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22'1' A meeting of the Federal Reserve Board was held in the office of deral Reserve Board at 11;00 a.m. Thursday, Larch 26, 1925. PRISENT; Governor Crissinger Yr. Platt rT. Hamlin rr. Mier rr. James rr. Cunningham Fr. .i:Ady, Secretary The minutes of the meeting of the Federal Reserve Board held on 141rch 24th were read and approved. kemorandum from Counsel dated rarch 25th on the subject of proexpenses of appeal in the case of the Capital Grain and Feed e":1)anY V. Federal Reserve Bank. of Atlanta; Counsel stating that While It Would seem equitable that the expenses of appealing this case should be Pro-rated among all the Federal reserve banks, the Board has no right to pro-rate these expenses unless the Federal reserve banks voluntarily /1gree that this should be done. Upon motion, it was voted that this matter should be taken up with the Governors of the Federal reserve banks at the time of the forthcoming conference. Draft of reply to letter dated Larch 24th from the Federal Reserve Agent at Chicago suggesting the discontinuance of the title of ranager of 11811k Relations Department held by Yr. E. L. Harris and inclusion of the "n- relations work as one of the matters coming directly under Fr. Harris "Acting Assistant Federal Reserve Agent, and suggesting further that upon the retirement of Yr. W. F. rciallen, the duties of Secretary to the Board "Directors also be turned over to rt. Harris; the proposed reply stating that the Board has no objection to the suggestion of the Federal Reserve 22,1 3/26/25 -2- leant regarding the bank relations work but calling attention to the fact that at the time the Board reconsidered its action in disapproving an increase to $4,000 in the salary of rr. Arthur Olson, Confidential Secretary to the Goyim -rnor, it was understood that he mould act in the capacity as Secretary, after Mr. rcLallen had left the bank. After discussion, the proposed reply was referred to the Committee on Salaries, E.4penditures and Efficiency. Letter dated Yarch 20th from the Federal Reserve Agent at San .Pranoisco,reouesting approval of the applidation of the Pacific Southwest 111-lat and Savings Bank of Los Angeles to rove its 'branch now located at 2736 West Pico Street to larger quarters at 2800 West Pico Street. Approved. Letter dated March 20th from the Federal Reserve Agent at San Itanoisco,requesting approval of the application of the Pacific Southwest -"at and Savings Bank of Los Angeles for permission to move to permanent "arters at 4400 S. Vermont Avenue the branch which has been temporarily 40ated at 985 West Vernon Avenue. Approved. Letter dated March 20th from the Federal Reserve Agent at San l'ranoiscotreouesting approval of the application of the Pacific Southwest rtIst and Savings Bank of Los Angeles for permission to change the location (If the branch approved for establishment at 2115 TT. Sixth Street to 1913 Sixth Street. Approved. 225 3/26/25 recom, ending remorandum dated Yarch 24th from the Chief Examiner discortinuance of monthly reports of proofs and verifications by the anait denartr-e-it, mhich have been submitted by the Federal reserve banks f°1* some :rears last and which ma.:7 now be dispensed with. Upon motion, the discontinuance of these reports was approved. of the Eauitable Letter dated rarch 23rd from the Oorptroller Board TI*11st Com-pan7 of 7ew York submitting for the inforration of the bank. PatThlets on the retirement system and profit snaring plan of that Ordered circulated and referred to special committee on pensions. :arch 13th from the heport of Executive Committee on letter dated recommending approval Pederal Reserve Agent at St. Louis transmitting and Louis °fte application of the ATerican Exchange ITational Bank of St. from 107) to 71 of demand fer a reduction in its reserve requirerents cIsPosits; the Comrittee also recommending approval. Approved. Farch 19th from the remoranaum from Counsel on letter dated Francisco requesting that Chairmar of the Federal Reserve 3ank: of San of the promulgation of a ruling the Board consider the desirabilit7 banks or branches absent from that directors of Federal reserve attending d irectors' meetings for a continuous Period of six months or during any of twelve less than :KO' of regular and special meetings non—attendance; Counsel stating "Tithe, shall be removed