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A meeting of the Federal Reserve Board was held in the office of the ,Federal Reserve Board on Thursday, March 6, 1924, at 11:05 a.m. PREaElIT: Governor Crissinf;er Mr. Platt Mr. Hamlin Mr. James Mr, Cunningham Mr. Eddy, Secretary The reading of the minutes of the meeting of the Federal Reserve Board held on March 5th was dispensed with. The Committee on I;Icaminations reported on the application of the Industrial Savings Trust Company of St. Louis, Missouri, for 240 shares Of stock in the Federal Reserve Bank of St. Louis; the Committee submitting a majority report signed by Messrs. James and Dawes recommendin- disapproval and a minority report signed by Mr. Platt recommendini anrroval. After discussion as to the reasons 1)ronlyted the majority of the Committee to disapproval, the application was referred for an opinion as to whether there is any jection to the admission of the bank. thidh recommend to Counsel legal ob- Memorandum dated March 3rd, erom Counsel on the subject "Cancellation Of Federal Reserve Bank Stock by the National Bank of Hopewell, Virginia", Counsel stating that application for surrender of stock has not been made in the usual form but that the Board may waive such application and approve cancellation of the stock upon application of the President of the National Bank of Hopewell and by the Richmond Trust Conpany, which has purchased the assets of the bank, and suggesting a form of application to be filed. , Upon motion, the suggestion contained in Counsel's memorandum was approved. The Secretary then presented a telegram dated March 6th addressed to him by the Controller of the Administration of the Federal Reserve Bank of 3/6/24 -2- Chicago,reluesting that he attend the meeting of the Leased Wire Committee to be held in Chicago on March 12th, Upon motion, the Secretary was authorized to attend the meeting. Letter dated February 28th, from the Federal Reserve A-:ent at San Francisco transmittinrc a letter from the Vice President of the Security Trust and Savings Bank advising that the as.reement Of that bank to acquire the National Balk of Huntington Park and establish a branch in the ri-emises, Which has been approved by the Federal Reserve Board, has been cancelled and terminated. Noted. Memo randum dated. March 4th from the Law Committee submitting form of letter addressed to all Federal Reserve Agents,re:ue.sting certain information to be used in connection with the investigation of the problem Of notary fees paid by Federal Reserve banks_ ordered by the Board at its • meuting on February 19th. Upon motion the proposed letter was approved* Tel3gram dated March 5th from the Governor of the Federal Reserve Bank of Eansas City recommending th-t Sub-section 5 of Section 5 in Regulation J, Series of 192S, which has been suspended, be readopted and made effective 13.;; . a regulation. Referred to Law Committee. 3/6/24 -.3Tie Law Committee then submitted draft of reply to letter dated February 27th from the Federal Reserve Agent at St. Louis, enclosing report of tmvestigation With regard to irregularities of 1.r. W. P. DurRan, formerly Vice President of the City Trust Company of St. Louis/ together with draft of a letter to the Attorney General enclosing copy of the report for his information. Upon motion, the proposed letters were approved. Letter dated February 25th, signed by the nine directors of the Federal Reserve Bank of Philadelphia, again requesting that the Board reconsider action taken at the and of 1923 in voting to disapprove their recommendations with regard to increases, In the salaries of six Assistant Cashiers Of the bank. Referred to the Committee an Salaries and Expenditures. Letter dated February. 28th from the.President of the California lioacsne Of Indenendent Bankers, protesting against tile granting of the application of the Bank of Italy for permission to establish eighty-two additional branches In the state of California. Referred to the Committee'. on 7.1xaminations. Letter dated Parch 3rd from Congressman Fulmer, submitting copy of S bill introduced by him to amend Section 19 of the Federal Reserve Act SO as to provide that member banks located outside of central reserve and reserve cities shall maintain reserves with the Federal Reserve bank of their district of not less than ) tv- of demand deposits and 2 of time deposits.instead -401 7, Of demand deposits Ind Ti/p of time deposits as now provided. Upon motion by Mr. Hamlin, the Secretary was instructed to submit Congressman Palmer's letter, with the bill enclosed, to the Federal eserve ;_ents' Committee on aeserves. Letter dated nirch 5th from the Chairman of the Committee on Interstate and o'oreign Commerce of the House of Ilepresentatives, requestia; an expression Of the Board's viaws on H. R. 7498, a bill to finance the exrortation of American farm products and raw materials. aoferred to Law Committee. Draft of letter dated March 6th to the Chairman of the Federal Reserve Bank of Kansas City, advising . on of action taken by the Board at the meotin3 February 15th in votini to advise the bank that its present practice whereby its notary is deprived of official fees for notarial services should be discontinued and that hereafter the notary or notaries actin,.; in an official eLpacity for the Federal aeserve bank must be permitted to retain the full amount of L.11 le,; - a1 fees paid them for their services. he letter s-Aggests that hereafter notarial work of the lar': be divided amon:; a number of the employees so that no one shall receive more in fees than is commensurate with his respective salary rat iii and sac;gests further that the balance remain- tag in the fund. derived from notarial fees be used for the purpose of nromotbk> legitimate welfare work among employees of tho bank. Upon motion, the proposed letter was approved. 2he Law Co:mittee then reported favorably on the matter reftrred to it at the meet ±; on January 16th, nff,mely, memorandum from Mr. James dated 3/6/24 -5- January 17th, auggestin:_; an amendment to Section L. of the Federal eserve ct to permit member banks to deduct balances due from other banks from gross dem.nd der,osits in compu ting their required reserves. Mr. Hamlin moved that the proposed amendment be referred to all Federal Reserve banks for their tnnediate consideration and report. Carried. Letter dated March 4th from tho Governor of the Federal eserve Bank Of New York ref erring to the Board 's letter of Janw.ry 25th (X-3953) on the subject "Currency in Transit to and from Feder al aeserve Banks" and advisiW3 that, in view of circumstances state d, te officers anl directors of that bank believe that ',hey should not consider shipments of currency in transit in computing reserves of membe r banks or in assessing penalties for deficiencies thereof and that the directors of the bank rill take no action in the matter until receillt of further .:ord from the Doard concerning certain questions of law and policy referred to in his letter. Referred to 11(3 Law Committee. Letter dated March 2nd from Mr. Frank Kell, Class "B" Director of the Federal Reser ve Bank of Dallas with regard to tho desirability of action looking to the revocation of certain restrictions of the :ovor:nent Of Mexico prohibiting the circulation in that country at 7:ar of Federal Reserve notes. Upon motion by MT. Hamlin, it was voted that colv of Mr. Kell's letter, together with a co-py of the decree of the Mexican government referred to, be sent to the Secretary of State for his infomation. 3/6/24 -6_ Memorandum dated March 6th from Counsel submittinL3 draft of a letter to the Ohairm, _n of the International -cceptance Bank, Inc. , of lev: York City, advising formally of action taken by the Board at its 1-aetin'; Oh February 26th, in arrroving his request for a modification in the bank's z.,2,..reement with the Board whereby its required reserves on balances held for account of foreign correspondents may be kept not only with member banks but also with discount corporations or bill brokers against loans secured by eligible acceptances; together with a form of ralin?; for insertion in the F ederal Reserve Bulletin, stating among other things that the Board Will recommend to C Tiress an amendment to 3ection 25 (a) of the Federal Reserve Act authorizing it to make similar modifications in the reserve requirements of its reaL-rtions governing the operations of Edge corrations. Upon motion by Mr. Hamlin, the rroposed letter and ruling wore ail/proved and the file was referred back to Counsel for the preparation of a letter to Congress recommendin(:: the amendment referred to. Cunningham announced that he had considered the motions made by Mr. Miller and Ur. Dawes at the meting on February 29th as to the form Of statement on branch banking to -be inserted in the Lnnual Rerort, and that he wished to be recorded as voting "aye" on Mr. Dawes' substitute motion ulnd "no" on the motion of Mr. Miller. The chair then announced that both motions would be lost since both the 30crotary of the Treasury and Hr. Cunningham had voted for Mr. Dawes' substitute and against Br. Miller's motion, the vote now standing 24 four to four on each ton• at this point lar•Sr.c...)rk H. Foote* a director of the New Orleans Branch entered the inorn and. discussed with the Board a bill introduced in the leg'islaturo of the State of Mississippi which would impo e a tax on all national banks in'that state dolma trust business and 'muld forbid jut' , es in the probate courts of the state to cm,..rd such business to national bank • 1%,fter discus.lion o tho matter, during thieh it wa2 the concensus of opinion 'c:hat the prorosed act is unconstitutional it was suggested to 1.1r. 2oote that he coner in the inlY6tor,with the 3olicitor General of the United 3taes, IIIZOR13 02 3',L , (107=2,:,113: Dated, IV:arch 5th, Recommend Lm chand in stock at Pederai ROSCVO IA-122117s, as set forth in the .An:Aliary Llinute hook of this date. '4)proved. The meting adjourx1 at 12- Aror e °I19001F fr/
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