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469 meetjng. of the Federal Ileserve Board was held. in the office of the ?Gc"oral deserve 3oara on Thursday, kay 27, 1926 at 11:00 o'clock a.m. P.:L`SIZT: Gove nio r Criss Liger Platt Hamlin Mr. James Cunningham :Ir. Eddy, Secretary ,Lsst. Secretary `2110 minutes of the meeting of the Federal aeserve '3oard held on 2.:ay. \lere read. and approved as amended. 4eport of examination of the Federal Reserve Dank of Chicago and its L'etze Branch, made as at the close of business January 2, 1926. Ileferred to the Committee on:xaminations and. the Jornmittee on District 7. , . toport of examination of the Federal Reserve Bank of Ltlanta and its brall ' c ° Said. agencies, made as at tile close of business January 00, 1926. _leferred to the Committee on Examinations and. the Committee on District .-6. -1.:ernorandura from Counsel dated ::.ay 15th, approved. by the Law Corzaittee, 171.th laeforence to an application of the SoutherillAchigani:ational -3a1k, \°1c11-later, ::ichian, for permission to exercise general fiduciary Dowers; stz:Ltilk; that the aTaplicat ion is in proper legal form and ti,ere is a1 reason wilk-7 it should not be approved by the Aard, but that there 11° lz os tion of -txdict; involved in that it has been the practice of the 44. )41,c1 in the past to grant national ban-Ls in :.:ichigan permission to exercise t t Powers if they had the capital required for the organization of trust % in allies the state of 1:ichi:;an, the legislature of -..hich state recently -saecl law authorizing state banks to exercise trust powers also, but •470 It 5/27/26 -2- t6cliliring a capital equal to that requimci for the ortsauization of a trust 4-4A-1,Y plus the capital required. for the organization of a state bank. his memorandum stated that he knows of no valid reason why the 4114861 tpalIcl should depart from its past practice of requiring national banks 1(tated in Michigan applying for pezmission to exercise fiduciary powers to Lave only the capital requirod of trast companies. After discussion, it was voted that the Board should. continue to confoxm to its past practice in acting upon trust applications of national banks located in the state of Michigan, and also that the Board should approve the application of the Southern Michigan National Bank of Coldwater, Michigan, for permission to exercise general fiduciary powers Report Of Committee on :xaminat ions on telegram dated May 25th from the Ilazacer of the El Paso Branch of the Federal aeserve Bank of Dallas, obi sill g that the Co chi se County State 3ank, 'Tombstone, Ariz., has purchased tha usets of the First 1Tational Bank of Tombstone; the Committee noting tje 4avice ani reporting insuffic Ent info'mation. After discussion, it was voted to refer the above matter back to the Committee on 17,xaminations with the recluest that it obtain from the Federal 2eserve Agent at Dallas his recommendation au]. full inforrration regarding the consolidation. likak 1) Letter dated May 26th from the Chairman of the Federal ileserve New York, qu.ot Inc a letter received from Mr. Theodore F. Whitx-aarsh, 0. - 483 B Director of the Bank, advising he has tendered his resignation ‘ ke trias,_ e 6e of the Greenwich Savings Bs:111r of that city and has received - acceptance thereof. 471 5127/26 .m.00.00 ]:ot ed. Memorandum dated :lay 26th from the Chief of the Division of Bank Opera.1.011s submittinp statements of brokers' loans aaii. borrowings from Federal 2,ese y, "e Dank: of individual retorting member banks in Hew York ani Chicago, as °f 19th; the Chief of the Division also submitting smnaries of 21Iax*s in such loans aid. borrowings siAce January 6th, the first report iate, 0rde red circulated. Lieraerandam from Counsel dated 1,lay 21st, with referee to H. a. 10,000 : a Bill to consolidate, codify and reenact all of the general and 1)erl,, --aalent laws of the United. States in force On December 7, 1925; Counsel ztati 41e; that the Bill as it passed. the House of Jepresentatives contained 111111 rcm, ''' errors and. that it has been favorably reported by the Senate Corza. lttee Oa the evision of the Laws without any amendments. ,I.eferred to the Ave-L.11er with power. Mernerandum from Counsel dated. i:ay 21st on the matter referred to him at the meetillE; of 1.47. 5th, namely, letter dated April 16th from the Federal l ezer./aro 4ql'ent at Atlanta, with reference to a recent report of examination 4,0 Ci4_izen3 State 3ala of "-Iarianna, Ti. which discloses that stock al2:4 ara01111tins; t ,na5,000 was donated to the bank by its cashier Q41.11 •del'ation. of which ,3,000 of the Cashier's indebtedness to the bank 1v4z extremely 4.11c°11 -a; Counsel in his memorandum stating that it seems cl°Abti' 14 whether a forfeiture of the mmbership of the bank on the ground t' /1 14:t membership et'13ital has boon reduced below the amolzat required for 107,ally sustained., but that the 3oard. raf.v, if it desires, forfeit V,• 472 5/27/D6 -4- the InerabTr.shil) of the ban.'4 sitar hearing either because of violation of tile D r ovisions of law prohibit in:: a bank from becoming a purchaser o.` its et°c:zt or because of' the fact that the Citizens state Bank of ::arialma be deficient in its reserves for twenty-four monthly periods out of thirtY-trio, between the first of January 1925 and the first of hay 1926. After discussion the Secretary was instructed to secure from the Federal Resent() Ban.k. of Atlanta definite recomendation as to whether or net steps should bc token to forfeit the membership of the bank. s'''ernora..-atum from Counsel actodAnril St 1, with reference to suit broujit ;7 tile Leraisville and Nashville hailroal Company against the Federal .ieserve f Atlanta and. the American National Bank of Nashville, Tenn., to re1O-at of certain checks handled, by the Nashville Branch of the 40serve Bank of Atlanta, which were not collected. beca,ze of the :i.)41.11.11.e 0 the drawee ba...ik; Counsel stating that in his opinion the case itivoilres question of s-,stem-wide importance, but that he doubts it inazy cluestion of sufficient difficulty to render it necessarj to 10j s--eciaa counz el to ,T..rticio,.te in the trial on behalf of the federal '6eirS tern. Doted., and ordered circulated. :-att Qt cf Ordered circulated at the met inc; on February 16th, namely, tne Federal Reserve Agent's Committee on l'ublic :Lelations, made the 1k3 e.tiort. tioint Conference of Governors and federal .,-Loserve Agents in November wilich the Joint Conference voted be recommended to the dili;zent cons iciereach :Federal Reserve Bank. -eferred to the Vice Governor for report. 14 473 \ 5/27/2.6 -5- 3TA:EDIITG OCULIIT=S: ilecommendin-: changes in stock at Federal :eserve Banks as set forth in t1m Auxiliary ::inute Book of this date. Approved. _ay 27th, aecoranondinr; act ion on a-1)1 ic Ltions for fiduciary powers as set forth in the Auxiliary ::irate Book of this date. Approved. 7":01Y 25th, Recommending approval of the application of ::r. James 2. Ilonahan for permission to serve at the same time as officer of the Chatham Phenix :Tational Bank and '2nist Jo/111)=y, Yew York City and as director of the First Federal For3ign Investment Trust, ::ew York City. Approved. Dated"' Lia:7 25th, 26th, The meeting adjourned at 11:4:5 p.m. ...1313roveci.
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