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meeting: of the Executive :joNmittee of the Federal :ieserve Board was held in the office of the :federal Jeserve hoard on 2hursday, JIAly 21, 1927, at 9:45 a.m.. 2322: -. Governor rissiner Mr. James AIr.LcIntosh Asst. Jocretary Mr. ecretary Teleram dated July 20th from the -.ssistant Federal :ieserve ,Agent at 7 J.'hiladelphia, advising that the :.ord of Directors at their Inetilv:7 on that date made no ehanse in the bank's existing schedule of rates of discount and purchase. .1Ioted. Telegram dated July 16th from the Jecretary of the Federal ::e serve Bank of Linneauolis, advising that the board of directors at their meet in on July 15th adopted the followin7, schedule of rates for pUrchases of acceptances: 1 to 45 days 45 to 120 days Trade bills 3 1/4; 4; iioted, without objection. Bonds of :,lessrs. J. B. ...alderson and 7.K. Fletcher,..ssistant Federal . Reserve ;,2:ents at the Federal i'ieserve Bank- of ',;leveland, dated July 13, 1927, in the amount of )53,0J0 each. .Lpproved. ::emorandum from Louis ssistant -Jounsel on letter dated July 14th from gape, with refecence to his ilayton ct aplication, which at the meeting of the Board ori July 12th was temporarily refused, with the usual oI)oortunity to the applicant to furnish additional information in support 42 7/21/27 •• -2- of his application; the letter statin:: that it is not desired to submit additional information and that the applicant will sever his connection with the Corn .2]xchane Iational Bank of Philadelohia, Pao, and reflain a director of the Bank of Korth America and Trust Comany of Philadelphia and the ielaware :Aunty :ational Bank of Chester, 2a.; Counsel exy)ressin,the opinion that the two institutions last name,. are not in substantial competition and that the -oard should authorize hr. „:;,?, to serve those two institutions. Upon motion, it was voted to authorize 1-.;,r. L'ar7e to serve as a director of the Bank of "Torth ,Jeerica and. rust Company and the - elaware County ational -eport of Committee on Jalaries ani..]xpenditYaies on letter d!tted July 15th from the Chairman of the _ejeral -eserve Bank of ,ic-hmond, alvisia that to Board of Director at their meet in on July J.th voted to extend for a period of thirty days from July lJth, with full pay, leave of absence On aecount of illness previ)usly cranted :Anter, an employee of the bank; the Committee recolndin: approval .ith the understaudin . that ste-ps are to be takn, to retire the ,J!,,,Joyee in the near future. • Ton motion, the recoi,Tiendation of the ,;orzaittee was approved. deport of Corr:mittee on Salaries and ,-]Ipenditures on letter dated July 13th from the Chairman of the :ederal ,eserve Bank of Boston, requestin: allproval of the action of the directors of that bank in votin: to extend for periods of thirty days, with full pay, leaves of absence on account of illness ,',-ranted hiss Olive ,lover, hr. Jose hrBuckley, :r. P. L. 2ho%-eson and ;fame C. Barley, and in votini; to extend, with full pay, until - 43 -3_ 7/21/127 august 10t4, the leave of absence which has been r,radted Lary •,zuealy, whose services are to be discontinued as of that date; the Committee recomnendinp: approval. 2.pproved. Letter dated July 15th from the Comptroller of the Currency, recommending approval of an increase from 46,500 to )7,500 per annum in the salary of National Bank Examiner Clarence F. Jmith. Approved. Letter dated July 14th from the Deputy Governor of the Federal aeserve Bank of Tow York, submitting list of employees for whom the directors of that bank have ariproved leaves of absence, with pay, on account of illness durinc_: the month of June, where the total of such absences since January 1, 1927, has exceeded thirty days; the letter also advisinc; that claim for total disability in the case of 1:r. George Barrett has been allowed for 41,650 effective Alusust 14th, at which time he will be dropped from the pay roll of the bank. Upon motion, the salary payments authorized by the directors of the Kew York bank were approved. Latter dated July 15th from the federal eserve Afsent at ChiczA o, re- ,. approval of the designation as Examiner of nr. Leonard 2. questinc, chor, who has been serving as .issistant Examiner. .pproved. Letter dated July 14th from the Federal Aeserve Agent at Dallas, requesting approval of an increase from 42,400 tc, ,2,700 per annum in the salary of r. I. F. Betts, field representative in the Bank aelations 5 411 400.1.• Department. Lpproved. Letter dated July 18th from the Chathnau of the i'ederal .