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• Nj.4 A neeting of the Federal Reserve Board was held in the office of the Fed"al Reserve Board on Tuesday, May 29th, at 11:00 o'clock. PRESET: Governor Crissinger Yr.. Platt Yr. Hamlin Yr. Miller Yr. Junes Mr. Dawes Mr. Hoxton, Secretary The minutes of the, meeting of the Federal Reserve Board held an May 24th Wel'a read and on notion approved. Letter dated May 26th, from the Secretary of the Federal Reserve Bank of ehleago, submitting for the approval of the Federal Reserve Board an arendTrent to Section 1, Article 3, of the By-laws of the Detroit Branch. Approved. Letter dated May 25th, from the Chairman of the Federal Reserve Bank of St. Louis, advising that that Bank had employed Mr. 15/11. C. Lewis clerk of the 4ft bank building, and renuesting the approval of the Federal Reserve Bbard °f a salary for Yr. Lewis at the rate of ?`10,000 per annum. Approved. Letter dated May 26th, from the Secretary of the Federal Reserve Bank °t Ohicago, submitting action taken by the Board of Directors of that Bank ith reference to a reorganization of personnel anong the officers and rethe approval of the Federal Reserve Board for certain salary changes hlade necessary by this reorganization. Approved. The Secretary was instructed to advise the Federal Reserve Bank of Chicago that this action of the Board constitutes an exception, under the particular circumstances involved, to the policy adopted by the Federal Reserve Board of authorizing adjustments in salaries at the Federal Reserve banks once a year. 5/29/23 Letter Fay 24th from the Chairman of the Federal Reserve Bank of 401aas City, transmitting the action of the Board of Directors of that 1/ank with reference to a certain reorganization among the officers of the Bal* and its branches, and requesting approval of the Federal Reserve Board of salary adjustments made necessary by such reorganization, and further suggesting that the Federal Reserve Board appoint Li.. C. A. BUIlthardt, formerly ranaging Director of the Denver Branch, as a Director c)r the Denver 3ranch in the place of Alva B. Adams, resigned. That portion of rr. rcelure's letter referring to the reorganization and necessary adjustment of salaries, was approved, the Secretary being instructed to advise Yr. rcaure that such approval in the present case, constitutes an exception to the Board's policy of approving salary adjustments at Federal Reserve banks once a year. That portion of Yr. rcOlure's letter referring to a new director for the Denver 3ranch, was referred to the Committee on I - omination of Class "C" Directors, said Committee consisting of Governor Crissinger, Er. Platt, and temporarily Lr. Dames. remorandum Yay 23rd from the Comptroller of the Currency, trans- illitting with favorable recommendation the application of the First _National 114111t of Eaton, Colorado, to reduce its capital stock from 0.00,000 to 4k0,000. Approved. Telegram ray 26th from the Federal Reserve Agent at San Francisco, ttallamitting with favorable recommendation the application of Thatcher at"hers Banking uompany of Logan, Utah, to reduce its capital stock from to 400,000 increasing its surplus from ::55,000 to 0_00,000. Approved. -3Memord,ndum dated May 25th, from the Chief Examiner reporting upon the Matter referred to him by action of the meeting of May 8th on the subject of "Rules governing examination of State member banks", and recommending a form '3f letter to be sent to all Federal Reserve Agents. Approved and letter ordered transmitted. Letter dated May 15th, from the Governor of the Federal Reserve Bank of Philadelphia, regarding the act ice of that Bank in the matter of assessing Penalties for reserve deficiencies in the case of currency shipped by member teziks outside of Philadelphia. Referred to Law Committee. remorandum dated May 26th, from Mr. Herson, Chief Examiner, reporting t° the Federal Reserve Board the action taken by the recent meeting of the C°MMittee of Governors appointed to consider the elimination of the handling 110n-cash collection items by Federal Reserve banks. " Noted. Letter dated May 25th, from the Deputy Governor of the Federal Reserve 13411k of New York, Mr. Case, enclosing a copy of the last report of the Open lial'ket Investment Committee for the Federal Reserve System, and a copy of a re °v1ution adopted by the Committee covering the sale of Government securities. % . C • The Governor wap requested to secure Ordered circulated. from Yr. Case information as to the date upon which it is contemplated that the sale of $50,000,000 in Government securities by the Federal Reserve banks will be completed, and also a report of the sales as they are made from time to time, together with information as to which Federal Reserve banks respond to the quota assigned to them for sale by the Committee. 5/29/23 -4- The Governor submitted. to the Board the following telegram from Perrin, dated May 2'5th, and the Board's reply thereto dated May 26th: "San Francisco May 25 Board, Washington Your telegram twenty fourth regarding bank of Italy's application to establish Ontario branch we have letters from bank and Superintendent of banks assenting to terms set forth in Board's telegram May twenty second Perrin" May 26, 1923 "Perrin - San Francisco In view your telegram of yesterday stating that you have letters from Bank of Italy and Superintendent of Banks assenting to terms set forth in Board's telegram May 22nd, Board approved application of Bank of Italy to. take over Security State Bank Ontario and convert into branch as transmitted in your wire May 23rd. Hoxton" Upon motion, it was voted that in view of forml information of assent having been given by the Bank of Italy aid. the Superintendent of Banks to conditions set forth by the Board in telegram of May 22nd, that the above reply of May 26th to Mr. Perrin's telegram of May 25th ouoted above, is hereby approved. Draft of letter prepared by General Counsel dated May. 25th, addressed to mr. Win. G. McAdoo, Counsel for the Bank of Italy, stating the Poerd's reason 'denying the application of the Bank of Italy for permission to establish t°1 btaliches at Yuba City and Sacramento, California. Referred to the Law Committee. Mr. James advised the Board that he had appointed Miss LoretteBoyett "his Secretary at a salary of 4!2,500 a year, effective May 21, 1923. Noted. • -5- 5/29/23 Mr. Dawes advised the Board that he had designated Mr. James Vivian • ei tiDwyer as stenographer to the Comptroller of the Currency at a salary of k000 per annum, effective May 29, 1923. Noted. Mr. Dawes advised the Board that Mr. Francis J. Kilkenny has resigned as Secretary to the Comptroller of the Currency, to take effect at the close Of business May 31, 1923. Noted. After a discussion of the matter of branches of member state banks, as voted that the Law Committee be requested to prepare a letter to the Attorney General of the United States, requesting an opinion as to the power Of the Federal Reserve Board under Section 9 of the Federal Reserve Act, the title Of said section being State Banks as Members. After a discussion of the matter of branches of member state banks, Mr. Miller moved that it is, the sense of the Board that great improvement in the examining work of the Federal Reserve System and greater economy could be effected and. uniformity secured, if such work should be done by the Federal Reserve Board instead of by the Federal Reserve banks. Lost on tie vote. as follows: The roll being called, the members voted Governor Orissinger "aye" Mr—Platt "no" Mr. Hamlin "no" Mr? Miller "aye" James "aye" Mr. Dawes "no" Mr. Hamlin moved that Mr. Herson be directed to report to the Board hether or not it would be practicable for examinations of state member banks to be carried on by the Federal Reserve Board instead of as at present 'by the tlidividual banks, and vhether or not such change would result in economy, 4-1k, -6- 5/29/23 tniformity and' increased efficiency. Carried. At one o'clock a recess was taken until 2;30. Pursuant to the terms of adjournment, the Board met at 2:45 this after4ftm in the office of Governor Crissinger, the same members being present who were present at the morning session. Mr. Hamlin samitted a draft of letter prepared for the sippature of the 4elleral Counsel, dated May 28th, addressed to Mr. T. A. Seymour, Assistant to the Attorney General of the United States, with reference to the publication Of the Attorney General's opinion as to the proper interpretation of the Kern knendment to the Clayton Act. Approved. Matter referred to the Law Conmittee at the meeting of May 10th, namely, letter addressed to the Chief of the Division of Bank Operations under date of 1147 4th, from Deputy Governor Emerson of the Federal Reserve Bank of Dallas, WIth reference to a certain settlement with the First National Bank of Annona, Texas. Ordered filed upon recommendation of Counsel. 'Mr. Hamlin stated that the Index Digest of the Federal Reserve Bulletin t last year is now completed, and it was upon motion, voted 'that the Board " 4144(3rize the ordering of 5,000 copies of the Index Digest with the understandthat a copy will be mailed to each regular subscriber of the Federal RoeBulletin and to all of those upon the regular list for free distribution °r the'Bulletin. CNC% CI LJ -7- 5/29/23 ondence from the The Governor submitted to the Board certain corresp ng letters from persons Governor of the Federal Reserve Bank of Boston enclosi in Havana with reference to the banking situation in the Island of Cuba, and with refernce to the proposal to establish a Federal Reserve Bank Agency at Havana. Upon motion, it vas voted that Governor Crissinger, recomMr. James, and Mr. Hamlin be appointed a committee to Federal a mend. to the Board a plan for the establishment of anding Reserve Bank Agency at Havana, Cuba, with the underst that the )1an will contemplate the designation of both the the Federal Reserve Banks of Boston and Atlanta and that of account the Agency of the two banks will be operated for principles both, and as far as possible, in accordance with the g the and. powers defined' in the proposed resolutions coverin which Havana, at Agency Bank Reserve Federal operation of a of was submitted to the Federal Reserve Board at its meeting May. 17th, and laid aside for future action. 'RZ)01-_____ITu2Lart!fIr.'T:FIT-: NO. 1: Dated May 24th, Recommending changes in stock at Federal Reserve Banks, this date. 28th, as set forth in the Auxiliary Minute Book of Approved. Da.ted May 23rd, Recommending action on applications for fiduciary powers this date. 25th, as set forth in the Auxiliary Minute Book of d. Approve Dated May 28th, Reooranending approval of the application of Mr. William H. S. Drovers Bateman to serve at the same time as director of the Trust and. and Merchants National Bank and. of the Lo fpn Bank Company, both of Philadelphia, Pa. Approved. Dated May 20th, Recommending approval of the application of Mr. Leo M. Rapof the Fletcher paport to serve at the same time as director nt of American National Bank and as director and Vice Preside polis, Ind. the Aetna Trust 8: Savings Company, both of Indiana Approved. bat ed. May 24th, Recommending approval or the application of Mr. J. Ellvood nt of the Commercial Cox to serve at the same time as Preside Director of the VirNational Bank, High Point, N. C., and as 5/29/23 81 la Trust Company, Approved. Da ed. May 25th of Richmond, Va. bank, Recommending action on application for admission of state reports subject to the conditions stated in the individual Ailxiiiary attached to the applicat Jsm, as set forth in the minute book of this date. Approved* At 3:50 g* m* the meet inv;adjourned. Secretary. APP?"oved:
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