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held in the office of the A meeting of the Federal Reserve Board was 1924, at 3:00 p.m. Federal Reserve Board on Tuesday, July 15, PRESENT: Governor Crissinger Mr. Hamlin Mr. Miller Mr. James Mr. Dawes Mr. Eddy, Secretary ve Board held on July The minutes of the meeting of the Federal Reser 1st were read and approved. Committee of the Federal The minutes of the meetings of the Executive were read and approved. Reserve board held on July 2nd, 7th and 11th Secretary, recommending Memorandum dated July 11th from the Lssistant that the salary of Mr. Robert Benner, clerk in the (Iola Settlement Division, August 1, 1924; the be increased from 0.500 to 0.800 per annum, effective ies, Expenditures and recommendation being approved by the Committee on Salar Efficiency. Approved. Division of Research Memorandum dated July 11th from the Director of the Dale E. Hoffman be inand Statistics, recommending that the salary of Miss July 1st; the increase being creased from 0.525 to 0.700 per annum, effective and Efficiency. approved by the Committee on Salaries, Expenditures Upon motion, it was voted to approve the increase recommended for Miss Hoffman, effective July 15, 1924. Division of Research Memorandum dated July 11th from the Director of the Margaret T. Hammond, as and Statistics, transmitting the resignation of Mrs. statistical clerk, effective August 15, 1924. Accepted. -2- 7/15/24 Eeport of committee on oalaries, 2_;xpenditures and Efficiency on letter dated duly 11th from the .cederal eserve Agent at Eichmond, stating that he will dispense with the services of nssistant .eederal 1.eserve 11, ents it. H. Lee of the head office and Y. Duley of the 3altimore branch, and requesting permission to give these employees three months' notice; the 3oard's corrnittee recormending approval. Approved. 'heLovernor then presented the matter held over at the meeting of the Executive committee on duly 11th, namely, telegram dated duly 10th from the Chairman of the zederal Eeserve _dank of a11as, requesting approval of the action of the Executive committee of that bank in voting to reduce the rediscount rate from 4.,) to 4,0 on all classes of paper of all maturities. Upon motion, it was voted to approve the reduction effective immediately. Letter dated duly 10th from the c-overnor of the 1:ederal heserve Bank of iew lork, enclosing copy of a letter addressed by him to the comptroller of the currency, referring to recent action by the directors of his bank with regard to increased charges for reports of examinations of national banks furnished by the comptroller to the ,Iederal lieserve banks. ioted. he Lrovernor then presented the matter ordered circulated at the meeting on duly 1st, namely, memorandum from Counsel dated duly 1st on the subject "Increased Charges by the Comptroller of the currency for r'urnishing Copies of Examination Eeports to 1?ederal Reserve Banks. jr. Hamlin then moved adoption of the following resolution submitted by him at the meeting on duly 1st: -3— 7/15/24 Counsel having advised the Board that there is no law requiring the Comptroller of the Currency to furnish copies of examination reports to rederal Reserve banks and that _Cederal lieserve banks may lawfully purchase such copies from the Uomptroller; ue it Resolved, that the w.ederal Reserve Board has no objection to the purchase of such copies by Federal Reserve banks at prices to be agreed upon from time to time between the banks and the Jomptroller". Carried, Yr. Eiller voting -no". kr. killer then stated that he would file in the records of the 3oard a statement in explanation of his vote. Eemorandum dated ,July 11th from the Director of the Division of Research and Statistics, with regard to letter dated June 26th addressed to him by the Lannger of the Liank .L.elatians Department of the Federal Reserve Jank of Chicago with reference to a 2'edera1 Reserve system exhibit for the convention of the nmerican Jankers Association to be held in ,:hicago September 29th to October 3rd; the Director of the Division stating that in his judgment it would be better for the Chicago bank not to have an exhibit at the convention. Referred to the ,,xecutive .;ommittee with power. Letter dated July 11th from the Federal Reserve Agent at Philadelphia, advising of his intention of taking a month's vacation beginning about August 4th. Noted without objection. -4- 7/51/24 Letter dated July 9th from the 12"ederal neserve Agent at an ,:rancisco, Inquiring as to any action taken by the ,oard on the applications of the 3ank of Italy for permission to establish branches at banta 11.12 and id ,;entro. .,eferred to the Committee on Iiixaminations. ,ILeport of Law 6ommittee on matter referred to it at the meeting on July 11th, namely, letter dated July 9th from the Acting chief inspector of the lost uffice Department with reference to the Peoples .“eserve System, inc. of Chicago, Illinois; the Committee recommending that the Doard take no further action in the matter of securing a change in the name of the corporation. 