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248 At a regular meeting of the Federal Reserve Board held at the residence of the Governor of the Board on Monday, March 22, at 11.30 a. m. PRESENT: Mr. Hamlin, presiding, Mr. Williams Mr. Delano Mr. Harding Mr. Willis, Secretary. The minutes of the meeting of Thursday, March 18, were read and approved. adopted Mr. Williams offered a revision of the motion by the Board on Thursday, March 10, expressive of the policy oy:of the Board .with respect to the granting of trustee and ecutor powers, as follows: WHERZAS, The framers of the Federal Reserve Act co-ordinated had in contemplation the establishment of a system of banking in the United. States under effective Governmental supervision, and "TEEREAS, It is the opinion of the Federal Reserve Board that the interests of the Government, the banks and the public will be best served, and the success of the systeni best assured by a membership which will include as many as possible of the banks made eligible under the terms of the Act, and WHEa313, In order to equalize the powers of State and National banks as members of the system, the provisions of the Act extend to State banks and trust companies the privilege of membership, when not in contravention of State laws and empower the Federal ReserveBoard to extend the powers of National banks by granting such banks permission to act as trustee, executor, administrator, and registrar of stocks and bonds, when not in contravention of State laws, and 249 WHEREAS, It appears from an examination and analysis of the laws of the several States that banks created and organized under the laws of certain States cannot become members, and the right to exercise the powers of trustee, executor, administrator, etc., cannot be extended to National banks in certain States by reason of the laws of such States: NOW, THEREFORE, BE IT RESOLVED, That the Federal Reserve Board is in entire sympathy and accord with the offorts .of those who are advocating legislation designed to remove such restrictions and to make possible the perfection of a system of banking which will uniformly serve tir interests of the public in all of the Federal reserve districts. On motion the revision was adopted. On motion of Mr. Williams the Secretary of the Board w-3 directed to give to the press the resolution thus adopted. Mr. Harding was recorded in the negative. The minutes of the two conference sessions held with the Governors of the reserve, banks on Friday and Saturday, ::arch 12, and 13, respectively, were referred to la% Delano for exam- ination. Applications for the exorcise of the rowers of trustee, executor etc., duly approved by the 2ederal Reserve Agents and by the Counsel of the Board were referred to Mr. 77illiams and Mr. Harding for report as follows: Fourth & First National Bank Merchants National Bank Peoples National Bank Merchants National Bank Aquidneck rational Bank Holston National Bank Nashville, Tenn. Worcester, Mass. Boston, Mass. Salem, 'Lass. Newport, R. I. Knoxville, Tenn. On recommendation of the division of Audit and Examina- 250 tion it was voted that the Board authorize the acceptance• o2 the examination made by the Virginia Banking Department in the case of the Savings Bank of Richmond, 7a.; and also the examination made by the bank comr.issioner of the State of. ::issouri in the case of the ::ercantile Trust 3t. Louis, ozany of the sane to be subject to the general regu- lations of the Board with reference to the examination of member banks holding State charters. On motion the amendment to the by-laws of the Board, notice of which had been duly given in accordance with Article 9 of the existing by-laws, was adopted as follows: Insert after Article III of the existing By-laws, a new article numbered IV, as hereinafter set forth, and renumber the succeeding articles accordingly. ARTICLE IV. THE MEOUTIVE COLLITT23. 1. There shall be an Executive Committee of the Board consisting of three members, which shall include third the Governor and Vice Governor and one other. The member shall be nominated and elected at a regular meeting of the Board. Members of the Board shall serve as far as practicable in rotation and for periods to be shall fixed by the Board' from time to time. Two members business. constitute a quorum for the transaction of Committee 2. It shall be the duty of the Executive of the Board to transact all business of a general natul,:e which can be transacted in accordance with principles a'6" ready established by the Board, and such as may be delegated to it from time to time; to review and approve 11:1-. portant correspondence involving the expression of ot93. 1„ ions or de3islons of the Board; to prepare and make re° mendations governing the conduct of the Board's busine5L0 to b' and to oversee and control the making of statements 251 press expressive of the Board's policy or descriptive of its action. 3. The Executive jommittee may at any time delegate to the Secretary of the Board, either individually or under the supervision of one of its members, the exercise of its functions '7ith reference to publicity as hereinbefore set forth. It was informally agreed that when members of the Board are elected to serve on the Executive Ja_roittee established under the foregoing amendment, they shall be chosen for ouarterly periods, or for the unexpired portions of such neriods, and that the first period shall extend from the present date until June 1, 1915. On motion hr. Warburg was elected a member of the Executive Corznittee for the first term, extending from the present date until June 1, 1915. An opinion of •Counsel relative to the interpretation of Section 22 of the Federal Reserve Act, was presented to the Board, and on recommendation of the Governor of th- Board, it was ordered released and distributed to the Federal reserve agents, subject to such further revision as Counsel might think beot to 7ive it nrior to its issuance. On motion it was voted that the recommendations of Counsel with reference to permitting Federal reserve banks to charge interest upon unpaid installments of capital stock due from delinouent subscribing member banks, be ado,ted, and the 252 Secretary directed to transmit them to Federal reserve agents. On motion it was voted that a standard form for the transmittal of Counsel'i opinions to the Board, be adonted. The Secretary of the Balrd presented a communication from Secretary J. F. Curtis of the Federal Re- serve Ban': of New York, transmitting copy of a proposed clearance circular submitted by the Governors to the Board. On motion 46.,:e rroposed circular was referred to the Executive Committee with the suggestion that action be expedited. The application of the State bank of 7olfe City, Texas, for admission to the Federal Reserve system, was referred to Lr.7illiams for recommendation. On motion the Broadway Trust Company of New Yori: system, City was admitted as a member of the Federal reserve it being informally understood that no announcement be made until Tuesday, :larch 23. In response to a letter from :r. Charles J. Huff, Counsel for the Federal Reserve Bank of Dallas, Texas, the Secretary of the Board was directed to write him that the tlie Board would y)ermit the filing of additional arguments in Oklahoma redistricting case on behalf of the Dallas bank, Pr°vided such arguments be filed not later than April 15. 253 A letter from Chief of Division Broderick, relative to conditions at the Atlanta bank was read to the Board. A communication from the Providence jhapter of the American Institute of Banking, asking that a speaker be designated to appear before the Chapter at an approaching meeting, was read and laid on the table. On motion it was voted that :r. Harding and 1:r. Williams be named a s-oecial committee to 2repare as promptly as possible a regulation under the terms of which national banks may accept up to the amount of 100 per cent of capital and surplus, in accordance with the recent legislation of ngress on this subject. On motion at 12.30 p. m. the Board adjourned to meet at 11.00 a. in. on Tuesday, March 23. secretary. APPROVED: Ohairran.
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