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meeting of the Federal .eserve Board was held in the office of the Pecleral deserve 3ord on 2riday, P.:1. 2;=T: PA2SEITT 1928 at 3:00 p.m. Governor Young Blatt :jr. Hamlin 1:r. Liner ::lcintosh :r. ::3ddy, Secretary ::r. :cClelland,,i,sst. Secretary . Iyatt, General Counsel Li'. Vest, lisst. Counsel At tention was called to the fact tilat the Board has under consideration tile whether it should L,pprove the use of the word "federal" as part °T the title of any corporation organized. under Section 25 (a) of the federal Iterl\re 41ct for tne purpose of enfraping in International or foreign banking. 'Yatt s'l-fre-ted that consideration should also be given to the propriety °T4PProviiv, the use of the words "united States" as part of the title of any s4C11 cornoration and expressed the view that the use of the words "United States rnuch more misleading that the use of the word. "Federal". Upon motion, it was voted that the federal ,eserve Board will not approve the use of the words "United States" as part of the title of any coreoration organized under the provisions of „Action 25 (a) of the Federal deserve ;,ct for the !purpose of engaging in international or foreign banking or La other international or foreign financial operations, Oh the t;round that it would be misleading to persons doing ollsiness with such corporations both in the United States and abroad. . "ddtt then explained to the Board the present status of the case 1104 aistl ins t the Board on behalf of the organizers of the proposed United tates 2oreitn financing Corporation, now pending in the Supreme Court of trict Of Columbia, and pre3ented to the Board an amended answer which 4a beeti preoared by 1.:r. Baker and himself. :Al new portions of the amenied kizwer Ore read to the Board and uiscussed. 5/18/28 hc„,,,`• Upon motion, it was voted to approve the amended answer as presented by 1..*.r. Wyatt and to authorize .;ounsel to file same an behalf of the Board and an behalf of the members of the Board. 1:1'..liVyatt then advised the Board of a suit which has been brought by de1°41t°1's of the insolvent Yeoga National Bank, NeoFa, Ill. against the directo r, Of that bank and against the Federal Reserve Bank of Chicago, alleglag m; -Lsmanaement by the directors and collusion by the Federal Reserve bank; the. . *3111t claiming that the Federal deserve bank has a duty to examine and 81.1pery. Ise member banks and is presumed to know their condition, that the hogEt 4atienal Bank was insolvent for more than a year before a receiver Vila 4 PPO itted, that during this time the Federal Reserve bank rediscounted t° It and took excess collateral, thereby making itself a preferred creditor 411(Ith4t the Federal Reserve bank should have refused to rediscount when it ew. ""e member bank to be insolvent and should have caused the bank to be Jyatt stated that a judgment is soucilt to compel the Federal e bank to share losses equally with the general creditors. He stated that the suit involves numerous questions of interest to the entire System, °f which are now being studied by Honorable Newton D. Baker, at the elll"t Of the Governors' Conference, and that the Federal Reserve Bank of Chicago has requested that all Federal Reserve banks join in retaining 1:r. 1111 to assist in the trial of the case. After considerable discussion, upon motion, the Governor was authorized to communicate with all Federal Reserve banks ana ascertain whether or not they are willing to join in the employment of Mr. Baker on a pro rata basis, and if so, to arrange for such employment with the understanding that the fee subt° be paid lir. Baker for his services in the case will be mitted to the Board for approval. "essrs. ,:yatt and 'Test then withdrev: from the meting. The minutes of the meetin 9oard held on ::.ay of the"2-ederal NI 17,. re read and approved. The minutes of the meetin-s of the ;xecutive Committee of the Federal 4eserve Board held on Lay 14th ,.nd 17th were read and upon motion the actions l'.rcled therein wore ratified nd. the recommendations made by the Committee a pbroved. Telegram dated 1.".ay 18th from the ,tcting Chairman of the Open Larket .14/teetr nent Committee advisin;; - that the next meetino: of the Committee, ori-inally lieduled for ::".ay 22nd, has been Postponed until Hay 25th. I;oted. he 3eeretclr then *oresented an application on behalf of