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A meeting of the Federal Reserve Board was held in the office of
the Federal Reserve Board on Friday, March 14th at 11:15 a.m.
PRESENT:

Governor Crissinger
Mr. Platt
Mr. Hamlin
Mr. Miller
Mr. Cunningham
Mr. Noell, Assistant Secretary

The minutes of the meeting of the Federal Reserve Board held. on
March 12th were read and
approved.
Memoranclmm dated March 12th from the Director of the Division of
Research and Statistics, transmitting the resignation of Miss Alice F.
Isakson, statistical clerk, effective May 1, 1924, and recommending
the extension
from March 31st to April 30th of the temporary appointment of Mrs.
Margaret Hammond who is being trained to take over Miss
Isakson's work, and stating that in case her work continues to be
satisfactory
it is hoped to add her to the permanent staff of the
Division on May 1st.
Upon motion the resignation of Miss Isakson
was accepted and the extension of Mts. Hammond's
appointment was approved.
Report of Committee on Clearings recommending approval of the
recommendation
of the Leased Wire Committee that Paragraph 9 of the
Leased Wire Regulations,
contained in the Board's letter of February 1,
1922 (X-3337) be amended to read:




"Leased wires should not be used for tracing
non-cash collection items nor for transferring
proceeds of collection items sent direct between
member banks".

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This recommendation having been approved yesterday
by the initials of six members, that action was upon
=lotion formally ratified.
Letter dated March 7th, from the Governor of the Federal Reserve Bank
°f aan 'Francisco transmitting copy of a letter from the Secretary of the
Upper Snake River Bankers' Association, quoting a resolution adopted by
that Association opposing the establishment in the state of Idaho of a
branch of the Federal Reserve Bank of San 2rancisco.
Referred to Committee on Branches.
Letter dated March 7th, from the Chairman of the Federal Reserve
Bank Of
San Francisco transmitting a tabulation Showing the source of
deposits

and distribution of loans of the Bank of Italy and the Pacific

Southwest Trust and Savings Bank by districts.
/Toted and ordered circulated.
Mr. Miller then suggested that the Board should have made a systematic
study and
investigation of branch banking, showing the laws of the various
states,

etc.

After discussion, Mr. Miller made the following motion:
"It is the sense of the Board that a systematic study
and investigation of branch banking should be made, and to
this end that the Director of the Division of Research and
tatistics be requested to advise the Board whether his Division could undertake such a study and, if so, to prepare
and submit to the Board a plan for such study and investigaticn,fl




Mr. Miller's motion being put by the chair was carried.

3/14/24

Report of Committee on Salaries and Expenditures on the matter
referred to it at the meeting on Mamh 12th, namely, telegram dated
Marth 11th from the Chairnan of the Federal Reserve Bank of Dallas requesting approval of certain changes in the official personnel of that
bank and
its branches, made necessary by the resignations of Deputy
Governor Emerson and Manager Weiss of the El Paso Branch.
The Committee submitted a report in which Messrs. James and
Dawes

recommended approval of all changes and Mr. Miller recommended

aPProval With two exceptions, namely, salaries proposed for V. J. Grand,
3Deputy Governor and W. J. Evans, Assistant Federal Reserve Agent.
After discussion, it was voted to postpone
consideration of this report for a full meeting
of the Board.
The Law Committee then submitted draft of a reply to letter dated
Llarch

6th from the Cashier of the Federal International Banking Company

Of 1Tsw Orleans submitting for the Board's approval, forms of stock certificates
Board

and fractional stock warrants; the proposed reply stating that the
does not undertake formally to approve stock certificates or stock

walirants, but requires them merely in order that they may be on file with
it as a
matter of record.
Upon motion, the proposed letter was approved.
Report of Law Committee on matter referred to it at the meeting
Pebruary 28th, namely, letter dated February 25th from the Federal Reserve




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Agent at Dallas with regard to the application of the First National
Beak of San Angelo, Texas, for the reissuance of Federal Reserve bank
stock previously au.rrendered by it upon reduction of surplus; the Law
Committee presenting a memorandum from Counsel stating the opinion that
the First National Bank of San Angelo is legally entitled to have restored to it, as of the date of surrender, shares of stock in the Federal
Reserve Bank of Dallas, the cancellation of which was approved by the
Board, upon refunding to the Federal Reserve bank the amount received in
Payment for the stock when cancelled.
Upon motion the recommendations contained in
Counsel's memorandum were approved.
The Governor then stated that Messrs. Delano and Graham, directors
Of the Federal Reserve Bank of Richmond, had called on him this morning,

and stated that at the meeting of the Board of Directors of that bank held
Yesterday, considerable confusion had resulted because of the fact that
the Board had not yet advised the bank of its action on the request of the
directors that reconsideration be given to action taken at the end of the
of certain
Year in disapproving recommendations for increases in the salaries
(I fficers at the head office.
After discussion Mr. Miller moved that reconsideration of the Richmond salary recommendations be made
special order for a meeting to be designated by the
Governor.

