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369 A meeting of the Federal Reserve Board was held in the office of the ?edorai ileserve Board on 'dedne d.ay, June 3, 1925 at 11:15 "D211• Governor Crissinger Lai. Platt Lir. Hanlin Lir. :diller hr. James Mr. CUI111 -,11ara Mr. McIntosh Mr. Eddy, Secretacy Z-3 minutes of the meeting of the Federal Reserve Board held on June 21Id were read and approved. The Governor called up for consideration the special order b-,isinc,Iss aal-d the Committee on Branches, the CommitteeJalaries, Expenditures and f icieucy and the Committee on District 45 than Submitted a joint report "e0,':.ard. to the rocommendatIon of the Board of Directors of the :Federal ' te8erve Bank of ,lichmond that a branch of that bank be established at Charlotte, i:orth Carolina; the Committee's report reading as follows: "Your Committees have examined the data presented to the Board with reference to the establishment of a branch of the Federal _Reserve Bank of Aiciamond at Charlotte, LT. C., and after careful consideration beg to submit the following comments and recommendation: 1. The Charlotte banks would doubtless benefit somewhat from the establishment of a branch at that point, but as the City is within overnight train schedule from Ilichmend and therefore already receives reasonably prompt service on its cash, transit, and discount transactions, the advantages of a branch would not be material. 2. As to the banks in the surrounding territory, it is doubtful whether they would reap any noticeable benefit from havin- a branch in Charlotte. 3. The reports submitted by the 'Federal reserve bank indicate that the additional cost to the reserve bank of maintaining the branch, after allowing for the resulting savings at both ilichmond and Baltimore would be in the neighborhood of 400,000 a year. At the present tin's the Iiichmond bank, is not making sufficient earnin-s to cover its current expenses, depreciation charges anx.1 dividends, and during 1924 the excess of earnings waS only 426,540. 4. Zirhile the establishment of a branch in the Carolinas mirtht be the means of bringing some additional banks into the System md ;•-•)" U J-„ stem in ttor f in-: toward t: .1=ht cf,ato a soL:r,:hat that : oc t ion of tlic c ountry, your O::Jtt3O3 10 not 1)01Iwo that this would jc.stif-„- the .7.:Iditional C70-13C, 3co1dly at a tine 7:hen the 2ederal reserve buiTh is not nia:7i.11oacis, , fici3nt oc.rnins to cover all of it and other eh: ri-os. 5. :four Jomittees t:,,,Jfefore recommead that the es-tablisll=t of the proposod branch be disa_2rove3. by the Pederal 2Loservo Board. (Ji-ned) H. J-11-oilinforz2 1 concur in the conclusion of the Co.zal ttoo, and believe that at the 2rosent tiy.e it would not ho advisable to establish a "..107 2odoral ..sserv-) branch. i reserve the rijat, however, whoa conditions have chiol, to brin - 1/1„ the natter a-;ain. (UiBned1; V • 0• Ha.;,11in I' .ilfter discussion, ir. 21 et t moved that the report be accepted With the uuJerstandins^ that te matter will not azain be braajht before the Board before DoceZpor 1st, ne::t. lcr moved as a suh5tltd.lto for Li-. notion that the report of the %() nittees be rocc)ivod, its rocol=ondtions c.doptea and that the 2ederal .Lesorve 3a:c12.. of ..Lichnond be advised that su,pleuontar;)- data Lam the. ..;oard 011 by the ban:: is of the o.,)iltion that naco Is uo present occasion for the estz.blishent of an ad.Leservo iistrict. bfaJch in the :ifth 1.:r. Platt accepted the above substitute, =,s.carricd, ',4)vernor 7:11ch boin-L; put by the "no". Orissinor ;Tot 21 .2z _rriernor then stated that the ne:zit order of i)U51d033 weld be the n- S 4. ; Is• - ras t Company for John U. jr1-12:1, President of the ;. ,:ercanti13 2 e()ftsileration by the Board of its action of October 28, 1924: in disapprov110 -3 cation for pcnni salon to purchase the Ban':: of Burlinpcmo to ostabl ish brrl.r.ches .at that point, as well as the desire of t;:':le o T(0719,so I.!traTtuo O qc uo. IZ 4uTe frilq pum2uTiaTIE Jo Ir.u7,37Oi;;;-:77'elLoano: -1 JO TTOT 9IZJO77 7:nr„:, OTIIcT 011:4 SuTAoa(Y-asTp UT -vau 65; acq04co Jo uoT4m saa-coz pO'01t TIDAL9, TeTsi •.1.7 atio,JO UOT or-caopT SIT0 .,•uoTor-coTT(T'e T.zoT4o,r3 anoTAaaj soj Jcit)Tsuoo5a pxecz oq4 O4 00uCJOJe1X oAou I 'sn 9.10joct °Ito IZTuo utq. sT uoTfrooTIcTjt oLm7uTIJnej aql su yt -cur: stiOTqc -ErfOa C I-par:307 OuA. 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JaLies, "no" (.11,rinin -7712,2n, "no" , "no" 71ayea Platt's Thereupon e;',s-aed :iscussion Inerzoranium and Y/21.0 tiler or not the Tiarlixicane application coul4 properly be c3nsider,-Dd as havin7 been f - ilel prior to ?ebruary 1, 1924, follo-vilL: 'Ir. Flatt the followin--- riotioil for con:;: leration: "In view of the fact that the Mercantile Trust Company, throu -h the letter of dent of :.:ay 13th and his state..te--,ts to ::,)ssrs. Crissin:er and Miller,nembors of • Execative Comiitte,?,, at an infomal hearin 6th, has shorn that its ap1icatioa for perm'.5sjion to absorb the T3an:: of irliname and. its branch and to orerate same as branches, which was disapprovea by the '1oz.,..rd. on October 26, 1924, clearly comes within the provisions of the 3oard's re -Allations and its resolution of January 7, 1924, the application of the Mercantile ?rust Company to consolidate the 13ank of 3urlin7z.lo with a view to establishins branches is hereb:approved," iifter discussion, it was voted. to po st pone ccsic1oration of the above mot ion in order to afford 1,:r. Platt an opportunity to revise same. this point, 7.7.r. :S.:Unto:3h left the meetinc. ,rnor of the 173cleral , Letter dated June ls t from the De,f;Jty Covc. (!) 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A. 3. trowbride aavlsin that it now seams desirable to the Boa:d and to the Directors of the Federal :,Zeserve Balik Of Atlanta that his full services as Consult in Lrchitect be employed in connection with the proposed Birmin:tam Branch bailainr.7 and stati-rIc that the Board will compensate him to the extent of ',1250 and. that the • difference between that fir3ure and one per cent of the cost of the preposed bui1din7 will be raid to him by the .2t1anta approved. Letter dated June 1st from the Chairman of the 74deral aeserve Ban..17. of Boston, incluirim, .: whether there muld be any Objection to trustee of a mutual savin7a bank in Vermont serviu7 as a.•Class "3" director Of the Federal aeserve Bank". Upon motion, it was voted that the 73oard should interpose no objection. 2.:emorandum dated June 3rd from the Thief of the Division of 3aak °,20rations calling attention to the reduction in the reserve ratio of the -leral ieserve Bank of St. Louis to 46.2i; on June 1st, due principally to increased purchases of n.over.tlneat securities on account of the recent reallotmeat of the System's seneral account and. statin7 that a further con- siderable reduction in .the bank's reserves would necessitate its re• discountins- with other 2eicra1 .,esevve Upon motion, the above 211:oran1-an was ordered circulated 2..lon7_- the members of the .oard for their inf or.t.at ion. ...:r. Platt then aanounced that in accordance with the established -d 1od -the sal al'y of his ...ocrotary, Policy of the 7oa..-3. Joseph L. D arland, from 2.900 to v. 000 per amwll, eff(73ct ive June 1st. J;.,.m;s also announced that :le had increased the sal Ve June —Jy, from. •,2350 to 3f I-is 2950 per annum, effective • - :ash]nfjton toni-ht to Governor 0riosin-er stated ho was leavin: attend a balfersi convention in.Ohio and would be absent for two or three J2ij.i Ii aecomu2nd1nfs approval of the application of Lr. 'nee z,tempfel to serve at the same t im3 as officer and director of the 21etcher .anlerican iatioiial 3m of Indianapolis, Ind. and as director of the 3e1pont of Indianapolis, Ina. jt,!:.te Approved. =d, June 1st, aecommenqins approval of the application of stoat to serve at the sa..13 time as director and officer of the 21otor .morican :ational Ban:: of Indianapolis, lad., and as director of the Belmont State Bam of Indianapolis, Ind. Approved. Dated, June 1st, .::ecommendins• approval of th:.-3 application of f Oh D.': tor L. 2.obinson to servo at the same time as officer of the 2letchor American ::..tional Dan:: of Indianapolis, Ma. as director of the 7irjalia Avenue ,itato Ban:: of Date s, 4 e—) d tk) Toi'us Indianapolis, raa.,' and as cirector of the. '101 . Jcunty ,Jtate Lank of 771.3,, Ind. 41.-.Lf2coved. God, June 1st, ..loccinmend ov1 . of the liotioi of joa"4 Itoy J. 3haneberger- to serve at the' sam,e time at Ltrector of the _Fletcher. Ari.ricall National La-&: of Indiana-f*lis, Ind. anA. .us director of the Virinia Avenus Jtato Lank of.indianapolis, Ind. 1:1p.pro7ed.., Juno 13t,.-:.0c;emmndn7 of. the applicatio - of smith to serve at the 'so. time as lirector and of'her of and as director of t7-iont :Jtato of olis, •.4.4.721007, Juno 1St, 2i.oeon.Ifyidinoval. of tho ap lica 1 24: Justav i. LIA.ieller to - serve at the s'z.,,41e ti= as dIrocto .Ind'officer of tho 10tar .iimoriean National Bank 'of Indic!nafolis, Ind.'and as direeter of the: Belaont. 6tatc 3;?,nk of .I11.77.iano110 1 ind.• rdver1. lot, a,-H: - rovaa of the a•],plio;,.,tion.of jeor!:se (j. 17o,Jr., to 3orvo at the swne time as officer anf-c :.7octor of the 2lotc1er .iincricau liationaf - ank of india.:lapolis, Iul. alad as officer alld ..:Lirector of the 3ellnont Jtato Batk of Indianolit, In., and at, director' 'of -the Virinia venue Jtato Bank of Indianapol Ind. 70a. 2110 io tinBadjnurneJ ovo. . 17)• ,
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