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mntinc of the Federal aeserve hoard was held in the office of the 'eueral _-.eserve -oald. on 7.:onda:,,, June 2, 127, at 11:15 a.m. rile r rissins.er in :.Tr. hillor r. L:r• Eddy, Secretary 3ecretary , eserve ?he minutes of the mJetins of the Federal . card held on June 10t1.., 13th, 1,"--th, 15th and 16th were read and a;71.)roved. hho1..- i.autes of the of the hoard heli on j1.111,3 17th --ere read. a;:)prov.. , ,d. as amended. Jisclzssion then ensued of the matter on which action ..;as deferred. at th° raJotinc.-; on June 17th, namely, letter dated. June 16th from the ',.-over..Lor Of the federal L'..es3rve Iia.nk of Zew York reclueztini7. that the .-3oarci defer se - arate publ ic ation in the - eely stateme.at of the condition of :ederal ' eserve JariKs of dollars The IQDa Secreta.:,- rnd to and "bills )azrable in 1'020 if:11 the hoard its actio.4. of Dece:...ber in votin'; to add. in the 3tatera3nt unuef the caotion °I)0 t•.io Ixt,i.ht ub-items, "ovable in dollars° and. "po.„-cible in fo:eif=71, ' lIrrencies.i, and. its action of iebruaru 23, 1927, in votini-; that the proposed e, • -1-1411 'e should not bdo ,Df2Cot lye until the volu.f.e of bills held by the Pecie .e.sc.. ,rve banks pa,;. abL'; in foreL71.1 currencies should amount to (1°Iter-:lor Ori...sir pointed out that the 1,ederal :eserve 'IanT,c. of 'few York re- tv, (14e st5 t at se-oarate publication of domestic al-a foreim bills be de.forred - ,„„ 174-07 until the ox,..)ected visit to this country of the Avernor of the Balf: Or --.11.j.an3. and. the Vice f..overnor of the iank: of Yrance, ;filo are expected to 560 6/20/27 -2- arrive within about two weeks. Following the discussion, moved adoption of the fcalowin Ounninham submitted and. resolutions: WHaaEAS, on December 26, 1926, the Federal _'.eserve Board voted that VJO sub-items,"payable in dollars" and "payable in foreign currencies" be added iirthe weekly statelpent of condition of Federal eserve banks after the present caption "bills bout in open market; and the Board, at its mceting on February 23, 1927, voted that the proposed publication should not be made effective until the volume of bills held by the Federal :eserve banks pa able in fo2eign curfencies should amount to ,5,000,030; BE 12 _I'301.1M, that the Board defer such publication until not later than July 13, 1927. Cunningham's motion, being put by the Chair was carried, 1,:r. Liller voting "no". 2e1egram dated June 17th from the nairman of the Federal acserve Bank Of San Francisco, advisinr; that the board of directorS at their meeting on that date made no change in the bank's existinr; schedule of rates of discount 414 purchase. Cunninc,ham, member of the Committee on District Y7, then presented, it accordance with the instructions of the Board at its meeting on June 7th, cll'aft of a letter to the Chairman of the Federal eserve Bank of Chicago ll 'ePared along the lines of the Committee's report submitted at the meeting °11 Juno 7th, with reference to the proposal of the directors of the. Chicago batk to create the office of Assistant ::.anager at the Detroit Branch, and at the same time to make certain other changes in the official staff of the 4atch; the proposed letter statin!; that the Board, after giving careful 561 6/20/L:7 1 —3— Consideration to the matter, sees no apparent ned for the creation 0: an additional official position at 'etroit. Upon motion, the proposed letter was approved. Letter dated June 16th from the :›sistant federal Reserve Agent at :Te: York, advising that the 3ank of the :1;Inhattan .;ompany, :Tow York City, has l'ecoived authocity from the State 3anking 'epartment to establish a bra-ch at the corner of ;utter Avenue an: Union Street in the 3orour:h of 3rook1jn. -oted. Lotter dated