Carried.
Mr. Cunningham, Chairman of the Committee on District ,10, stated
that the Committee on Branches had referred to him the letter dated Ltrch let




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3/14/24

from the Governor of the Federal Reserve Bank of Kansas City re,Iuesting
approval by the Board of the action of the directors of that bank at their
meeting on February 28th in authorizing him to execute a contract for the
exchange of the lot now owned by the bank in Omaha, for a more desirable
one On which to erect their new building.
Mr. Cunningham stated that the Board was not in possession of
particularly
'information which would enable it to approve the arrangement,
the clause which provides that the Federal Reserve bank Shall pay a rental
Of „:1,200 per

month for its present building until such time as a new

the
building is completed, on the lot to be acquired by it, and occupied by
bank.
After discussion, Mr. Miller moved that it is the
sense of the Board that the Governor should send a telegraphic inquiry to the Federal Reserve Bank of Kansas City
requesting full information as to the circumstances surrounding the proposed exchange of lots, with request for
information as to the present appraised value of the two
properties and by whom the appraisal was made.
Mr. Miller's motion being put by the chair
was carried.
Mr. Platt then brought up the natter referred to the Law Committee
confollowing the last Governors' Conference, namely, the re(luest of the
used
ference for a ruling by the Board interpreting the word "borrower" as
in Paragraph 4 of Section 13 of the Federal Reserve Act.
mitted a memorandum from Counsel statin

Mr. Platt sub-

that the Board previously has held

that the maker of a note should be considered the borrower, unless it ap-




t

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Pears that he is an accommodation maker, in which event the endorser who
receives the benefit of the loan should be considered the borrower, and
stating that in his opinion the position formerly taken by the Board is
correct.
After discussion, Mr. Hamlin moved that the
Board's previous position be reaffirmed and that a
letter along the lines of Counsel's memorIndum be
sent to all Federal Reserve banks.
Carried.
phia
Letter dated March 13th from the Federal Reserve Agent at Philadel
submitting reports of two irregularities brought out during a recent examination of the Security Trust and Safe Deposit Company of Wilmington, Delaware.
Referred to the Law Committee,
recomLetter dated March 14th from the Comptroller of the Currency
Ilending approval of an increase from $2700 to 0300 per annum in the salary
Of national Bank Examiner H. A. Graham.
Approved.
Mr. Miller then reported that it is his intention to visit New York
text week and stated that he would like to arrange with the Federal Reserve
bank that Mr. L. R. Rounds, Its General Auditor, be detailed temporarily to
the Board for the purpose of assisting in the work of the Committee on Economy
and Efficiency,




After discussion, Mr. Miller was authorized
to undertake to make an arrangement with the Federal

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Reserve bank and with Mr. Rounds, with the
understanding that he would report to the
Board before making any definite commitments.
REPORTS OF SIWUDING COMMITTES:
Recommending changes in stock at Federal Reserve
banks, as set forth in the Auxiliary Minute Book
of this date.
Approved.
Dated, Miirch 14th, Recommending action on applications for fiduciary
14th, powers as set forth in the Auxiliary Minute Book
of this date.
Ordered held.
Dated, March 14th, Recommending approval of the application of Mr.
Alvah Miller to serve at the same time as director
of the Ossining National Bank, Ossining, N.Y. and
of the Hardman National Bank, New York City and
of the Mechanics Bank, Brooklyn, N.Y.
Approved.
Dated, Llrch 14th, Recommending approval of the application of Mr.
A. L. Humphrey to serve at the same time as director
of the First National Bank of Pittsburgh, and of the
Peoples Savings and Trust Company of Pittsburgh, and
as director and chairman of the Board of the First
National Bank of Swissvale, Pa.
Approved.
Dated, March 14th, Recommending approval of the application of Mr. C. C.
Taylor to serve at the same time as director, Vice
President and Cashier of the First National Bank of
Pittsburgh, Pa., as director and Vice President of the
East Illnd Savings and 2rust Company of Pittsburgh and
as director of the Oakland Savings and (2rust Company of

Dated, March 14th,

Pittsburgh, Pa.
Approved.
The meeting a

t 12:45 p.m.

AssistantSecretary/4
Approved: