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435 A meeting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Tuesday, May 18, 1926, at 11:30 a.m. PRESENT: Vice Governor Platt Mr. Hamlin Mr. Miller Mr. James Mr. Cunningham Mr. Eddy, Secretary Mr. McClelland, Asst. Secretary • The minutes of the meeting of the Federal Reserve Board held on May'llth Were read and approved. The minutes of the meetings of the Executive Committee held on May 12th read and upon motion the actions recorded therein were ratified. Matter approved on initials on May 17th, namely, application for perMia.2 Qlon to exercise general trust powers made by the Peoples Trust Company 011 'Br onvl ---LYn on behalf of "The Peoples Trust Company of Brooklyn National 13e.raci ng Association", approval to take effect as of the date the conversion °r the Peoples Trust Company into a national banking association takes place. Formally approved. letter dated May lath from the Secretary of the Federal Reserve Bank or "r York advising that at the meeting of the Board of Directors on that th e bank's existing schedule of rates of discount and purchase was (14:1 and no changes were made. Noted. Telegram and letter dated May 13th from the Chairman of the Federal Ire sank of Richmond advising that at the meeting of the Board of Directore 04 that, day the following minimum rates for purchases of bankers accept440es lirere established: 436 5/18/26 -2- 1 to 15 days 16 to u0 days 61 to 90 days 3e0 3 3/8% 3 5/8% Noted with approval. Telegram dated May 14th from the Chairman of the Federal Reserve Bank °f Atlanta advising that the Board of Directors an that day adopted the roll ciwinG. schedule of rates for purchases of bankers acceptances: 1 to 15 days 16 to 60 days 61 to 150 days 151 to 180 days 3 1/8% 3 1/4% 3 1/t% 4% Noted with approval. Telegram dated May 13th from the Chairman of the Federal Reserve Bank q Kansas city advising that the Board of Directors on that day made no ohance in the bank's existing schedule of rates of discount and purchase. Noted. Report of Committee on Salaries and Expenditures on letter dated May leth from the Chairman of the Federal Reserve Bank of St. Louis requesting el/Prawn of the action of the Executive Committee of that bank in voting to leave of absence on ocount of illness to Miss Fay Whiting, of the Tritrisa 4t Department, for not to exceed thirty days from April 23rd with full Pity; Committee recommending approval. Approved. RePort of Committee on Salaries and Expenditures on letter dated May 1411 from the Chairman of the Federal Reserve Bank of Richmond requesting 41441Wal of the action of the Board of Directors of that bank in granting N ' rtY day extensions with full pay in leaves of Opsence on account of ill414eDreviously granted Miss Charlotte Meade, of the head office, and Miss 437 5/18/26 -3- Carroll, of the Baltimore branch; the Committee recommending apProvai• Approved. Report of Conmittee on Salaries und Expenditures on letter dated May 12th. ,rom the Governor of the Federal Reserve Bank of Cleveland requesting approval of u contribution of $500 by that bank to a fund being raised to -v expenses of the annual convention of the Ohio Bankers' Association to be held i Cleveland in June; the Committee recommending approval. Approved. Report of Committee on Salaries and Expenditures on letter dated May lath from the Chairman of the Federal Reserve Bank of Philadelphia requesting PProv„, -' of the appointment of Hr. Z. G. Fenner as assistant to examiners in t4"ank Examination Department at a: salary of $2,800 per annum, effective June , "-at; the Committee recommending approval. Approved. Letter dated ray i4th from the Chairman of the Federal Reserve Bank of New v. rk replying to letter addressed to him by the Governor of the Board d-03 A4 of May 13th with regard to Mr. Theodore F. Whitmarsh continuing kg 4 c ass "B" Director of the Federal Reserve Bank and at the same time as 'Otee lafa of the Greenwich savings Bank of New York, in view of the recent °11 of the Attorney General holding trustees of mutual savings banks to "ligible for service as Federal reserve bank directors; the Chairman atoti 11 that Mr. Whitmarsh has been advised of the position of the Board Nth_ "intimated that he would probably arrange to resign from the Greenwich hvi ?g 8 Bank. Noted, 438 -4Letter dated May 15th from the Chairman of the Federal Reserve Bank of 144184elphia with reference to the application to two directors of that bank qthe recent opinion of the Attorney General holding that officers and trusi, ees of mutual savings banks are ineligible for service as Federal re' 8"e bank directors; the Chairman inouiring