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A meeting of the Federal Reserve Board was held in the office of the Board on Tuesday, March 13th, at 11:00 a.m. PRES3IT: Vice Governor Platt Mr. Hamlin Mr. Miller Mr. Mitchell Mr. Hoxton, Secretary Minutes of the meeting of the Federal Reserve Board held on March 8th Were read and on motion approved. The Vice Governor reported the reserve positions of the several FeJeral Reserve banks as at close of busi:-ess March 7th, 8th, 9th and 10th. Letter dated March 9th, from the Secretary of the Federal Reserve Bank °I. Chicago, submitting for approval of the Board, the action of the E.bcecutive Committee of that Bank whereby a net appropriation of A6,390.85 was devot ed to A "'AIX at iOnal purposes for the year 1923, it being noted that the gross ap- Propriation was :37,250.00, but that t859.85 was carried over from last year's 4Clali ni8tration of the Federal Re'Serve Club. Approved. Memorandum dated March 12th, from the Secretary of the Board suggesting 8. rc , 4Y to be made to the letter of February 26th, from the Chairman of the Psderal Reserve Bank of St. Louis, Therein Yr. Martin replies to the Board's letter of February 21st, which called attention to certain items appearing in the 1-u.i. port of :.xamination of the ;'ederal Reserve Bank of St. Louis as of close r business December 2, 1922. Approved. Letter dated March and, from the Assistant Federal Reserve Agent at ?hilacielPhia, with reference to the advisability of making a special exhibit 3/13/23 -2- de lineating some of the operating features of the Federal Reserve System for Presentation at the next annual convention of the American Bankers' Association to be held at Atlantic City, Yew Jersey, September 24th to 27th, inclusive, and stating that after the Federal Reserve Bank of Aliladelphia has had time to plan such an exhibit that it will be glad to submit the plan to the Federal Ileserve Board, for its approval or suggestion for changes. Upon motion, the Federal Reserve Bank of *Ihiladelphia was granted permission to prepare plans for presentation to the Federal Reserve Board, and the Secretary was instructed to advise the Federal Reserve Bank of Philadelphia that while the Board appreciates the value accruing to the Federal Reserve System from such exhibits, it would rot look with favor upon the incurring of more than a very moderate expense for the purpose. C°133T of telegram dated March 10th, prepared by Mr. Miller and making reply to the letter of March 2nd, from the Chairman of the Federal Reserve Bank of San Francisco, on the subject of simultaneous examinations. Approved, having previously been approved by the initials of four members of the Board. Letter dated March 1st from the Chairman of the Federal Reserve Bank of Sexi Francisco, subject,' ,Simultaneous Examinations of head office and branches". Referred to the Vice Governor for reply. Letter dated March 3rd, from the Federal Reserve Agent at San Francisco, stati, "g that letters have been received from the Bank of Italy and the Pacific S°11thwest Trust and Savings Bank, making application for permission of the Federal D, -eserve Board to establish branches de novo at Sacramento and Long Beach, ect-vely, tOt and stating that the banks are being advised that the Board will ' 4"T°Ire furthtr brunches for the California banks row having numerous branches the examination problem is settled. 3/13/23 -3- No ted. Telegram dated March 9th, from the Chairman of the Federal Reserve Bank Of San Francisco as follows: "Mr. McAdoo as General Counsel for Bank of Italy, has just telephoned from Los Angeles request'ng that I place before Board by telegram two points regarding the proposed purchase of the First National Bank of 211 Centro, application for approval of which has been denied. by Board. (1) No section of the state would proportionately be so much benefited as the Imperial Valley by establishment there of branches of large California banks. (2) If present opportunity for purchase of bank mentioned is not now availed of, it may not again be presented. In consideration of these two points, Mr. 1:cAdoo urges that the Board reconsider its disapproval and permit the Bank of Italy to make the purchase, even tholgh not authorizing branch at this time. Please wire reply." After discussion, a reply to the above telegram was ordered postponed, it being the sense of the 'Board that the matter should be taken up again only at a meeting when all members of the Board are present. Draft of a proposed letter dated March 8th, prepare d by General Counsel. Tilia letter was submitted as a reply to a letter of February 20th, from the Pecieral Teserve Agent at San --'rancisco, setting forth certain arrangements by Mr. Perrin with the Superintendent of Banks at California for an E3calrl ination of the Mercantile Trust Company of San Francisco anzl an examine." '" Of the security Trust and Savings Bank of Los Angeles . Mr. Miller stated that the letter prepared by General Counsel, in his opinion, virtually committed the Board to the policy of not allowing Fed.eral Peserve banks to make inquiries relative to credit matters, and matters of intern- 4 , ,71-3 AL_ 3/13/23 -fte -4al organization at momber banks without imposing a charge against the member bank entered by the Federal Reserve Bank for the purpose of making such inquiries, and that, therefore, he