Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, June 30, 1924, Volume 11, Part 2

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I. meeting of the Federal Reserve Board was held in the office of the
Federal Reserve Board on Monday, June 30, 1924, at 2:45 o'clock..
PRESLNT:

Governor Crissinger
Mr. Hamlin
Mr. Miller
Mr. James
Mr. Eddy, Secretary

The minutes of the meeting of the Federal Reserve Board held on June
25th were read and approved*
The Governer announced the appointment of Mr. James as a member of
the Executive Committee for the three months' term expiring September 30,
1924, to succeed Mr. Miller*
The Secretary then announced that Mr. Cunningham had increased the
salary of Miss Leona Beller, stenographer in his office, from ,11500 to
J600 per annum, effective July 1, 1924*
Letter dated June 25th from the Acting Comptroller of the Currency,
requesting approval of the appointment of Mrs. Belle H. Bohn as money counter
in the federal Reserve Is.:ue and Redemption Division, at a salary of .1200
per annum, effective July 1, 1924,
Approved*
Letter dated June 25th from the Federal Reserve Agent at Philadelphia,
requesting approval of the designation of Mr* E. W. Clark as an assistant to
Examiner.
Approved. .

a

Report of Committee on Examinations on memorandum dated June 25th
from. the Acting Comptroller of the Currency, recommending approval of the




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, Vermont, for permission
application of the First National Bank of Fair Haven
000, provided any loans made
to reduce its capital stock from 0100,000 to '.50,
the Board's Committee also
excessive thereby be reduced to the legal unit;
recommending approval.
Approved.
the Treasury Department,
Letters dated Jane 26th from the Chief Clerk of
, charwoman, be dispensed with
recommending that the services of Missouri Hanna
Mrs. Annie H. Smith be
as at the close of business Jane 19th, 1924, and that
tive July 1, 1924.
appointed as charwoman, at 075.60 per annum, effec
Approved.
Federal Reserve Bank of
Letter dated June 23rd from the Secretary of the
directors of that bank in
Chicago, recommending approval of the action of the
ending June 30, 1924 at the
declaring a dividend for the six months' period
al stock of the bank; together with
rate of 6% per annum on the paid-in capit
26th on the initials of members of the
copy of telegraphic reply made on June
Board, approving the payment of a dividend.
the Chicago
Upon motion, the dividend resolution of
directors was formally approved.
Chairman of the Federal Reserve
Letter dated June 19th from the Deputy
val of the action of the directors of
Bank of San Francisco, recommending appro
,
six months' period ending Jane 30.
that bank in declaring a dividend for the
paid-in capital stock of the bank; to1924 at the rate of 6% per annum on the
on Jane 26th on the initials of memgether with copy of telegraphic reply made
of a dividend.
bers of the Board, approving the payment
the San
Upon motion, the dividend resolution of
Francisco directors was formally approved.
to the Chairmen of the
Copies of telegrams dated June 26th and 27th



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6/30/24

Atlanta, advising that the Board
Federal Reserve Banks of Chicago, St. Louis and
y close on Saturday
is of the opinion that those banks can not legall

July 5th,

in which they are located.
unless a legal holiday is declared by the states
were
Upon motion, the above mentioned telegrams, which
ly
formal
were
Board,
the
s
of
member
sent on the initials of
approved.
l Reserve banks, advising
Draft of letter to the Governors of all Federa
Consulting Architect, effective
that the Board has abolished the position of
June 30, 1924.
Approved.
on of Research
Memorandum dated June 25th from the Director of the Divisi
1
of the resignation of Mr. Morris Jacobson,
ance
accept
and Statistics, recommending
as stated in Mr. Jacobson's
Statistician, as of July 31, 1924, instead of June 30th
leave with pay.
letter of resignation, thus allowing him thirty days'
Upon motion, Mr. Jacobson's resignation was accepted
as of July 31, 1924.
ch
Meimorandum dated June 25th from the Director of the, Division of Resear
F. Corcoran, Assistand Statistics, recommending that the services of Mr. Charles
ant Librarian, be discontinued on July 15, 1924.
Approved.
of Research
Memorandum dated June 25th from the Director of the Division
as Research
and Statistics, recommending the.appointment of Mr. Hans A. Widenmann
of
Assistant for a period of three months beginning July 1, 1924, at a salary
250 per month.
Approved.
Letter dated Jane 27th from the Chairman of the Federal Reserve Bank of
that bank in
Philadelphia, with regard to the recent action of the directors of
establishing a flat rediscount rate of 3.