the Industrial Iration,1 Bank and '.1rust iCompan:j of ew York, i Y. (orp;anizinr) for permission to e, 4erCiS0 eneral fiduciary powers, effective if and wnen authorized by the '1)tl'/311er of the Currency to commence business. He stated that the board cill'ectors of the Federal eserve Bank of 4ea York recommend disapproval of the aPPl ication, feelinc_; that it v,ould be well to defer the (-ranting of trust 11(*ers until the directors of the institution have demonstrated for at least 0 Year their ability to properly and profitably operate a bank at the pro1c)4'Ql lo cation. He state u that the Board's Law Committee is divided in its l'e(3111Inerviatior., ressrs. Platt and Hamlin recommundin 11(qci that the application be £r, ,:cIntosh that it be approved, effective if and when the bank is 411.1°ri ed "a, him to commence business. ,,fter discussion, it :as voted to refer the acplication back to the Law Committee for further consideration. Cla'jtcn ,ct application of Dunnin ideout, involving the First 1:zAiona 5/18128 -4- Of arrsville, 1. and the Bank of Italy National Trust and ,avin;4s 48°°iation of san Francisco, which operates a branch in ::_arysville. The Sel'etal'Y stated that the Federal deserve ligent at an Francisco recommends 41)131'0 v4 of the application, beim; of the oeinion that the granting of the Pellnit would not be incompatible with the public interest for the reason that t113cslieles of both institutions are alrady directed by the same interests 411c1111's 4ideout'5 connection with either does not appear to be such that he Nad. any °°1r2t1ttee, way dominate these policies. He stated that the Board's Law weile recomrnend.ini approval of the application, suggested that it bec°11siclered by the full 'ioard in view of previous discussions regarding u applications involving br5nches of the Bank of Italy rational a/ld Savings ,ssociation. Discussion then ensued during which the secretary reported that the 3ancitaly Jorporation owns over 5l of the stock of . t he First National Bank of LIarysville, and also a substantial interest in the Bank of Italy T:ational ?rust and :avincrs ssociato, the policies of both institutions beimg directed by the so-called Bank of Italy interests. , Follow-ing the discussion, upon motion it was voted to refer tne above application back to the Law Committee for the preparat on of a letter to the Federal deserve agent at 3an Francisco actvisinp: that the lAari is not entirely satisfied with the reasons stated by him in support of his favorable recommendation. " 4 4-1,m from Counsel dated Lay 1(Ah with reference to the Clayton .,ct "i° Z- Of hr. :,:arshall Hale, involving the jalifornia National Bank of s;a1. and the Bank of Italy 1:ational ?rust and J.avin7s ,ssociation 'qt1 ' rancisco, which operates branches in sacrament°. The secretary reported that while the Board's Law Committee inclined to approve the application it sm -gested that the Matter be considered by the full Board since it appears that two 5/1B/28 branches of the Bank of Italy Lational 2rust and Javings xssociption in 3acramento are located just two or three °locks from the California Lational Bank and the institutions are in natural competition. He stated that the Federal deserve itgent in recommending aoproval reported that hr. Hale owns a small number of shares of stock in each bank and beinri: a director of the Bank of Italy Lational Crust and Javim-:s _ssociation head office, vary likely has no direct connection with the ':; - acrumJnto branches of that bank. ,-fter discussion, it was voted to refer this application back to the Law Committee for the preparation of a letter to the federal deserve -s;ent at Ban francisco, auvisinc7 that the Board is not entirely satisfied with the reasons reportea by him in support of his favorable recommendation. Ilatter approved on initials on Lay 16th, namely, arsolication of the Inal National Bank of hew York, :C. Y. for orifjnal stool: , (1650 shares) the Federal deserve Bank of hew York, effective if and when the Oomptrol- ler °f the Currency issues a certificate of authority to commence business. Formally approved. Te legram dated lay 18th from the assistant Federal :',eserve -gent at .tich- tri°11c11 adv is in 0 the election of hr. Junius 2. I,ishburn of Roanoke, Va. as "lass B Director of the federal :oeserve Bank of hiclimond. Or the unexpired trin Ofr, .jtru.dwick, deceased, ending December 