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452 Upon call of the G-overnor a meeting of the Federal Reserve Board was lield* in the office of the Federal .aeserve Board. on Monday, May 24, 1926 at 11315 a.m. PRESENT: Governor Crissinger Mr. Platt Mr. Hamlin Mr. Miller Mr. Cunningham Mr. Eddy, Secretary Mr. McClelland, Asst. Secretary Matter approved, on initials on May 19th, namely, arpplication of The Trust and Savings Bank of-San Diego, Cal. for permission to exercise 6'81181 ' ' 31 fiduciary pomrs, effective if and when converted into a national b4111clulder the name of The Citizens National Bank of San Diego. Formally approved. Letter dated :Iv 20th from the Secretary of the Federal Reserve Bank •--wv York, confirm ing telegraphic advice previously forwarded to the 13(larcl Of the action of the Board of Directors on that day in amending their Belies:141e ot rates for purchases of bankers acceptances, as follows: 1 to 30 days 31. to 90 days 4 months 5 and. 6 months Sales contracts NMI 3 1/6 3 1/'4',r0 3 3/610 =MI 3 3/4 3 Oro Not ed. litew Letter dated Lay 19th from the Assistant Federal Reserve Agent at With reference to the reasons for the recent increase of one—eighth 111 the bank's rates for purchases of bankers acceptances of short maturities. Noted. 'Telegram dated. May 19th from the Chairman of the Federal Reserve 453 5/24/26 -2- Of Boston, advising tha the board of directors on that day made no disccunt and purchase; °Ilange in the bank's existing schedule of rated together with letters dated May 20th and 21st from the Governor of the Ba4t advising that rates for purchase of acceptances have been revised to the following: 1 to 30 days 31 to 90 days 4 months 5 and. 6 months Sales contracts 3 1/8 3 1/4% 33/8% 3 3/4 3 1/27; ale ••• 11 1 Noted, with approval. Telegram dated May 19th from the Chairman of the Federal Reserve Bitwt of Philadelphia, advising that the board of directors on that day made 4° °Ilange in the bank's existing schedule of rates of discount and purchase. Noted. Telegram dated May 20th from the Secretary of the Federal Reserve 4a °f Atlanta, advising that the Executive Comrnittee of the Bank on that 141Y adopted the following rates for purchase of acceptances: 1 31 '4 5 3 3 3 3 to 30 days to 90 days months and 6 months 1/820 1/4 3/8,„") 3/4(io Noted, with approval. Telegram dated May 21st from the Chairman of the Federal Reserve Bank olb Chicago, advising that the Executive Committee on that day adopted the Wing schedule of rates for purchases of bakers acceptances: 1 31 4 5 to 30 days to 90 days months and 6 months =NI 31/8% 3 1/4p 33 1 /8 3 3/4:/0 1! 454 11 5/24/26 rated, with a;:proval. e elegram dated hay 19th from the Chairman of the Federal ..;eserve Bank ? c`f .Leuis, advising that the board of directors on that day made no chaz , In the bank's existing schedule of rates of discount and purchase. 'Toted.. l'elegram dated :,:ay 20th from the Chairman of the Federal eserve Be.Ilk f 3an Francisco, advising that the board of directors on that day raEtao ii 311211,3e in the bank's existing schedule ol ratus of discount and l'alrenase. ted. ,,eraora.nclum from Counsel dated :.:ay 21st, sulz.litting material ior 1)1a01 4 .1.<;ation in the June issue of the Fed.eral eserve Bulletin. Approved. Letter (.1,:ted hay 92nd Irom the Chairman of the Federal deserve Bank °t 3t. Ln„, ----Ls, advising that their regular branch bank conference will be 3t. Louis on ',iednesday, June 2nd, and. that they would like very l'411.ell to nave the entire Board or some representative or representatives Neellt at that time• iToted. lictraorand.um from the Assistant Secretary, with reference to letter (late .ulaSr 19th from the Cashier of the Federal ileserve Bank of Dallas, teeor,,, in agreement of the Federal Reserve Bank of Kansas thttt the City, Interdistrict Time Schedule be amended so as to -olace items between Oalas alul- Deliver, both ways, on a two-day basis rather than three days as 11 455 5/2V26 -4- t Present; the Assistant Secretary recommending aly)roval. Approved. Letter dated ::ay 19th from the Federal eserve Agent at New York, a4vis. Ilag that the Corn Exchange Batik of New York City has been authorized bY the 3tate Banking Department to open and maintain a branch office at the -urner of Pirst Avenue and 57th Street, :.:anhattan, on or after Nay 13th, Noted. Letter dated :.:ay 20th from the Federal Reserve Agent at New York, 44171-etag that the Bancit-ly Corporation of New York has become interested ti o Private banking finm of Lionello Perera and Company, New York City, 444 that application has been made to the New York State Banking Department toe"avert the firm into a trust company under the name of Perera Trust Corzpazy. Noted. Letter dated L - ay 19th from the Federal Jeserve Agent at New York, 41vis; C; that the Bancitaly Corporation of New York has purchased the ry (3111112; interest in the Richmond BoroujI. National Bank of Stapleton, ')4 ell Island, New York, and that the corporation plans to merge the '°'41c1 30rouh National Bank with the Bowery and East aiver National 4.11k Ilev, York, conducting it as a branch. Noted. Letters dated Llay 18th an' 19th from the Chairman of the Federal or e Bazik of New York, advising that the Fidelity.Union Trust Company 4ewaw -4, N. J. has purchased control of the Ironbound '2rust Company of 1) 456 liewark; the Uhairman in his letter transmitting copy of and commenting on all act of the New Jersey Legislature,approved March 3, 1925,whereby should ttatiotal banks be permitted to establish branches or agencies New Jersey State banks would also be permitted to establish them. Noted, and. ordered circulated. Report of Committee on Salaries and Expenditures on letter dated IINY 18th from the Secretary of the Federal :Reserve Bank of Atlanta, adOf the action of the board of directors of that bank in voting to illcrease the salary of Mr. P. L. T. Beavers, Chief Clerk in the Transit •vertment at the head office, from 1,?3600 to 4'3780 par annum, and the ealarY of Mr. George J. White, Assistant Cashier of the Jacksonville Braz„ from \ 2700 to ‘;3,000 per annum, both effective April 1, 1926; te C ommittee recommending approval. Approved. Memorandum dated Llay 18th from the Chief of the Division of Bank °Perati —40/1a, transmitting statements of expenditu.res by Federal Reserve bellies for educational and welfare work, etc. during the month of April ellcl for the four month period ending April 30th. Noted, and ordered circulated. Memoranda from Counsel dated May 3rd and 13th, with reference to the 14.°1108al of th e Federal. 2.eserve Agent at Minneapolis for the cancellation el° l'ederal Reserve Bank stock held by the First National Bank of Hallock, 2411141 which is in the hands of a receiver who has not applied for such 4141°ellat ion; Counsel with his last memorandum submitting draft of a letter 457 1.1 5/24/26 -6- to the Federal Reserve Agent stating the office of the Comptroller of the erellaY now £dvises that the receiver of the bank will be directed to "411317 With the request of the Federal Reserve Bank of Linneapolis and, make arTlieation for the surrender and cancellation of the Federal Reserve Bank stook, Upon motion, the proposed letter was approved.. Letter dated 1.7.,ay 21st from the Chairman of the Federal Reserve Bank or Ilew York, transmitting a memorandum with reference to Eal. amendment to the socalled McFadden Bill, proposed. by Senator Copeland of New York; the 414611dzent referring to the conduct of investment security business by -.8.1 banks and being worded in such a way as to imply that national "La the past have been without authority to transact business of this Ordered. circulated. Memorandum from Counsel submitting draft of a final certificate 414414r _ 'Lag the First Federal Foreign Investment Trust to comence business 44 4 C°rPOratiOn organized and operating under the provisions of Section 25 (4) of the Federal Reserve Act and the Regalations of the Federal Reserve 114144 , that issued in accordance therewith; Counsel in his memorandum stating 411e Board. on February 19th approved the articles of as and. (*ft-41zation certificate of the Corporation and. issued a preliminary permit to be f',2 U°41 b usiness, that the Corporation has taken all steps required. by the to 414 ' before the issynuce of the final pennit and that there is no 458 5/24/26 -7-- legal reason why the Board may not now issue such final permit. Upon mo tion, final po mit to commence business, as submitted by Counsel, was approved and ordered issued. to the Corporation. Letter dated May 19th addressed to the Chief Examiner of the Board bY the Chairman of the Federal Reserve Bank of New York, replying to letter 44clressed to him by the Examiner in accordance with action taken at the 13°41t1. meeting on May 11th, with reference to examination of the International Be211c133€ Corporation of New York City. .Referred back to Mr. Hers on. The Governor then presented a letter address4d to him wader date of IlaY 19th. by the Deputy Goveillor of the Federal Reserve Bank of New York, l'efelbrirlg to a recent conference with the Governor of the Board and its Emminer on the subject of a possible program to be followed in Pederal Reserve Bank of New York whenever the Board's Examining Staff 14":743E1 for the purpose of making an. examination; the Deputy Governor atat 'llg it is their belief that it would be advisable for many reasons to Ilave txie Board's Chief Examiner report to a senior officer of the bank iirnilecttately upon his arrival, as is the usual practice of an examiner 401xt to make an examination, and also to have him present a letter from the p ecleral Reserve Board addressed to the Bank, stating in substance thett the examiner and his force are authorized. to examine the bank as of the specified in the t letter. The Deputy Governor also referred to 'late gilestion of internal procedure in the bank immediately upon the arrival or th5 examiners, stating the Federal Reserve bank would like to be able 459 5/2,1/26 -8- t° ea tablish a procedure which, without delayirv, or hindering the examiners ilic°73rinC; all departments of the bank, would not weaken the rules which the:: established Ilrauthorized for their nretectien force in order to prevent the entry of ,X3 rSOUS• Herson, the Board's Chief ' c'Issea the matter with the Board. aminer, entered the meeting and dis- He presented a form of letter addressed to t14) 6):utive officer in charge of the Federal deserve Bank of ITew York, which liehlievedWould be satisfactory to that bank. During the discussion which ensued, certain members of the Board expressed doubt as to the advisability of changing the present practice under Which the Examiner is permitted entry to the Federal deserve bank upon presentation of his general commission from the Board. During the discussion, Hr. Platt read the provisions of Section 21 of the Federal deserve Act that "the Federal deserve Board shall, at least once each year, order an examination of each Federal deserve ** Bank*". The discussion then centered upon the necessity Of the Federal Reserve Board ordering such examinations as of a specific date. Following the discussion, it was voted to request Counsel for an interpretation of this provision of the law. The minutes of the meeting of the Federal deserve Board held on Hay 21st were then read and approved. lAr 20th, 21st, 24th, 2,ecommending changes in stock at Federal deserve Bank set forth in the Auxiliary ::inute Book of this date. Approved. as 460 1 5/24/26 -9- STANDING COMITTEES,: (Conttd) Dated, May 11th, lath, 0th, Dated, ay 20t h, Dated, 1.7az,7 17th, Dated, liay 17th, i)ated, llay 17th, ' D4t6c1 17th, 4te419 l'iaY 17th, Dated. „ ''-ay ith, Recoinmending action on applications for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Approve,d. lieco mm end in r_7 acti on on appli cat ion fo r f id.uc ia ry -Dowers as set forth in the Auxiliary Minute Book of this date. Refused. Recommending approval of the application of Mr. B. '7]. Geer, for permission to serve at the sane time as :ice President and Director of the Columbia National Bank, Columbia, S. C. and as director of the Amor i ca.n 1ru.st