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221 A meeting of the Federal eserve Board was held in the office of the Federal Ileserve Board on Saturday, January 8, 1927 at 11:00 a.m. PMSENT: Governor Crissinger Mr. Platt Mr. Hamlin Mr. Miller Mr. James Mr. Cunningham Yr. Eddy, Secretary Mr. McClellmid, Asst. Secretary The minutes of the meetings of the Federal Reserve Board held on January 7th were read and arproved as amended, Telegram dated January 8th from the Chairman of the Federal Reserve Bank of Cleveland, advising that the board of directors on that day made 110 change in the bank's existing schedule of rates of discount and purchase. Noted. Telegram dated Jamary 7th from the Chairman of the Federal Reserve 134W4 of Dallas, advising that the board of directors on that day made no ellanCe in the bank's existing schedule of rates of discount and parchase. Noted. Letter dated January 6th from the Deputy Governor of the Federal '1688117e Bank of Nev; York, advising of revised percentages of participation Of the Federal Reserve banks in foreign accounts for the year 1927. Noted. Telegram dated January 7th from the Federal Reserve Agent at San Pl'ancisco, requesting approval of an application of the Pacific Southwest Trusf . and Savings Bank of Los Angeles for pannission to takO over the 110/104. id a Comercial Bank, Moneta, Cal. and establish a branch in the premises; 00 1/8/27 -2- the Federal Reserve Agent stating that formaa application was mailed to the Board on January 4th with favorable recommendation by himself and the Executive Committee of the Federal Reserve bank, even though. Y.oneta is not Immediately contiguous to the city of Los Angeles, being one-half mile from the city limits, but that immediate approval is requested because of the condition of the bank and the fact that a run by the depositors has started. Upon motion, it was voted to approve the application. Report of Executive Committee on letter dated January 6th from the Comptroller of the Currency, requesting approval of a salary of .i3600 per 4111um for National Bank Examiner B. Hewitt, to be assigned to the 10th Federal Reserve District; the Committee recommending approval. Approved, Report of Executive Committee on letter dated January 7th from the C omptroller of the Currency, requesting approval of a salary of .,3,000 Per annum for Mr. ?,,Iwin J. Becker, Jr., National Bank Examiner, junior grade, assigned to the 10th Federal Reserve District; the Committee recommending aDproval. Approved. Telegram dated January 7th from the Chairman of the Federal Reserve 3sak of Dallas, advising of the re-election for the year 1927 of all officers Of that bank and its branches and of the reappointment of Mr. B. A. McKinney 48 member of the Federal Advisory Council from the 11th District for the :fear. Noted. 03 1/6/27 -3-. Report of Executive Committee on letter dated January 6th from the Secretary of the Federal Reserve Bank of New York, transmitting with favor,able recommendation, application of the Bowery and East River National Bank of New York for permission to accept drafts or bills of exchange drawn upon it up to 100,, of its paid-in capital and surplus, in accordance with the Provisions of Section 13 of the Federal Reserve Act; the Committee recommending approval. Approved. Letter dated January 7th from . Owen D. Young, as follows: "I discussed with the directors and officers of the Federal Reserve Bank of New York at their meeting this afternoon the program which you had suggested in behalf of the Federal Reserve Board of resigning as a Class 'B' director of the 'Federal Reserve Bank of New York in order that I might quail±'Y for appointment as a Class 'C' director and become through designation the Vice Chairman of the Board of the Federal Reserve Bank of New York. Our directors and officers here seem to be in unanimous agreement with your suggestion, and so I bow to that decision with gratitude for the high honor vinich you pay me. I share fully your views and those of the Federal Reserve Board as to the desirability of emphasizing in fact and also in the public estimation tae importance of the office of Chairman of the Board of the Federal Reserve Bank of New York. It should, in my judgment, stand next in importance to Membership on the Federal Reserve Board. It dhould be so highly estimated that the entire banking community of a city even like New York would value aPPointment to the position much as the entire financial community of London looks upon the Governorship of the Bank of England. What I have said is not intended at all to depreciate the importance °f the position of Governor of the Federal Reserve Bank of New York. That, c)c), is a most important office. If our great commercial banks and our great ludustrial organizations find it desirable to have two men, both highly qualified in the positions respectively of Chairman and President, I see no reason why the greatest central bank in the world should not be able to supPort also two men in those high positions without derogation of the stand411g of one by the other. I sincerely hope that the permanent Chairman of the Board may be 8°0n selected, because until then there will be burdens on me as Vice Chair0±' which I should be glad personally to be relieved, and also because Ithink it will be in the interest of the Bank to have this permanent posisuch high tion promptly filled. I hope we may be able to induce a man of that job. qualifications and position as Mr. McGarrah to undertake -4- "7/ith expressions of appreciation to you and your associates on the Board, I beg to remain," Noted. At this point, Mr. McIntosh joined the meeting and Mr. Gilbert, Supervis01' of Menber Bank Examination, appeared before the Board. He read_ a detailed report, based upon a recent visit to the Federal Reserve Bank of Chicago, on the subject of banking cond.itions in the State of Iowa. After discussion, Mr. Hamlin moved that Mr. Gilbert, under the direction of the Governor, arrange for the Federal Reserve Agent at Chicago to undertake imnediately the survey recommended in his report and that the cooperation of the Comptroller of the Currency be requested in the matter of making necessary examinations of National banks. Carried. Mr. Gilbert then left the room. Mr. Janes presented and read to the Board a report and recommendations dated January 6th and 8th of the soecial committee appointed at the meeting (3/1 Deeembex 7th, to confer with a committee of directors of the Federal 1 ae3e'v'e Bank of Atlanta with reference to the formulation of a plan for the i'liture operation of the Havana Agency of that bank. I.:r. James moved tentative approval of the report and recommendations of the Committee. Mr. Cunningham moved, as a substitute, that the report and recommendations of the committee be laid on the table for further consideration as special order of business at a me et ing on Wednesday, January 12th at 10:00 o'clock, and that in the meantime a copy of the report and recommendations be furnished to each member of the Board. Mr. Cunningham's substitute motion being put by the Chair was carried. 1/8/27 -5-- Qj COLEITTEES: Dated, Jaru.ax7 7th, Recommending approval of the application of Mr. Walter H. Eckert for permission to serve at the sane tize as director of the National Bank of Commerce, Chicago, Ill., as director of the First National Bank, La Grange, Ill., and. as director of the Commerce Trust aid Savings Bank, Chicago, Approved.. The meeting adjourned at 1:0 .m• Seer tary. ILPprove: dr' 4 A diI A
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