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275 A meeting of the Federal Reserve Board was held in the office of the 'ectera). 4 eserve Board on Friday, March JO, 1928 at 11:20 a.m. PRESEE2: The the a. Governor Young Yr. Platt Mr. Hamlin Yr. Eiller Mr. James Mr. Eddy, Secretary Mr. McClelland, Asst. Secretary Governor stated that he has been advised over the telephone that 'rectors of the Federal Reserve Bank of iiew York have voted, subject to the approval of the Board, to participate in a credit to be extended by Irariett . ' central banks to the National Bank of Rumania. He stated that the tetails of the matter will reach the Board tomorrow at 1Nhich time it will be ' j At UP for formal consideration. Telegram dated March 28th from the Secretary of the Federal deserve 411k Of 80eton and letter dated March 29th from the Secretary of the Federal 4eel"l'e Bank of New York, both advising that their boards of directors at trieeti4a on ot, rates the dates stated made no changes in the banks' existing schedules Of discount and purchase. Without objection, noted with approval. The Governor then referred briefly to recent and prospective changes °Peil marltat investment account and to the money market situation in " ln this connection, he i- resented a telegram dated March 30th from 1C"°11 the le1311tY Goverrror of the Federal Reserve Bank of New York, advising of the htablishment today of the following schedule of rates for purchases of acices: Bankers 1 to 30 days 31 to 90 days 91 to 120 days _ - 3l/2 3 5/8/; 3 3/4,0 276 3/30/28 OOP 121 to 180 days aepurchase Trade - 3 1/2-,; 4/0 Without objection, noted with approval. Letter dated March 29th from Messrs. Shearman and Sterling, attorneys r°11 the National City Bank of New York, advising that the Executive Committee °f the 1, LAink has authorized the closing on April 14, 1928 of the branch which has beela maintained in Yaguajay, Cuba. 2oted. 4Plication of The Farmers National Bank of Colfax, Vashington, which hag - Previous ly been authorized to act as trustee, executor, administrator and eistrar of stocks and bonds, for permission to act as guardian of estates, "aigtee, receiver, committee of estates of lunatics and in any other fiduciary "Y in which state banks, trust companies or corporations which come into 4r111)etiti°h with national banks are permitted to act under the laws of the 4t14e °f Washington; together with recommendation of the Federal Reserve Agent 4 41 rancisco and the Board's Sub-committee and Law Committee that the ap- 1314"timr1 be granted only with respect to "guardian of estates". Upon motion, it was voted to authorize The Farmers National Bank of Colfax, dashington, to act as guardian Of estates, in addition to powers previously granted, and to defer action on the other powers included in the present application. ilePort of Committee on Salaries and Expenditures on letter dated March 4th from the the aotion of Secretary of the Federal Reserve Bank of Boston, advising of the board of directors of that bank in voting to extend until 44 lielct 4t 4 meeting leaves of absence on account of illness previously granted Joseph Buckley, Miss Dorothy L. Roberts, Mr. Frank C. Hoyt, Mr. Joseph 277 3/30/26 41. lk)Ivers t and Mr. Lester W. Clark, employees of the bank, Yr. Buckley and Miss Roberts to receive half pay, Messrs. Hoyt and Powers full pay and Mr. Clark N11 pay until April 1st with half pay thereafter; the Board's Committee reC°11tlending approval of the salary payments involved. Approved. Letter dated march 27th from the Assistant Federal Heserve Agent at New Yoz1 aclvietng that the Bank of Genesee, Batavia, N. Y. has been converted 4 trust company under the name of "Genesee Trust Company". Noted. ' 4t this point, Mr. McIntosh joined the meeting. Eltlegram dated March 29th from the Deputy Governor of the Federal deserve kalt ft. "1. Dallas, advising that the Federal Intermediate Credit Bank of Berkeley, $ at the request of the Pacific National Agricultural Credit Corporation Or Pre /1 a -0, Cal., has asked that the El Paso Branch be designated as its agent, Pr°Per power of attorney, to receive permits and execute releases for ite Aft ount in order to save time in handling remittances on sales of livesik; the Deputy Chairman in his telegram setting out briefly the operations 41.1°4134 and inquiring as to the attitude of the Board toward the designation Oil the question of making a charge for the services contemplated. After discussion, the above telegram was referred to the Governor for investigation and report to the Board. The r Secretary then submitted application of the Sanford-Atlantic National 344ford, Fla. for permission to exercise general fiduciary powers and et'°rted 41r. tie, that the Law Committee is divide.), in its recommendation thereon; ntOeh favoring approval and Messrs. Platt and Hamlin reeOmmending 298 3/30/28 t.tl.ratIon by the full Board in view of the fact that the capital account of the ba__, capital ,400,000 and surplus 120,000, while sufficient to justify graliting Of the application under state law, is less than the capital and 81117P1u5 required by the Commissioner of Banking of the State of state instit4lt1"s granted trust powers, namely, capital 0.00,000 and surplus j50,000. The Secretary referred to the action of the Board on September 6, 1927 in RrEllIting general fiduciary powers to the First Rational Bank of Perry, Fla., 411 institUtion which having a capital of q;50,000 and a surplus of .,50,000, ti°4 was taken, however, with the understanding that it was not to be conas a precedent in future cases. He read to the Board a memorandum from n c)111.1eel datea Larch 21st, stating that while there is no legal reason whY the Board should not approve the application Of the Sanford- tlantic liational Bank, it is a question of policy for determination by the Board X' or not it will follow the requirements of the State Bank Commissioner rather than the requirements of state law. .After discussion, the file on the above case was ordered circulated and brought up at a later meeting of the Board. Lleolco— "quaim from Counsel dated March 28th with further reference to the ellaYto 4 ;ict application of Lr. Parmely Herrick, involving the Harriman 441 Bank of New York City, the New York Joint Stock Land Bank of oohes ter, the yhio-Pennsylvania Joint Stock Land Bank of Cleveland and the 111°11 Trust Company of Cleveland, all of which come within the prohibittoris clf the Clayton Act, which application was considered by the 3xeautive finlit ea with the result that a Of the Board at its meeting on March 2nd, t letter, be glad was addressed to jir. Herrick advising him that the Board will to 4.r) the banks upon 11°Iicthis application for parmission to serve three of 279 3/30/28 -5- )t of advice that he has severed his connection with the other. Counsel 811bMitted with his memorandum a letter fram. a member of Lr. Herrick's law firm 4 . Inquiring whether there is not some way by which the Board could grant the "doation as regards all four banks. In his memorandum Counsel stated there is Tlf, -'waY by which the Board, under the present law, can grant the application aa ""-ed, but suggested that further action on the application mipht appropriatel, 0 ue deferred, as was recently done in the case of nr. Frank O. detmore, 1117iew of the fact that the Board has under consideration the advisability t recommending to Congress an amendment to the Clayton Act which would exetr1/1 joint stock land banks from the prohibitions thereof. After discussion, Counsel's suggestion was approved and further action on Yr. Herrick's application was deferred in accordance therewith. Letter dated March 30th from the Comptroller of the Currency, recommend- ill all , Proval of a salary of 3,300 per annum for National Bank Examiner Cha 88 E. Barthe, assigned to the Second Federal deserve District. Approved. The minutes of the meeting of the Federal Reserve Board held on Yarch 41. ' 4 were then read and approved. 11)°IiiTS OF STANDING 001:MITTIS: bliteci,March 19th, 27th, 28th,, Ilecommending action on applica ons for fiduciary powers as set forth in the Auxiliary Winute Book of this date. Recommendations appro The meeting adjourned at/ -‘-'131redt
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