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229 meeting of the Federal Reserve Board was held in the office of the Pectel'al Reserve Board on Monday, March 12, 1928 at 11:00 a.m. P3ESENT: PRESENT LSO: Governor Young Mr. Platt Lr. Hamlin Mr. Miller Mr. James Mr. Cunningham Mr. Eddy, Secretary Mr. McClelland, Asst. Secretary Mr. Goldenweiser, Director of the Division of Research and Statistics. The Governor stated that special order of business for this morning's teetilig would be consideration of the galley proof of the Board's iinnual -deport to Congress for the year 1927. The galley was taken up sheet by 13114et and numerous minor changes were made. Following this consideration, upon motion it was voted that the report be approved for pageproof and referred to the Governor with power as to the date of its submission to Congress and release to the press. Hamlin then presented a memorandum dated March 12th from the Board's Goner , 44 Counsel, submitting a revision of the paragraph, approved for inclusion 14 h &1111tIa1 Report at the meeting on March 9th, discussing the amendment to t 8' the pe.3 ' u eral Reserve Act being recommended by the Board which would specifically i)ro vide for the establishment of foreign branches by state member banks. Upon motion, the revised paragraph was approved. Dr, The Goldenweiser then left the room. minutes of the meeting of the Federal Reserve Board held on March 9th vier e read and approved. BEtialt of egrams dated March 9th from the Secretary of the Federal Reserve eleveland and from the Chairman of the Federal Reserve Bank of 230 3/12/28 U4 date alla -2- both advising that their boards of directors at meetings on that made no change in the banks' existing schedules of rates of discount purchase. Without objection, noted with approval. ieport of Committee on Salaries and Expenditures on letter dated March 44 from the Chairman of the Federal Reserve Bank of Richmond, requesting 41113t°1741 Of the action of the board of directors of that bank in voting to elt " for a period of thirty days from February 24th, with full pay, leave Of abse -floe on account of illness previously granted Miss Mary G. Talcott, 841e• mPlcVee of the bank; the Board's Belay, payment involved. Committee recommending approval of the Approved. Report of Committee on Salaries and Expenditures on letter dated March 1m the Federal Reserve Agent at St. Louis, requesting approval of the t 1°11 Of the Executive Committee of the bank in voting to extend for a per°f th -irty days from March 6th, with full pay, leave of absence on account Or -- e previously granted Mr. J. ;I. Ainkleff, controller at that bank; the 80 ard te Committee recommending approval of the salary payment involved. Approved. Letter dated March 6th from the Chairman of the Federal Reserve Bank of • Ptalicisco, advising that the board of directors of the balk has voted to *41• 18rar Mr. 7. N. Ambrose from the position of Cashier at the head office to t• hat atIti Managing Director of the Los Angeles Branch, effective April 1st, M. Hale, at present Managing Director t t'lle same time to transfer Mr. Ot the Btaalleht to the position of Cashier at the head office; the Chairman that no aajustment in the salaries of the officers is involved. Noted. 231 -,3- Memorandum dated March 12th from the Secretary, advising that all Federal R eserve banks concerned have approved the following changes recommended by fu_ ""e Federal 4eserve Bank of Atlanta in its inter-district time schedule: From ,itlanta to Kansas City -tlanta to El Paso New Orleans to Kansas City .Lew Orleans to Omaha :New Orleans to Oklahoma City iiew Orleans to Memphis ft New Orleans to Houston Birmingham to Omaha Birmingham to El Paso Jacksonville to Little Rock Jacksonville to Denver Jacksonville to Kansas City If Nashville to Houston ONO MIN From three to two days ft four to three days ft three to two days If three to two days If three to two days ft two to one day If two to one day ft three to two days ft four to three days ft three to two days ft four to three days ft three to two days It two to three days Upon motion, the changes recommended by the Atlanta Bank were approved. Report of Committee on Examinations on letter dated March 6th from tlx44 Federal Reserve Agent at St. Louis, with reference to the proceedings stitut d. by the Board looking toward the forfeiture of membership in the 441,41 iieserve System of the Lawrence County Bank of ;;alnut Aidge, Ark.; theicitzaittee recommending that