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A meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Friday, June 6, 1924, at 11:10 a.m. PRESENT: Governor Crissinger Mr. Platt Mr. Hamlin 11r. Miller Mr. James !Jr. Cunningham Mr. Noell, Assistant Secretary The minutes of the meeting of the Federal Reserve Board held on June 4th were read and approved as amended. At this point, Governor Strong of: the Federal Reserve Bank of New York entered the meeting and outlinad to the Board the plan of the Qpen Market Investment Committee for apportioning additional purchases of short time on government securities for account of the various Federal Reserve banks the basis Of the earnings of the individual banks during the first five Months of the current year, and the estimated amount of earnings necessary to enable each bank to meet its expenses and dividend payments. After discussion, it was suggested that Governor Strong submit the matter in writing to the Board for its consideration in order that it might then be transmitted to the Federal Reserve banks with the Board's approval, Governor Strong also discussed with the members of the Board the discolant of German trade bills and the proposed investment of a portion of his benk's balance with the Bank of England. At this point, Governor Strong left the meeting. The minutes of the meeting of the Federal Reserve Board held on June Sth were read and approved. The Governor then submitted copies of telegrams sent yesterday 616124 afternoon to the Federal Reserve Agent at San Francisco and to the attorneys for Joseph Herrscher with regard to complaint against the proposed merger of the iirst National Bank of San Leandro and the Bank of San Leandro into a branch Of the American Bank of San Francisco; the telegram to NY. Perrin stating that on account of the complaint the Board will consider the revocation of the permit granted the American Bank of San Francisco to take over the Bank of San Leandro and directing him to make an investigation of the situation. Upon motion, the telegrams were formally ratified. The Governor then presented draft of a telegram to the Federal Reserve gent at San Francisco quoting the text of the complaint made to the Board by the attorneys for Mr. Herrscher. Approved. Telegram dated June 5th from the Federal Reserve Agent at San Francisco, "vising that the Board of Directors of that bank had voted to reduce the discount rate of the bank to 4%, effective June 10th, and to continue the minimum PUrchase rate on bankers acceptances at 2%. Upon motion, the reduction in the discount rate of the San Francisco bank was approved, effective June 10th. The Governor then stated the Secretary of the Board had received word *am a New York newspaper correspondent that the correspondent's New York office had advised him Of a rumor current in New York to the effect that the San Fran- Reserve bank had reduced its discount rate. Upon notion, it was voted that the Board inquire of the Federal Reserve Bank of San Francisco whether it had announced the proposed rate reduction, and if so, when such announcement was made. 6/6/24 -3- Memorandum dated June 5th from the Secretary of the Board recommend.that the services of R. E. Palmer, telegraph operator, be dispensed with by the Board effective as at the close of business Jane ;2nd, and requesting authorto arrange for a temporary operator until a successor to Mr. Palmer can be eqlloyed. Approved. Telegram dated Jane 4th from the Federal Reserve Agent at Dallas, adof the resignation effective June 1st of Er. M. D. Jenkins, Cashier of the Houston branch and requesting approval of the appointment of L. G. Pondrom, at Present Assistant Cashier of the branch, to succeed him at a salary of ‘ /143500 per annum.' Approved. Report of Committee on Examinations on letter dated June 3rd from the hderal Reserve Agent at Cleveland, transmitting and recommamding approval of the application of the Commercial Savings Bank and Trust Company, Toledo, Ohio, 1'14 'Permission to establish two branches in that city; the Board's Committee 4?-eo recommending approval. Approved. Letter dated Jane 5th from the Federal Reserve Agent at New York, adthat in anticipation of moving into their new building the bank has 4otaed to draw dawn its vault supply of $5 Federal Reserve notes to a minimum () Perhaps 4,000,000, without further shipments from Washington until they are 4ble to use the vaults in the new building. Noted. 1 ) 6/6/24 -4- Letter dated Jane 4th from the Assistant Federal Reserve Agent at Chicago, transmitting copy of a letter sent to state banks in Michigan by the Commissioner of Banking with regard to the Board's Regulation H, Series of 1924* Noted. Letter dated June 3rd from the Assistant Federal Reserve Agent at Chicago, transmitting advertising matter issued by the Peoples Reserve System, Inc., Chicago, Illinois, and copy of a letter from the Cashier of the Irving Park Xational Bank of Chicago complaining against the name of the corporation. Referred to the Law Comattee for the preparation of letters bringing the name of the corporation to the attention of the Attorney General and the Postmaster General. Memorandum dated June 4th from the Deputy Comptroller of the Currency, opioting from a recent report of examination of the Central State National Bank Of Menaphis, Tennessee, information with respect to the practice of Memphis balaksin permitting withdrawals from savings deposits without presentation Of pass books. Referred to the Law Committee* Memorandum dated June 5th from the Committee on Currency, recommendthat the Board adopt the following policy recommended by the recent Governors Conference: That Federal reserve banks be permitted to make Shipments to member banks of an adjacent district upon the application and approval of the Federal reserve bank of the district in which such member bank is situated. 6/6/24 -5- "The Board recognizes that there are many objections to this procedure as a practice, both theoretical and practical, and, therefore, the use of the plan should be resorted to only in special cases of emergency, or in isolated cases where for geographical or other reasons it is peculiarly desirable to do so, and then only upon the request by one Federal reserve bank of another". Upon motion, the recommendation of the Committee on Currency was adopted. Report of Committee on Salaries and Expenditures on letter -dated June 3rd from the Chairman of the Federal Reserve Bank of New York, requesting 413Proval of the appointment of Charles L. Sakon, elevator mechanic, at a salary of N 2600 per annum; the Committee recommending approval. approved. Report of Committee on Salaries and Expenditures on letter dated Ilar 28th from the Federal Reserve Agent at San Francisco, requesting authority to Make certain charge offs for depreciation on bank building at the end of kilo and to set up certain reserves for probable losses; the Committee recom4end1ng approval of a form of letter to all Federal Reserve banks on the subject "Nrmemt of Dividends on June 30, 1924", and advising that the books of the hderal Reserve banks will not be closed on June 30th nor will any reserves be ilet up at that time to take care of depreciation, to cover losses or for other PUrposes. Upon motion, the proposed letter was approved. At this point, the Secretary of the Treasury entered the meet 12,; and toOk the chair. -6- Folloming a genoral discussion of the matter of appointing a Federal Reserve Agent at Minneapolis to succeed Mr. John H. Rich, deceased, it was voted that further consideration thereof be postponed until the meeting on Tuesday, June 17th. ORTS OF STANDING COILIIT22.E'S: Recommending changes in stock at Federal Reserve banks, as set forth in the Auxiliary Minute Book of this date. Approved. nding action on application for fiduciary powers Recomme Dated, June 6th, as set forth in the Auxiliary Minute Book of this date. Approved. Dated, June 6th, Recommending action on application for admission of state bank, subject to the conditions stated in the individual reports attached to the application, as set forth in the Auxiliary Llinute Book of this date. Approved. Dated, June 5th, The meeting adjourned at 12:50 p.m. Assistant Approved: ecretary.
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