The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
p,i9 A meeting of the 2ederal Jeserve Board was held in the office of the l'eaeral :ieserve Board on Friday, June 3, 1927 at 11:00 a.m. PES=T: Vice Governor Platt Mr. Hamlin Mr. Miller Lr. CanninF,ham LcIntosh ir.r. Eddy, Secretary McClelland, Asst. Secretary The minutes of the meeting of the Fedora]. iieserve Board held on the of Lay 27th were read and approved. The minutes of the meetings of the Federal Aeserve Board held on the aften. of Lay 27th and on May 28th were read and approved as amended. The minutes of the meeting of the Executive Committee and the Board On J1140 1st were read and approved as amended. Platt stated that Kr. Wyatt, the Board's General Counsel, pur4114rt to instructions given by him in the absence of Governor Crissinger, we, to liew York on lednesday evening for the purpose of consulting Mr. 41belt Ilathbone, attorney, in connection with the proposed revision of the ()41cl's .iegulation K. , Letter dated June 2nd from the Assistant Jecretry of the Federal 4ellre Bank of ilew -Ark, advising that the board of directors at their rtl title on that date made no change in the ban,Os existing scr:vedule of rates cir discount and purchase. Noted. Telegram dated June 2nd from the Chairman of the Federal eserve °f St. Louis, advising that the board of directors at their meeting on that QuItte made no change in the ban's existing schedule of rates of discount 180 V3/27 -2- 8411 Purchase, Noted. Telegram dated. June 2nd. from the Chairman of the Federal deserve Bank Sau rano isoo advising that the board of directors at their meeting on that date made no change in the bank's existing schedule of rates of discount kW. purchase. Noted. aeport of Executive Committee on letter dated June 2mi from the Comp- troller of the Currey, recommending approval of an increase from ',;3900 to §4200 per and annum in the salary of National Bank Examiner sa. C. Smouse, 44 increase from ,; I 3300 to r,i3600 per annum in the salary of National Bank 4arrlirler S. 7Thitney; the Connittee also recommending approval. Approved. aeport of Committee on Examinations on letter dated May 31st from the ederal deserve Agent at New Yor;c, transmitting and recommending ap- D1*°741 of an application of the American Trust Company, New York, N. Y. tor P"znission to establish a branch at 373 East 149th Street, Borough ot 011%; the Committee recommending that the application be noted with 8,15provai. Noted, with approval. lieloort of Committee on Examinations on letter dated ::ay 31st from the ' eral ileserve Agent at New York, transnitting and. recommending 412,13rov al of an application of the Central Home Trust Company, Elizabeth, or permission to establish a branch at 780 Newark Avenue, corner 0t 0 application l‘th Avenue, Elizabeth; the Committee recommending that the A r, 181 6/3/27 be noted with a.2frroval. Noted,with approval. Letter dated :,:e‘y .31st from the secretary of the Federal Aeserve Bank °t* Clevela.nd,advising of the action of the directors of that bank in rethe salary of ::r. G. A. Stephenson, Manager of the Bank :telations De Partmeat from ,A400 to .,4200 per annum, effective July 1st, and that of P• L. Brumley, transferred from the Bank :aelations Department to the 3411k 2 .xarninations Department, from i;36'30 to 3400 per annum, effective alaY 1, 1927, Noted with approval. Letter dated. June 1st from the federal .:eserve Agent at New York, aCilrising that the Peoples Bank and Trust Company of Passaic, N. J. has hell authorized by the Ban_King Commissioner of New Jersey to establish 4 bl'anch at Summer Street and. Main Avenue, Passaic. Noted. •-e.,I)ort of Law Committee on memorandum dated June 1st from Assistant 001111—, submitting draft of roily to letter dated May 20th from Mr. John Covl requesting permission to continue as a director of the ConestoE7,a --ial Bank and the .")eoples Trust Company, both of Lancaster, Pa. ntil tlarrw. 1: 1928, since withdrawal from the directorate of either of the stitutions in the middle of its fiscal year mi.ht cause comment harm- rill to the bank; the proposed reply statinr;• that the Board will not reresimlation from eitheT directorate before Jaruary 1928, on (Lte it is understood. that he will sever his connection vy'ith 0.t ldast 4.82 6/3/27 -4- °Ile Of the institutions. Upon notion, on recommendation of the Law Committee, the letter submitted by Counsel was approved. Draft of letter to the Federal lieserve Agent at Chicago, prepared by the Secretary in accordance with instructions at the meeting an June 1st, rePlYille to the Federal Reserve Agent's letter of Nay 21st, advising that the Pirst State Bank of Mount Carroll, mount Carroll, Ill, has qualified 171tIl the Auditor of Public Accounts of the State of Illinois for the exOf trust powers; the proposed reply stating that as the First State 1 \ 44143c er Mount /14;arroll at the time of its admission to the Federal Reserve 8Yetem ..ad charter and statutory authority for the exercise of trust powers, the, zcard will interpose no objection to the active exercise of such powers bY the bank, Upon motion, the proposed letter was approved. LIftorandum from Counsel dated May 31st, submitting copies of two letters kiaree, Qsed to him under dates of May 25th and 26th by Counsel for the Federal cve Bank of Atlanta, with reference to the practice recently adopted 1)Y. .4er tai national banks in Alabama of stamping on their cashier's checks the th rase "Not payable through Federal Reserve bank". Noted. IteitOrandum from Counsel dated May 31st on the matter referred to the 440_ utmittee at the meeting on May 13st, namely, letter dated May 11th e t 4- Federal Reserve Agent at Boston with reference to the suzrender ot 4a 41 aeserve bank stock by the Fitchburg Bank and Trust Company of ""e, Massachusetts, as a result of a decrease in the bank's surplus 183 6/3/27 -5- aiceoun.t; the proposed reply stating that since the surrender of stock was tadoe under a mistaken understanding as to the rights of the member bank, the Board is of the opinion that it is legally entitled to have restored. t° it as of the date of cancellation, the 120 shares of stock in the Fed,aeserve Bank of Boston, the cancellation of 'which was approved by the Board on March 15, 1927, upon refund to the Federal Heserve Bank of the amount received in payment of the stock when cancelled. Upon motion, the proposed letter was approved. -port of Committee on 'Examinations on memorandum from Counsel dated 411tY 31st, with reference to letter dated May 19th from the Federal Aeserve 4 "" at St. Louis recommending that the Board grant permission to the L°418ville Isrust Company, Louisville, to issue first mortgage collateral st oonds upon condition that the liability arising therefrom plus the aggregate liability to depositors will not at any time exceed an 4t1114121t equal to ten times its unimpaired capital and surplus; the Committee l'ee"rnending approval by the Board and calling attention to the fact that tile condition recommended by the Federal Aeserve Agent is the same as that 14113()sed by the Board on the Lincoln Bank and Trust Company of Louisville °14 alllY 22, 1925. After di scuss ion, it was voted to approve the recommendation of the Federal aeserve Agent with the uhderstanding that the condition as imposed. upon the Louisville Trust Company will be restated in an affirmative form in a letter of advice to be prepared. by Counsel and submitted to the Board.. 484 6/3/27 -6- IZt Po STANDING COMIITTEES: 1)ateci, Laze 2nd., Datea_ • LAY' 31st, Dated, Jane 1st, 4tad, MaU 31st, : 114teci, Liay 31st, 4te ailr 31st, 1)4(34_ • Alay 3 1st, ba,ted, Llay 613t, Recommending changes in stock at Federal Reserve Bank, as set forth in the Auxiliary Liinute Book of this date. Recommendation.,approved. Recommending action on application for fiduciary powers as set forth in the Auxiliary Minute 3ook of this date. aecommendation approved. Recommending action on application for admission of a state bank, subject to the conditions stated in the individual reports attached to the agplicat ion, as set forth in the Auxiliary ::::inute Book of this date. Recommendation approved. Recommending artproval of the application of Yr. John 71. Barr, Jr. for permission to serve at the same time as director of the 'Citizens Union National Bank, Louisville, Ky. as director of the Louisville Joint stock Land. Bank, Louisville, Ky. and. as dixector of the Union Joint Stock Land. Bank, Louisville, IZr. Recommendation approved.. Recommending approval of the application of Ltr. Henning Chambers for permission to serve at the same time as director of the Citizens Union National Bank, Louisville, Ky., as director of the Louisville Joint Stock Land Bank, Louisville, My. and as director of the Union Joint Stock Land. Bank, Louisville, Ky. Recommendation approved. Recommending approval of the application of Mr. J. C. • "rligelhard for permission to serve at the same. time as director of the Citizens Union National Bank, Louisville, Ky., as director of the Louisville Joint Stock Land Bank, Louisville, Ky. and as director of the Union Joint Stock Land Bank, Louisville, Ky. Recommendation approved. Recommending approval of the application of L*.r. 3. A. Culbertson for permission to serve at the same time as director of the Citizens Union National Bank, Louisville, My., as director of the Louisville Joint Stock Land Bank, Louisville, Ky. and as director of the Union Joint Stock Land Batik, Louisville, Ky. Recommendation approved. :iecornmending approval of the application of Mr. llm. Marshall Bullitt for permission to serve at the same time as director of the Citizens Union National Bank, Louisville, IZT., as director of the Louisville Joint Stock Land. Bank, Louisville, Ky. and as director of the Union Joint Stock Land Balk, Louisville, Ky. Recommendation approved. 185 6/3/27 -7- OF STANDING COEMITTEEal (Cont,d) Dated., alay 318t, Recommending approval of the application of Mr. James Ross Todd for permission to serve at the same time as director of the Citizens Union National Beak, Louisville, Ky., as director of the Louisville Joint Stock Land Bank, Louisville, Ky. and as director of the Union Joint Stock Land Bank, Louisville, Ky. Recommendation approved. Dated, IlaY 31st, Aeoommending approval of the application of Mr. J. D. Stewart for pemmission to serve at the same time as director of the Citizens Union National Bank, Louisville, Ky., as director of the Louisville Joint Stock Land Bank, Louisville, Ky. and as director of the Union Joint Stock Land Bank, Louisville Ky. Recommendation approved. The meeting adjourned at 12:15 p 4Plirovecti Vice Governor.
@FedFRASER