the date set by the Board for its hearing in 414 case be Postponed from March 21st to April 26th, in order that the Federtii aeaerve tile Agent may, as he suggests, postpone the date of his hearing in from March 19th to April 19th. Upon motion, the recommendation of the Committee was approved. Me MOranda 4jarailie r • 11 the or dated march 7th and 10th from the Board's Counsel and Chief respectively, both with respect to letter dated February 28th from "41 iteserve Agent at Chicago regarding the necessity for the filing 4rtalxi aUPPlemental information usually required of state banks admitted 232 3/12/28 -4- to the Federal Reserve System by the Peoples Jayne County Bank of Detroit, 8110oessor to the Peoples State Bank and the :iayne County Home and Savings Ballit, both member institutions; Counsel stating that the requirement for the filing of the supplemental information referred to may be waived by thEl Board and the Chief Examiner recommending that the requirement be waivea, Upon motion, it was voted not to require the filing of the supplemental information referred to. Letter dated March 7th from the Federal Reserve Agent at Kansas City, With r eference to the failure of the First National Bank, Ault, Colorado, 'St the National Bank, Coleridge, Nebraska, the First National Bank, Rartington, Nebraska, the First National Bank, Ralston, Oklahoma, and the Pal*tners National Bank, Philipsburg, Kansas, to pay due regard to the main- totarioe of their reserves during the past few months and stating that in /telllY to letters addressed by him to the management of each of the banks liareal,he has been advised that reserves will be maintained hereafter by 411 ba_. s 44 except the Farmers National Bank, Philipsburg, Kansas, which is 81411143446d; the Federal Reserve Agent also stating that he has been advised bY the Chief National Bank Examiner that in case the active managements Of the several other banks fail to take proper action, there are no cir%tances Which would make it inadvisable for the Federal Reserve Agent to Wilt° eaeh director of the institutions in accordance with Section IV (b) C'f the Board's Regulation D. Noted, with approval. Letter dated March 7th from the Federal Reserve Agent at Kansas City, accordance with the provisions of Section Iv (d) of Regulation 233 -5_ /19 that the Farmers National Bank, Philipsburg, Kansas, the Farmers State 411k, Genoa, Nebraska, the Farmers State Bank, St. Edward, Nebraska, the Pirst N ational Bank, Coleridge, Nebraska, and the First National Bank, Ralston, Okla. have been deficient in reserves during each reserve computatiot period for six or more consecutive months prior to February 1st; the Agent recommending that no action be taken by the Board in the case of 44Y of the banks mentioned since the Farmers National Bank of Philips- 114re has suspended, the Board has instituted proceedings looking to the for feiture Of the membership of the Farmers State Bank of Genoa and the ?armors State Bank of St. Edward, and the Managements of the First National tank Of Coleridge and the First National Bank of Ralston have advised him that their reserves will be maintained at the required level. Noted, with approval. he Secretary then presented draft of a circular letter to the Goyer4or s °f all Federal Reserve banks, prepared at the suggestion of "r. 1 requesting that they furnish the Board with a statement as of March 14 b'—28 Showing the amount of paper held under discount which is secured 1r" 'lateral- and the amount not so secured, as well as the amount of marRite) . " llateral held as additional security. Upon motion, the above letter was approved. NDINGCOMIITTEES: D4teaglUirch 10th, LIarch 9th, Recommending changes in stock at Federal Reserve banks as set forth in the Auxiliary Minute Book of this date. Recommendations approved. Recommending action on applications for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Recommendations approved. 234 -68 OP STANDING OOLUITS: (Oont'd) DEtted, March 8th, Recommending action on an application for admission of a state bank, subject to the conditions stated in the individual reports attached to the application, as set forth in the Auxiliary Minute Book of this date. Aecommendation approved. Dated, March 10th, Recommending refusal of an application for admission of a state bank as set forth in the Auxiliary ::inute Book of this date. Recommendation approved. The meeting adjourned at 12:40 p Secretary
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