitable for rental. The Richmond directors and Mr. Smead then left the meeting. The Governor referred to a request received through the office of exSenator Long, spokesman at the recent hearing on the establishment of a branch at iichita, and through Senator Allen of Kansas, for an extension until January to 20th of the time in which the :iichita representatives may file their answer of Kansas the reply brief submitted several days ago by the Federal Reserve Bank City and also for an informal hearing on January 20th or 21st for the submission 1/7/30 of evidence resiecting one issue of fact in the presence of a re-oresentative Of the Nansas City bank. The Governor stated that the issue referred to re- lates, he understands, to transit times Lmd because of its technical nature Will have to be submitted in writinc; for the 3oard's c')asidora',ion. He stated that while he promised 3enator Men he would submit the request to the'2oard, he feels that it would be a waste of time and money for the iichita deler4.ation to send a representative to appear before the loard. After discussion, the Governor was authorized to inform 3enator Allen and 4].x-3enator Lon7 that the Board will grant an extension until January 20th for the filing, of the answer to the Kansas City reoly brief, and further, that it feels that the additional evidence which it is desired to present should be submitted in writinr7 as, due to its technical nature, it will have to be considered by the '3oard's own experts, but that if it is their desire to appear before the Board their recmest will be granted. Matter approved on initials on January 6th, namely, application of the State National Bank, Jayne, Nebraska, for ori-inal stock (45 shares) in the Federal Aeserve ian',;: of Kansas City, effective if arid when the Comptroller of the Currency issues a certificate of authol'ity to commence business. Formally approved. :atter approved on initials on January 4th, raaely, application by the American Trust Company of 1obile, Alabama, for permission to exercise 7eneral fiduciary poers, effective if and when it is converted into a national banking association and is authorized by the Comptroller of the Currency to commence business as the _merican ilational Bank and ?rust Company of Lobile. Formally approved. The Assistant Secretary then reported that on January .;rd the Comptroller Of the Currency issued a call for reports of condition of National banks as at the close of business =ember 31, 1929, and that at the same time a similar -a- 1/7/30 call was issued for reports of condition of State member banks. Upon motion, the Board's call was noted with alproval. Matter approved on initials aa January 4th, namely, letter dated December 30th from the Comptroller of the Currency, recommending approval of an increase from .6,000 to .7,000 per annUm in the salary of National Bank Examiner J. O. amts. Formally approved. Report of Executive Committee on letter dated January 6th from the Deputy Comptroller of the Currency, recommending approval of increases aggregating .,33,200 in the salaries of 104 National Bank Examiners; the Board's Connittee also recommending aporoval. On a motion to approve the salaries recommended by the Comptroller, all members voted "aye" except Mr. Cunningham who asked to be recorded as not voting. Upon inquiry by the Governor, he stated he did not care to vote inasmuch as no committee of the 3oard had made an investirration into the question of the total National Bank Examiners' roll. At the suggestion of Governor Young, a motion that the Board's vote to approve the proposed salaries be reconsidered, was put and lost, Mr. Cunningham voting "aye". Bond in the amount of ,50,000 executed under date of January 4th by Mr. Clifford J. Young, recently appointed Assistant Federal Ileserve Agent at the Federal Reserve Bank of Chicago. Approved. Telegram dated January 3rd from the Chairman of the Federal Reserve Bank Of Boston, letter dated January 2nd from the jecretary of the Federal deserve Federal Bank of New York, telegram dated January 3rd from the Chairman of the . 1/7/30 -5- Reserve Bank of Philadelphia, telegram dated January 4th from the Secretary Of the Federal Reserve Bank of Cleveland and telegram dated January 3rd from the Chairman of the Federal Reserve Bank of St. Louis, all advising that their boards of directors at meetings on the dates stated made no changes in the Banks' existing schedules of rates of discount and purchase. 7iithout objection, noted with approval. Telegram dated January 3rd from the Deputy Chairman of the Federal Reserve Bank of San Francisco, advising that due to lack of a quorum no meeting of the board of directors was held on that date and, consequently, no change was made in the bank's existing schedule of rates of discount and purchase. Noted. Telegram dated January 2nd from the Deputy Governor of the Federal Reserve Bank of New York, advising that all bill dealers except one have reduced bid and offer rates on maturities up to ninety days by one-eighth percent and that the rates at the Federal Reserve bank remain unchanged. Noted. Memorandum dated January 6th from the Assistant Secretary, advising of the reelection of 1,1r. L. L. Rue as member of the Federal Advisory Council from the Third District durinc_; the year 1930. Noted, Memorandum dated January 6th from the Assistant Secretary, advising of the reelection of -1.1 • '. Smith as member of the Federal Advisory Council from the Eighth Federal Reserve District for the year 1930; the memorandum also stating that the directors of the St. Louis bank have fixed Lr. Smith's allowance for expenses at .1,000 for the year, subject to the approval of the Board. 1/7/30 -6- 10 Upon motion, the action of the 3 .Louis directors was approved. Memorandum dated January 6th from the Assistant Jecretary, advising that the committees on applications of Jtate banks and trust companies for membership in the Federal Rese.rve Bank of Boston for the year 1930 will consist of the Chairman and Governor of the Bank with Director Chamberlain serving in the case of Boston banks anplying for membership and Director Ripley in the case of banks outside of 3oston; the memorandum also stating that the appointment of a member Of the Federal Advisory Council for the year 1930 will be taken up at the next meeting of the 3oston directors on January 15th.. Noted. Report of Committee on Examinations on letter dated January 2nd from the Federal Reserve A7ent at Cleveland, requestinr; permission for a representative Of his Department of Examination to make the usual credit investigation of the Peninsula Banking Company, Peninsula, Ohio, without exnense to the member bank, at the time it is under examination by the jtate authorities; the Board's Committee recommendinR• approval. Noted without objection. _teports of Committee on 3alaries and Exrenditures on lists submitted by the Federal Reserve Bank of New York for the month of November and iv- the Federal xieserve Banks of Boston, 3t. Louis and Dallas for the month of December, of employees for whom the directors of the barks authorized leaves of absence with ray, on account of illness, during the respective months, where the total of such absences since January 1, 1929 has exceeded thirty days; the Board's Committee recommenaing approval of the salary payments involved. Approved. Report of Committee on jalaries and Expenditures on letter dated December 31st from the Federal Reserve Agent at 1-'ansas Aty, requesting approval -7- 1/7/30 Of an increase from •2700 to )3,000 per annum, effective January first, agent in connection in the salary of Mr. Karl H. Woodward, employed as a special 's Committee recommending arnroval. with collections from suspended banks; the Board Approved. ve Agent at Dallas, advising Letter dated January 2nd from the Federal Reser ing Director Of the resimation as of December 31st of Mr. Dwight P. Reordan, Manag Of the Houston Branch. Noted. of the Division of Bank Operations Memorandum dated January 3rd from the Chief y figures of gross earnings, net earnings submitting a statement showing preliminar Reserve bank for the calendar' and distribution of net earnings of each Federal year 1929. Ordered circulated. of the Division of Bank Memorandum dated December 31st from the Chief ditures by the Federal Reserve banks Operations, submitting statements of expen of November and for the for educational and welfare work, etc. during the month eleven months ending November 30th. Ordered circulated. memoranda dated December 28th and Report of Jammittee on Examinations an ncy, recommending approval J anuary 2nd from the Acting Comptroller of the Curre er, California, for permisOf an application of the First National Bank of Parli 0,000 to ,50,000 on condition (1) that sion to reduce its capital stock from ;10 made for rs; (2) that proper provision be no money be returned to the shareholde be estimated losses aggregating ,:2,475 depreciation in bond account; (3) that that of ,,10,000 be established; and (5) charged off; (4) that a surplus fund owned; to reduce "other real estate" the remainder of the reduction be used • 12 1/7/30 the Board's Committee recommending approval subject to the conditions suggested by the Acting