would be opposed to the transmittal of the letter submitted by General Counsel. After full discussion, durirr; which Mr. Tyatt was present, Mr. Miller moved that the Federal Reserve Board adopt the principle that when a Federal Reserve Bank, upon its own initiative and for its own purpose and information, enteres a member bank to secure information as to credit conditims and policies, that no charge shall be assessed against the member bank thus entered.; also, that when a Federal Reserve Bank shall enter a bank with branches for the purpose of finding out the nature of the organization and th3 extent of coordination between head offices and their branches, that no charge shall be assessed against the member bank thus entered. Mr. Hamlin moved, as an amendment, that /Tr. Miller's motion he referred to the Law Corntnittee for immediate report. Mr. Hamlin's amendment being put by the chair was carried. Mr. Miller's motion, as amended, was then put by the chair and carried. Upon motion, the draft of letter of March 8th, prepared by GEneral Counsel, above referred to, was ordered referred to the Law Committee for revision, Letter dated March 8th, from the Deputy Governor of the Federal Reserve 1341111 Of Rew York, stating that in accordance with the express wish of Governor Stro, the Board of Directors of that bank had modified their action in voti4g to grant Governor Strong, on account of illness, a leave of absence with 1'1111 PaY for six months, and had vet ed, subject to the approval of the Federal Ilest "e Board, that the leave of absence granted Governor Strong shall carry half Pay. Approved, referred to the Vice Governor for reply. _ A_ 3/13/23 -5- Letter dated March 9th, from the Chairman of.the Federal Reserve Bank Of Cleveland, referring to Board's circular letter, X-3649, dated February 28th, subject, "Advertisement of Member Banks" and inquiring if the Federal Reserve Bank of Cleveland should suggest to its member banks that it will be proper for thosel to advertise that they are under "Federal Reserve Bank Supervision". Approved. Letter dated March 6th, addressed to Mr. Miller by the Honorable Herbert Hoover, Secretary of Commerce, inquiring if Mr. Miller will accept membership 11Pon the Comission to be appointed by the Department of Commerce under the 4Uthor1ty of Congress, to investigate foreign trade of the United States in agricultural products. It was the sense of the meeting that Yr. Miller should accept the appointment proposed by the Secretary of Commerce. COpy of letter dated March 10th, addressed by the Acting Governor to te Secretary of the Treasury, in reply to Mr. Mellon's letter of March 10th, Ila garding the open market purchases of Government securities by 2ederal Reserve banks. Upon notion ordered referred tort.. Miller, as having a direct bearing upon the memorandum which Yr. Miller is preparing Upon the matter of open market purchases, and which at the meeting Thursday, liligilery 8th, was ordered docketed as special order business for March 15th. 00Py of telegram dated March 10th, transmitted by the Vice Governor to Perrin at San Francisco, approving of the employment by the Federal Reserve 11411k Of San Francisco, of Mr. B. Glenwood, as Chief;"rigineer of the new 3/13/23 -6- bank building, at a salary of ;-').3,000 per annum. Approved. Letter dated March 12th, from the Chairwan of the Federal Reserve Bank of York, requesting the a2proval of the employment of 1,7r. Vincent NapoHello " 11 at a salary of :','.21700 to position of Auditing Department's Inspector on the batik building construction work. Approved. Mr. Mill' moved that the forth coming Conference of the Governors Of Federal Reserve banks be asked to discuss the gold policy and. the investment P°11cY in the Federal Reserve System and that the subjects be placed upon the Pli°gram, Carr led. Letter dated March 8th, from the Comptroller of the Currency, reconmending an increase in the salary of National Bank :xaminer Gilbar C. Hedrick from ,„ Ivvu to 24`,3,600 per annum. Approved. Memorandum dated March 13th, from the Assistant Secretary submittino. the l'eai gnation of Mrs. :.'sther Schmehl Miller, an employee in the Division of Bank IC)11°I'ati0n5, salary .1320, effective as of close of business March 20, 1923. Appr oved. Memorandum dated March 13th, from the Assistant Secretary submitting the l'8131 gnat ion of Miss Edith H. Zobel, Comptometer Operator in the Division of 13all> uParations, salary 1600 per annum; also, requesting authority to employ " C IPtometer Operator at a salary not to exceed 11500 per annum. Approved. 3/13/23 -7- S OF COr:ITTEE NO. 1 Dated March 10th, Dated March 12th, Dated March 10th Recommending action on applications for changes in stock as set forth in the Auxiliary Minute Book of this date. Ipproved. Recommending approval of the applicat ion of Mr. David Ingle to serve at the same time as director of the National City Bank, Evansville, Indiana, and of,the First National Bank of Oakland City, Indiana. Approved. Recommending approval of the application of Air. Paul N. Myers to serve at the same time as director of the Merchants National Bank, St. Paul, and as Vice President and director of the Merchants Midway National Bank, St. Paul, Minnesota. Approved. At one-twenty p.m. the meeting adjourned. Secretary. A tProved: Vice Governor.
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