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47).10
t,

was held in the office of the
;oard
.
meetML: of the 2edera1 :oserve
..-,eserve I).,oard on ',..'enesda-j, --lay 27, 1025 at 11:00 a.m.
LiovF)rnor Urissin,s-or
•
Lir.
in
. iIa1
Plati.Lr
.r. Lii.11er
1.1r. Clinn 'L:113211
Noell, ssisaait

t.,
14

ecretary
,o

2he roadi_s of the minutes of the raetiaL's of the :federal .leserve
3oard held on Lay 1 9th Lnd 21 st was dispensed with.
anted j.jar 26th from the 2eleral --boserve ,..cent at Dallas,
roc0-1?,

approvaa of an applietion of the Citizens 1;ational

L°11.0 032,7, '
)
- .;:as, for oric7ina1 stock (15 shares) in the 2edeva1 ..Leservo
2a1,-

of j,!_:11 as; the same havin: been a. roved on

26th on the initials

Of Ine:nbel's of the Board, effective if and when the. bank in authol'ized bT

the ,
vomptroller of the Currenc:,, to

CO1.311C0

liasiness.

formally approved.
dated i,:ay 25th fro:n tIva 2elorz„.1 ..teserve —c-ent at Lew :o
rogae,%inr- approval of the application of the ::aniilton
1;ew Zerse:,

ntioiia1 Bank,

or ori::inal stool': (72 shares) if, the 2edera1 deserve

3arCe: of _ow yee„.7.; the sark-) 11._vin

beela ap2roved on May 25th on the initials

Of m3bers of the hoard, effective if aal when the bank is authorized by
Comptroller of the Currency, to corfnence
formally a;roved.
1.:3mor,-_ri,l'ain dated Ylay 23rd from the Division of .,]-,:a2211ation,
..J ,,roval of Pia a.policrLion of the Commers:ial iational hclnic of hello—
California, for orizin:11 stock ( 19 shares) in the 2odera1 2,eserve




5/27/25

Ballic of San Francisco; the same having been approved on Lay 26th on the
initials of members of the Board, effective if and. when the bank is aathorizoa by the Comptroller of the Currency to commonee business.
Formally approved.
14omorandum dated ilay 25th from the Division of .,2z:amination, recomtIondill: approval of an application of the olinlan

„uinlan,

for original stock (15 shares) In the Federal Aeserve Bank of Da..71 L.s;
the sarae having been approved on iday 26th on the initials of mambors of
the Board, effective if and when the hank is cathorised by the Ocx,
Of

the Currency to commence business.
Formally approved.

•

,::Linination, recomLonorandum •1, ';D:a. :iay 25th from the Division of 1,
approval of th

jallac,

aplioation of the. North Te:vas iaion. 3ank in

, for o'25ina1 stock (723 naros) in the Federal Aeservo

Bank of Dallas; the same having boon approved on May 26th on the initials
Of members of the Board, effective if and when the bank is authorized by
the Comptroller of the Currency to comence business.
Formally approved.
The Governor then presented the matter -pproved on initials on
MaY 22nd, namely, application of the National Bank of Topeka, Kansas,
Ivhich 0,?cncd for business on lay 16th, for permission to exorcise (7meral
fiduciary powers; the same 11:--vin: been q)1rov3d. by the Federal Aeserve
4Cont and the Comptroller of the Currency.
Upon motion, the above application was
formally approved.




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5/27/25 W

dl-rdctin.-7, that the application of the First National Bank of 2ipton

Indiana

ror fiduciary powers be held pending Laprovement in the bank's condition and
stating that reports of subsequent examinations of the bank h7Lve not disclosed sufficient improvement to justify recommending approval of the application; the proposed reply stating that in view of the f ct there has been
4° LnDrovon.ent in the bank's condition since Jeptember 14, 1923, no furtl-o7
action will be taken by the Board at this time.
Upon motion, the Iroposed reply was
approved.
Momorand.um dated Nay 26th from the Director of the Division of

esearch

stat;ug that he has been requested by the Governor of the
Poderal

oserve Bank of New York to join him in a trip abroad the latter

Part of June or the first part of July, which would cive him (Dr. .3. ewart)
an opportunity to study the operation of some of the more important foroi-n
central banks and money markets and to establish connections which will be
useful in the Board's research and foreicn repoy.tin7 work; the Director also
ztatin: that the trip would involve his boin7 absont from

ashincton for

about two months but that the organization of the Division could satis_cterilY handle the work in his absence.
deferred to the Committee on
.Jt-tistics.

esearch and

Letter dated May 25th from the Governor of the Fed

oserve Bank

and advising that
°f iovi :ork, referrinc to the Board's letter of May 21st
it appears unnecessa-y at the present time to consider exercising the authorto increase
ization recolitly granted the 01--)on Market Investment Committee




irt)16

5/27/25

tho j:-ste." account in r'overament securities by a po;siblo farther
Of a-RoroT:imtely v50,330,3‘.,0 and that he would not fJel

to do so

11(Y7/ witliont further consultation with the Oolnmittee and the Board.

Letter dated Lay 21st from the Chairman of the 2edera1
n
'
.11.4

of

oserve

an 7rancicco, advisinr3 of th.i action of t:1,_) board of liroctors of

that b.3117,c in votin_l to ,7rant a three moths' loave of absence A.th full
L. - Tailliard, iissistant Cashier of the Ban';:, on account of

IpaY

Uoon motion, it was voted that the hoard
interose no objection to the above action.
• Letter dated May 20th from the Pederal
U

eserve L7ent at O'l'icarlo,

y
ht if ar2recable to the Board ho would like to arran7e to be aw,

ir0L1 the Barik for ten days or two weelm after the first of
U2on motion, it was voted to 1,1terpose no
objection.
Lotter dt.od
Bax, Of •

21st from the Chairman of the 2e:aoral --;eserve

7rancisco, advisin: of the tran,3fer of Lir. A. B. Liotherwell from

the , 4aosition of Lianacin7 Director of the Balt Lake City. Branch to that of

ka113
- •-nr7 Director of the Los

sBrancn, effective June 1st.

..iraft of Litter to ::jr. 'Howard E. Youn7, reforrin
4tiOn to servo

.to

his aopli-

the s,,mu time as .jirector of the 1,1atienal Bank Of -,- altimore,

the Union 2eust Comnv and the Mercantile :rust Com-ciany, all of Baltimore,




.•

.,-1}4fi)
3

5/27/25

Which the :Oard recently fgand to be in substantial competition, and statin7
th.L_t a --eont investigation of tho records of the 2oard discloses that he
7a

'

te6 „Jermissioa in Octoller 191G to serve these bank.s an

that under

continue to serve on their Boards of Directors.

that per7ission he may
.iipproved.

Letter dated ilay 27th from the Chairman of the 2oder-1
Of

Louie, ;nquirinc whether so2vice by lir. L;oorh..)ad

Of the Board of Dimetor.
-; of the Li',tle

oc

BE-nch, as

Chairman
roasilrer of the

D,
'
2°M-77°7--.Inin Street Bridge District in Little .lock is in violLtion of the

terms of the
Of

30,y,Its

Circular II-21, ,Jeries of 1915 on the subject

Candidates for Diroctorshifs".
Upon motion, it
be raised to —,..
mentioned.
Draft of renly to lefter

Was

voted that no objection
caatinuin- in the capacity

ac_toa

21st from

.;tuart,

ef the 0:-1Ellomc City Branch, advisin-; that because of his physical
conditior he is unable to

Ivo the position the time and attention which

it reLiuires, and for this reason would resim in favor of

D. 1:ennedy

(3f Okmulen, 01.11-.., in the evont that idr. 1:ennedy meets with the Board's
4QDroval; the proposed rely stating that the office of director of a 3ranch
Pederal ..ioservo Bank does not carrz: with it the ,_ivilece of selectin: a
but that at such tine as 'la'. Jtuart's rosi7ation is roceive3.
upon by the Board, consideration will be r:.-iven to the 11:,me
ho su7osts, althouch in tenaori-Lr: his rsi:nation it should be distinctly




id

34.8
3

5/27 25

tinderst9ed tWG its acceptance by the Soar

lees uot carry a commit:-

.1.-enneqy to the place.

to arwJoint

aroval of the propOsed re.ly.
Liller moved as a substitate for i7lx. liaJ;ainis
motion that the followinc7 reply be sent to r. tuart:
"To federal .,,eserve Board learns with recTet
that the coalition of your health is such that ola
can no loA,_er continuo to rac-alarly attcaci the mootins of the Board. of ,Irectors of the 0:-.1a2ol,.a City
.-3ra:.eh or to 2ive to t:_o affairs of the institution
the time marl attention recl_ired of a director. Un'er
the circarlstances the Toard. aeuejL,syour .mi.otin.
1,;-o effective ,late :,:v.111- boon sufLested in your letter the Board hoi. es that you can, without orojualce
to your health, remain as a ,lirector of the Branch
until July 1st on vilich aate your rosination could
be made effective."
substitute motioa being
lost, L:r.x.i1ler voti
was
CI:air
put by the
"aye".
r.:Mar's

M1.1

eri7inal motion be ins put by
1.1r. Liller votin "no".
carried.,
was
the Chair
21st from t;_-,o 2ederal .eserve 1..7.ent at Dallas, oat-

2elecram dated

the prOposocl procedure for the election of a 'lass "B" Direcuor
°I

that b..nk to succeed hr. Liarion jansom, resined, together with telo1-x,de on xiay 22nd on the initials of members of the Board

taphic

:7 the arrauent oatlined.
e49.0rovi17
formally approved..
Letter dated hay 25rd from the Prosi:i.ent of the federal Ldvisory
-

•

subnlittly

copies of recommendations of the Council made at its

illeotiac; on May 22nd.




349
5 /.7),
/ /- r

_

gl

k;opies of the recommontions havinc-;. been
listribated ar.le; the :::embers of the 3oard,
._ctiou on the above is necessary.
Letter dzttod May 21st from the feleral
aft713111

that the Bank of 11::12rica, Los

eserve 4..'1.5ent at San Francisco,

nelos, whose allpliction for

in the 573teln is 1J3inc held in abeyance, has rurchased banl:s
at 4111:_t1eina and. LII-Intinston Park, Jalifornia, and. has been authorized. by
the ,6u.erintendent of 3a1-,Its to convert same into b....a-aches.
Noted.
,Letter dated Lay 25th from the Assistant Federal
Ph iladell hia, with reference to a ,
.-2,ro2osed 2ederal .ieserve System —'xhibit
at tho Jouvo_at ion of the ,..mefic_in
eity i

,,.ssociation to be held in

eotombor.

of

,doferred to the Director of the Division
esearch and. Stat is tics for recommendation.-

Letter cited. May 21st from the Chainron of the 2e3.era1

sorve 3ç

'De 3osten, req,,lest i
- m7 3.I..2].)roval of the action of te aiCC3CtO:r3 of that ban",-_
•ta 7otin7 to

oLnbqrse r:-1,:ibers of the bank's :3toc5io1ders Aavisory Soareittoc

i'Pr•oz.i)ensesin attendin

not to exceed. three meetings of the Oor:imittee, each

thD :z:loinat involved. to

a year.

..ii.r)prove .
liemeraislum dated May)th from Counf:el, submit tin

to

draft of a letter

Mazp.
)
- of jt. Louis, Missouri, with recard to his aielolication

r permission to servo at the same time as President and Director of the
LIA

ssouri Natioaal 3ik nua as Vice President and Director of the ',.rand.




e.)•.)

-2_

5/27/25

roosed letter str.tin.:tkt thetwo

-venue Bank, both of (Bt. Louis; the

banks appear to be in substantial competition and the Board has no power
to (-rant the

that i

viev of the fact that a consolidation

of the two banks into a national bank is 1)ropos.)d o.,1 Juno 1st, no action
;7111 be taken by t7la Toard at this time.
Upon motion, the proposed letter - as
approved.
..=of-anduna from Counsel dated L.

3th, ri,J2covea by the Law Uoraitec

draft of a letter to ne 2eaeral Aoserve 1:i7,:)nt at Boston, return11-1_

j

J.

,011 .ct

Hain,

aplications of Messrs. 6.

Jones, . L. ...iichardson, and

;.512o1 motion, the proposed letter
ap proved.

Ideofanalun latod iday 19th from Counsel, aubmitins- a , lotter from
3alzer, to 'nom

ono:rabL,

Wa3 referred

the vestion Of an

tho case of the 2edera1 keSerVC Bank of Ltlauta V. ne Capital Orain and
JeOd :;om,?any, Mr. Bker static that in his opinion it wyald.be wise
'clIstlic.3 the writ of error proceedin's now pendinc_7 in the 3upreme'Jourt of
t110 Unitedtates.
Upon p.',otion by Mr. Hemlin, it :was voted
to reconsider the action of the Board taken on 201). 3, 1V5
in Votinr that an c.,21.)eal should be taken in the above
case and to direct a dismissal of the proceeding now
pending.
ol7 letter to Honorable Louis 2. Ylc2aaclen, with ref7ard to a
'0111 introduced by him prior to the adjournn.:mt of
'
°"ral noserve




ot so as to 1)rohibit the ...Ise of

on Tess, to amend the
b

-13-

5/27/25

acecTtanees as collator

for Federal ..teserve

ote

nJ to .,)-rmit

rThor

vaults; the :prebaul:s to rotalli u„; to 40,: of their re,;erves in their u7n
in favor of prohibitins. the
Doc,od letter stat:n- (1; that the 'Ioard is not
..eserva 1.ote3, (2) that it believes
1130 of -ola as collateral for 20ers1
collat - r-1 would also
tho pro.p)sod clition of ,;:lrehased acceptances as
reserves in vaalt
bo unar),
:1--blo and (3) that the carryinx,: of
enlare the

po-7er of ar.ember hais end would be an in-

an

fluence toward credit inflation.
ljon motion, th ,. )roi;osed letter :as
. approved and ordered transmitted.
•

.
1n1=,tions to lotto,
Draft of re-ely proired by the Comittee on

•aatod lay 7th, iron! the 2ederal _ieserve Lent at Dallas on the Tnbect of •
assessInents rt!..-;a;:].3t rember ban:7s to cover the costs of 7eaeral 2eserve
ezzlinations; the proposed ropl

statina that for the present at least

requirenents that •
--re does :jot appear to be ar.c.:" .-12resl?ect of chaiiiaj the
the actual cost of. z=inatIons
.
all state member b:a1.1:s be assessed .for
loy the 0::p-fliner3 of the Ji.eserve bks, that because certL:dli
•cLares for
racIllbers have eall=ted into national banks
waived and that it is fxo-oosed
DrQvieus to •their conversion.thould not be
to send to each Federal . .eserve bat:: in tho near future coey. of the reeort
Of the ,-,031 2,1 conittee af,7)einte
ruIlcions of the Federal




to study the ba7,k e::aaaimftion and credit

eserve banks.

aoulotion, the prejeosed letter
al)roved.

as



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' to ti_e Jo_Lttoo on ...::::,!.1117,ations
rtnd Ool-mitt -_): on istrict •„t.2.

it

,

'

3a'k of,
;- a7o•

rt of 'a7.:1-2.?,..aint..t ion of t'lle

-

made as at the cloz-,

01-7,

of 1 .:1511-17,s 2br,lary 2, 125.

..,:_lferrad to the Jomittee on .]:.:ar!-Ii-ations
and Conmittee on Jistrict
en

c110J attutioyi to t'he 2- 1111..script of the forthiv:

I to tL,r_

t1Ch

!..rran7ed b7 the rederal

of

,7)f Levi :ork for the :an: of L.-aland.

Lecr70

a stat±,cFnt with

idiller stated that

'zlis was 4,.-7 e ou17 offielal state:-Jilt of ,:he Foard rzardin7 the
1)1"lit
— )IiO bel

be stn1ic

t'i- re Director of the 3oard's .L)ivision

02 that rc. son

Of 2,(4*.tsearc-1-1

by t'Lpi nimbers of th,3

to v:itiiito1 :3 ..,rin-Vinc, of the .._onthl-y ...evicw until

a7c,thorizac3 13•7"

,lovernor to 2roc;er,J...
the

-4_ .L•L .

Datod
$

c,.

Li

21st,
22nd, •
25th,
26th-,
Liar 27th,

ChLtila3 in s too::: ati.'elera.1

as se

•

27th,




Linute Book of this date.

-

.4.1.].
'0oval.

action onal,plication for fiduciary
sot ,forth h the
ldinute 400k of this
.L:01)1- o yea.
- lication for f iduc jar:: 1?o7:ars
econnonain: acti,lil on c... )
as sot forth in thel'tuxiliar.i Linute•Bool<1 o. this dote.
Ordered
c0nnenflin: action on L.,7plic3tion for admission of state
bank, subject to the conditions st.tted in the individual
i'mO -ts attached to the c...)plication,
as set forth in the
Lifrate Book of his date.

as

2.7 th,

the

foiath

:

, Lia7

th,

13th,

13.

i1iction of
z2roval, of
. •
time as off
3urli.0,„t,73, Jr., to °rye at the sar
direc tor of
Jen tred nat Iona? First
officer jjJiroOtor of
,
t
Jent r,
az Jirec t or of
I
171..rveyvi11 ,i:iiss.
.A2proved
• .
a:yilrovl of the
ica'T ion of
.2
21:ie5e1 to serve. tit 46:1:C.-, sane time as 07fl
of the . al fo rni :atioif. Bank,
fc
of t
j1
rtiyia1Bank,1)1;..,.:,co..r.7111 ,
Ay2roved.
COnne ad in 7.
.-or°val of the a2
L;arduer .3ralicy to sorv at the
21,1e nat 0.21al
.,
==1,t Bank of 3o on,1.
of th e 2nulYf1in epos it 2ru st
,
-.••• ••.

o

_,•L•2roval of no ci.;:plication. of
L.
o ser?-e - • at 11).e same time as direCtor of
3auk,
t. Louis, :is director of tho
.
Trust • Cotap,...-1.1ay of 6't. 140 tiis: and .as
otor
ix:or of the Insurance 3.:f of t Lon s
ov ed•

1 :10

klv