whether the directors affected 11 the ruling should be advised to resign at once or to wait until the elqqration of their terms. Upon motion, it was voted to be the sense of the Board that directors of Federal reserve banks serving With mutual savings banks or societies should, if they Wish to continue with the Federal reserve bank, immediately sever their connection with such mutual savings banks or societies. In this connection, the Secretary was instructed to brirg to the attention of the Board any case not previously reported of u Federal reserve bank director holding office with a mutual savings bank in order that steps may be taken to enforce the recent ruling of the Attorney General affecting these directors. utter dated May 15th from the Assistant Federal Reserve Agent at New ad17-e-ng i of the receipt of confidential information that the boards "dir eotors of the First National Bank and Trust Company and the Oneida e°tItt - 'rust Company, both of Utica, New York, have decided to merge the tlro netitutions under the name "First Bank and Trust Company", giving up the te, ti°nal charter. Noted. kit Letter approved on initials on May 15th, namely, memorandum dated 2 1th from the Chief of the Division of Bank Operations recommending t -t the Federal Reserve Agents be instructed to secure asset and liability i'ree of all reporting member banks as soon as practicable after the close 1)118ines s the each 7ednesday, and to dispatch their wire or mail reports to Promptly after receipt of the figures - in no case later than at 439 6/18/26 the clOf business on Saturday - and that the Board's weekly statement allowing the condition of reporting member banks be mimeographed on Manday raorning and delivered to the press at three o'clock for immediate release; the ehief of the Division suggesting, if the above procedure is .pproved by the Board, that the advance in the release date be made effective be*Lning with the statement for May 12th, which would be issued for immediate release at three o'clock on Monday, May 17th. Formally approved. Matter approved on initials on May 15th, namely, memorandum dated May 14th from the Chief of the Division of Bank Operations suggesting that be- Eitmi nE with the statement of condition of reporting member banks as of 114Y lath the "tcl deelers statement show separately time and demand loans to brokers secured by stocks and bonds Made by reporting member banks in ,crk City. Formally approved. Letter dated May 13th from the Chairman of the Federal Reserve Bank of telt York summarizing the results of a questionnaire on business conditions eent out to its members by the National Hardware Association. Ordered circulated. Letter dated May 14th from Mr. H. Vt. Forster, of Brown, Crosby & 44113841Y, insurance brokers of Philadelphia, requesting an opportunity to e`PPekr before the Board in connection with the Federal reserve pension Noted without action. Letter dated May 17th from Mr. Robert F. Barnett, of Sterrett and Aoll he $ Pittsburgh, requesting a certified copy of a press release which utEtt 1 Was made by the Board on May 14, 1926, with reference to commodity " 440 -6Prices. After discussion, the Secretary was directed to furnish Mr. Barnett with a copy of the Federal Reserve Bulletin for May which contains the formal statement of the Board, differing somewhat from the phrasing used in the newspaper statement. At the request of Mr. James, special order was fixed for Thursday wk. 10:30 o'clock to receive the formal detailed report of the "r4Ilittee appointed to investigate the recent financial disturbance in Cubas rr. James stated that copies of the report would be furnished to the Xembers of the Board in advance of the meeting. It%) 4S OP STANDIEG CaTITTEES: bitted, May 12th, Recommending changes in stock at Federal Reserve Banks, 13th, as set forth in the Auxiliary Minute Book of this date. 14th, 15th, 17th, Approved. NtsA, flaY 11th, Recommending action on application for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Approved. Ntte • Nted, 12th, Recommending action on applications for admission of 17th, state banks, subject to the conditions stated in the individual reports attached to the applications, as set forth in the Auxiliary Minute Book of this date. Approved. ra.y. 17th, Recommending approval of the application of Yr. Francis J. Arend for permission to serve at the same time as director of the Fidelity Trust Company of New York City and as director of the Allenhurst National Bank of Allenhurst, New Jersey, Approved. The meeting adjourned at 12:35 I'DProved: Secretary. 4111 / 0 Vice over-nor.
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