01, 1930. , 'slegrams dated ::ay 16th and 17th from the Chairmen of the Federal .,es%rite 13allks of it. and ;an Francisco, advisinr, that their boards of di- l'eQto rs at maetin..s on the dates stated made no chaiv_7es in the banks' e:isting ,,equies f rates of discount and purchase. .ithout objection, noted with approval. dated 'ttor l 4%ly 17th from the Becretary of the "Federal 2Leserve Bank of late (31-1 advisin,,: that the ooard 01 directors at their meet1nc7 on that r.." 5/1e/2.8 liotea 9 -6_ t,c, establish, effective with the change in the rediscount rate of the a rate of 4 1/2;) for pumhases of government securities under resale and the following schedules of minimum and effective rates for -Q-s of acceptances: Minimum rates for bankers acceptances: 1 to 30 days 31 to 120 days 121 to 180 days .:epurchase _ _ 3 3/4 4;; 4 1/4,.; 4; , . ffective rates lor acceptances: " Bankers - 1 t;) 120 days 121 to 180 days Repurchase Trade , , _ - 4p 4 1/4„) 4,, 4 1/2,:i Without objection, noted with approval. Telegram dated May 15th from the 4ssistant Federal deserve Agent at 111°114 ac1V ' ich- of the establishment on that day of the fo11owinc schedule of tatez I°r purchases of bankers acceptances: 1 to 120 days 121 to 180 days 4 1/b,) 4 3/8 - lithout objection, noted with approval. : TelA --grams uated May 17th and 18th from the Ohaiiinen of the 'Federal deserve 131441,:a , of the establishment, effective Yay °f Ot. Louis and Chicago, advisinc th, Of the following schedule of rates for purchases of bankers accentances: 1 to 120 days 121 to 180 days ,:ithout objection, noted with approval. Zeie :111114iti l'am dated May 13th from the Chairman of the Federal .eserve Bank of P'lls, advising of the establishment on that day of the following f-N ; -7- schedule of rates for purchases of acceptances: Bankers 1 to 120 days 121 to 180 days _Lepurchase 41/2 Trude iithout objection, noted with approval. Liernorandum dated Lay 16th from the Director of the Division of ..esearch . 414 3ta tistics, recommending that the temporary appointments of Lrs. Julia 1411'jl and Lliss1sie Hanold, which expire on Lay 20th, be extended until 411 t 20 1928. approved. P°It of '2.:xeciltive ?)ommittee on letter dated 2,1ay 17th from the Jomptroller or the 0 4 rrency, recommendin7 approval of a salary of ,27(30 p,3r annum for Bank Examinur Janiel J. Breen, assiyned to the Jevehth eera1 des- (*Ire ji Strict; the 'oard's 3ommittee also recommendin-; approval. lqoproved. 4erx)rt of ixecutive Jcymmittee oh letter iated Lay 17th from the Jomptroller' or the ,, \,a rrency, recommendilv- approval of a sal3ry of ,i2500 per anatu for Oal Ballk :xaminer Theodore as,3igned to the 2welfth zederal 4aarli e Jistrict; the T'ox,rd's Jomlittee also recommenuLag auproval. -Pproved. IA *-Port of Jommittee on ;a1L,ries and ,:xpendit-Ares on letter dated Lay 14th the ).9.1-lt- Governor of the Federal eserve 3ank of Few York, recommend- the Promot ion or LI'. Frank )(vie to a position where the grade is in exess of ,,25°° pr annum, effective Llay 1, 1928; the Aard's ',:ommittee also aoproval. ._pproved. Ot3L, ) 5/18/28 Letter dated May 10th from the Chairman of the ,:ederal eserve Bank of 84112rancisco, advising that it has now been determined that the bank will 11()t lose the services of Mr. 2hamas H. Ramsay, Class L Director, and sugtihg that he proceed with a special election to fill the vacancy on the 4411 of Directors caused by the resit_mation of Mr. Howard ,:hipple, Class A Dillector, whose term would have expired December 31, 1930; the Agent also elle:Resting that the Board fix June 25, 1928 as the date for the opening of the Polls in the special election. The Executive Committee on May 16th having approved the holding of the special election and having fixed June 25th as the date for the opening of the polls, upon motion, this action was formally approved. The Governor stated that in accordance with the practice which has been 111°611t1 -Y kat adopted, on May 7th he wired the Chairman of the Federal deserve °f Dallas requesting the reason or reasons for the action of the di- 40t0l. Of that bank in votin': to establish the rediscount rate of 4 1/2/0 144elawas approved by the Board. He presented the following telegrams ex- 114rIed With the Chairman of the Dallas bank under date of May 7th: "Young - "fashington Answering wire this date. In consideration question of change in discount rate Saturday members our board here of the opinion that the rate question is one primarily to be decided by local uoard each district as conditions would seem to indicate at time Of suggested change, that local board should not necessarily be governed by change in rate in other districts unless system policy aould indicate that cooperation would be wise and salutary unuar particular circumstances existing:. They also were of the Opinion that a raise from 4 percent to 4 1/2 percent was not essential at this time in our district to preserve autonomy of business as related to commerce industry and agriculture but due to the fact that it was estimated that not less than one call market hundred millions of dollars is now being loaned on the tend to in New York from the Eleventh District such raise would er.* e•-• B/18/28 -9- "curb speculation on New York market if the other eleven districts should increase their rates above New York and thus be the means of requiring many call loans in this district to be retired and returned for legitimate demands here. Recent raise from 3 1/2 percent to 4 percent in Board's opinion served a good purpose here in forcing the group one member banks into the mnrket for the greater amount of increase in our loans made during April as they preferred to borrow from us rather than call their loans in New York or sell United States securities on a falling market. Conditions in this district are perfectly sound and an increase of one half of one percent in the rate will have little if any effect on country member bank borrowings or increase their rate by reason of the wide spread between 4 1/2 percent and 6 percent Obtaining in country bank discounts. This increase however Will cause larger banks which have surplus funds on call in New York to withdraw those funds and use them here instead of borrowing and to the extent they may withdraw such funds will the supply of money be reduced as long as other Federal Reserve districts maintain higher rate than New York. :;alsh." "Walsh - Dallas Very much interested in your wire. Is Board to assume from its contents that you have specific cases of banks continuously borrowing from yoil and simultaneously lending on call? Young." "Young - Washington Answering your wire this afternoon did not intend to convey Idea my wire this morning that we have specific cases of continuous borrowing and simultaneously lending these funds on call. From discussions with others have good reason to feel that some banks in this district have preferred to borrow from us rather than sell goverment securities at low price prevailing during past thirty or sixty days or to call loans made previous to that time because call money rates were substantially higher than our discount rates. Undoubtedly many call loans placed by banks in this district are from institutions Which have not borrowed from us at all this year but by reason of having heavy surplus funds for which there were no local demands felt they could be placed in that manner more advantageously than elsewhere. jalsh." Noted. 5/18/28 -10- Matter approved on initials on May 12th, namely, letter prepared for the signature of the Secretary of the Treasury, addressed to the Chairman Of the Committee on Banking and Currency of the Senate, advising of the 13()eta's approval of Senate Joint esolution 14:, authorizing the erection 111 L0s Angeles of a building to house the Branch Federal Aeserve Bank at that Point. Upon motion, the letter was formally approved. Memorandum from Counsel dated May 2nd nrepared in accordance with the request of the Board at its meeting on hpril 27th, with respect to the tY of the Board to disapprove the inclusion of the word "Federal" 14th0 titles of corporations organized under Section 25 (a) of the Federal "re Act and as to the Board's authority to revoke permission already 'gtaxitecl. for the use of the word in the titles of corporations previously Nem--eLL; ', Counsel stating (1) that in his opinion in any case where the Nal feels that the use of the word "Federal" may be misleading to the 11111140 or otherwise detrimental to the public interest, it is vested A.th the 'egal authority to disapprove the use of the word in the title of a cert30 ' l ation organizing under Section 25 (a) of the Federal deserve 1,ct, which legal authority, however, should be exercised with a clue regard to the ID°1i0Y of Congress which is to be implied from the