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225 A meeting of the Executive Committee of the Federal iieserve Board was held in the office of the Federal Reserve Board on Friday, March 59 1926 at 11:40 a.m. PR737172: Vice Governor Platt Mr. Hamlin Mr. Miller lioell, Assistant Secretary McClelland, Asst. Secretary The Vice Governor presented the matter referred to the Executive Cftnittee with power at the meeting of the Board yesterday, namely, letters clated February 13th from the Federal Reserve Agent at San Francisco, transillittize and recommending aionroval of an application of the Security Tru.st of Los Angeles for permission to take over the First allti Savings Be. 1\lati°11a1 Bank of Compton and the Farmers and Merchants Bank of Compton, to with its branch at Lynwood and to establish branches at Compton 4731:1 at Lymood. On behalf of the Committee on Examinations he presented f .4111 report along the lines of the verbal report made yesterday, a" l'e"Intlending approval of the application. Upon motion by Mr. Hamlin, it was voted unanimously to approve of the Security Trust and Savings Bank taking over the banks and establishing branches at the points mentioned. lir• Miller then referred to the report by the Vice Governor at the nieeting yesterday that the Open Market Investment Committee for the Federal a"erve System, was contemplating a meeting at some date prior to March 15th. Upon inquiry he was advised by the Vice Governor that the Board 174 Zot informed as to the place of' the meeting. Mr. Miller then submitlle following motion which he requested be voted on at the next met— ' t' ted the Board: 226 3/5/26 -2- "That Washington be designated as the future regular meeting place of the Open Market Investment Committee, except when the Committee is authorized. by the Board to meet elsewhere". Letter dated. March 4th from the Secretary of the Federal Reserve Bank of 'Yc)rit, advising that the board. of directors on that day male no change In the banicis existing schedule in rates of discoant and purchase. Noted. -eCram dated March 4th from the Federal Reserve Agent at San Francisco, 84718111g that the board of directors on that day made no change in their e4isting schedule of rates of discount and purchase. Noted. Letter dated. Pebru.ary 27th from the Assistant Federal Reserve Agent aet 411 Francisco, advising that the Bark of Italy on March 1st would move aneh fonnerly located at 5025 Third Street, San Francisco, to permanent bl ' (1,1-larters at 5000 Third Street. Noted. Letter dated February 27th from the Federal Reserve Agent at San Francisco, 8141t1a, .* 41zing recommendations made by him during the year 1925 at the request Of the -omptroller of the Currency on applications for pexmission to organize al banks and the subsequent action of the Comptroller as regards charter- I€ "Lle inst itutions Ordered circulated and copy sent to the Comptroller of the Currency for his information. Letter el the dated February 26th from the Chairman of the board of directors zederal Reserve Bank of San Francisco, on the subject of the destructive 227 3/5/26 -3- effect of over lending to member banks; the Chairman conmenting upon the credit policies of the Federal deserve Bank of San Francisco, principally in relation to member bank failures in the State of Idaho. Ordered circulated. Letter dated February 27th from Mr. Milton iT. 1Telson of the Ohio State University requesting peimission, in connection with the compilation °f a book of readings on the subject of corporation finance, to use the article on finance companies which appeared. in the Federal Reserve Bulletin for January 1923, making certain adaptations. After discussion it was voted that permission for the use of the article be granted, but that attention be called to the practice of the Board Of requiring that material reprinted from the Federal iieserie Bulletin be used.in the exact form in which it appears in the Bulletin. III accordance with the statement made by him at the Metirg yesterday, 111.ller then submitted tentative draft of a letter to the President of the l'ocleral Advisory Council, advising of the action taken by the Board resterday „ by ITe th respect to securing information concerning loans on securities York City banks borrowing from the Federal aeserve bank and stating the B(3eati intends to follow a similar procedure in the near future with Iles:13E3ot to reporting member balks at Boston, Philadelphia, Cleveland, Chicago, , St, L„, ' 4 and San Francisco; the letter stating that the Board is desirous -`48 Of as certaining the views of the Council with regard to proper relation of Fecie. t • _ , se rve banks to the call loan rarket; the relation of Federal liese e bank rates to call loan rates and the proper function under our bazati lig system as modified by the establishment of the Federal Reserve banks 228 3/5/26 -4- Of baaking investment in call loans; the letter also requesting recommendatiozs from the Cauncil as to what the Board and Federal Reserve banks can do to develop a procedure which will check or altogether eliminate the Misuse of Federal Reserve credit facilities to support the extension of loans by member bamks to the call market. After discussion, a copy of the proposed letter was ordered furnished to each member of the Board for his information in advance of consideration at a later meeting of the Board. lir. Miller then stated that he had in contemplation, if possible, a visit to z‘l, 14 Jun. for a period of six weeks or two months, beginning some He stated that he was giving this notice because of the 13r"ision of the ay-laws that absences of members shall be so arranged 43 not to conflict with the expeditious conduct of the Board's business. Ilre Hamlin then referred to the adjournment of this morning's meeting uooessary by the inability to maintain a quorum and gave notice of his 14teution to move an amendment to the By-laws of the Board so as to reduce fri°111 ftve to four the number of members required for the transaction of 1311,814 „3. The meeting adjourned at 12:15 p.m. zLe_c_e Assistant Secre 4pDroved: Vice-Governor.
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