because of such legal authority t9 prorulgste and that in his oninion the Board has enforce such a ruling. (IOC <4kj K.4, 3/26/25 -4- moved, After discussion, Yr. Governor address a letter to the Chairmen Federal reserve banks requesting that the furnished with a record of the attendance of the parent bans during the past three Carried. that the of all Board be of directors years. The Governor then called attention to an entry in the minutes of the meetinFf of the Board of Directors of the Federal Reserve lank of Dallas held on Larch 10th authorizing the officers of the bank to invest up to 4h°000,0)0 in Government bonds for earninfr, purooses and stated that since the adoption of the resolution about .„3,000,000 of bonds had been purchased bY the bank. After discussion, I:T. Liner moved that the following telegram be addressed to the Chairman of the Federal - Reserve Bank of Dallas: "It appears fro!- the minutes of the meeting of your Board of Directors held on Larch 10 that the Board of te Dallas 3aric authorized the officers to purchase up to 10,000,0)0 of government bonds. Board here is surprised that important action of this kind should not have been specifically called to its attention. Board furthermore notes that officers of the bank have acted upon this authorization without first referrin matter to Federal Reserve Board, notwithstanding provisions of Paragraph (b) of Section 14 of the .iict and the open market principle adopted by the Board pursuant thereto (Letter X-3689, April 7, 1923). You are therefore directed to suspend further purchases under this authorization until otherwise advised." Er. Hamlin moved as a substitute for Er. Filler's motion that the following telegram be sent to the Chairman of the Dallas Bank: "Suspend further operations in Government bonds until otherwise advised. Your needs can in the meantime be met by open market investment committee through larger apportionment." Clow.) 4.0<74 3/26/25 -5- After further Jiscassion, Mr. Hal:1 1-.1's the chair was lost, Mr. Harain votid. "aye". Mr. Miller's ori,inz.d motion then bein. the ehair vs. s carrid, votin: "no". lie. Haul in stat7,d that he voted ac-ai.,13t Mr. Liller's notion becaase the proosoci '0mc-r-U evil:ntl , i based on tin heiif that t'or Zederal eserve Boat*a uns.ler Its .„)o:.-.:r of re: ::ultion has th ri t absolutely to forbid the of bonds bz„, Federal ressi.ve ba..C.-„J for earn re -aril =36 0.k' crejit conditions. dated Liarch 17th from Gounsel with re_ ard to the Plication of 1,11.. L.1,- 6ohier 'Welch for permissioll to se-eve at the sal:.e tilne as a director of t]Lo i4atioJal U„liJn Ban'.c eaa t'l.e Old Colon:,7 2rust ConliJaci-,,, both of Boston, the Boar'] has hell to be Li slbst3.1..ti.11 00l4pet:tiJ;1 but which, under a classification recentl; 2.1ade b the Federal _teserve A,-ent at Bosto.: are not oonsil,red to be in such co.1petition. ;titer discussion, Mr. iienliuu !IloveC, that the Be o2d apl?rove Mr. ielch's aplication for 'permission to serve at ":1li) - san. tine ti Natio.lal Union Bank t'.7,o Old Uelon 2rust Oarried, Mr. Platt 7otin2; "no". Memorandum datod larch 2Zr1 eat jr)n of Mc. hael ohe.d for 1Juission ItL rearn to to s.::rvt. at he sa::.e tml-e as a lirctor If the United States National Ban:, and the IilLii Col=ercial Trtist add avin, s Ban'', both of Los IILI:-_ ,31(:s; Counsel statin:- that Mr. e°11(3:1 has rosined a director of the First 3-Ya of .43.1,1,J, ...L_1„1 will resiu from the airectofate of the First National of Bell, Jalifornia, and that he has hiurnei the Board that the 111"*%10rit, of stoc.: inLetL t7.1 United states iatiau. Ban:, a.ad the Hell:.]au 22f6 3/26/25 -6- Corz%ercialirust are. Savin„s Bank is held by the sune persons, vLich has heretofore been taken b;, the i3oarl as an indication that the banks concerued are not in substantial coLlpetition. A.fer discu_ssion, iii.Halin 1.aoved aproval of 21r. (;ohe's applic;ation for prrijssion to serve at the sa tizne as a director of the United JtaLes Natioiad Bak and the Hellman Co:.2.3._al savins Bank, on condition that 1). .:ram the First Bank of Bell. carried. (;ounsel dated Larch 3rd with riard to th appli- cation of the Liberty Insurance Bank of Louisville, KeJtucky, for approval °f its action in esta'oljju and oporati1af a trust departnt without first seein-ins. the approval of the Board; the a.