44 11/ upon motion, the letter from the Post Office Department was ordered filed without action. The 6.overnor then presented the matter ordered circulated at the meeting on June 30th, namely, memorandum from Counsel dated June 25th, submitting a new edition of the ,oardls Itegulations bones of 1924. Upon motion, it was voted to adapt and print the negulations in the form submitted by Counsel. Memorandum dated July 15th from the ,,ommittee on uba, calling attention to an excerpt from the minutes of the meeting of the directors of the liederal Reserve Bank of Atlanta held on 01211e 13th with reference to the contemplated purchase by the kederal heserve Jank from a member bank in the 6th District of hills bearing the endorsement of the National city iiank of 1:ew Iork; the Committee suggesting that the Doard inquire as to the character );)1 -5- 7/15/24 of the bills which the Atlanta bank desires to acquire. Upon motion, the recommendation of the Oomnittee was approved. :J2elegram dated July 11th from the Governor of the Eederal Aeserve 3ank of :Lianas, inquiring whether the joard has taken any action on his verbal request for permission to sell 23 consols of the bank now held in trust by the iAlderal Aeserve 3ank of hem, York. Yr. Miller expressed the opinion that .vederal Ileserve banks should not engage in transactions in circulation bonds merely for the sake of profit and that if the Eederal Aeserve sank of IJallas wishes to sell any of its holdings of such bonds, it might be better for one of the other Federal reserve banks to take over the bonds and carry them. he stated he would discuss the subject at the meeting of the Open Market Investment Committee to ue held in 5oston tomorrow. iheGovernor then referred to the A3gulations adopted by the 3oard on January 18th, with reference to directors of branch Aderal Aeserve banks and expressed the opinion that the Aegulation should provide that reappointments should only be made When requested by the directors of a Federal eserve bank. Upon motion, it was voted to refer this suggestion to the kjommittee on 3ranches for considerations Aeport of Committee on 3ranches on letter dated July 11th from the Chairman of the 1Yederal Aeserve .Dank of Atlanta, requesting approval nf the action of .Cle directors of that bank in authorizing the purchase of a bqilding site in Birmingham at the corner of Fifth Avenue and P 111 7/15/24 -6- Eighteenth btreet, north, at a price of i125,000; the ,3oardtp Committee recommending approval of the action of the Atlanta directors. Approved, Governor Crissinger voting "no". Letter dated July 12th from the Associate Editor of the American Bankers Association Journal calling attention to an article in the Journal of Commerce of July 12th, regarding the elimination of free services performed by Federal iieserve banks. Referred to the Governor for reply. The Governor then presented the report, dated June 16, 1924, of the Committee on ioluntary services assumed by federal heserve banks on -Currency and coin Operations - Safe Keeping of Securities - and Transfers of ?lands", free services performed by the Federal iteserve banks for their member banks; the Committee recommending that the federal Reserve banks continue for the present to perform these services without charge to their member banks. Lr. Hamlin moved approval of the recommendations of the Governors Oommittee• Yr. Hamlin's motion being put by the chair was carried, the members voting as follows: Yr. Hamlin, "aye" Mr. James, "aye" 1-r. Dawes, "aye" Governor Cris singer, "no" Lr. Lillar, "no" 20 -7- 7/15/24 the Board the desirability Ur. Miller then discussed with the members of Division of Research and Statistics, of authorizing Dr. Stewart, Director of the Division, to attend the Institute of and Mr. Robert Warren, an employee of the International Finance. Politics at Willinmstown, Massachusetts, on Ur. Miller then submitted the following motion: "That Dr. Stewart be authorized to go to Williamstown at his convenience and on arrangement with the Institute, to take part in the discussions on reparations but that he must make it clear that he is not speaking as a representative of the Board and must confine himself to questions of fact and that the Board will assume his travel and per diem expenses; and further, that Er. Warren be notified that the Board will assume the expense to him of a trip to Williamstown but that the time involved must be charged against his regular leave. " Carried. the Board Mr. Miller then discussed informally with the members of ent Committee to probable action at the meting of the Open Market Investm be held in Boston tomorrow, following which Mr. Hamlin moved: "That Mr. Miller be requested to ascertain whether the Committee thinks it is desirable to increase the total volume of open market purchases under the present policy, and if so, to request the Committee to make a recommendation as to the amount to which such investments should be increased, for action by the Board." Carried. RaORTS OF STANDEUG COMII2TEl]S: Dated, July 14th, 15th, Dated, July 15th, 15th, Recommending changes in stock at Federal Reserve Banks, as set forth in the Auxiliary Minute Book of this date. Approved. Recommending action on applications for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Approved. 21 7/15/24 -8- REPORTS OF STANDING COMilITTESS: (Cont'd) Recommending approval of the application of Mr. Henry C. Biddle to serve at the same time as director of the First National Bank, Arieler, Pa. and as director of the NorristownPenn Trust Company of Norristown, Pa. Approved. Dated, july 14th, Recommending approval of the application of Mr. Ebrace C. Jones to serve at the same time as president of the First National Bank, Conshohocken, Pa., and as director of the Norristown-Penn Trust Company of Norristown, Pa. Approved. Dated, July 14th, Recommending approval of the application of Mr. Charles F. Broughton to serve at the same time as director of the First National Bank, New Bedford, Mass., and as director of the Second National Bank, Boston, Mass. . 0 Approved. Dated, July 11th, Recommending approval of the application of Mr. Ralph L. Jurden to servo at the same time as director of the First National Bank, Wellston, Missouri, and as director of the Union and Plant ors Bank and Trust Company, Memphis, Tenn. Approved. Dated, July 14th, The meeting adjourned 4:00 o'clock. Secretary. Approved:
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