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in the office A special meeting of the Federal Reserve Board was held 1924, at 11:00 a.m. of the Federal Reserve Board on Saturday, June 21, PRESEM Mr. Miller, Member illxecutive Committee Mr. Hamlin Mr. James Mr. Cunninftham Mr. Eddy, Secretary for the purpose of Ur. Miller announced that the meeting was called and Stock3rowers Bank conducting a hearing to show cause why the Farmers er its stock in the of Montour, Idaho, should not be required to surrend rights and privilFederal Reserve Bank of San Francisco and to forfeit all eges of membership in the System. • Stockgrawers Bank, No one appearing on behalf of the Farmers and Federal Reserve Board, that Montour, Idaho, at the said hearing before the hearing under the terms bank having waived its right to appear at the said it appearing to the Federal of Section 9 of the Federal Reserve Act; and owers Bank, Montour, Idaho, Reserve Board that the said Farmers and Stockgr 9 of the Federal Reserve has failed to comply with the provisions of Section Board made pursuant thereto, Act and the Regulations of the Federal Reserve Reserve Syste,A has reduced in that said bank while a member of the Federal latter amount being less than its capital stock from c25,000 to ,„;15,000, the ation of a national bank in the that which would be required for the organiz place in which said hank is located; resolution was Upon notion duly made and seconded the following unanimously adopted by those present: "WHEREAS, it appears to the Federal Reserve Board, from a conthe sideration of the evidence and information received by it, that with comply to Farmers & Jtockgrowers Bank, Montour, Idaho, has failed 6/21/24 and that "the provisions of Section 9 of the Federal Reserve .Act ions of the regulat the with comply to failed has the said bank of that ons provisi the to t pursuan made Board Federal Reserve section, THM1.20'2.E, BE IT EL:SOLI/2D, that the Federal Reserve Board require and direct the Farmers & Stockgrowers Bank, Montour, Idaho, under the terms of Section 9 of the Federal Reserve Act as amended, to surrender its stock in the Federal Reserve Bank of San Francisco and to forfeit all rights and the privileges of membership in the Federal Reserve Systgm as of Federal the of part the on action this date on which notice of Reserve Board is received by the said bank." The Board then proceeded With its regular business. June Report of Committee on Salaries and Expenditures on letter dated York, enclosing 19th from the Chairman of the Federal Reserve Bank of New ng a dividend copy of resolution adopted by the directors of that bank in declari annum for the six months' period ending June 30, 1924, at the rate of 6cio per of said divion the paid-in capital stock of the bank - approximutely ,313,0J0 .„:579,000 dend to be paid from current earnings and the balance of approximately the dividend to be paid out of surplus; the Committee recommending approval of Chief of the payment and recommending aiproval also of the suggestion of the Committee's Board's Division of Bank Operations, in a memomndum attached to the that total report, that no charge should be made to surplus at this time, but not earnings accrued dividends should be carried as a deduction from current amount of on the bank's balance sheet until the end of the year, when the Act the charge to surplus, if any, will be determined for the fiscal period. Upon motion, the report of the Committee on Salaries and Expenditures was made special order for the meeting on Tuesday June 24th. -3- 6/21/24 Telegram dated June 19th from the Deputy Chairman of the Federal Reserve Bank of an Francisco, requesting approval of the action of the directors of that bank in fixing a minimum buying rate for bankers acceptances of 2;3, effective immediately; together with telegraphic reply dated June 20th, sent on the initials of four members of the Board, approving the action of the San Francisco directors. Upon motion, the 2 formally ratified. minimum buying rate was Telegram dated June 20th from the Secretary of the Federal Reserve Bank of Cleveland, advising that the Executive Committee on that date established a minimum buying rate for bankers acceptances of ; together with telegraphic reply dated June 20th, sent on the initials of four members of the Board, approving the action of the Executive Committee. Upon motion, the 2 formally ratified. minimum buying rate was Report of Committee on Salaries and ..xpenditures on letter dated June 17th from the Chairman of the Federal Reserve Bank of Atlanta, requesting approval of the action of the directors of that bank in declaring a dividend for the six months' period ending June 30, 1924, at the rate of 6;Z per annum on the paid-in capital stock of the bank; the Committee recommending approval. Approved. Bond of George A. Hope, Acting Assistant Federal Reserve Agent dt the Federal Reserve Bank of jt. Louis, in the amount of c;50,000. Approved. Bbmorandum dated June 20th from the Board's Fiscal Agent, submitting an estimate of the Board's expenses for the six months' period beginning -4- 6/21/24 July 1, 1924, in the amount of 301,847.40, and advising that an assessment at the rate of ninety-one thousandths of l of the paid-in capital and sur- plus of the Federal Reserve banks, as of June 30, 1924, will produce •302,497,65. Upon motion, the following resolution was unanimously adopted: "Whereas, under Section 10 of the act approved December 23, 1913, and known as the Federal iieserve Axt, the Federal Reserve Board is empowered to levy semi-annually upon the Federal Reserve Banks in proportion to their capital stock and surplus an assessment sufficient to pay its estimated expenses, including the salaries of its members, assistants, attorneys, experts and employees for the half-year succeeding the levying of such assessment, together with any deficit carried fon.ard from the preceding half-year; and ,hereas, it appears from estimates submitted and considered that it is necessary that a fund equal to ninetyone thousandths of one per cent o: the total paid-in capital stock and surplus of the Federal Reserve Banks be created for the purpose hereinbefore described, exclusive of the cost of engraving and printing of Federal Reserve notes; Now, therefore, Be it resolved, That pursuant to the authority vested in it by law, the Federal Reserve Board hereby levies an • assessment upon the several Federal Reserve Banks of an amount equal to ninety-one thousandths of one per cent of the total paid-in capital and surplus of such banks as of June 30, 1924, and the Fiscal ,.gent of the Board is hereby authorized to collect from said banks such assessment and execute, in the name of the Board, receipts for payments made. Such assessments will be collected in two installments of one-half each; the first installment to be paid on July 1, 1924, and the second half on September 1, 1924." Letter dated June 19th from the Secretary of the Federal Reserve Bank of New Yotk, referring to the Board's letter of January 25th, 1924 (X-3953) and quoting a resolution adopted by the directors of that bank that it will not "consider cash in transit, either or both ways, as part of the required reserves -5- 6/21/24 at member banks or take such currency into account in computing penalties for deficiencies in reserves. Referred to the Law Committee. Report of examination of the Federal Reserve Bank of at. Louis and its branches made as-at the close of business April 5, 1924. Referred to the Committee on Examinations and Committee on District i,&3. Report of Examination of the Federal Reserve Bank of Cleveland and its branches made as at the close of business on .April 19, 1924. Referred to the Committee on Examinations and Committee on District #4. The meting adjourned at 11:40 a.m 3eereta Lpproved: Member, Executive Committee, •
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