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A mooting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Wednesday, June 25, 1924, at 11:05 a.m. PIMITT: Governor Crissinger Mr. Platt Mr. Hamlin Mr. Miller Mr. James Mr. Lddy, Secretary The minutes of the meeting of the Federal Reserve Board held on June 24th were read and approved. Telegram dated Jane 25th from the Chairman of the Federal Reserve Bank of Philadelphia, requesting approval of the action of the directors of that bank in establishing a radiscount rate of 371.% on paper of over ninety days and up to nine months' maturities; the Board having previously approved a 3:1% rate on paper maturing within ninety days. Upon motion the aotion of the directors of the Philadelphia bank was approved. Telegram dated June 23rd from the Chairman of the Federal Reserve Bank of Boston, requesting approval of the action of the Executive Committee of that bank Nn establishing a 2i; minimum buying rate on bills and bankers acceptances; together with a telegraphic reply made on the same date on the initials of members of the Board approving such action. Upon motion the minimum buying rate was formally ratified. Letter dated June 25th from the Acting Comptroller of the Currency, advising of the resignation of Miss Clara M. Reddington, money counter in the Issue and Redemption Division, effective June 24, 1924. Accepted. -2- 6/25/24 Letter dated Jane 25th from the Acting Comptroller of the Currency, rer.: questing approval of the appointmat of Miss Frances L. Dank3 as money counter in the Issue and Redemption Division for a period of ninety days, at a salary of 0.020 per annum, effective June 25th. Approved. Letter dated Jane 17th from the Federal Reserve Agent at San Francisco, advising of the withdrawal by the Security Trust and Savings Bank of its application to establish a branch at Glendale Boulevard and Seneca Avenue, Los Angeles, which was approved by the Board on May 12th. Noted. Memorandum dated Jane 23rd from the Board's Chief ilxaminer, advising of the resignation, effective July 7, 1924, of Mr. J. B. Atkins Assistant Federal Reserve Examiner, and requesting permission to fill the vacancy thus created at a salary not to exceed c'2400 per annum. Upon notion, the resignation of Mr. Atkins was accepted and authority to employ a successor was granted. 'Report of Committee on Salaries and Expenditures on letter dated Jane 20th from the Secretary of the Federal Reserve Bank of Cleveland, requesting approval of increases for Messrs. J. M. Miller d C. C. Halloran, employees of the bank; the Committee recommending approval. Approved. Report of Committee on Salaries and Expenditures on letter dated June 18th from the Chairman of the Federal Reserve Bank of Philadelphia, requesting approval of the action of the directors of that bank in declaring a dividend for - per annum on the the six months' period ending June 30, 1924, at the rate of es; paid-in capital stock of the bank; the Committee recommending approval. Approved -3- 6/25/24 Report of Committee on Salaries and Expenditures on letter dated June 19th from the Chairman of the Federal Reserve Bank of 3t. Louis, 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% per annum on the paid-in capital stock of the bank; the Committee recommending approval. Approved. Report of Committee on Salaries and Expenditures on letter dated Jane 21st from the Chairman of the Federal Reserve Bank of Kansas City, requesting approval of the action of the directors of that bank in declaring a dividend for the six months' period ending June 30, 1924, f.t the rate of 6`;‘; per annum on the paid-in capital stock of the bank; the Committee recommending approval. Approved. Report of Committee on Salaries and Expenditures on letter dated Jane 20th from the Chairman of the Federal Reserve Bank of Dallas, 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 qo per annum on the paid-in capital stock of the bank; the Committee recommending approval. Approved. Report of Committee on Salaries and Expenditures on letter dated June 19th from the Chairman of the Federal Reserve Bank of St. Louis, advising of the resignation of Ur. John J. Heflin, Manager of the Mbmphis branch and requesting approval of the following appointments, effective July 1,1924, made necessary thereby: V. S. Fuqua, Manager, - c5,000 per annum 3. K. Belcher, Cashier, - Q4,000 per annum C. 2. Martin, Assistant Cashier, - ;3330 per annum 11111 -4- 6/25/24 The Board's Committee in its report recommended approval of the foregoing appointments. Approved. Draft of letter dated June 23rd to the Federal Reserve Agent at Chicago, advising that the Farmers State Savings Bank of Milford, Michigan, which has Made application for surrender of stock, based on a reduction in capital of il:25,000, should file formal application with the Board for por= mission to make such reduction. Mr. James moved that in communicating with the Federal Reserve Agent at Chicago his attention be called to the fact that permission to reduce capital of the Milford bank should have been secured before he transmitted its application for surrender of stock. Carried. At this point, Mr. Cunningham