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233 meeting of the Federal lloserve Board was held in the office of the ileserve Board. on Tuesday, ::_arch 9, 1926 at 10:4:0 a.m. Pa.:SE.72, : Governor Crissinr Platt Mr.Hamlin 1.Tr. Ililler Onnnint- larn LIT. McIntosh Mr. Noon, Asst. Secretary ..r. McClelland., Asst. Secretary The minutes of the meetinr; of the Federal eserve Board held on March 5th were road and a-yoreved. The minutes of the meeting of the*Executive Committee held on March 5th -,•rere road and upon motion tho actions recorded therein wore ratified. The minutes of the meeting of the Federal aeserve Board held on March ath were read d approved as amended. The Governor presented a letter addressed to him by irIC advis- ills desire to go abroad. for a 1- riod of six weeks or two months, begin- 1111/€; sone time thr., latter part of 1.:ay or early in June, o.nd requested that tile other mombers of the Board endeavor to arrange absences during this period s° as llot to conflict with the conduct of the Board's rePmlar business. Cunninjiam stated that he 3xpected to make a trip of about a 1211tili s duration throti tile Yost, but e::)ected to be back in Washin71on by 1:aY 15th. Ilemorandurn from Counsel dated March 5th, with reference to the application. of Mr. Taylor Allderdice for pormission to serve at the same time a2 rliroctor of the Union National 3a2,124 and the Pennsylvania Trust Com-oany, bo th Of Pittsburgh, Pa.; Counsel statin7; that while there is, in his oDinion, oorae ceMpetition between these institutions, he does not think this competition 234 3/9/26 should be termed "substantial" and accordingly concurs in the mconmendat ion Of the Federal Reserve Agent that the application be granted. The above recolamendation being coreurred in by the Law Committee, it was voted to approve the application. I.Iemorandum from the Governor dated March 3rd, recommending that pending the selection of a director of the Division of Research and Statistics, Lir, E. A Goldenweiser, who is now acting in that ca)acity, be given the title of Acting Director of the Division. Upon motion by lir. Hari in, the above recommendation was approved. The Governor then brought up the following motion submitted by Mr. ller at the meting of the Executive Conmittee on March 5th - "that •Lngton be desigiated as the future regular meeting place of the Open vt Investment Conmittee, except when the Committee is authorized, by the Board to meet elsewhere". The above motion being put by the Chair, was unanimously carried. Telegram dated March 5th from the Secretari of the Federal aeserve Barik Of Cleveland, advising that the board of directors on that day made 11° change in their existing schedule of rates of discount and purchase. Meted. Telegram dated March 8th from the Chairman of the Federal Reserve Bazat Of Dallas, advising that the board of directors on that day made no oheraice 11 the schedule of rates of discount and purchase in effect at that bank, Mot ad. L 235 319/26 Letter dated March 6th from the Secretary of the Federal Reserve Ban".L. Of Cleveland, advising that the board of directors at their meeting on March 5th accented the msionation of Mr. L. —.1:anning, Managing Director of the eilleinnati Branch, effective March 31, 1926, and appointed 1;:r. C. F. ::cCombs to succeed him for the period ending December 31, 1926, at a salary of ,)8,400 Per annum, subject to the approval of the Board. 2"oted, and. upon motion the salary fixed for McCombs was approved. Letter dated. March 6th from the Assistant Federal Reserve Agent at °1e7e1ancl, advising that they have received from the Union Trust Comnony, CleVeland, Ohio, a request for an extension of time for the opening of the branch t Altoona .;_venue and Pearl Road, Cleveland, the establishment of Which was approved by the Board on November 17th. Upon Motion, it was voted to grant an extension of six months from Ilay 17th. Letter dated February 26th from 2:essra. Shearman and Sterling, attorneys for the National City Bank of nou York, advising that the board of directors of the bank on 7ebruary 23, 1926, authorized the officers of the bail% to retransfer the main office of its Italian Branch from the City of an to the City of Genoa, the original location of the main office of the branch 1-13ader the authorization granted by the Board on May 25, 1916, transto the City of Milan under an order dated. August 14, 1924; the letter stati, LAP') that due to unsettled conditions in Italy, the management of the bel to ves that while present conditions warrant a retransferring of the °filo° to Genoa, the situation may at any time, and from time to time, 236 -4- 3/9/26 change, making transfers in the location of the main office of the Italian branch advisable; the letter also stating that dhanges have heretofore been laade only on formal order of the Board and inquiring if some simple method would be permissible which would relieve the Board of having to pass upon frequent applications and at the same time give to the bank some latitude 0f discretion as to where the main office of its Italian branch should at allY time be located. After discussion, uponmotion by Mr. Miller it was voted to give tentative approval to the retransferring of the main office of the Italian branch of the National City Bank from the City of Milan to the City of Genoa, subject to the filing of formal application, and to refer to the Lau Committee the question of the procedure in connection with possible future changes. Report of the Lau Committee on the matter referred to it at the meeting Ott Pebruary 2nd, namely, letter dated January 03th from the Governor of the l'eaeral Reserve Bank of Dallas, renewing his suggestion that the Federal -Yi'eserlre System retain a consulting attorney to serve as a clearinghouse legal information anong the various banks, and to be available in the " f eVelat a particular Federal reserve bank desires to call upon him; the Law Cctzlittee recommending approval of a suggestion of the Board's Counsel that a 13/. 