June 13th from the 'Federal lieserve agent at San 17rancisco, acivisinF,? that on June 11th the ciecurit o- ?rust and 'lavdns's 'lank of Los '-.n:eles olooned at 7034 ::ollya)ou oulevard, fae branch a:,provad by the oar,' on _nril 27th for :Iollywood 3oulew,.rd and La3rea Letter dated 01,111e 17th from the federal eserve 20,eat at rhiladel hia, ' l oquestia-- the desination as Assistants to .]:caminevs of :_es.;rs. Herman -afxrier and h. J. aliott, employees of the Audit Departmcat of the bank. 4proved. Letter dated June 13th from the ;hairman of the :ederal -eservo Bank °f '•Uen.mon, advising of the constunation of the lyarchase by that bank of the so-called -oster rop adjoiain the bank's main building. oted. At 1:00 o'clock td.:io 'Ioard recessed, and reconvened at 2:00 o'cloc-.c, ti saL:,e embers 6ein7 present as atte:ided the morninc session. L:amorandum dated June 16th from the fhief (Jlerk, approved by the S oret%ry, recomi:,eudin ,:e, messenr that the services of James E. 7:pdy-, 6/20/27 -4- on the .oard's rolls, be discontinued as at the close of 1)113L09,ss June'"outh. -proved. ,:e_.ort of Jomittee on ial-ries and :".xi)endit.tres on letter dated June 15th from the ,;hairrian of the ".2oderal Of the eserve Ban;,,:' of Boston, advising ,ction of the directors of that :fank in votinf,., sect to the a.9,9roval of the Boari, to ,xte.id for a 21r1od of thirty da.,,s, v,ith full Pa;;, le .1f- J.s. of asbece on account of illness -:r.-nted Ir. Jo souh IL'. H. L. nomi:::son, hiss Olive udover and hiss .iary Of t:le ban".1-4 the jommittce uckIey, uealy, eml.looes pf)rov 1 of the salar: paymehts involved. Approved. .-,eport of ',;ommittee on rlalz,ries and -3x-)endit.J.res on letter dated. tillne 15th from the 2ederal 'eserve Lent at 3t. Louis, a.dvisinp' of the action of thexecutive Comittee of that bank in voting, subjectto tL0 of' the Board, to extend for a )eriod of thirty days from june 11th, with full viously , leave of absence on account of illness, pre- raatei to ::ies :-:elen OP:den, of the ::er.rhis Branch; the jormittee recora,ane.in:: of the salary vayment involved. ::emorandum from Jounsel dated June 10th, submittiir letter dated 27th from the G-overnor of the federal :aserve Bank of fallas referrinc tO the recant opinion of the adprOMe Joart of the 3tate of :Jexas in the case of La-A.c Comi)ally v. ,Jrunl, advisin i: that the jallas hank has decided to retArn all trade acceotancos offered it by mar-21)er banks %;hich bear the 6/20/7 fhrase "The obli ation of the aoceptor hereof arises out of the purchase ;with the ofi-inal of i:oods from the drawer, T.at'icity being in confomitt3r:Is of parchasei; 'Jounel ct:,t_n,- ',hat in view of the recent decision holin- trade acceptances to be non-Jeotiable hni they contain the cias:,se a 'eve sat out, the action of the 'alias Jan:: in to tae such arycej):,ances for rediscount is 2arsuant to and in accoldance ith tile regulations of the hoard, which re:.,lire that such accootan3es be zleEmtiable. oted. Lett:r Leto..L .June 13th fro3.1 the Ohainnan of the federal heservo hank LichLlond, referrinc; to the ;oard's action of ;'.une 16th re-3rdil.,: bids 0 1 t:le v,Ault to ,po 'n,;talled In the alti!lore -3.1.-ch ban:: ouildin to that unless the ,oard disa_l,rove.;s of the ,)roceIlre. he .1)ro(J3'„es to write to each of its iL' ctore snr.us tin that 1) wire they conduct a vote rescinding their acee)ta-ce of the alte_.n..te uid o the LiOsler Safe Company, involving the use of 2roprietary metals, and acce:t th-; low bid for the standard :.etal called for in the specifications. :"oted without objection. The Governor, on behalf of the Executive Committee, then submitted a telegram addressed to the Chairman of the Federal eserve Bank of Atlanta t0Uay, advising that the hoard interroses no objection to that bank proceeding to ash for 'Ads for the construction of a vault in the new quarters or its Havana Agency and closing with the satisfactory bidder. Upon motion, the action of the Executive Committee in the above matter was approved. 