entered the meeting. Report of Committee on Salaries and Expenditures on letter dated June 20th from the Chairman of the Federal Reserve Bank of New York, requesting approval of the aipointment of Ur. Ray M. Gidney as Comptroller at Large, to take care of the Bank Relations work of the New York bank, at a salary of ,)1.2,000 per annum; the Board's Committee, with the exception of mr. Miller, recommending approval. Mr. James moved approval of the salary recommended. Mr. James' motion being put by the chair was carried, the members voting as follows: Mr. Platt, "aye" lir. Hamlin, "aye" Mr. James, "aye" Mr. Miller, "no" Mr. Cunningham, "no" Governor Crissinger, "not vot ing" _5_ 6/25/24 Letter dated June 19th from the Chairman of the Federal Reserve Bank of York, advising that Mr. A. B. 2rawbridge, Consulting Architect for the Board and the Federal Reserve Bank of New York,has tendered his resignation to the bank, effective June 30th, and requesting approval of the appointment of Ur. 0. rrT i40 TenEyck, at present employed by the Board and bank as assistant to the Consulting Architect, in the capacity of Building Superintendent at a salary of,77.500 per annum; the Committee recommending approval. Approved. Letter dated June 16th from Er. A. B. Trowbridge, Consulting Architect, suggesting that after July 1st an arrangement be made whereby he would receive a salary of .,;3,000 per annum, plus an expense allowance of '(,,?3,000 per annum, 4A 1 Mr, Hamlin moved that Lir, 2rowbridge be advised that the Board favors a flat fee basis and that if the Board after June 30th has occasion to employ his services it Yill enter into a contract to cover same at the time. Mr. Miller moved as a substitute for Ur. Hamlin's motion that the Board abolish the office of Consulting Architect, effective July 1, 1924. Mr, Miller's motion being put by the chair was carried, the members voting as follows: Mr. Miller, "aye" Er. James, "aye" Mr. Cunningham, "aye" lir, Platt, "no" Mr. Hamlin, "no" Governor Crissinger, "not voting" Mr. Miller then moved that Mr. Trowbridge be advised that the office has been discontinued as of July 1 and that while the Board expects to have occasion to consult him in future it will compensate him for such services on an agreed basis for each specific project., Carried. -6- 6/25/24 Report of Committee on Branches on the matter referred to it on the n of the meeting of Jane 16th, namely, letter dated June 4th from the Chairma Federal Reserve Bank of San Francisco, referring to the Board's Regulations that relative to directors of Branch 2edera1 Reserve banks and inquiring as to s; the paragraph which provides ihat managers Shall be directors of the branche Committee stating that the point raised by Mr. Perrin does not warrant a change in the Regulation at this time. Noted. Report of Committee on Discount and Open Market Policy on the matter June 18th referred to it at the meeting on June 19th, namely, letter dated requesting from the Chairman of the Federal Reserve Bank of Philadelphia, approval of an investmont by that bank in government bonds of a TWM equal to as follows: the capital and surplus of the bank; the Committee's report reading "The Discount and Open Market Policy Committee at its meeting on June 24th adopted the following: The Committee has given consideration to the request made by the Philadelphia Federal Reserve Bank in its letter of June 18th asking for authority to invest in government bonds a sum equal to its capital and surplus, in order to give the bank 'assurance of sufficient earnings to pay diviless dend and operating expenses and really make it very much . market' the money in banks of a competiter nith member Without committing the Board on a question of principle, the Committee is of the opinion that authority to make such investments as the Reserve Bank of Philadelphia asks would at this time be undesirable. It therefore recommends that the authority asked for be not ,granted. The Committee suggests that the question as to Federal or in reserve banks investing their capital and surplus in whole at ration conside for ed part in government securities be schedul " Igents. Reserve and Federal the autumn conference of Governors the Committee's After discussion Lir. Platt moved adoption of granted. be not for aaked ty recommendation that the authori -7- 6/25/24 Mr. Platt's motion being put by the chair v,as carried, the members voting as follows: Er. Platt, "aye" Mr. Miller, "aye" Mr. Cunningham, "aye" Mr. Hamlin, "no" Mr. James, "no" Governor Cris singer, "not voting" Mr. Hamlin stated that he voted "no" as he had grave doubt as to the power of the Board to make any such ruling. Mr. Platt stated that he voted for the recommendation on the theory that it is probably undesirable to make such investments at this time, but that he thinks Congress distinctly contemplated investments by Federal Reserve banks in government bonds and that the time will come when it might be advisable for the banks to buy such bonds to some extent. Mr. Platt then that the question of and surplus in whole for consideration at Reserve Agents. moved approval of the Committee's suggestion Federal