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11 A meeting of the Federal Reserve Board vas held ih the office of the Federal Reserve Board on Wednesday, July 7, 1926, at 10:30 a.m. PRESENT: Governor Cr is sincer Lir. Platt Tr. Hamlin James Intosh Mi.. Eddy, Secretary Mr. McClelland, Asst. Secretary Letters dated July 3rd from the Governor nr0 the Secretary or the Federal Reserve Bank of Chicago, requesting approval of the action of the Executive Committee of that bank in voting to subscribe to the extent of n U00 to the Credit Justice Fund being raised by the National Association of Credit i:Len. Referred to the Committee on Salaries and Expenditur es. Letter dated July 2nd froa the Federal Reserve Agent at Kansas City, With reference to the donation of )14,5 made by that bank to the Grand Avenue Improvement Association; the Agent stating that it is the purpose fie the organization to endeavor to maintain and enhance the desirability of Grand Avenue property in any 170y possible. After discussion, the Secretary was directed to communicate with the Federal Reserve Bank of Kansas City with a view to obtaining detailed information as to the benefits accruing to the Federal Reserve Bank of Kansas City through the activities of the Association. Letter dated July 3rd from the Federal Reserve Agent at Philadelphia, requesting., the appointment as Assistant Federal Reserve Agent of Mr. Ernest Hill, Manager of the Department of Bank ixamination. Approved, for the remainder of the calendar year. 12 7/7/26 1.112010 Letter dated July 1st from Professor 0. I. W. Sprague stating he is advised by -Jr. Smead that the special corimittee appointed by the Board on th is prepared to submit a further report w-ith reference to its inves)ti, ;Lttiorl as to the desirability of setting up in the Federal Reserve Board a Division of Credit infonfation; Professor Sprague stating that as this is a project in Irhich he is Particularly interested, it night be helpful if he icre present to furnish additional explanations and that he Trill be glad to come to . - 7ashington at such time as the Board may find convenient. Thereupon ensued a discussion during which rr• Tranlin suggested that the Chief of the Board's Division of Bank Operations, who is Chairman of the special committee, be requested to submit the committee's report and that sane be circulated among the members of the Board, follow-ing which PraCessor bpracue could be called to Washing-ton if it is deemed necessary. ifter discussion, upon motion by lr. Platt, it was voted to approve r. Hatrilip's suggestion. Memorandum dated June 28th from the Fiscal ,,gent, approved by the Board's Chief :xaminer, submitting vouchers totaling .4,130.50 from the Federal fleserve Banks of Boston, Philadelphia, Cleveland and ilichmond, covering expenses of employees detailed to assist the Board's Examiner in tlie recent examination Of the Federal heserve Bank of New York. Thereupon ensued a discussion during which iJr. James questioned the subsistence allowarre granted the Federal Reserve bank anploijees who assisted in the examinations. At the conclusion of the discussion, upon motion by r. Platt, it vas voted to approve payment, of the vouchers as submitted, Pr. James voting Report of Committee on Salaries and Expenditures on letter dated. Jul:- 13 7/7/26 -3- '‘) 1st from. the Chairman of the Federal reserve Bank of Herr York, (1) requesting that the Board modify its resolutions adopted on January 11, 1926, with regard to the operation of the Federal Reserve bank's salary standardization Plan in such a manner as to permit them to make changes in grades, and changes in salaries, of employees with salaries in excess of 02500 and not in excess of 05,000, (2) requesting approval of an increase from 06,000 to ,77,200 per annunt in the salary ofHr. Herbert S. Downs, one af the traveling men in the sank Relations Department, to be a.ppointed Manager of the department and (3) advising, that the Board of Direct crs of the bank have voted to defer until the end of the year a request for the Board's approval of a recommendation recently approved by them that the salary of Hr. Jilliam R. Burgess, 1-sFistant Federal Reserve Agent, be increased from 010,000 to 45,000 per annum; the Board's Cconittee recomending approval of the increase in Mr. Downs fren ::?,6,000 to salary 7,200 per annum, and that the other matters referred to in the letter be noted. After discussion, upon motion by Mr. Platt, recommendation of the Committee was adopted the and it was voted to approve the increase recommended for Hr. Downs. Report of Co-inittee on Salaries and Expenditures on letter dated July 2nd from the Deputy Governor of the Federal Reserve Bank of Herr York, with reference to the memorandum tentatively unproved by the Board on June 30th, Prepared by 1:e ssrs. Sailer, Eddy and Sr2,ead, with reference -to modification In the plan established at the Federal Reserve Bank of Hew York for the standardization of