5,64 I -6 6/20/27 Letter dated June 15th from the Deputy Governor of the Federal Bank of Dallas, advising that it has been eserve definitely decided that the 3an 4ttonio Branch of that ban: is to or)en for business on July 5th. ot ed. In this connection, the 3ocretary inquired as to the pleasure of the 3aard with r.;ference to the tor.-,s of office to be served by Liessrs. 3cobey, Houston and _:0e-ts's. 7, 11.0 ayeointed. by it to the :;an loitonio Branch direc- torate. After discuss ion, i:r. James moved that the ter:is of directorate ..ntonio . . an; the '.3oard.' s appointees to the 3 w ,s followlethe on should expire aeaan 7:'ouston r. n. 3cobey Decem.1)er 31, 1926 :eacember 31, 1929 December 31, 1930 .;ar , nod. :,....emofandelm dated :Ane 11th addressed to the Federal deserve ',oard 44"1 the (eamptroll a. of the Jurrency by 1".T. •,';yatt, creneral ,-Joadsel for the 13°4 ri, add _v. JoliLìs, heputy Coreotrolier of the Currency, reco!..- melldins. the adof,tion of the follovin- definition of the term ioutlyincthat ts is used hi 3ectio„ 5136 of the ..evised 1.:tatutes, as amended, 411(1 Iii Dection 19 of the 'Tederal ,Ieserve L.ct: district' is construed to 'The ter3 that ..)ort ion of a eft,- _idoh is located outs ide dt a considerable distance fro:., the reco:nized and. financil cent,....r of such city, and includes suburban his tric ts. mean of, and bnsiross all Upon notion, the above r.-.emorandum v:as ordered circulated, 65 6/20/27 -7-- 11 2,:erwranda from Counsel dated June 14th and 15th, commenting on and submittin:: draft of reply to letter dated Juno 9th from the .sistan:t Federal L‘esorve Agent at Cleveland, inquirin-svLether first mortrrarse loans on city real estate may be raf.;arded as havinc; a readily marketable value and as elir4blo for the security of trust funds deposited in the commercial department of a national bank; the 17)roposed reply statiufr that whether or aet such mortga:ses are readily marketable securities is a ‹uestien of fact 7faich should primarily be determined by the bank itself in the exercise Of ordinary ban'Ah's discretion, takirr: into consideration the character Of the mortca -,es and. whether or not there is a reasonably broad or active rdarket for t"em so that they mae ba disposed of at any time for full value, `Lad further that the Board sees no objection to the availability of first Mortcas of unquestioned value for the purees° in ciuestion, provided, of etrarso, they are in fact readily marketable and comply with the other re,°1',Llirements of the Board's 2.egulation F. ,kfter discussion, it was voted that action on the - Of the Board above should be deferred until a meetins attended by the Comptroller of the Currency. eport of Committee on Salaries and "bcpendituros on letter dated alarle 17th from the Secretary of the Federal ,eserve Bank of Chica -o, 4dvisi.Ig of the action of the _xeoutive Committee of that bank in voting, subject to the approval of the 3oard, to continue for a period of not to exceed ninety days, payment of salary to r. John Blair, police of- who is absent from his duties on account of illness; the Committee ' leeammending approval of the salary eaymant involved. Ap2rovad. ••• :',emorandum from Counsel dated June 10th, submit tin,-.;, in accordance With the action of the 'oard at its meeting on ::ay ..,7 6 4 L, draft of circular letter to the Chairmen and u-overnors of all Federal rcifere4ce to the recent decision o eserve banks .:ith the 3upreme Jo-art of the 3tate of Texas in the case of Lane Oomoany v. tooether with a proDosed state- ment to