Reserve 'milks investing their capital or in part in government securities be scheduled the autumn conference of Governors and Federal Carried. Report of Committee on Discount and Open Market Policy on the matter referred to it at the meeting yesterday, namely, letter dated June 6th from the Governor of the Federal Reserve Bank of Yew York, suggesting the apportionment of government securities and bills between the Federal Reserve banks on the basis of ee.rnings' requirements; the Committee's report reading as follows; "The Discount and Open Market Policy Committee at its meeting on Jane 24th adopted the following recommendation to the Federal Reserve Board: The Board has given further consideration to the basis of apportionment of future purchases of government securities for the open market investment account of the Federal Reserve banks, 6/25/24 -8- "as outlined in a letter to the Board dated June 6th from the Chairman of the Governor's Open-market Committee. The Board's Committee sees no present occasion for the Board's recommending a change of this basis of apportionment. It does, however, recommend that the Board ask the Governor's Open-market Committee to consider at each of its meetings the question of an equitable basis of apportionment of government security purchases in the light of existing conditions and the situation at each of the reserve banks. "The Committee has also given consideration to the suggestion that a reapportionment of government security holdings of Federal reserve banks showing earnings for the first six months of 19:24 in excess of expenses and dividend roquiraments be made in favor of those banks which have shown a deficit during the period, and it is the opinion of the Committee that it would be inadvisable at this time to propose to the Open-market Committee any such reapportionment." Ur. Platt moved adoption of the Committee's report. Carried, Ur, James voting "no". The Governor then presented the matter considered at the meeting on June 21st, namely, report of Committee on Salaries and Expenditures on letter dated June 19th from the Chairman of the Federal Reserve Bank of New York, enclosing copy of resolution adopted by the directors of that bark declaring a dividend for the six months' period ending Jane 30, 1924, at the rate of 6;4; per annum on the paid-in capital stock of the bank - approximately ;313,000 of said dividend to be paid from current earnings and the balance of approximately ,579,0J0 to be paid out of surplus; the Committee recommending approval of the dividend payment and recommending approval also of the suggestion of the the Chief of the Board's Division of Bank Operations, in a memorandum attached to the Committee's report, that no charge should be made to surplus at this time, but that total accrued dividends should be carried as a deduction from 6/25/24 sheet until the end of the year, current not earnings on the bank's balance surplus, if any, will be determined when the exact amount of the charge to for the fiscal period. Approved. ution , upon which he did Mr. Hamlin submitted the followin3. resol not request immediate action: al Reserve Board, "RESOLVED, That in the opinion of the Feder far as possible, without the Federal Reserve banks should, as their open market Dowers use , unduly disturbing mLrket conditions to pay their expenses cient suffi ngs for the purpose of making earni us for making up surpl the of ty abili and dividends; that the avail al, should Gener ney Attor the by deficits in earnings, as ruled nable effort reaso every g makin from not deter Federal Reserve banks making strenuous efforts to secure their necessary earnings, nor from es." along the lines of retrenchment in erpenditur Jane :.4th from the Federal Draft of telegraphic reply to telegram dated the American Bank of Jan Francisco Reserve Agent at San Francisco, advising that for the merger of the First National is ready and anxious to consummate plans Leandro, and requesting an early debank of San Leandro and the Bank of San sed reply stating that the Board cision in the matter by the Board; the propo has received an expected report in will make no final decision until after it the matter from the Chief National Bank aminer of the Twelfth District. Upon motion tie proposed telegram was approved. REPORTS OF S2ANDI1;G COMnI222A.ZS: Dated, June 25th, 25th, 25th, Dated, June 25th, fiduciary powers as Recommending action on applications for this date. sot forth in the Auxiliary Minute Book of Approved. sion of state Recommending action on application for admis individual the in d state tions bank, subject to the condi in the forth n, set as catio appli reports attached to the . Auxiliary Minute Book of this date Approved. "`. -10- 6/25/24 laPORTS OF STANDZG ted, June 25th, com=as (Cont'd) Recommending approval of the application of Mr. 3. E. Connelly to serve at the same time as director of the 2irst N,tional Bank, Milltawn, N.J. as director of the Mtional Bank of New Jersey, New Brunswick, N.J. Approved, The meeting adjourned at 12. p.m. jeer Approved:AO OF / .4WAVA1164.61.4‘.‘6A1'41, • Governor. All ary.
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