Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, July 11, 1924, Volume 11, Part 3

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A meeting of the Executive Committee of the Federal Reserve Board was
held in the office of the Federal Reserve Board on Friday, July 11, 1924,
at 11:00 o'clock.
111.13ENT:

Pil..13ENT ALSO:

Mice Governor Platt
Mr. James
Ur. Eddy, Jecretary
Mr. Miller

Mr. Miller referred to the forthcoming moot in

of the Open Market

Investment Committee for, the Federal Reserve System:which had been tentatively
scheduled for July 25th at the Federal Reserve Bank of Chicago, but stated
that it had been suggested by the Chairman of the Committee that the date of
the meeting be advanced and that it be held.at the Federal Reserve Bank of
Boston, in view of the fact that

it will be inconvenient for some members

of the Committee to meet in Chicago this month.
Upon motion, it was voted that if the Open Market
Investment Committee finds that a meeting in Boston
on July 16th would be convenient the Board will approve the change.
Telegram dated July 10th from the Chairman of the Federal Reserve
Bank of Dallas, advising of the action of the Exocutive Committee in voting
to reduce the rediscount rate of the bank on all classes of paper of all
maturities from e4; to 4, subject to the approval of the Board.
After discussion, it was voted that the Federal
Reserve Bank of Dallas be advised that there will
not be a Board meeting until next week and that the
matter will be held for action until that time.
The Vice Governor than presented, without recommendation by the Law
Committee, ,the application for trust powers of the Lincoln State National
Bank of Lincoln, Nebraska, calling attention to the fact that while the
capital of the bank is ;:e200,000, the surplus is only :,;36,500.




The Vice

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Governor stated that the surplus had been slightly increased in the recent
past and that the bark contemplated steady increases in the future.
After discussion, it was voted to arpravo the
application with the understanding that the bank
shall carry to surplus each year, in accordance with
their expressed intention, such amount of their earnings as, in the judgment of the Federal Rosorve Bank
of Kansas City, conditions warrant.
Letter dated July 8th from the Acting Comptroller of the Currency, recommending approval of a salary of 02700 per annum for national Bank Examiner•
Georg° H. C6mpbell, to be assigned to the 10th Federal Reserve District; the
Increase repommended having been alproved on July 10th on the initials of
four members of the Board.
Upon notion, the informal action of the Beard was
ratified.
Memarandlun dated July 7th from the Director of the Division of Research
and Statistics, recommending the appointment of Miss Helen Vincent as statistical clerk in the Division, at a salary of 01500 per annum, effective July 16th.
Approved.
Memorandum dated Jane 30th from the Director of the. Division of Research
and Statistics, recommending approval of the employment of Ur. Carl Parry as
Research Assistant, at a salary of 05,000 per annum, effective October 1st.
Approved.
Report of Committee on Examinations on mamorandum dated July 9th from
the Acting Comptroller of the Currency, recommending approval of the application
of the Logan County national Bank of Sterling

Colorado, for permission to re-

duce its capital stock from 0150,000 to 0100,000 on condition that the entire




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7/11/24

ion of )25,000 in surplus,
amount of the reduction, together with a reduct
, including all of the interest
be used in eliminating an equal amount of losses
tee also recommending apearned but not collected account; the Board's Commit
proval.
Approved,
ency on letter
Report of Committee on Salaries, Expenditures and Effici
Bank of
dated July 5th from the Chairman of the Federal Reserve

Kansas City,

tee of that bank
recommending approval of the action of the Executive Commit
from .,2400 to
in increasing the salary of Mr. J. C. Morrow, special agent,
also recommendv3,0J0 per annum, effective July 1st; the Board's Committee
ing approval.
Approved.
ency on letReport of Committee on Salaries, Expenditures and Effici
of Kansas
ter dated June 28th from the Chairman of the Federal Reserve Bank
in
City, requesting approval of the action of the directors of that bank
to directors'
amending the By-laws of the Oklahoma City branch with regard
fees; the Board's Committee recommending approval.
Approved.
to letter
Mbmorandum dated July 8th from the Secretary, with regard
Bank of Chicago,
dated June 16th from the Chairman of the Federal Reserve
of benefits
transmitting preliminary proof of a booklet on the subject
e System; the
accruing to state ban::s from membership in the Federal Reserv
in attached
Secretary calling the Board's attention to criticism contained
ons and
memoranda from the Chief of the Board's Division of Bank Operati




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the Director of its Division

of Research and Statistics.

After discussion, Mr. James moved that copies of
be
the memoranda prepared by Mr. Smead and Dr. Stewart
the
that
and
Chicago
of
Bank
sent to the Federal Reserve
the
to
objection
no
has
Board
bank be advised that the
1,ublication of the booklet, but doubts its value.
Carried.
on June
Report of Law Committee on matter referred to it at the meeting
5th, namely, letter dated May 31st from the Chairman of the Committee on Bankthe Board's opinion
ing and Currency of the House of Representatives, requesting
of an;;
on a proposed bill to prevent member banks from lending on the securities
statements and
corporation unless said corporation furnishes quarterly income
reply stating
balance sheets, etc; the Board's Committee submitting draft of a
legislathat the Board is inclined to believe that the purpose of the proposed
state laws
tion would be accomplished more appropriately by the enactment of
ns,
imposing the suggested requirements on their own incorporated institutio
but that the Board would not favor the proposed indirect method restricting
member banks in their credit operations.
After discussion, the proposed letter was referred
back to the Law Committee with power.
Letter dated July 7th from the Governor of the Federal Reserve Bank
of-Minneapolis, replying to the Board's letter regarding the apprehension of
1 . v;hiteman, formerly cashier of the Citizens National Bank of Laurel,
Mr. G. 2
Mr.
Montana, now employed by the Federal Reserve Bank; the letter stating that
Whiteman will be retained in the

nploy of the Federal Reserve Bank until it

Is ascertained whether tho charges against him are true.




Noted.

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tor of the Post Office
Letter dated July 9th from the Acting Chief Inspec
June 13th to the Postmaster General,
Department, replying to the Board's letter of
o.
with reference to Peoples Reserve System, Inc. of Chicag
Referred to the Law Committee.
REI-ORTS OF sTArDim COMUITTEIS:
as
Recommending changes in stock at Federal Reserve Banks,
this
date.
of
Book
Minute
ary
Auxili
set forth in the
Approved.
ation for fiduciary powers as
Dated, July 11th, Recommending action on applic
set forth in the Auxiliary Minute Book of this date.
Ordered held.
ations for fiduciary po-rers as
Dated, July 11th, Recommending action on applic
this date.
11th, set faith in the Auxiliary Minute Book of
Approved.

Dated, July 9th,
10th,

The meeting adjourned a

:45 p.m.

Secretary.

Approved:




Vice Governor. -