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L meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Friday, March 21, 192.4 at 11:40 a.m. PEESENT: Governor Criss inger Mr. Platt Mr. Hamlin Mr. James Mr. Cunningham Mr. Eddy, Secretary The minutes of the meeting of the Federal Reserve Board held on March 16th were read and approved as amended. The minutes of the meeting of the Federal Reserve Board held on March 19th were read and approved. The minutes of the meeting of the Federal Reserve Board held on March 20th were read and approved as amended. Report of Committee on Salaries and Expenditures on letter dated March 15th from the Governor of the Federal Reserve Bank of San Francisco, requesting a leave of absence until April 15th on account of illness for Mr. J. P. Blanchard, Assistant Cashier of the Portland Branch, and Inquiring whether it will be necessary to submit an extension to the Board; the Committee recommending approval and suggesting that the Board a advise the San Francisco bank that unless the absence extends beyond total of six months no furthEr action by the Board will be required. Upon motion the recommendations of the Committee were approved. Report of Committee on Branches on letter dated March 15th from the Chairman of the Federal Reserve Bank of Atlanta, advising that at their last meeting the Board of Directors of the bank voted to ratify 3/21/24 the action of the Board of Directors of the Birmingham branch in taking an option of the Victor Hanson property, Fourth Avenue and Twenty-second street , North, Birmingham, -and, subject to the Board's approval, to purchase this lot for the price of ‘,',375,000 cash; the Committee reporting that the Board should interpose no objection to the purchase. Mr. James moved approval of the Committee's report. Mr. Cunningham moved that the natter be laid on the table. Mr. Cunningham's motion being put by the chair was carried, the members voting as follows: Governor Crissinger, "aye" Mr. Platt, "aye" Mr. Cunningham, "aye" %Mr. James, "no" Mr. Hamlin, "no" Letter dated March 17th from the Deputy Governor of the Federal Reserve Bank of Boston, enclosing a momorandum of insurance carried on the building of the bank and on its contents, said information having been requested by Senator Walsh of Massachusetts. Mr. James moved that the Federal Reserve Bank of Boston be advised that the Board has no objection to its furnishing Senator Walsh direct with the information asked for. Carried. Draft of letter to the Chairman of the Federal Reserve Bank. of Atlanta replying to his letter of March 12th, stating that the Executive Committee of the bank would be glad to have an expression of the Board's Opinion relative to the practice of the Bank of Wadley, Wadley, Georgia, 3/21/24 -3- of financing interests represented by its financial agent to the exact proportion of what the bank is discounting with the Federal Reserve bank, as reported after a recent examination of the institution; the proposed letter stating that the matter is a local operating detail that can best be determined by the Executive Committee itself. Upon motion, the proposed letter was approved. Mr. Platt stated that Mr. Harrison, representing Mr. Meyer of the War Finance Corporation, came to see him late Thursday afternoon and stated that representatives of the Corporation in the Sixth District had been summaned to come to 7:ashington next week to discuss requests for War Finance loans that had been made by several member banks in Georgia, and that there has been some correspondence with relation tO this matter growing out of an interview he previously had with Mr. Mendell of the War Finance Corporation who had made inquiry with regard to the reasons for the requests. Mr. Platt stated that Mr. Meyer thought it would be well to have Governor Wellborn came up and talk the matter over at the same time, and that he had been asked to telegraph Governor Allborn but had stated that he did not feel like taking the responsibility without consulting the Board. Upon motion, it was voted that Governor Wellborn be requested to come to Washington for a conference. Letter dated March 17th from the Chairman of the Federal Reserve Bank of Atlanta, quoting a resolution adopted by the Board of Directors of that bark at their last meeting in voting to call to the attention of the 08 -4- 3/21/24 Federal Reserve Board the fact that the Governor of the bank in his report recommended an ,increase in the discount rates of the bank and to ask that the Board discuss the subject with other Federal Reserve banks and give them the reactions on the question. Noted and ordered held over for discussion at Governors' Conference. next the Letter dated March 15th from the Deputy District Attorney of Santa Barbara County, California, urging approval of the application of the Bank Of Italy for permission to establish a branch at Santa Maria. Refdrred to Committee on Examinations. Telegram dated parch 20th from the Federal Reserve J';. ent at San Francisco, advising that the State Superintendent of Banks will examine simultaneous• lY all banks in that state except the four larger systems, namely, the Pacific Southwest Trust and Savings Bank, the Bank of Italy, the Mercantile Trust Company and the Security Trust and Savings Bank, and may possibly be able to examine simultaneously the two last mentioned. Noted. Draft of reply to letter dated March 12th from Shearman and Sterling, Attorneys, New York City, with regard to the right of a national bank located in a central reserve city to make loans on real estate through branches; the proposed letter stating that the branches are a part of the same corporate entity as the head office, and therefore, could not exercise any corporate powers not possessed by the parent bank. Upon motion the proposed letter was approved. -5- 3/21/24 The Governor then presented draft of a letter to Congressman 'dingo, transmitting information regarding the expenses of Federal Reserve banks requested in his letter to the Board of February 27th. Approved and copy ordered transmitted to all Governors and Federal Reserve Agents. The Law Committee reported on the matter referred to it at the meeting on March 19th, namely, letter dated March 14th from the Governor of the Federal Reserve Bank of New York suggesting that the whole matter Of domestic acceptance credits be made a topic for the next conference of Governors and moanwhile be considered by a subcomittee of the general Acceptance Comittee; the Committee recommending approval of Governor Strong's suggestions. Upon motion the report of the Committee was approved. Ex. Hamlin stated that the Board's Counsel would insert in the forthcoming issue of the Federal Reserve Bulletin the decision of the Supremo Court of Missouri in the case Of the BurnesNational Bank of St. Joseph, Missouri, denying to national banks in that state the right to exercise trust powers. Mr. Hamlin stated that Mfr. Watt wished to Insert in the Bulletin also the brief filed in the matter by the Solicitor General of the United States. Mr. Hamlin moved that the brief be inserted in the Bulletin if the Solicitor General raises ho objection. Carried. 3/21/24 -6- The Law Committee then submitted drafts of letters to the Chairmen of the Committees on Banking and Currency of the Senate and House of Representatives, prepared in accordance with action taken by the Board on March 6th, and recommending an amendment to Section 25 (a) of the Federal Reserve Act which would permit the Board to grant modifications in the reserve requirements of Edge Corporations similar to that recently granted to the International Acceptance Bank. Upon motion the proposed letters were approved. REPORTS OF STANDING COMMITTEES: Dated, March 21st, Dated, March 20th, Recommending action on applications for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Ordered held. Recommending approval of the application of Mr. Arthur E. Ailing to serve at the .me time as director of The Peoples National Bank of Stamford, Conn., and as director of the Mechanics Bank of New H aven, Conn. Approved. The meeting adjourned at 12 4 p.m. Sec Approved: ary.
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