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269 A meeting of the Federal Aeserve Board was held in the office of the Federal eserve Board on ;:ednesday, March 26, 1928 at 11:00 a.m. PET.SENT: d-overnor Young Mr. Platt Mr. Hamlin Mr. Miller Mr. James Mr.Eddy, Secretary Mr. McClelland, Asst. Secretary The minutes of the meetings of the Federal aeserve Board held on Larch 2 4th and 26th were read and approved. /he Governor then referred to the question of topics to be suggested 41 Board for consideration at the forthcoming Governors' Conference. He suggested the following topics which were approved by the Board for slzbmission to the Conference: (1) Advisability of requiring member banks in reserve and '1711tral reserve cities to compute reserves daily, based upon ,'"Nsits as at the close of business on the preceding business u.aYa (2) Desirability of bringing to the attention of the directors ell mmber banks their liability in connection with loans made an, A d ividends paid while reserves are deficient. ' s! Advisability of the Board increasing the number of reserve e3 citi( Of (4) Desirability of preparing to submit to Congress a complete cl,.-_,arn for the revision of reserve requirements, including a firm l'rinItion of time and saving deposits. he Governor also suggested that as a topic for discussion at the ileXt m eeting of the Federal Advisory Council the Board submit the question Of i,.. ."` vestments in government securities by the individual Federal deserve bkbck a Outside of the open market investment account of the System, which • 11();Re tlon ass approved. Letter dated DArch 23rd from the Chairman of the Federal deserve Bank q meeting with reference to the action of the Board at its aa directors of the Federal ResIluerY 31, 1926 in voLing to request the 270 11 3/28/28 el. "Bank of Philadelphia to reconsider, from a System standpoint, their action in increasing the salary of Mr. George U. Norris, Governor of the baill&I from ,„25,000 to .,30,000 per annum for the year 1928, and that the airect ors be advised that the Board will approve for Governor Norris, if ree°ranended, a salary of not to exceed ,27,000 per annum; the Chairman etati„, ' 4n that in accordance with the suggestion of the Board his directors have reconsidered their action LInd have fixed Governor Norris' salary at 427000 for the year 1928. , Upon motion by Mr. Hamlin, the salary of : ?27,000 zixed by the Philadelphia directors for Governor Norris was formally approved, Messrs. James and Miller not voting. The , secretary then referred to the action of the Board at its meeting 24th in referring to the Executive Committee with power the an- Mication of the Commercial Exchange Bank of New York City for permission toeerc iee general fiduciary powers, if and when authorized by the Comptroller of the Currency to commence business as a national bank under the tie "Co mmercial Exchange National Bank in New York". He reported that the Executive Committee on March 24th approved the application, which action was upon motion ratified. Letter dated March 22nd from Mr. Hobert 1. Benner, tendering his resighaticti aS clerk in the office of the Secretary of the Board, Currency Division,, etl'eot ive May 1, 1928. Upon motion, the above resignation was accepted and the secretary was authorized to fill the vacancy if and when necessary. Letter dated March 23rd from the Chairman of the Federal Reserve Bank 271 3/28/28 -3- "Chicago, advising of the appointment of Mr. Julius H. Haass, President Of the Peoples ;iayne County Bank of Detroit, as a director of the Detroit 81'411°1 for the unexpired term of Mr. John W. Staley, deceased, ending 1)eceMber 31, 1929. Noted. Aeport of Committee on Salaries and Expenditures on letter dated liarch 26th from the oeputy Governor of the Federal Reserve Bank of New York, transmitting a list of employees for whom the directors of that batic approved leaves of absence with pay on account of illness during tlielnonth of February, where the total of such absences since January 1, 1928 u 1448 exceeded thirty days; the Board's Committee recommending anproval of the salary payments involved. Approved. Aeport of Committee on Salaries and Expenditures on letter dated 411131423rd from the Secretary of the Federal Reserve Bank of Cleveland, acillisillg* of