Comptroller. Approved. Memorandum dated January 6th from General Counsel, submitting bill of Honorable Newton D. Baker for services and expenses in connection with appeal Of the case of Aaichle v. Federal Reserve Bank of New Yonc, aggregating ,7,682.87; Counsel expressing the opinion that the bill is reasonable and recommending that it be approved and transmitted to the Federal Reserve Bank of New Yon:: for payment and that the other Federal Reserve banRs be requested to remit to the Federal Reserve Bank of,New York their pro rata shares in accordance with the usual custom in such matters. Upon rectomendation of the Law Committee, the bill was approved for payment along the lines suggested by Counsel. Memorandum dated January 3rd from Mr.'Drinnan, Examiner in Charge, submitting report of examination of the Federal Reserve Bank of Chicago made as at , the close of business October 26, 1929. Referred to Committee on Examinations and Canmittee on District -go The Governor then referred to the application of the Bank of Athens Trust Company, New Yotk, N. Y. for membeship in the Federal Reserve System and for 600 shares of stock of the Federal Reserve Bank of New Yonc, which was considered at the meeting of the Board on October 1st and referred to him to take up with the New York bank the reasons for its recommendation that the application be refused; particularly, whether there was any reason other than the fact that 96% Of the stock of the institution is aaned by the Banque d'Athens, Greece. He 13 —9- 1/7/30 stated that Chairman McGarrah advised him that this fact was not the reason his directors recommended disapproval of the arplication, although it was one of the circumstances they had in mind in reaching the conclusion that the general char— acter of the management of the bank was not such as to qualify it for membership in the Federal Reserve System. The Governor stated that the condition of the applicant bank, as disclosed by the last report of examination, was very good and that he todk the liberty of submitting the report to the Comptroller of the Currency who advised him that while on the bank's condition he believed he would admit it to the National System, he would have some hesitancy because of the adverse recommendation of the New York directors. After considerable discussion, upon motion by Mr. James, it was voted that the application of the Bank of Athens Trust Company, New York, N. Y. for membership in the System and for stock in the Federal Reserve Bank of New York be disapproved in view of the unfavorable recom— mendation of the directors of the New York bank. On this motion, Mr. Platt voted "no". The Governor then submitted a letter dated January 4th from the Governor Of the Federal Reserve Bank of Cleveland, requesting that Deputy Governor Fleming and he be granted a hearing before the Board some time this weak for the purpose of submitting preliminary estimates on a proposed building to house the Pittsburgh Branch on the site recently acquired; the letter stating that the directors of the balk have voted to seek Congressional authority for an expenditure of ‘875,000, subject to the approval of the Board. No •objection being expressed, the Governor stated he would arrange for Governor Fancher and Deputy Governor Flaming to come to -dashington on Friday. REPOlillS OF 3TiDIEG CO2,21I2TEES: ecommending changes in stock at Federal Reserve banks as . Dated, January 2nd, forth in the Auxiliary Minute Book of this date. set 6th, Recommendations approved. 1/7/30 -10- REPOaTS OF STA:DING C01.1:I=S: (Cont'd) powers Recommen 'ing action on applications for fiduciary date. this of as set forth in the AuxiliJry Minute Book _lecommenlations app roved. approval of the application of 1,:r. Emil A. nding Recomme Dated, January 6th, officer Stake for permission to serve at the same time as dias and of The First National Bank of Chicago, Ill., rector of the Uptown State Bank of Chicago, Approved. l of the application of Mr. Bentley approva nding decomme Dated, January 6th, as G. McCloud for remission to serve at the same time and Ill. , Chicago officer of The First National Bank of Ill. , of Chicago Bank as director of the Uptown State Approved. of Mr. Edward Dated, January 7th, Recornending approval of the application time as same the at E. Brom for permission to serve of Bank l Nationa First director and officer of The Bank of State Uptown the of r directo as Chicago, Ill, and Chicago, Ill. Approved. Dated, January 3rd, 6th, The meeting adjourned at 1:00 o'clock p.m. &X//‘Wefeeeeiii Assistant Secretary. Approved:
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