l'ct of May 24, 1926, that the use of the word "Federal" in the titles of corporations organized 1411Lcir the laws of the United States is in a general way proper and to be -c2,4; and (2) that the title of a corporation previously organized, Nch 4e been lawfully acquired and approved by the Board, is one of the l'eated 'ights of such corporation which can not be taken away or imp:Aired -11- the Federal deserve 3w4rdwithout the consent of such corporation. after discussion, upon motion the opinions expressed by jounsel in the above memorandum were approved. The 3ecretary then presented draft of reply to a letter dated 25th 'rom the Vice President of the First 'Federal iorein Investment Trust, allrisings that the corporation is considerinc: the aav]sability of shortening its t. ltle to either 'First Federal Investment ?rust" or "Federal Investment f ; the proposed reply setting out the procedure incident to a change 01 ' . itla and statinp, that while the Board would have no objection to the 4c101)ti°11 of the title "First Federal Investment Trust", it considers that thew"ds 'Federal Investment Trust" are descriptive Fenerally of any corporati0 11 which may be organized under 3ection 25 (a) for the purpose of doincr7.411 ila vestment trust business and accordingly wou1,1 not be disposed to ap- 1)141 "a title consisting of these ,:ords only, and not having in addition aorn characteristic or distinguishinF7 word. l',..fter discussion, upon motion it was voted to approve the letter to the First Federal Foreign Investment Trust above referred to, ::..r. Liner voting "no". The secretary then submitted a letter (1,Ited tipril 25th from Messrs. 41 .44 °wer, Miller and Garrison of New York City, submitting an applition 13Proval and reservation of the title "Federal Discount and Investment ) x -or a corporation proposed to be organized under 3ection 25 (a) of the 1, eaeral deserve Let. ,.Lfter discussion of this application, in the li(Jit of the memorandum from Counsel dated May 2nd and the letter to the Vice President of the First Federal Foreign Investment Trust, both of which were approved at this mootin, as set out above, -12- it Was voted to reconsider the action taken in approving Counsel's memorandum of :lay 2nd and the letter to the corporation and to refer them back to the Law Committee, together with the application for reservation of the title "Federal )iscount and Investment 2rust". , tiordndum dated 2.lay 7th from Counsel, submitting draft of reply to letter 4ted pri1tOth from the Federal eserve ,Lgent at Dallas, requestin a rulin7 O the action of the Miners :;tate Bank of Clarendon, 2exas in carrying a loan , for '4e of its customers in connection with which the President of the Bank is Pel'acqi allY holding shares of the bank's own stock, although the stock is not 14 the custody of the bank and it disclaim- holding the stock as collateral, 41tho, the ,,resident states that the stock will not be surrendered until the lean is paid; the proposed reply stating that if the )resident of the is holdincthis stock with the express or implied understanding that in the event the loan is not paid he is to deliver the stock to the hank or e11 the stock and pay the amount of the customer's indebtedness out of the Droce the President is in reality acting as a trustee in the matter and tt is clear that the loan has been made by the bank upon the security of its tock Statutes. ter, tat,,,ht in violation of the provisions of 3ection 5231 of the ,evised In his memorandum, however, Counsel stated that conceivably the may hav3 endorsed the note of the customer in order that the 1stobtain the loan from the bank and the customer may have rut up stoek With the president as personal security for his endorsement, in h evellt the loan by the bank would be tion the security of the customer's , ItIto tUr and the President's endorsement, and the transaction if entered goOd faith on this basis would not constitute a violation of law. “fter discussion, it was voted not to forward the letter to the Federal :eserve .-.P-ent at Dallas submitted bY Counsel, but to address a communication to him requestmore definite advice re5-Ard]np the facts of the case. 1)raft of letter to the Chairman of the Committee on 3ankin- and Currency of the ouQ. , . ot rAepresentatives, with reference to H. • 16153 previdin7 that the col- r of a nept;able instrument transferred to a national bank for 8fero ii shall the in certain cases be a preferred cr-Aitor of such bank in elellt Of its failure; the proposed reply stating that although the Board favors the accomplished, it believes 1311rises of the bill and the results which would be that the form of the bill could profitably be amended by one or two changes and 4'1c1 iti0n5 set out in the letter. The above letter haviw7 been circulated amon7 all members Of the Board was upon motion approved. ±ith Of Law Committee on memorandum dated 2pril 21st from Counsel, refer lath from the Chairman of the First Federal ellc° to letter dated Porei consideration of ' f .11 Investment Trust of New York City, submitting for hct a proposed amendment to dection 25 (a) of the Federal deserve which permit corporations organized thereunder to invest funds operations employed in international or foreign banking or financial tile that not more 8t clek or other securities of any cororation, provided at any triklorle-third of the capital and surplus of the corporation may be the United °11' tilne invested in corcorations !:enerally engaged in business in St tes subject to a a‘id provided, further, that such investr:ents shall be 1114tLf . iO _f in .1/1.y one corpratien 0 10,:, of capital and surplus on investments (fa the restriction Pt banking corporations where l5 is the limit) and to t rim corporations in substantial - slIch investment shall be made in other -14- • °Q111Pet*ition with the investing corporation. In its report, the Law Oonittee /)Thited out that at the nresent time there is a growinr: movement to permit the °Nan* lzation under Federal law of investment trusts doing business wholly or Pally in "merican securities and stated that the Committee believes the enact111-1 - of the proposed bill somewhat liberalizing the investment trust teat11 S of de corporations will do something toward postponement of such 1)11 s 01'i0sai5 After discussion, it was voted, to refer the file on the above question to the directors and officers of the Federal deserve Bank of 1Iew York for an exnression of Opinion. 4 Port of Law Committee on memorandum dated April 21st from ::.;ounsel, refer141.; to letter dated April 18th from the flee President of the First Federal E7n Investment Trust, inquiring whethx a corporation orF7anized under Se tioll 2° (a) of the Federal ,leserve _Let may purchase bonds of domestic %Iporations althow:411 the purchase of stock of such domestic corporations 111,ot a uthorized by law; Jounsel stating that in his opinion 3ection 25 (a) el44111Y authorizes cororations orgahized thereunder to buy aril sell or holost in bonds issued by any corporation including; bonds Of domestic corporaton 1-4 al thoucia this porer must be exercised under such rules and. re-ulations 48 t4e. Board may prescribe. In its report, t.,le Lou ',.;ommittee sul7ested the N:*tr1114.tion of a reulation which would authorize corporations or:,:anized 1111-41* 3ecti0n 25 (a) to invest not to exceed 201 D of their capital and sarrlus bozicis 01` domest ic corporations. discussion, it'as voted to re:mest an expression of oninion from the officers and directors of the ederal .;eserve Bank of :7ew York on the (,uestion raised in the above file. 5118/2 Letter dated :_ay 8th from the 2ederal Aeserve ..gent at dichmond, a4718ing thzit the _br.ecutive Committee of that bank recommends that proceeclin's be instituted by the Board to require surrender of membership the .t'ederal eserve System by the Palmetto Sank and ?rust Company, ?lorence, the The iecretary presented drafts of letters to the bank Federal ;eserve ad/isincf of a hearing to be Held by the r3o3„ 'LL at ',hich representatives of tne.falmetto Dank and 2rust Company are cite"-z to appear to show cause why the bank should not be required to surrender its stock in the :ederal eserve Bank of Hichmond and to forf,, 7̀1t all rights and privileges of membership in the 'federal Reserve Sy ; the proposed letter stating that if the Palmetto Bank and Trust Cortn. ' -11Y desires to waive its right to appear at the hearing before the 1104ra . 9 It 1 3Y present to the *2-ederal ueserve :,gent such evidence as it ' - re to have presented to the Board, providel it gives reasonable notice Of its intention to appJar before the 2ederal deserve Upon motion, it was vote..1. to approve the recommendation of the :2xecutive Committee of the federal deserve Bank of Aichmond and the letters to the member bank and the 2ederal Aeserve dgent at aichmond, submitted by the Secretary, were approved and ordered transmitted, after June 19th had been fixed as the date for the hearing before the Board. • Ilftorandum from Counsel dted pril 24th, submitting urafts of let- ters () the /Ittorney General of the United 3tates, the Comptroller of the ellcY una the Federal deserve ,,gent at Chicago, with reference to methods Of 4,4 `vertising and sellin- securities beiriF: , employed by the Iroquois Crust QQ111,, V44Y Of ivanston, Ill. Upon motion, the letters submitted by Counsel were approved and ordered transmitted. -16- Letter dated LIay 8th from the :_ssistant Secretary of Jtate, transIni tt ia, F.., copy of dispatch from the Y,mbassy at Havana relatim- to a decree of t''e President of Juba cre.,tinr' a Bankin- jommission for the purpose of re%q v, '"g a proposed Cuban bank law, copy of which ;as transmitted to the bY the State Department under date of June 7 1925; the Assistant ' jecretary of State requesting' any comment which the Board may consider ar.)1)11°Pr 1ate upon the subject. Discussion ensued durinif which it was pointed out that the original draft of the Cuban bankime law referred to was prepared by Averner Hardinp: of the Federal deserve 3ank of Boston, and upon motion, it was voted to refer the letter from the .2,,ssistant Secretary oi State to Avernor Harding -, ith a request that he sun; est to the Board a form of reply thereto. 11, , ,-Ake Secretary then submitted the matter which was referred to the 't Without recommendation by the Executive Committee at its meeting on Litiy 1 &tit, namely, application of the American State Bank, :Frankenmith, Lich. f()1, MeMbership in the Federal deserve system and for 24 shares of stock in the ederal _eserve Bank of Chicago, action on which was deferred by the oaz, (1 on 1928 due to the small ratio of the bank's capital to its t liability. The Secretary presented subsequent correspondence with the Pecteral deserve Agent at Chicago, including a letter from the applicant 14,11k isinc. that at the next stockholders meeting it is proposed to in,ase une bank's capital to „I35,000 and its surplus to ;;30,000 or „;35,000. The 'eeretary also called attention to a recommendation of the Federal deserit that in view of the bank's intention to increase its capital its annlication for membership be approved by the Board° - -17Uf,on motion, it was voted to approve the application Of the American State Bank, Frankenmuth, for stock In the Federal Reserve Bank of Chicago, subject to the regular conditions of membership set out in the Board's Regulation H, Series of 1928 and to the following special conditions: (1) That the total credit based on stock of the Grand River Investment Company be materially reduced as the paper matures. (2) That at the next stockholders' meeting, to be held in January 1929, the bank's capital stock be increased to at least .35,004 and its surplus to at least ,30,000. STANDING 001 II.ITEE3: atea, 1:ay 17th, 18th, thlt;ea, Lay 12th, 15th, 4tea 16th, " _ay 11th, '4tea . Lay 14th, e.tect, 1:ay 14th, 4teci, 15th, Recommending changes in stock at Federal Reserve banks as set forth in the Auxiliary Minute Book of this date. aecommendations approved. Recommending action on applications for fiduciary powers as set forth in the Auxiliary 1,inute Book of this date. 1Wcoendations approved. mm Recommending approval of the application of Mr. Victor S. Fisher for permission to serve at the same time as officer and director of the Pacific Avenue National Bank of Atlantic City, N. J., and as director of the Atlantic Safe Deposit and Trust Company, _tlantic City, Y. J. aecommendation approved. Recommending approval of the application of Mr. Charles F. Stern for permission to serve as director of the Los Angeles-First National Trust and Savings Bank, Los Angeles, Cal., as director of the Pacific Coast Joint Stock Land Bank, Los Angeles Cal., and as director of the Pacific Coast Joint Stock Land Bank of San Francisco, Cal. Recommendation approved. Recommending approval of the application of Mr. H. C. Carr for permission to serve as officer of the Bank of Italy National Trust and Savings A.ssociation, San Francisco, Cal., as officer of the California Joint Stock Land Bank, San Francisco, Cal., and as officer and director of the First National Bank, Porterville, Cal. Recommendation approved. Recommending approval of the application of Mr. 2idward H. Geary for permission to serve as officer and director of the Security Savings and Trust Company, Portland, Oreand as officer and director of the Pacific Coast Joint stock Land Bank, Portland, Oregon. Recommendation approved. 