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A meeting of the Federal Reserve Board was hold in the office of the Pederal Reserve Board on Tuesday, May 20, 1924, at 11:10 aom• PRESENT: Governor Crissinger Mr. Platt Mr. Hamlin Ur. Miller Mr. Cunningham Mr. Eddy, Secretary The minutes of the meeting of the Federal Reserve Board held on May 14th were read and approved as amended. Letter dated May 17th from Miss Frances A. Eilbury tendering her reaignatiOn as comptometer operator in the Division of Bank Operations, effective J421e 7, 1924* Accepted. Memorandum dated May 19th from the Secretary, requesting authority to elltaay a comptometer operator for service in the Division of Bank Operations, Ilith salary not in excess of 01440 per annum* Approved* Letter dated May 16th from L. R. Barry, tendering his resignation as °lark in theoffice of the Chief Clerk, effective J4ne 15, 19:4. Accepted. Memorandum dated May 19th from the Secretary, requesting authority to transfer Vernon Ott, messenger in the Telegraph Office, to the position of Alleietant File Clerk, with salary increase from 0820 to 0900 per anaum,to fill the vacancy caused by the transfer of R. C. Toomey from the position of Assist424 File Clerk to that of General Clerk in the Chief Clerk's Office* Approved. Letter dated May 20th from the Comptroller of the Currency, recommendillgan increase from A500 to 45250 per annum in the salary of National Bank 4arniner William C. Griswold. Approved. Letter dated May 17th from the Comptroller of the Currency, recommendsalary at the rate of ::;3000 per annum for National Bank Examiner M. C. 8/11°1113e, to be assigned to the 3econd Federal Reserve District. Approved. Letter dated May 16th from the Vice President and Cashier of the Rational Bank of Commerce in St. Louis, transmitting copy of a resolution 84101cted by the directors of that bank, commending the Solicitor General of the United States and certain officers of the Federal Reserve Board and Federal Reserve Bank of St. Louis, for the manner in which they assisted in the handling"the recent so-called Burnes National Bank case. Noted. Telegram dated May 16th from the Manager of the Bill Department of the Nara). Reserve Bank of New York, advising that on that day the bank's minimum 141tc1ase rate for prime endorsed bankers acceptances was reduced to 3-2 for lOrt term bills and to 3 5/0 for long maturities. Noted. Letter dated May 12th from the Chairman of the Federal Reserve Bank °t Atlanta, requesting approval of increases, in lieu of allowances for 411aign service, in the salaries of Misses Mittie LaHatte and Stella Hamrick, 5/20/24 and Mr. H. C. Frazer, employees of the Havana Agency. Referred to the Committee on Salaries and Expenditures. Letter dated May 12th from the Federal Reserve ',gent at Kansas City, referring to Board's letter (X-4048) on the subject of affiliation of officers and employees with outside business concerns and advising that since his appointment he has retained the presidency of two corporations - the Stockgrawers Finance Corporation and the Drumm Commission Company - for the purpose of supervising the liquidation of their affairs; the Federal Reserve Agent requesting an expression from the Board as to whether he may complete the work of liquidating these two corporations.‘ After discussion, Mr. Platt moved that the Governor advise the Federal Reserve Agent that inasmuch as the two corporations are not in active business but are simply winding up affairs, over which he merely exercises a certain amount of supervision, the Board can see no objection to his continuing until liquidation is completed. Carried. Letter dated May 13th from the Chairman of the Federal Reserve Bank Of San Francisco transmitting copy of the communication addressed to him by the President of the Security '.rust and Savings Bank of Los Angeles, - Urging that a simultaneous examination of his institution be made and that as far as possible, or practicable, the Federal Reserve bank, the State Banking Department, and the Los Angeles Clearing House Association cooperate in such a simultaneous examination, the expense of which will be borne by the Security Trust and Savings Bank. After discussion, the letter was referred to the Board's Secretary and Chief Examiner for the preparation of a reply for submission to the Board. 5/20/24 -4- The Governor then presented a telegram dated May 20th from the Lssistcnt Federal Reserve Agent at Minneapolis, advising of the death this morning of 11x. John H. Rich, Federal Reserve Agent and Chairman of tho Board of Directors Of the bank. Noted with regret and the Governor requested to transmit the following telegram to Mrs. Rich: "It is with deep sorrow that members of the Federal Reserve Board learned of the death of Mr. Rich stop 7:o feel most keenly this loss of a friend and associate and tender our heartfelt sympathy." Report of Committee on Examinations on letter dated May 7th from the Federal Reserve lgent at Jan Francisco, transmitting and recommending approval the application of tho American Bank of 'Jan Francisco for permission to take over the First National Bank of Oakland