7 of Governor Talley's letter be sent to each Federal reserve bmilr and that the subject thereof be placed on the program for discussion at the t°1'th " Iming Governors' Conference. Upon motion, the above recommendation was approved. Letter dated March 5th from the Chairman of the Federal Reserve Bank Of /Te /7 York, transmitting copy of a circular letter issued by the Credit 237 3/9/26 -5- Corporation of New York City in which it is stated that the Federal Reserve Board has described their System as "an intensified part of our camtiercial banking system". The Secretary stated that the quotation used by the Corporation was taken fmm the Board's article on the general subject of "Finance Companies", -oublished in the Facleral eserve Bulletin of J-nuary, 1923. Upon motion, the above letter was referred to Counsel. Letter d.ated ::arch 5th fmm the Chairran of the Federal deserve Bank of lrew York, transmitting a list of all State member banks to which the Surerof Banks of the State has granted permission to exercise fiduciary Powers Noted. :lernorandura from Counsel submitting draft of a reply to a letter from the Chairman of the Committee on Banking and Curremy of the Senate, requesting the vi ews of the Board on a suggestion that thet -devised Statutes be 3° "mended as to take away the ridat of the United States to a priority its claims against insolvent state banks in view of the fact that no such Preference exists as a.;-,-ainst insolvent national banks; the proposed " lett 'discuss inc, the amendment suggested and stating that the Federal v e Board is in agreement that appropriate legislation should. be Ilacted. to nut insolvent national banks and insolvent state banks upon an. equal basis as respects the priority of claims of the United States. After discussion, during: vthich 17.r. Hamlin, Chairman of the Law Committee, suggestei certain changes in the proposed letter, it was referred back to the Law Committee for revision. 238 3/9/26 Leraoranclum dated :.:arch 5th, addressed to the Secretary of the Board 13Y the Undersecretary of the Treasury, submitting photostat copies of an °Pinion of the Attorney General of the United States rendered under date 4th, upon the cuestion whether a trustee, officer, or employee of matual gs bank is elij.ble for appointment as a Class "B" or Class • "o" Director of a Federal reserve bank; the Attorney General stating' that inutual savincs banks are banks within the meaning of that section of the "aeral _loserve .2,.ct prohibiting Directors of Class "B" and. Class "C" from beiy" t. oiiice-s, directors or employees of "any bank". Upon motion, it was directed that co-Aes of the opinion of the Attorney General should be for.-ra.ied to all Federal reserve banks for their information, with special dvice to tile Federal Reserve Bank of Boston, at which officers of mutual savings banks have been serving as Class "B" and "C" Directors, pendinp;receipt from the Attorney General of the above opinion as to their elif;ibility• The Gov-or-110r then presented the matter ordered circulated at the on :arch 8th, namely, memorandum on the sub,joct of the relation Of the call loan market to the Federal ileserve :System, prepared by 11r. ' in accordance with the reciest of the Governor at the meeting on .1:111°1 —I 3rd, and proposed for incorporation in the Board's imual Report fOr th° year 1925. After discussion, u.00n motion by hr. Miller, it was voted that the question of the inclusion of the above and memorandum in the report be referred to the Governor Vice Governor with power. Letter dated :arch 5th from the Comptroller of the Currency, recoml-nend.ibtereas r's in the salaries ef national bank examiners as follows: 239 3/9/26 From Name J. 1:;. Pole L. K. Roberts Jno. S. Wood S. L. Uewnham T. Harris 3. K. Patterson E. D. Robb E. H. Gough J. L. Proctor W. W. McBryde W. P. Folger A. M. Steuart 0. F. 7i1son 15,000 15 13,000 13,000 13,000 12,000 10,000 9,500 8,500 7,000 6,500 7,500 3,600 3,600 To 4A6,000 15,000 14,000 14,000 13,000 11,000 10,000 9,500 8,000 7,500 8,500 3,900 3,900 Approved. OFSTAiIirG 001.111ITTEES: Dated, Zarch 5th, 8th, Recommending changes in stock at Federal Reserve Banks, as set forth in the Auxiliary Minute Book of this date. Approved. Dated, llarch 4th, Recommending action on applications for fidaciary powers as set forth in the Auxiliary =mite Book of this date. Approved. Dated, March 4th, Recommending action on application for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Refused. Dated, :larch 5th, Recommending approval of the application of Mr. Ellery S. James for p3rmission to serve at the same time as partner of the firm of Braun Brothers & Co., private bankers, and as director of the National Shawmut Bank, both of Boston, Mass. Approved. The meeting adjourned at 11:30 a.m. Lssis taut Secretary. 4131)roved:
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