5/18/28 -18t;70(11) 3?;,-DING Datea, I.:ay 15th, Dated, May 15th, Llated, May 15th, 4ted. 15th, 4te I'LaY 15th, te "Iay 15th, LlaY 15th, (Cont'd) .:ecommending approval of the application of :;:r. S. J. -ldwell for pernission to serve as officer and director of the Bank of Italy National Trust and Savings 1,ssociation, San Francisco, Cal., and as officer and director of the California Joint Stock Land Bank, San Francisco, Cal. L',ecommendation approved. ecommendinc; approval of the application of Mr. Z. .. Birge for permission to serve as officer of the Bank of Italy National Trust and Savings Association, San Francisco, Cal., and as director and officer of the :ancisco, Cal. California Joint Stock Land Bank, San F, Recommendation approved. aecommending approval of the application of Mr. James A. Bacigalupi, for permission to serve as director and officer of the Bank of Italy National Trust and Savings 4.ssociation, San Francisco, Cal., and as director and officer of the California Joint Stock Land Bank, Jan Francisco, Cal. Recommend3tion approved. Aecommenc'int, approval of the application of :;:r. C. F. ente for permission to serve as officer of the Bank of Italy National ?rust and Savings Association, San Francisco, Cal., and as director of the California Joint Stock Land Bank, San Francisco, Cal. ,ecommendation approved* Recommending approval of the application of hr. L. Scatena for permission to serve as director and officer of the Bank of Italy National Trust and Savings Association, San Francisco, Cal., and as director of the California Joint Stock Land Bank, San Francisco, Cal. Recommendation approved. aecommending approvalof the application of Mr. A. J. :fount for permission to serve as director and officer of the Bank of Italy National ?rust and Savings Association, San Francisco, Cal., and as director and officer of the California Joint Stock Land Bank, San Francisco, Cal. :tecommendation approved. Recommending approval of the application of Mr. Jos.A. Ligliavacca for permission to serve as director of the Bank of Italy National Trust and Savings Association, Jan Francisco, Cal., and as director of the California Joint Stock Land Bank, Jan Francisco, Cal, Recommendation approved. -4.. V18/28 -)C) -19- ;41? ' . "9-L1L.OF STANDILIG CO:KIT2FAEJ: (Contld) Dated., May 15th, 4teci 'Zay 15th, bEttea, 1.:ay 15th, 114tea, /lay 16th, 13'48a, LlaY 16th, 1)11te(1".laY 16th, Recommending approval of the application of Mr. W. W. Hopper for permission to serve as officer of the Bank of Italy National Trust and Savings Lssociation, San Francisco, Cal., and as director of the California Joint Stock Land Bank, San Francisco, Cal. Recommendation approved. Recommending approval of the application of Mr. . d. Hendrick for permission to serve as officer of the Bank of Italy National Trust and Savings Association, San Francisco, Cal., and as director and officer of the California Joint Stock Land Bank, San Francisco, Cal. Recommendation approved. Recommending approval of the application of Mr. W. E. Blaner for permission to serve as director and officer of the Bank of Italy National Trust and Savings Association, San Francisco, Cal., and as director and officer of the California Joint Stock Land Bank, San Francisco, Cal. Recommendation approved. Recommending approval of the application of Mr. James I. Cochran for permission to serve as director of the First National Bank, Philadelphia, pa., and as director of the Guarantee Trust & Safe Deposit Company, Philadelphia Pa. Recommendation approved. Recommending approval of the application of Mr. Robert Killough for permission to serve as director of the Tenth National Bank, Philadelphia, Pa., and as director of the American Bank and Trust Company, Philadelphia, pa. Recommendation approved. Recommending approval of the application of Mr. B. D. Phillips for permission to serve as officer and director of the Citizens National Bank New Castle, Pa., and as director of the Bank of Pitts argh National Association, Pittsburgh, Pa, Recommendation approve The meeting adjourned at ,tirovect: , Governor. ill p.p.
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