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10 A meeting of the Federal eserve Board was held in the office of the Federal aeserve Board on Tuesday, July 7, 1925 at 11:00 o'clock. P2ESENT: Governor Crissinger Hr. Platt Mr. Hamlin Mr. :Inlet* :Ir. James Mr. :Icintosh Mr.2ddy, Secretary The minutes of the meeting of the Federal deserve Board held on July 2nd were read and approved. Bond of Mr. Charles C. Hall, Assistant Federal Agent at the Federal • .Reserve Bank of Dallas in the amount of50,000. Approved. Bond of Mr. Charles C. V:alsh, Federal Reserve Agent at the Federal Reserve Bank of Dallas in the amount of ..,A00,000. Approved. Telegram sent by the Secretary under date of July 6th toall Federal Reserve Agents calling for reports of condition as of close of business June 30th from all state banks vjtich are members of the Federal .eserve System. Approved. Memorandum dated July 3rd from the Secretary advising that un er authority . previcrasly granted by the Beard Ethell Edwards has been employed as messenger, with salary at the rate of .j1,000 p,.)r annum, effective Auzst 1st. Noted. Letter dated July let from the Fedeital deserve Agent at Philadelphia 7 -2- 7/7/25 to whom the Board on June 23rd referred a letter from the Natimal Bank Of Germantown, Aliladelphia, ?a., reevestin : 7,, instead of 10 03 permission to carry a reserve to be in against demand deposits, claiming Germantown an outlying district of Philadelphia. The 2edera1 _Leservo 2_gent recommended members of his 3oar1 do not approval of the application, stating that all should the Federal deserve concur in his recommendation and swf,custing that Bo -rd consider grantin reached the application before final decision is Clearing House 2,ssociation to an opportunity be r7iven to the Philadel-ohia fication of Germantown as an present arc;uments for or against the classi cUtlyin7 district. , ..fter discussion, upon motion of r. Hamlin .., ation. applic it was voted to disapprove the for reduction then moved that action upon all applications cts of reserve and central In reserves of banks located in outlyin7 distri has taen action upon the report r=servJ cites be deferred until the 3oard requirements for member ban.-cs Of the Agent's Comnittee, on revised reserve the records of the Board and that the Secretary be instructed to examine in grantin7 a-eplications for and ascertain whether the action of the Board taken on the affirmative vote reduced reserves in outlying districts was the requirements of 3ection Of five members of the Joard, in accordance with 19 of the Federal deserve Carried. Counsel submitting staterents 2.:emorandum dated July 7th from General ng his services as Counsel in Of Honocable 1;ewton D. ,a::er for .1,000 coveri 1r)-- 7/7/25 -3- the case of the farmers ahd:,:erchants Bank of Catlettsburr: , v. Federal :Aeserve Balik of Cleveland, and for ii;;2,394.43 coverinr his disbursements to date in connection with the suit of the Pascaoula '.jational Bank v. Federal eserve Bank of Atlanta, including a fee of :1,000 to :;:r. Leonard P. Ayres for expert testimony. After discussion as to whether or not :Tr. Baker's bill for services in the Catlettsbu:F- case should be Pro-rated among the Federal reserve banks it was determined that Lr. Baker's status in connection with the defense of that suit was the same as that of h. John W. Davis who had been em-)loyed therein and who withdrew therefrom prior to final settlement, which necessitated the enployment of , other Counsel and it was, therefore, voted that the Federal leserve Bank of Cleveland be advised that the Board approves Baker's ,bill for services and that the Cleveland Bank be directed to pay same and that the other eleven Federal reserve banks be directed to remit to Cleveland their pro rata share Baker's bill to of the amount of the bill. date in connection with the ,-lascat!oula ::atiodal Bank v. Federal Aeserve Bank of 2-2tlauta was approved and it was directed that the Federal Aeserve Bank of Atlanta be so advised and reouested to pay the bill and to carry the payment until the litir7ation is com2leted at which time the other eleven Federal reserve banks will remit to .1tlanta their pro rata 3a:or's umployment share of the total 0.1:eons° of in connection with the suit. Letter dated July 2nd from the Chairman of tlio Board of Directors of the Federal Aeserve Bank of Atlanta, enclosing a letter from tiLe ctng liallager of the ITavalla Agency of the Atlanta ban::, relating to a bill recently Passed by the Cuban Legislature providing for a tax of one-fourth of one per cent payments of funds, transfers of credit, securities, etc., which . directly or indirectly involve the extraction of money or its effaivalent froz.1 Cuba. ed. Memorandum dated July 3rd from the Committee on Solaries, z_apenditures and Efficiency, with reference to the action of the Salary Committee of the Pede al Reserve Ban::: of Miladelphia in voting to increase the balary of 7:r. W. G. Creedy, Controller, from 6,3JO to 6,500 ner annum; the Committee . be granted stating that there