The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
273 A meeting of the Federal Reserve Board was held. in the office of the Pederal Reserve Board on Thursday, March 18, 1926 at 10:45 a.m. PRESENT: Vice Governor Platt Mr. Hamlin Mr. Miller Mr. James Mr. Cunningham Mr. Eddy, Secretary Mr. McClelland, Asst. Secretary The minutes of the meeting of the Federal Reserve Board held. on •1011 16th were read and approved as amended. 43' Telegram dated March 17th from the Chairman of the Federal Reserve Ballk of Philadelphia, advising that the board of directors on that day 1/1840 no change in the bank's existing schedule of rates of discount and Nrchasee Noted. Telegram dated March 17th from the Chairman of the Federal Reserve 14841: of St. Louis, advising that the board of directors had made no change the bank's existing schedule of rates of discount and purchase. Noted. Bond of Mr. Thomas M. Jones, Assistant Federal Reserve Agent at the Pittsburgh Branch of the Federal Reserve Badk of Cleveland, in the 841°1111t of 50,000. Approved. Letter dated March 16th from the Chairman of the Federal Reserve 1341 Of Boston, advising that Mr. Charles H. Manchester, Class C Director Of the Bank, has resigned as trustee and member of the board of investment Of the Peoples Savings Bank of Providence; the letter stating that this 274 3/18/26 —2— action was taken as a result of the recent opinion of the Attorney General l'egarding the eligibility of trustees of mutual savings banks to serve as Class B and C directors of Federal deserve banks. Noted. Letter dated March 17th from the Chairman of the Federal Reserve 4 B4111C of Philadelnhia, advising that the recent opinion of the Attorney ci regarding the eligibility of trustees of mutual savings banks t° serve as Class B and C directors o, Federal Aeserve banks affects two °f the directors of the Federal deserve Bank of Philadelphia, Mr. Edwin ,,tuart who is a director of the Western Saving Fund Society and Mr. I 4.14 B. Johnson, a director of the Philadelphia Saving Fund Society, and also Governor Norris who is a director of the Beneficial Saving Fund Society; the Ohairman describing the institutions as philanthropic and stating they 1147s heretofore been classed with hosT)itals, homes, etc., and not with b Irs, deferred to Counsel. Letter dated March 16th from the Federal 2eserve Agent at Chicago, l'eferring to the recent opinion of the Attorney General, holding a trustee, c)ff icor or employee of a mutual savings bank ineligible to serve as Class 01 'C director of a Federal 2eserve bank, and stating he assumes that on the .s has1 of this opinion a director of a national bank who is also a director 1. a mutual savings bank must file an ap-olleation for permission to so serve. Referred to Counsel. 1A Liemorandurn from Counsel dated March 18th, submitting for publication ill the forthcoming issue of the Federal Aeserve Bulletin the Board's recent 275 3/18/26 ruling on the eligibility for discount of factors' notes covering advances to producers of eggs, poultry and butter and the recent opinion of the Attorney General with reference to the eligibility of a trustee, officer, or employee of a mutual savings bank to serve as a Class B or 0 Director Of a Federal Reserve bank. Approved. Report of Committee on Salaries and Expenditures an letter datedllaroh 12th from the Chairman of the Federal Reserve Bank of Kansas City, requesting aPproval of the employment of :Ir. Oliver Arnold as special agent to look after the collection of rediscounts held from the failed Stockmen's National 44k, Brush, Colorado, at a salary of .3,000 per annum; the Committee recom111°114111c approval. Approved. Report of Committee on Salaries and Expenditures on letter dated March from the Federal Reserve Agent at Dallas, advising of the resignation Of Mrs Albert E. Lanier, a Field Representative of the Bank Relations Departeat, and requesting the Board's approval of the appointment to the vacancy, Itt 4 salary of 3,000 per annum, of Mr. W. C. Franklin who has been doing te/1114rary work in the Insolvent Banks Department; the Committee recommending 4Dproval, Approved. Report of Committee on Examinations an letter dated February 28th from 4111 'John Perrin, then Federal Reserve Agent at the Federal Reserve Bank of 844 Praacisco, recommending that the salary of Mr. Allan Sproul, Assistant l'ecleral Reserve Agent be increased from 45600 to i-)6500 per annum, and that 276 3/18/26 —4- tile salary of Miss Helene S. Eichakor, Secretary to the Federal Reserve Agent, be increased. from i;175 to .r. 250 per month; the letter stating that the present l'edera.1 ileserve Agent, Mr. Newton, concurs in the recommendation. During the discussion which followed, Mr. Miller su:gested that the increases recommended were excessive and expressed the opinion that a .3,6100 a year increase for each employee would. be sufficient at the present time. Mr. James then moved that the matter be referred. to 11r. Miller, as Chairman of the Board's Committee on District 412, with the request that he address a confidential letter to Mr. Newton ingairinc, , whether it would be satisfactory to him to have the proposed increases reduced. Carried. Ile-Port of Committee on Examinations on letter dated March 11th from the Reserve Agent at Boston, with further reference to the application Of the Union '.2rust Company of Providence, R. I. for permission to establish el bra:Lich in Pawtucket, which the Board on February 15th voted to approve aubject to the receipt of a favorable recommendation from the Directors' °°rmaittee of the Federal Reserve Bank of Boston; the Agent advising that their Directors' Committee recommends that the application be granted. The Committee on Examinations ca11in attention to the fact that the application has not yet received the approval of the State Banking Department, it was voted to approve same subject to approval by the State authorities. Report of Committee on Salaries and Expenditures on letter dated March 16th -rona the Secretary of the Federal _deserve Bank of Atlanta, ad.vising of the action of the board of directors of that bank in voting to increase the '17 cf r. Roy Lulling, Senior Clerk in the Money Department, from ..;2700 2413 to ,3 000 per annum, effective March 1st; the Board's Committee recommending r 77 2 3/18/26 -5- aPproval. Approved. Memorand.um from Colin-gel dated L:arch 16th, with mference to letter dated March 12th from the Public Printer advising that Congress is preparing to Publish at an early date a complete codification of all Federal laws up to the Sixty-ninth Congress, and asking to be advised as to how many conies will be required by the Board; Counsel stating that his office will need (341Y one copy of the cod.ific at ion, but suggesting that before answering the inquiry it be ascertained how many copies the Board desires for the use members and other offices. Referred to the Vice Governor with power. Mr. James then reported that the Chairman of the Committee on Banking 411c1 Currency of the House of Reprasentatives had requested yesterday that 1.1°11 racmbers of the Board as were available or cared to do so appear before the' Coranittee, and in response to this invitation Mr. Cunningham , Mr. Miller arla he attended. the Conmittee meeting. He stated. that the principal matters clise-uased. at the meeting were the joint resolutions aathorizing the con8trtletion Of buildings for the Baltimore and. Detroit Branches and that the 13arikill and Currency Committee requested. the Board's Committee to furnish celitain data regs.rding the cost of land, buildings, furniture and equipment •4 the Federal Reserve System thich the Board's Committee agreed would be '11111i-shed and is now having prepared. He stated that the Committee also re- cille3tecl information of the subject of charge offs, franchise taxes and, other illf°1111at ion, most of which will appear in the Board's Annual Report. He stated 278 3/18/26 -j- 4 ) that they had, also discussed the open market operations of the System, that lir. Miller had. discussed the subject and had removed certain impressions held members of the House Committee regarding the relationship between the Federal Reserve System and the Bank of England. the He stated that on the whole, Conference had been a most satisfactory one to the Board's representatives alla apparently to the members of the Committee. Upon motion by Mr. Hamlin, it was voted to approve the action of the Board's Committee in agreeing to furnish the information desired by the House Committee. 11.2POIQS OF STAIDING iZecommendinto; changes in stock at Federal i- ieserve Banks as set forth in the Auxiliary Minute Book of this date. Approved. Datea, Liarch 13th, Recommending action on applicat ions for fiduciary powers 14th, as set forth in the Auxiliary Minute Book of this date. Refused. Dated., March 17th, Recommending action on application for admission of state banks, subject to the conditions stated in the individual reports attached to the application, as set forth in the Auxiliary Minute Book of this date. ' Approved. Dated, March 16th, 17th, The meeting adjourned. at 12:00 0 lock. Secretary 441'oved: Vic e-Gov erno r.
@FedFRASER