be gublishod in the Federal “eserve Bulletin in connection with . that the standard clause now the 'qublication of the decision s.arestin;2 used On trade acceptances be chanc:ed to read: The transaction which Givos rise to this instrument is the purchase of c:oods by the acceptor from the drawer." Upon motion, it vas voted to approve the circular letter submitted by Counsel and 4 he statement proposed for publication in the Bulletin. L:emorandtn dated June 17th froff: Counsel, submittin material for PUblication in the forthcoming issue of the Federal hesexo Bulletin, Upon motion, the material submitted with Counsel's memorandum was approved for publication. Letter dated aul&iittin ,.1A110 16th from the Federal eserve lgent at Kansas City newspaper clippins announcing the candidacy for nomination as ,aover,or of the 3tate of ::ubrasa of hr. .. J. Aaver, one of the Board's 41 ,20intees to the direcorate of the Omaha Branch. ?his 1 -ter, being an apoarent liol'ation of the Loard's ralin •s .:ith respect to directors of Federal esurvo banks aid branches holdin.^..; or becoming candidates for political office, was referred to the Committee on District :10 with power. In accordance with the action of the Board at the meeting on June 17th. the Governor then submdtted draft of a letter, oreoared by 567 6/20/27 -9 adssed to iovernor of the Federal _loserve Bank of ...ew York, replying to his letter of June 16th commenting upon the changed position of the money 1 .a.r",:et and the possibility of further purchases of securities by the Open Invest.lent Committee. In this connection, 1-.3[10 Govenier stated that he understood from a telephone conversation with ovenior 3tron that a further letter on this subject is being forwarded to the Board, and action on the letter preeared by Kr. Killer was therefore deferred. Letter dated. June 16th from the Deputy Jov)rnor of the Federal deserve Bank: of Few York, advising of the action of the board of directors of that ba.lk in voting, subject to the approval of the -3oard, to authorize the officers to appoint the 17ational 3ank of the Kingdom of Serbs, Croats 424 Slovenes as the agent and correspondent of the Federal 2,eserve Of 8 York and to establish relations with it along the same general lines as those Y-ich exist with other foreign central banks. Upon motion, it was voted to approve the action of the .-.T.ew Yor.: directors, with the understanding that the ac:reer.leat entered into between tae two institutions will be submitted to the Board later. lIemerandum dated June 20th from the Board's z'iscal Agent, stating that to - .eat the estimated expenses of the '- ,oard for the six months beginning j'alY 1st next, it will be necessary to levy upon the Federal eserve banks 4 assess:nent of one hundred three thousandths of one per cent (.00103) of the total oaid in capital and surplus of the federal _teserve banks as of j114,3 JO, 1927, which will produce Upon motion, the folloJinr; resolution submitted by the Fiscal Agent ;as unanimously ado.ited: -10- 27 "'Jhereas, under Section 10 of the Alct approved December 23, 1913, and 1,21=n as the Federal _teservo act, The Federal .:.eservo Board is ampowered to levy seLli-annually upon the Federal 2,eserve banks in proportion to their capital stock and surplus an assessment sufficient to nay its estimated expenses, includin=,-; the salaries of its members, assistants, attorneys, exerts aad unployeJs for the half-;:ear succeed- 'ether with any in;' the levyi/n-7 of such assessments, to j _, half-year; and precedin, the from forward deficit carried and consubmitted estimates from "•Jhereas, it aeooars one to equal a fund nat sider:D., tlat it is necessary of the (.00103) ,.:ont 1):r hundred three thousandths of one :edeval the of surplus and total -oaid.-in ca-eital stock .eserve banks be created for .t21 purposJ hereinbeforo described, enclusive of the cDst o: en-yavinr_; and printin:; of Federal :eserve notes; hew, therefore, ,].30LTID, 2hat pursuant to the wIthpriti vested in it by law, the Federal neserve 'oard hereby levies an assessment uuon the several Federal :eserve banks of an amount equal to one hundred three thousandths of one per cent (.30103; of the total .paid-in ca-eital and surplus of such banks as of June ;(), 1927, and the . iscal lir-eat of the Y3oard is hereby authorized to collect from said banks such assessment and execute, in the name of the Board, receipts for payments mad. c3ilell assess2,ents will be collected in two installments of ne-half each; the first installment to be raid on July 1, 1927, and the second half on 3eptember 1, 1927." :emorandum from ::.r..Cunninf-ham dated June 18th, advisin7 that in accordance with the recaest of the 2oard at its meotin- on June 15th, he has tan:a up with the office of the 3om2tro1ler of the 2urrency the action Of tho state Bank of :-adeliL, ::inn,ssota, in absorbing, without the approval of the ;card, the First rlational .5an."4 of ::adelia, and statin that the Comptrolle rs office is inclined to favor the idea of the Federal .eserve of hinneapolis makin an e::aminnti,n of the Jtate Bank of nadelia, fld. if the Board decides to re(luest such an e;:amination, the ')eputy Comptl'oller of the riurrency requests permission for his office to make an analysis Of the report. E69 6/20/27 Cluininiiam, tl.emforo, as'e3d for consLieration of th . - motion made at the metins on .-,..tne 13th ';',eat t;te 'oard aL):7rovo the following recorriendations contained in his reD)rt of :Imo 7, 1927, as follews: "lel view of t a adverse re[;ort a; the tz-o institations involved in t a consolidatien, and the farther re,-)ort that •„;,e 3r had been cons-e2-meted yithout first o'btaininf: he a-poroval of the :'ederal ;eserve - oard, I recommend that the analysis hereto attached Lu fon:an:Jed to hr. 2litchell, 'federal eserve 11,,:;ant of ::inn:Dapolis, the ree;uest that he t) :eake ite.e Bank of innesota; and that Litchell be further advised. that the services of .7.r. Black, an exu:Aner on the 'oard's force, are available for r.:akin. this •3xamillation; and that coleolatiou of the exareination, a report of same be forwarded. immediately to the federal 2'.eserve Board. I would also reconznend that further consideration of this nest ion be deferral until the report of examination herein reuested. is before to Board.' Ounnin,liamt a motion .:as thereuT)en put by the ()hair and carried. Cunninham then submitted and moved, ado:itiou of the following res olutions: ecle:z'al aesoivo Al.-ent Heath advised the 'Board in a telegram under date of June 17th, as follows: ".nswering your telegram even date. .;:or six months all cash at Detroit ':;. rLi.nch has been carried as vault cash aeont carrying no reserve su ply. The experiment has proven very satisfoctor,- to as and we see no reason why same oractice should not be carried. on permanently." 1: 12 ..C.]S0LT-2), .1hat the position of Assistant federal .eserve .A. ;ent at the ,etroit Branch of the -federal ..eserve :33.11.k.: of Chicago be 'discontinued, effective on and. after July 1st, 1927; and that in the future all cash at the Detroit ranch be carried as vault cash. Bh IT iUu2h.h aCOL1T1D, .L.Fhat Federal :,eserve dcnt Heath be advised of the foree:oini,r, action, and re,(fe.ested. to act Carried. 570 -12- 6/20/27 Letter dated June 17th from the federal deserve Agent at Chicago, adv1s1nr2 of the pending resignation of 1:r. Wood:house, of the Credit is authorized Department of the Detroit Branch, who at the present time to act for the Federal livery of collateral to sistat :edema eserve Agent in the receipt, eadorscuent and doFederal i:eserve notes in the absence of the As- eserve Arient, and reqlestinr'' that Llr. John :. .7er of the Discount Department at the branch be designated as the lianar Agent's representative to succeed r. -:oodhouse. In his letter, the of the Agent Galled attention to the fact that with the discontinuance Jill become Assistant Federal .eserve Agent at the Detroit Branch, which e effective in loss than two wee-i.s, it will be imperative to designat two representatives to act for the Agent in the matter of custody of collateral at the Detrolt Branch. recomUpon motion, the designation of mended by the Federal :::eserve A,':;ent, was approved. Letter dated June 20th from the Chief sderic of the 2reasury .epartoccupied ment, requesting that to provide proper servicing of euarters by the federal 2,escrve Board's Jivision of Issue and _ledemption, Jeanette roll efnomas, charwoman, be transferred to the Federal .eserve 3oard cents an fective June 1, 1927, with compensation at the rate of forty hour, four hours a day. 117:on recommendation of the Jecretary, the above addition to the Board's rolls was approved. ndence .7.:emerandum from Counsel dated June 1st, submitting correspo iurrency, with reference referred to the 3oard by the Comptroller of the 6/23/27 to t:IJ ri ht of the rational T3a:-a of Thioton, the Peo.)los of ;elienopl, and t're Industrial 1Tation;al ank of 1est York, all lo3ated in 'ennsuLfania, whi,:h have received 1)ermission from the 7oard to e::ereise fiduciary per , and %. .-hich have a ca9ital of 1,.:ss than the anount rucuired :or trust com2anies a 13 state ban;::- oowers in :ennsylvania, to e.:rci() the ,)Owers .::,rantJd them by the ' oard in that state; Jounsel (1) s"„atin:. prior to trust pg.:ers were nrant ed to t.ie lianks etember 26, 1913, th) date on which :ection 11 (k) of the Federal .eserve _ct was aramded to 1.,rovid: that no permit shall be issued to any national ban,,,:in- association havin ,, a cal?ital and surplus less than the caoital and surrlus reuired by sta:a law of state uanks, trlis t comanies ani cor2orat ions exero is inr.; such r)owers; (2) sustin that t:-.) banks ,).o a dvi sod that in the to exercise the trust %)owers oa rd's o)inion the-„, are entitled Tanted by the :oard 2rior to 3c14.-_Aaber 191S, althouzh they have a capital lass t:,an that required by state law, but that in view of the position taken by the Attorney Jeneral of Penns-4-1vania and toe ban:dn.- authorities of that state, it will be necessary for a judicial decision to be obtained from a court of comoetent jurisaiction to establish definitely their ritht to exorcise such powers; and (3) that the banks be advised, in accordance the position that the -30ard has heretofore ta_ea in cas3s o, this kind, that the Board will be ii1as1 to cooperate with Counsel re )re,::- eni,inr; the banks if a suit is instituted, but does not fel that it can take an active fart in initiating or oarryin; on a suit to settle a controv, ennsd Ivania authorities. between the ban,:s z;.ala the 1 572 -14- 6/20/27 :n this connection, the Governor also submitted a T.10:710 randura from the Comptroller of the Cureency, stating that he i5 in agreement with the opinion of the 'lioard's Counsel, but would. lor000se the follo.,ing substitution for The language suested for use b;,, the Board in communiefitine with the banks: "That in to o:ercise the the Board's oninion they have a lawful trust pmers granted. by the ,oard prior to September ..6, 1916, althoth they have a capital of eess than ,,1-5,000, and that the state officials are e-ithout authority to prohibit the e.xarcise of such trust powers. :Towever, in the event of litigation upon the initiative of the state authorities, the Board., following the pos 'etion that it has heretofore taken in cases of this kind, would. not tatc. an active part in any such suit to settle the controverszr, but would. be clad to cooperate with 'Counsel reeresentin the .banks." 11.2on motion, the reconeeendat ions and. su5e,estions contained. in Conase s memorandum, with the emand::ent proposed in the :eerao ra itium from the Comptroller of the Cur.eency, were aoproved.. :eport of Committee on District dated June 16th, on various letters received. fr le the Yederal e:-.3erve Bank of Iiichmond, with respect to arranger,:e.ts for the opening of the branch of that bank to be established. at Charlotte, :orth Carolina; the Committee report dealial: with four major subjects, namely,by-laws, directors and officers, hoising and personnel, Which were considered uy the :oard separately and action taken thereon as follows: .ecor.zeendation that the Federal eserve Banc of Ach(1) ., mond amend the proposed. branch by-laws so as to nrovide (a) for seven directors at the branch rather than five; (b) for the number of directors necessary to constitute a quorum; (c) for travel exonses of directors residing outside of Charlotte when attending meetiwez o. the Executive Co. mittoe; and (d) if the fecoTmendation for seven c.3.ireetors is not udooted, for the election of a temporary chairman in the absence of directors appointed by the Board. 6/2J/27 -1 Upon motion, by ;:r. Hamlin, it :.as voted to advise the 2ederal hoeerve Bank of ;ichmond that in the oninion of the -ioard, it wou1,1 be better to have a branch directorate consist inc of seven directors, a..d to submit to the directors the other ame mime nt s to the by-laws recommended. by the Committee. (2) .;econmend_:.- ion that the -oard al'orove salaries of 7,E:00 and ,„:4,500 per annum, resnectively, proposed. or hr. Hurth Leach Lan...;inf-, Di nctor and Clements s :,:as:iier of the Branch, and, that the fo1lin,c7 branch directors be appointed. by the 'oard.: One year Two years l'hree years - 1:r. John L. :.Torehead, Charlotte, U. hr. C. A. Cannon, Concord, U. 0. :.:r. John Law, 3partanbur3, C. After discussion, upon motion by ::r. Hamlin, it was voted to approve the salaries recmnended for the :.,:anaging Director and Cashier of the Branch, and. to tentatively a)point the directors recommended by the Committee, with authority to the Committee to make any changes which may later b2come necessary in the event the size of the directorate is finally fixed at five members,. (3) Recommendation that the Board withhold its approval of the renting and vault building program outlined by the Ldchmond bank, and study the question of comparative costs and expense of holsing as set out in an exhibit accompanying the Committee report, and further that the Richmond bank be requested to make a study and investigation of available property for a building and the matter of erecting a building to be owned by the bank, and to make further report and' recommendation to the Board. Upon motion, the reconne2x1ations of the Committee -;ere approved. (4) aecormendat ion that the sik;Gestion be made to the idchmond bank that it send a committee cons istinir. of a senior officer, the i..ana.-,;ing• Director of the Branch, and. if possible, one or Y:ore directors, to at least the branches at Houston, Jacksonville, and '3irminjiam, to make a study of the work, equipment, personnel, etc., at those branches, and to submit a report to the idchmond Dank and -le Board. in order to justify the request for the approval of salLsries, etc., for so lar7e a.'orce as is or may be then proposed. 