appeat's to be no reason why an 1 -accease sh,ya ,:a a,t this time and. recornending that the Board disapprove S arn T.ii.)on motion, the recommendation of the 00:TA tee was adopted. Letter dated July 1st from the :_ssistant Federal ileserve Agent San 2rancisco, advising that the Bank of Italy opened for business on July I a branch at No, 1019- Fillmore Street, the establishment of which Was approved by the Federal deserve Board on :Kay 21, 1925, end on the same date opened branch at the Southeast Corner of San Bruno and Thornton . Lvenues, the establishment of which was approved by the Board on June 1925. :oted. 7emoraulum dated July 1st from Counsel, submittin to the Board copy of an oi)iniou rend;red by the United States Circuit Court of .Lppeals ,Denver v. for the Eiith Circuit in tIle case of the first 7ational Bank of , deserve Bank of "ansas City. Ordered circulated. :,:ernrandtr.-, dated July 6th from the Secretary addressed to the Governor Of th.; federal deserve Board, with further reference to the allef,;ed action of the Federal deserve Bank of L.tlaata in char:Anc7 the reserve 7 7/ 5 _account of the Una:Ka and City National Bank, Johnson City, Tennessee, with raper held under rediscount for the bank prior to maturity of the paper. Ordered referred. to Counsel for an opinion as to the legality of the practice. The Governor read to the Board copy of a resolution received by him from the Secretary of the South Carolina Cotton Manufacturers Association, exnressing the disappointment of the members of that Association in the action of the Board in declining to follow the recommendation of the directors of the aichmond Bank in respect to the establishment of a Branch Federal Reserve Bank in the southwestern portion of the Federal teserve District. Noted and ordered filed. Dr. Miller then stated that the Bank of Italy was desirous of having reconsideration given by the Board to its apnliction to establish a branch de novo at Santa Maria, California, and moved. that the Board reconsider its action taken on December 17, 1923, in declining the bank's anplication to establish a branch. Dr. NAller' motion Jeing put by the chair was lost on a tie vote, the members voti:ag as follows: Mr. Platt, "aye" :Ir. Hamlin, "aye" Miller, "aye" Goveruor Crissiner, :Jr. James, "no" r.1,:cIntosh, "no" no" Governor Crissiner. then stated that 1.1,r. Perrin, Federal Aeserve Agent at San Francisco, had advised him that he had been recuested. to epare -6- 7/7/25 for publication in a financial journal a series of articles on Federal Reserve matters in answer to articles Published recently in the Commercial and Financial Chroniclo, and that he had after carefully considering the Perrin's complying with the request advised him that advisability of the Board does not look with favor upon the preparation and publication of articles of a controversial nature by officials and employees df the Federal Reserve System. Upon motion, by lir. James, the Governor's action in the matter was approved. lir. James then moved that the Board rule that Federal aeserve Agents and others connected with the Federal aeserve Board refrain from writing articles for publication over their official titles. Upon motion, it was voted to defer action on Lr. Janes' motion. The Secretary then referred to the matter taken up by him with the Board on July End, namely, the handling for the account of the Treasury Department of telegraphic business chargeable to a Treasury appropriation which has become exhausted and asked to be advised whether the Board would be willing to handle without charge such telegrathic business as is proper1Y chargeable to the Treasury's aporopriation, "Contingent Exrenses", which business averages about .150.00 per month, provided the Treasury will relieve the Board of the necessity of maintaining, at a cost of :,4E5 a month, a telephone operator to assist in handling telephone calls passing, through the Treasury switchboard to and from the ol:fices of the Federal deserve Board. 16 11 -7- 7/7/25 After discussion, Dr. :liner moved that the Secreary be reauested to prepare and submit to the Board a memorandum sottinc forth the character and kind of services beinz rendered to the 2reasury without compensation, and the character and kind of exnenditures of Board funds being made for the bene;, Decartment. fit of the 2reasur; TilPDAT3 03 STANDING C017.7.I.227,7713: Dated, July 2nd, 3rd, 6th, Dated, July 7th, Dated, July 7th, Dated, July 7th, Recommending changes in stock t Federal Reserve Banks, as set forth in the Auxiliary ::inute Book of this date. Approved. Recommending action on applications for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Approved. Recommending action on application for fiduciary pov,ers as set forth in the Auxiliary Minute Book of this date. Refused. Recommendin': action on application for fiduciary powers as set forth in the Auxiliary Einute Book of this date. Ordered held. The meeting adjourned at 12:3 lk '3ecretary. Approved: Governor
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