Company, Charlotte, N. C. Approved. R.ecommencling a)proval of the application of Mr. W. J. Roddey, Jr. for permission to serve at the same time as Vice President of the Columbia National Balk, Columbia, S. C. and as Vice President and Director of the National Union Bank, Rock Hill, S. C. Approved. Recommending approval of the application of' Mr. C. J. Shannon for remission to serve at the sane time as director of the First National Bank of Camden, S. C. and as director of the Columbia National Bank of Columbia, 3. C. Approved. Reconmendin7 approval of the application of Mr. .3. J. aodd.ey for remission to serve at the same time as Chairman of the Board and director of the Columbia National Bank, Columbia, S. C. and as President and director of the National Union Bank, Rock Trill, S. C. Approved. -econTmeniing anproval of the application of :,:r. B. I. Spencer for permission to serve at the sane time as active Vice President of the Columbia National Bank, Columbia, 3. C. and as director of the National Union Bank, Rock Hill, S. C. Approved. lecontrnending ap-oroval of the an»lication of Mr. Nelson R. Caswell for De/mission to serve at the same time as director of the Jefferson County National Bank, Y. and as Director and President of the :atertorrn, First National Bank, Gouverneur, N. Y. rov d 461 5/24126 -10 3 STANDING. COMIITTEE,S: Dated,..ay 17th, ate(19 ::ay 17th, bateci, lath, -tLY 18th, De•teci 18th, Date lath, ,.:ay 19th, ialJ 20th, Cont'd) ,7, ,ecornmend.ing a ipraval of the a-oolicat ion of :Ir. H. G. *,7eare, for permission to serve at the same time as director of the American National Bank, Spearfish, S. D. and. as director of the 2'irst National Bank, Sioux City, Iowa. Approved. 2,econraending approval of the application of 2:r. Clarence S. Cook for permission to serve at the same time as director of the Jefferson County National Bank, `::atertaivn, :T. Y. and as director ahd President of the St. Lawrence County Hat I °nal Bank, Canto n, IT. Y. Approved. _lecommending approval of the application of Mr. F. P. Johnson for permission to serve at the sam:: time as President and. director of the American National Bank, Oklahoma City, Okla. and as Vice ?resident and director of the First National Bank, 6entinel, Okla. Approved.. 2.ecornmending approval of the application of Mr. Charles H. Baylor for permission to serve at the same time as director and Vice President of t 1 Liberty National Bank, Oklahoma City, Okla. and. as director of the Seaboard. National 3ank, Los Angeles, Ca/. Approved. .Li.ecommending approval of the aoplicat ion of Mr. J. K. B. Shaffer for inzmission to serve at the same time as director of the Liberty National Bank, Oklahoma City, Okla. and as director of the Seaboard Nat ional Bank, Los Angeles, Cal. Approved* Recorrtnenrling approval of the application of Mr. James Tyson for permission to serve at the same time as director of the Citizens National Bank, Alameda, Cal. as director of the Anglo-California Crust Company, San Francisco, and. as director of the New First National Bank, Oakland, Cal. Approved. Hee omme nd in g app rav al of the a ppli ea ti o 21 of Mr. Henry Mueller for permission to serve at the same time as director of the Union Trust .ncl Hudson County National Bank, Jersey City, N. J. and as director of the Merchants National Bank, Jersey City, N. J. A.pproved• Aecommending approval of the application of Mr. T. A. Chancellor for permission to serve at the same time as President and director of the First National Bank, St. Petersburg, Fla., as director of the First National Baia, Clearwater; Fla. 2.111 as director of the Citizens Bank and Crust Oompe.ny, r2ampa, Fla. Approved. 462 5/24/26 L0P -11STANDING C alLIITTEES: (Cont d Dated., Lia,y 20th, Recomendrng approval of the application of Mr. Lewis J. Spence for p9rmission to serve at the sane time as ,director of the Liberty National Bank in. New 'York, N.Y. and as director of the Peoples National Bank, Brooklyn, N.Y. Approved. The meeting adjourned at 12:45 p.m. AD,
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