grades and salaries of the employees of that bark; the Deputy Governor recomrpBnding that the revised conditions of the Board's ap- 14 7/7/26 mi -4- • proval of the plan as set out in the memorandum be amended by changing Pararrranh „ _ /- to be Paragraph 3 and amending the old Paragraph 3 to read as fo11 ows "on or before December 15 of each year the Federal Reserve Bank of Hew York shall submit to the Federal Reserve Beard a report of all employees of the bank according to groups, showing the salary paid to each such employee at the beginning of the year; the amount of. salary adjustment )11.de in the case of each employee during the year under the ab ov e author izatIon; also the salary which the bank proposes to pay each employee as of the beginning of the succeeding year." After dis cussi on, T's 4, James moved approval of the recommendation of the Board's Committee on Salaries and ::q-)enclitures, namely, that the phraseology of the co nd iticn s as set far th in the raemorarrlun tentatively approved on June 30th be adhered to. Carried. Ilemoran.dum from Counsel dated July 2nd, submitting draft, of a letter to the Federal Reserve "gent at Boston, regarding the change of the Phoenix National .bank of Hartford, Conn., into a state bank and its subsequent concolidation with the State Dank and Trust Company of Hartford; the letter ad.vising of the procedure whereby the bank which is to be formed by the consolidation of two state banks, one a member and ane a nonmember, may acquire zembership in the Federal Reserve System as QC the date the consolidation takes place and e:r.plaining also the procedure by which the Federal Reserve bank stock held .by a national bank which is converting into a state bank may be surrendered, and a new certificate of stock issued to the state bank N'Thich is to become a member of the System upon the date of its organization, Without involving any actual cash payment or trans for of funds• 15 -5- 7/7/26 Upon motion, the proposed letter was approved. Matter ordered circulated at the meeting on June 29th, namely, letters dated Shy 26th and 28th from the Federal Reserve agents at Philadelphia, Chicago and St. Louis, with reference to replies to a circular addressed to them by Honorable James J. Strong, Representative from Kansas, requesting their views on certain amendrrents to the Federal Reserve .act, with relation to stabilization of price levels. Thereupon ensued a discussion follovring which Mr. Platt moved that the letters submitted by the Federal Reserve /igents be returned to the writers with the statement that the Board has no objection to their being transmitted if at this late date the writers so desire. Mr. Platt's motion being put by the Chair was carried, iiiessrs. James and Lic' Intosh voting "no". Mr. Platt then moved that individual letters be written to the three Federal Reserve Agents with direct relation to the contents of their proposed replies to Congressman Strctig. Carried, Messrs. voting "no". Janis and McIntosh Telegram dated July 7th from the Chairmen of the Federal Reserve Bank at Philadelphia, advising that the board of directors on that day made no change in the bank's existing schedule of rates of discount curl purchase. Noted. The Governor then presented the minutes of the meetings of the Federal Reserve Board held on June 15th and 16th, which have been circulated omong ( iltt the members, and upon motion they were formally approved. The minutes of the meeting of the Federal Reserve Board held on July 2nd -6- 7/7/26 Were then read and approved. REPORTS OF STANDIFG Dated, July 6th, Dated, July 6th, Dated, July 2nd, Dated, July 2nd, Dated, July 2nd, Roca-wending action an applications for fiduciary parrers as set forth in the Auxiliary Minute Book of this date. Approved. , Recommending action on application for admission of state bank, subject to the conditions stated in the individual report attached to the application, as set forth in the Auxiliary 2iinute Book of this date. Approved. Recommending approval of the application of !!r. John McRoberts for permission to serve at the same time an director of the ilariner Harbor National Bank of Mariner Harbor, New York, and as director of the West New Brighton Bank of ::est New Brighton, H.Y. Approved. Recommending approval of the application of Mr. John J. Stamler for permission to serve at the same time as director and Vice President of the Broad and Market Nati ona1 Bank of Newark, N.J., as director and Vice President of the Elizabeth Trust Company of laizabeth, N.J., and as directcr of the Peoples National Bank of Elizabeth, N.J. Approved. Recom,ending approval of the application of !Ir. Eugene V. R. Thayer for permission to serve at the same time as director of the Chase National Bank of New York City and as director of the Stock Yards National Bank of Chicago, T11. Approved. The meeting adjourned at 11:30 AL Secretary Approved: Governor.
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