(ecutive Coittee recon.rena111E'; approval. of such action. Appr eyed. Draft of letter to the Federal deserve AL;ent at Kansas tJit with. reLfard to surrender of stock issued to the First National Bank of New Clidahoma; letter callinL attention to the fact that the Board has alrca(1),. authorized cancellation of the took and the placinL; of the IJroceeds In a si...eci.J.1 deposit account to be pa;_LI over to the duly au thorized lisluidating agent of the bank, upon receipt of proper .proof of the appointnent of Such agent, and stat that the proceeds may be :Paid to any person submittinL; satisfactory proof that he is entitled to 3 iLLouL any artLor action by the Board. Upon motion, trio proposed letter was approved. 3/DtV2r -7 fro CuansJ1 daLei 15th on the subject of the :4t 1 of unearnel lividens to liuliatin or Insolvent :1ber banfr:3; Couns31 st;-t in,. that in his o, inion : :ne.ber ba.nk. is insol- Irelat or is in voluntard liquidation, it is entitled to 1/2 of per month from the. period of the last dividend reardless of whether such clividonls wore earned darin that period. Upon motion, it v.-as voted to approve the position -taken by Counsel a.nd that all Federal reserve banks be L2dvised accordinL;ly. Memorandum dated March 6th from Counsel with refer.,:uce to lLed libe7 ous stateLlents concerning the 'Federal ,iteserve, Banl: of Miruleapolis published in the "state ecord" of Bis!r_ar3kt North iteferrod to Law CoLnittee. Letter dated March 21st fro,:f. the Federal i'Lfoserve Agent a Atialita tr.L..21sLC.ttinij letter from the Counsel t° D ban"1: viitn respoct its practice in decllniij to handle as cash items r_thec:zs drawn on balls in the sixth Federal deserve District , which do not remit in a sati Sfactor manner. Aeferred. to LaN Commit tee. de,ort of axLnination of the Federal eserve Bank of Cleveland e'lla its i"ittsbueji and Cincinnati Brares, made as at the close of b usiness Januarv 3, 1925. deferred to Committee on Examinations and Committee on District 4. Letter dated March 21st from the Governor of the Federal ileserve 13411k- 0 ±.ioston transmittin draft of a proposed bill to amend the National C14 47)rt, 1C•• jtul 3/26/25 -5- BallkinEs Act, to extend the charters of the Federal reserve banks and. for Other purposes. Governor Orissin:er stated that the letter and bill had been mimeographed for the information of the members of the Boxd. and. that copies of the bill were being furnished the Governors of all Federal reserve banks. 02 6-2A1;DI iL IT2E2,6: Dated March 26th. itecoirznendin, action on application for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Held. Dated March 26th ilecommen.dinE; action on application for admission of state bank, subject to the conditions stated in the individual report attached to the application, as set forth in the Auxiliary Minute Book of this date. Approved. Dated March rd itecommending aoproval of the application of Mr. F. C. Hubbard to serve at the same time as director of the First Nat ional Bank of Muskogee, Okla., and as director and officer of the First National: Bank of Haskell, Okla., and. the Famers National Bank of Ft. Gibson, Okla.. Approved. Dated March 23rd .ilecommending approval of the application of Mr. H. H. Ogden to serve at the same time as Pros id'ent and director of the First National Bank of Muskogee, Okla., and as director of the First National Bank of Bragss, Ctkla. Approved. Dated March 24th itecommancling approval of the application of Mr. 'W. I. Oollier to serve at the same time as Director of the First National Bank of Mercedes, Texas, and as Vice President and. Director of the Oi%. National Bank of Ban Antonio, Texc..,.s. Approved. Dated March 24th itecommencliik; approval of the application of Mr. H. M. Thompson to serve at the same time as Director of the Grand and sixth National Bank and as Director of the First 'Wisconsin National Bank, both of Milwaukee, Approved. 231 3/26/25 Dated l'orch. 24th. Da.ted hrch 26th -.9- Recomendirk-3 , approval of the application of J. P. Soloron to serve at to sarle tiy:e as Director of the First 7.:ationa1 3ani of 17uskofsee Okla., and as Lirector of the o'Irst 1Tational 3ank of 3rafr.ss, Okla* Approved* Recoymending changes in stock at Federal Reserve Banks, as set forth in the Auxiliar7 TAnute Book of this date. Approved. The reeting adjciurned at 12:20 p.m.
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