the action of the Executive Committee of that bank in voting to extend. for a period of three months from March 6th, with full pay, lealre Of absence on account of illness previously granted Mr. Aalph McGraw, r1Ployee Of the Transit Denartment; the Board's Committee recommending 4PProva1 of the salary payment involved. Approved. deport of Committee on Salaries and Expenditures on letter dated 4rvil 21st from the Chairman of the Federal deserve Bank of San Francisco, act11ia. Of the action of the ward of directors of that bank in voting to ex tend- for a period of six months from April 1st, with half pay, leave (I 272 3/28/2e of -4- absence on account of illness previously granted Mr. Hans Flo, an emOf the 6alt Lake City Branch; the Board's Committee recommending 4PProval of the salary payment involved. Approved. Report of Committee on Salaries and Expenditures on letter dated Ilarat 21st from the Chairman of the Federal Aeserve Bank of San Francisco, advising of the action of the board of directors of that bank in voting to 82(te11-1 for a period of three months from April 1st, with full pay, 'save of absence on account of illness previously granted Mr. Clifford —. L. J01, 'Alison, an employee of the Transit Department; the Board's Committee ea0 . Z ending approval of the salary payment involved. Approved. Report of Committee on Salaries and Expenditures on letter dated 1451zy.1, "" 40th from the Governor of the Federal Reserve Bank of San Francisco, rsTle sting approval of a salary of ,2700 per annum for Mr. John Bruce Junor, aPPointed chief of the Mechanical Maintenance Department of the Los kageo ,, Branch to succeed 2.1r. C. J. Currie, whose resignation will be reed. on account of unsatisfactory services; the Board's Committee recom111111ing approval of the salary mentioned. Approved. Memorandum dated March 27th from the Board's General Counsel (1) ing and requesting authority to have printed proposed revisions or f -°11118 used by the Board in connection with the administration of the (1141,tor, , - ,xct, with changes made necessary by an amendment to that act rseent -T 1 enacted; (2) recuesting authority for the printing of the Board's 273 3/28/28 W -5- Regulation L, together with the text of Section 6 of the Clayton Act as allientled, in a separate pamphlet, thus avoiding the necessity of mprinting the complete edition of the Board's 1928 Regulations; and (3) submitting clraft Of a circular letter to be transmitted to all Federal Reserve Agents namitting for their advance information mimeograph copies of Regulation L, se "nd Series of 1928 and printed copies of the amendment to the Clayton Act. Upon motion, the forms submitted by Counsel, after minor,amendment, were approved and ordered printed. Upon motion, it was then voted to authorize the printing in 'a separate pamphlet of Aegulation L, Second Series of 1928 and the text of Section 5 of the Clayton ,-,ct as recently amended. Upon motion, it was voted to approve the proposed circular letter to all Federal Reserve Agents s4bmitted with Counsel's memorandum. r.r Which Ts ilamlin then referred to a conversation with Senator ulass during t he -Senator stated he would like to have Mr. E. B. Stroud, Counsel tor the Federal deserve Bank of Dallas, who prepared the Digest furnished the , .313erd Of the proceedings recently held by the directors of the Dallas barik w1th reference to the administration of that institution, go over the 4e01.,4 Of the Dallas proceedings with him, as Chairman of the Sub-committee whieh 18 conducting the investigation of the affairs of the Federal Reserve Babk yr Dallas directed by Senator Resolution 0.52. Upon motion, the Secretary was instructed to arrange through the Board's Counsel to have Mr. Stroud visit Senator Glass in accordance with his request. i)atea 9 °P STANDIYG CMMITTEES: March 94th, Recommending changes in stock at Federal Reserve banks 26th, as set forth in the Auxiliary Minute Book of this date. Recommendations approved. 274 3/28/28 -**--4-*-4—QEJ.TANDING CalMITTEES: (Contid) Dated 'march 24th, Recommending action on application for fiduciary powers as set forth in the Auxiliary Minute Book of this date. iecommendation approved. The meeting adjourned at 12:15 p Beare
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