-,eserve Bank of ViAnnea-oolis, reportin- a defalcation in the „;ollection Department of the totallinr c.ITroydiately ,,11),000; the bauic dating back about five jear ent statin„: that it is believed that the bank's iolty bond fully covers the matter and that a co;:lolete histor.j of the case iil1 be vanorted later when all facts have been ascertained. Letter dated Jul,i 1Sth ii'ro noJhL.ir.lan. of the Z2deral ,-,eserve Tian;c of :!inneapolis, advisin_; that the directors of that batik have voted to 3treet side of the bank's bqildin,2 install four windows on the .ifteenth a net cost of around .37,0J0; the Chairman stating that it ma later on be decided to erect heavy bronze grills over these windows at a cost of from >1,000 to 4'5,000, ix)ted, without objection. Letter dated July 8th from the Chairman of the Federal Reserve Bank of ,:dchmond, inviting members of the Board to attend the annual convention of the :ational J:Issociation of state Bank S-upervisom, which will be held in dicnoad beginning July 25th. 1:ot d. Telegram dated July 15th fram.:4re. LIillor advising: of conferoces held at iica and _innea2elis dartn: the course of ais trip to the coast. i;oted. 45 -5- 7/21/27 :Jatter approved on initials on July 18th, namely, letter to the Federal Reserve Agent at Atlanta, prepared by :L:r. Gilbert, based upon an analysis of a meant credit investigation of the Douglasville Banking Company, Douglasville, Ga. Formally approved. L:atter approved on initials on July 19th, namely, letter to the upon Federal Reserve Agent at Lanneapolis, prepared by Lr. Gilbert, based an analysis of a recent credit investigation of the Ihlon State Bank, Ihlen, Lannesota. Formally. approved. Letter dated July 14th from the Federal Reserve Agent at Kansas City, on of replying to the Board's letter of July 1st, relative to the conditi ing the the Ouster State Bank, Broken Bow, liebraska; the Agent express or opinion that if the bank is permitted to operate until September manner October and has not by that time restored its capital and in SOMO taken effected a great improvement in its condition, action should be Reserve looking toward the forfeiture of its membership in the Federal System. After discussion, action on the above letter was deferred until a meeting of the full Board. The Governor then presented letter dated July 18th from the Federal the examReserve Agent at Chicago, with reference to the coordination of e in ination and bank relations work at that bank and a possible increas the joint force. The GoverAor also presented a letter addressed by him of examto the Federal Reserve Agent, requesting a report of the number 46 -6- 7/21/27 • inations of state member banks made in his district since January 1st, as well as the number of credit investigations since that date. Upon motion, action was deferred pending receipt of the report requested by the Governor. Memorandum from Counsel dated July 15th, with reference to the matter part previously considered by the Board, namely, improper actions on the of certain officers of the Citizens National Bank of Brownwood, 2exas; Justice Counsel stating that a report by accountants for the Department of of law does not indicate that the bank has been guilty of any violations which would subject it to forfeiture of charter and that the Board is of without authority to revoke the bank's trust permit on the grounds • be filed violations of law, and accordingly sucgcsting that the matter without action, which suggestion is concurred in by the Deputy Comptroller of the Currency, with whom the matter has been fully discussed. Upon motion, Counsel's suggestion was approved. liEP0.1T_3 04: 32AIDI:G CO=I1TEEJ: Reserve Banks Dated, July 18th, aecommendinri changes in stock at Federal of this date. Book Minute Auxiliary 20th, as set forth in the aecommendations approved. fiduciary powers Dated, July 18th, aecommending action on applications for of this date. Book Minute Auxiliary 19th, as sot forth in the proved. d a, Recommendations 21st, Dated, July 19th, Recormending action on an application of a state institution for membership, subject to the conditions stated in the individual reports attached to the application, as set forth in the Auxiliary::inute Book of this date.• Recommendation approved. Dated, July 16th, Recommending approval of the application of 1,:r. R. Livingston Sullivan for permission to serve at the same time as Vice President and director of the Market Street National Bank, Philadelphia, Pa., as director of the Real Estate ?rust Company, Philadelphia, Pa., and as director of the Guarantee ?rust and Safe Deposit Company, Philadelphia, Pa. Recommendation approved. 7/21/27 -7- 21a114.1_4IDING C01.11I2TEE3: (Cont,d) 12,1 1 Recommending approval of the application of Mr. Richard McAllister, Jr., for permission to serve at the same time as director of the Pacific Avenue National Bank, Atlantic Jity, I. J., and as director of the Jecurity Trust Company, Camden, X. J. Recommendation approved. Dated, July 16th, ..ieconmending approval of the application of Mr. E. 2. Llasterman for permission to serve at the same time as director of the First National Bank in ;lichita, and as director of the First National Bank, Blythe, Calif. Recommendation approved. Dated, July 19th, Recommending approval of the application of 1.1r. johnil. Davis for permission to serve at the same time as director of the First National Bank,.Jcranton, Pa., as director of the Fidelity Trust Company, New York, N. Y., and as director of the Manufacturers and Traders-Peoples Trust .may, Buffalo, N. Y. Coml: Recommendation approved. Dated, July 16th, S The meetinc:' adjourned at 10:30 a.m. Assistant Jecretary. Approved:
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