574 6/26/27 -16- 7). Upon :,:lotion, the recommendation of tile .0or2riittee was approved* Itpon recom:::endat ion of the Ca snittee, it ,:as then voted trillt a coy," of the sior....r.ittee's ver,ort, with exhiuits, 00 or.iardod to the Yedoral ,eserve an of _do:Limo:id with a re , ..1zest 'ILat it be s:tbr.litted to the board of directofs of the bank. • , the ,- -,,oard' s Counsel, -,;as ea__ led into the this point, - th further considoration of the -,ropo sod oard proceeaed J.1 the revisi).1 of its ret:alations. ir. att submitted to the c- r,el1tal memo;'an-dum d,:ted J-c„ne 16th, sulimittin revised relations, 1, aba oard a sA2..ile- pro:Dosed z,.-r„eni:.ellts to the tha lines of ti.e action of the : arti at its m.)etdn- on June 16th with reference to the method of can,lutin::: re_ assessfn-reL1alie5 for re.:3-)2:7::i deficiencies; sefves and (,.;) a prcmosel new re --..11.tion on the ssject of non-cash collections. he oari then cons Lao red hr.:„ ntt s orl ii1al nomora_dum of June 16th, s.z.imittirv...; the revision, and the July leidental emoraaiva just re- ferred to, in which it is recormended that theoard tentativel, tiiO t of the rev i re mt ions as amended, st-;nd out the re.;..ziat ions 'Jiith such chan-:es to all cozlillent, and set a dofi.dito date -,:esefvo banks for fur'her criticism and or Board action all oLl:,:s to 1,:_vo t.eir sucL;estio:is in the 3oard's hands b,eforo such date. Ile various provisions of the re'xiations were disc,Assed in detail certaid a:.ao.1.17-:,,Jnt:.; of alte2aative .).iovisions --ere sueste,d. ;:r. stated that ho had discus sod the reiTulations with I:a'. 2lutt before his LC ;.'artur,e,, d hat ::f. platt a -,-L ,.rov ). :1. t.,em with two changes in the .7en._ral 'ection 4 on conditions of ,Pozed ..ec_.;ulatIon 7, (1) to use of a ' 575 6/2V27 -17- membership not settin out specific conditions which will be imoosed by the Board, and (2) the elimination from 3ection of the provision that tho 'oar. .considers that ,,, --.1ons.:the actions v:hich nia result in chaw7es in assets and functions as set out in the 7:elirhl condition o2 mmbershi2 ordinarily kr.2033. b;.). the Oard "consolidations or mergers with or purchases of the assets of other f:s or branch banks." of the proosed Section . hiller referred to to :)roviaions jogulation D, relatin of to sLms del)osits, in :- ;hich it is stated tlat "deosits which are i?emitted to be witdrawn by check or ot.lerise, without tiie resentation of the ')assbook, certificate, or ot-..,er si1:111r form of receipt whenever a withdrawal is made; shall not be considered 'savins accounts' aithin the• meanin of this regulation'. He ,44uNested that this 1:.i ht be chwTied to read "de;)osits which are , 7)ermitted be withdrawn by checl, or oth3rwi o, without tile actual presentation of tile passbook, certificate, or other similar form of receinf- whenever a ':iithdr_i.,a1 is nZle, shall not be considered 'savins accounts' within the 1113al1in: of this relation, if withdrawals in this wise are made oftener thau six times in any on, c_alelar year." he stated that ._he number of , fire which the - oard mirit deem withdrawals mi-:ht be fi:led at an,2110.-1)er. In this connection, ;:r. 'Iyatt expressed the ooinion that the Board couhl not pro)erly fix such a definition of savins accounts. - It 17as understood, however, that in order to secure a reaction from counsel for the Federal noserve banks, surestin should be trans- laitted with the revised reulations as an alternative oroposal. '176 x;U/27 -16- 1-'o11owin-, that th iovisad at this retin:, 00 tantativ,::ly a aJ that copies be - ral tivJ proposals, to eac2L7cd,J aai co:ments thereell to be £or..aria later "::,Lan July 16th. -ovad submitted to 7:oard, of all altrnaall su -. .estions to CC%C. -.1 t: ra-fainis Llotion being pat by the :hair was carried* Dated, June 18th, 10th, ,-erve. banks 113c0II.le:idin , c:irin!os in stock at Federal 7.e:, as sot forth in the Auxiliary .:inate looh of this date. ommend at ions a fproved. ..a.rijourne. at 3:45 • 3ecr3ta AL3oroved:
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