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Upon call of the Governor, a meeting of the Executive Committee of the Federal Reserve Board was held in the office of the Governor on Friday, July 31, 1925 at 11:05 a.m. PRESENT: Governor Crissinger Mr. Platt Mr. James Mr. 7ddy, Secretary Matter approved on the initials of two members of the Executive Committee on July 30th, namely, telegram dated July 30th from the Federal Reserve Agent at Dallas, recommending approval of an application of the National Bank of Commerce, Hugo, Oklahoma, for original stock (33 Shares) in the Federal Reserve Bank of Dallas, effective if and when the Comptroller Of the Currency issues a certificate of authority to commence business. Formally approved. Letter dated July 25th from the Federal Reserve Agent at San Francisco, advising that the Vbrcantile Trust Company of California has received Permission from the Superintendent of Banks to move its branch at 498 Haight Street, San Francisco, to a temporary location at 501 Haight Street, to permit the remodeling of the premises at the former address. Noted. Letter dated July 29th from the Federal Reserve Agent at Boston, advising of negotiations under way by the Merrill Trust Company of Bangor, Maine, to purchase the Frontier National Bank of Eastport, Maine, with the idea of consolidating it and maintaining it as a branch; the Federal Reserve Agent submitting his recommendation that the bank's application for permission of the Board to effect the consolidation be approved when submitted, and 1 7/31/25 -2- l of the stating that the opening of the branch will also have the approva banking commissioner of Maine. Noted. Letter dated July 30th from the Federal Reserve Agent at New York, August 1st, advising that during part of his vacation, which begins on his Assistant Federal Reserve Agent will also be absent from the bank and H. M. Stillman, requesting that during the absence of both, his signature per Chief Examiner, be accepted on routine reports to the Board. Upon notion by Mr. Platt, it was voted to interpose no objection; Mr. Janes voting "no". Bank Letter dated July 27th from the Chairmen of the Federal Reserve Of Dallas, transmitting letter addressed to him by Prof. H. H. Preston at requesting that there be furnished him for use of a class in banking the University of Texas, copies of the Federal Reserve Act and the Regulacall at tions of the Federal Reserve Board and stating that he will soon the bank to discuss certain information which he desires in connection with a nation-wide study of bank failures in which he is assisting and which is of Columbia being conducted under the supervision of Prof. H. Parker Willis is any obUniversity; the Federal Reserve Agent inquiring whether there question and jection to furnishing Prof. Preston with the documents in information stating that as soon as he ascertains the exact nature of the as to the desired, he will submit the matter to the Board for a ruling propriety of furnishing same. After discussion, it was voted to interpose no objection to the Federal Reserve Bank of Dallas furnishing Prof. Preston with copies of the Federal Reserve Act and the Board's Regulations, but to -3- 7/31/25 advise the Chairman of the Federal Reserve Bank that underin the opinion of the Board the bank should not ance to assist any render or n ipatio take any partic the in System e Reserv l Federa the those outside of to the conduct of any investigation similar in nature purawn its for System the by one being conducted sors poses and that the information desired by Profes oller Comptr the from ed obtain be should Willis and Preston from and banks al nation to t respec of the Currency with member the State Banking Authorities with respect to both and non-member state banks. e Itent at Atlanta, Letter dated July 29th from the Assistant Federal deserv Bell Buckle, Tennessee, advising that the Peoples Bank and Trust Company of by amendment to its charter, has reduced its capital stock from 430,000 to 4,15,000, which is below the legal requirement for a member bank, and to take steps to have the suggesting that it will be in order for the Board with previous bank forfeit its membership in the System, in accordance correspondence on the subject. Upon motion, it was voted to refer the above matter secure to Counsel for the formulation of steps necessary to forfeiture of membership by the bank. Reserve Agent at Letter dated July 28th from the Assistant Federal ty Bank St. Louis, enclosing copy of a report of examination of the Securi ers with and Trust Company, Helena, Arkansas, made by the state examin certain the assistance of an examiner of a Federal reserve bank, in which a representative of the violations of law were disclosed and stating that has requested that he be Department of Justice who is working on the case furnished with a copy of the report. The Secretary called attention to the position previously taken by the Board that information condisclosed tained in reports of examination should not be 7/31/25 -4- by Federal reserve banks, except upon a valid order of a court of competent jurisdiction. Upon motion, it was voted that the Board should follow the same policy in the present case. Matter referred to the Law Committee on July 29th and approved by that Committee, namely, memorandum from Counsel dated July 28th, with reference to letter dated July 16th from the Deputy Governor of the Federal Reserve Bank of Atlanta inquiring as to the eligibility for rediscount by Federal reserve banks of notes secured by warehouse receipts covering cotton-seed; Counsel submitting draft of a reply stating that the eligibility of notes for rediscount does not depend upon the existence or Character of collateral security but upon the purpose for which the notes are drawn or the purpose for uhich their proceeds are used, but stating that a banker's acceptance based upon the storage of cotton-seed or a, bill Of exchange, payable at sight and drawn to finance the domestic shipment of cotton-seed, if otherwise eligible under the Federal Reserve Act and the BOard's Regulations, may be rediscounted at a Federal reserve bank, provided that the cotton-seed upon which the instrument is based is stored under proper conditions. Upon motion, the proposed letter was approved. Letter dated July JOth from the Federal Reserve Agent at Boston, transmitting and recommending approval of an application of the Union Trust Company, Providence, Rhode Island, for an extension until November 1, 1925, of the time in which the bank may open the branch at Woonsocket, Rhode Island, approved by the Board on February 10th. 1.m.Y(Th 1 -5- 7/31/25 Upon motion, the extension requested was granted. REPOHTS OF STA:MING COMMITTKRS: banks, Dated, July 29th, Recommending changps in stock at Federal Reserve this of date. Book as set forth in the Auxiliary Minute Approved. Dated, July 31st, Recommending action on application for fiduciary powers, as set forth in the Auxiliary Minute Book of this late. Approved. Dated, July 31st, Recommending action on application for admission of state bank, abject to the conditionsstated in the individual report attached to the application, as set forth in the Auxiliary Minute Book of this date. Approved. The meeting adjourned at 12:00 0 ock. Secret Approved:
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