and to establish a branch in its Prftises, which application also has the approval of the State Superintendent Of Banks and of the Executive Committee of the Federal Reserve Bank; the Board's eo mMittee stating that there is no reason why the application should not be aPProved. Mr. Platt moved approval of the application. Mr. Platt's motion being put by the chair was carried, the members voting as follows: Nr. Platt, "aye" Mr. Hamlin, "aye" Mx. Miller, "aye" Mr. Cunningham, "no" Governor Crissinger, "not voting" The Law Committee reported on the matter referred to it at the ra'etinc on May 14th, namely, letter dz,ted May 7th from the Treasurer of 5/20/24 the French Lmerican Banking Corporation of New York, requesting a modifica , tion tn that part of their agreement :ith the Board which relates to reserves of bank a° as to permit their reserves to be carried other than in the fora balances; the Committee submitting draft of a reply stating that the Board haS decided to ,;rant the request and outlining the terms and conditions upon 17hich the modification is granted. Upon motion,the proposed letter was approved. The Law Committee then submitted draft of a letter to the Comptroller General Of the United States, with regard to his action in disallowing two 11Q1lohers of the Board, covering costs of a dinner served to the Chairmen and G°11srnors of the Federal Reserve banks on November 13, 1923, cl,nd a luncheon served to the members of the Federal ,'dvisory Council on November 19, 1923; the Proposed letter advising that the Board in March 1919 was assured by the then Comptroller General that such Char;es would be entirely proper, and reSlesting that he review his decision with regard to past charges and advise the Board whether such expenses may properly be oherged to the Board in future. After discussion, it was voted that the Board should not request the Comptroller General to rule that it may in future expend its funds for the purpose of providing luncheons and dinners for the Members of the C;overnors' Conferences and of the Federal Idvisory Council, but that it request him to allow such expenses as have been incurred to date for this purpose, under a ruling of the previous Comptroller General. to Honorable The Law Committee then submitted drafts of letters addressed of 41bort Jtrauss, former member of the Board, Lnd to Mr. J. E. Crane, Manager tIle requesting that Foreign Department of the Federal Reserve Bank of New York, 5/20/24 they furnidh the Board with a manoravlum giving a historical account of the all 'attl'ements entered into between the Board and certain foreIgn banking corporation fc)t the export of standard silver dollars, in order that the Board may be able t°allewer inquiries directed to it by the Senate Commission on Gold and Silver . Upon motion, the proposed letters were approved. Letter dated May 17th from Mr. Hiram Barney of the firm of Pruyn and " 13 1V, of New York City, suggesting the immediate opening in various European cities of branches or agencies of the Federal Reserve banks. Referred to Counsel for preparation of a reply. Letter dated May 13th from the President of the First National Bank of El Paso, Texas, with regard to the banking situation in that city and en48ing copy of a letter addressed to the Comptroller of the Currency and " 4111aper clippings on the same subject. Ordered circulated. 1.4*. Miller referred to the recommendation made by the Federal Advisory e°114cil, concerning the open market and discount policy of the Federal Reserve //allks and moved that the Board communicate with the President of the Council 44 ascertain from him whether the Council, when referring in its recommendation tO 4 aggregate Investments", meant aggregate open market investments or aggregate etirning assets. Carried. OF $TAUDING COMMIMES: 649 May 15th, 17th, 20th, Recommending changes in stock at Federal Reserve Banks, as set forth in the Auxiliary Minute Book of this date. Approved. -7- 5/20/24 ORTS OF STLIDING COMMIT122,3: Cont 'd. .Datod, May 20th, Dated, May 17th, Dated, Llay 19th, Dated, May 15th, Recommending action on application for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Approved. Rocammending approval of the application of gr. Charles Horne to serve at the same time as director of the Commercial National Bank, Raleigh, N. C„ as director of the Virginia Trust Company, Richmond, Va., and as director of the ftlantic Bank and Trust Company, Greensboro, N. C. Approved. Recommonding approval of the application of Mr. Herbert Lloyd to serve at the same time as director of the Franklin National Bank, and as director of the Pennsylvania Company for Insurance on Lives and Granting .innuities of Philadelphia, Pa. both of Philadelphia, Pa. Approved. Recommending approval of the application of Mr. T. L. 2erris to serve at the same time as director of the Lmerican ixchange NLitional Bank z. nd the Dallas Joint 3tock Land Bank, both of Dallas, Texas, and as director of the Citizens National Bank of Jaxahachie, Texas. Approved. The meeting adjourned at 12:30 oicloc %roved: An7i41 Govern stalk
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