•

,4

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6/30/24
Ordered circulated.

of
Telegram dated June 30th from the Chairman of the Federal Reserve Bank
Committee in voting,
Kansas City, requesting approval of the action of the Executive
of alr
to reduce the rediscount rate of the bank to 4,(i on all classes of paper
maturities, effective July 1, 1924.
Approved.
Letter dated June 26th from the Assistant Attorney General, enclosing a report from the Acting Director of the Bureau of Investigation, regarding the apprehension of G. E. 7,hiteman, former Cashier of the Citizens Vational Bank of
Laurel, Montana, now in the employ of the Federal Reserve Bank of Minneapolis,
for violation of Section 5200 of the Revised Statutes while an officer of the
Laurel institution.
Upon motion, it was voted that the following letter
be addressed to the Federal Reserve Bank of Minneapolis:
"There is transmitted heisewith copy of a letter from
the Assistant Attorney General, which relates to Mr. G. E.
Vihiteman, formerly Cashier of the Citizens national Bank
of Laurel, Montana, who appears now to be an employee of your
bank. The Board desires that the matter referred to in the
communication be given immediate attention by your bank and
that the Board be advised of any conclusions reached."
Report of Committee on Examinations on letter dated June 25th from the
Federal Reserve Agent at San Francisco, transmitting and recommending approval of
the application of the Mercantile Trust Company of San Francisco for permission
to acquire the business and assets of the Valley National Bank of Sonoma for the
purpose of merging it with its present branch at that place; the Board's Committee
recommending approval.




Approved, Governor Crissinger voting "no".

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Memorandum from Counsel dated Jane 17th, with regard to the application
of the Lake City Bank of Minnesota, Lake City, Minnesota, for permission to
exercise trust powers under a recent amendment to its charter; Counsel in
Board
his memorandum stating that there appears to be no legal reason why the
for a
should not approve the applicatidn of the Lake City Bank of Minnesota,
broadening in its functions.
Approved.
Draft of reply to letter dated June 16th, from the Cashier of the
First National Bank of Wills Point, Texas, inouiring whether Federal Reserve
bank stock may be deducted in making tax returns to the state, county or
city; the proposed reply quoting several Court decisions in connection with
rethe inuiry and suggesting that the bank consult its local attorney with
gard to any further questions that may arise,
4

Upon motion, the proposed reply was approved.
Memorandum dated Juno 25th from General Counsel, approved by the
Law Committee, submitting a draft of a new edition of the Board's Regulations
and pointing out and explaining all changes contained in the draft.
Ordered circulated.
- xamination of the Federal Reserve Bank of Kansas City and
Report of i
its branches made as at the close of business on May 3, 1924.
Referred to Committee on Examinations and Committee
on District 410.

iJ

4

of the Federal Reserve Bank of Minneapolis and
Report of .3xamination
its branch made as at the close of business on My 24, 1924.




6/30/24

on

Referred
District

o Committee on ixaminatiois ind Uoniittee

REPORT' OF 52 17DIITC, C0MI.II2211LIS:
Dated, June 26th,
27th,
Dated, June 30th,

Recommending change in stock at 1:1ederal Reserve Banks,
as set forth in the Auxiliary Ilinut e Book of this dat e.
Approved.
Recommending action on application for fiduciary powers
as set forth in the Auxiliary Minute Book of this date.
Approved.

2he meet i

a lourned a

:30 p.m,

/A
ocretary.
roved: