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A meeting of the Federal Reserve ioard was held in the office of the Federal Reserve Board on Thursday, May 29, 1924, at 3:15 p.m• PR&SIM: Governor Crissinger Mr. Platt Mr. Hamlin Mr. James Mr. Cunninjlam Mr. 34dy, Secretary rho minutes of the meeting of the Federal Reserve Board held on May 27th were road and approved. Letter dated May 27th from the Comptroller of the Currency, advising that the resignation of Miss S. Myrtle Heale, clerk-counter in the Federal Reserve Issue and Redemption Division, with salary at the rate of 4380 per annum, has been accepted effective at the close of business May 51, 1924. Noted. Letter dated May 28th from the Comptroller of the Currency, advising that the resignation of Mrs. Annie M. Drewett, money counter in the Federal "Gserve Is ue and Redemption Division, with salary at the rate of :,;1440 per annum, has been accepted effective at the close of busi ess June 26, 1924. Noted. Memorandum dated May 28th from the Director of the Division of Research and Statistics, recommending that Miss Louise Young;, an employee of that division, be granted leave without pay for a period of two and one-half months from July 1st to September 15th, inc]usive. Approved. Report of Committee on Salaries and -2apenditures on letter dated LlaY 26th from the Secretary of the Federal Reserve Bank of Cleveland, re- -2- Vesting approval of the action of the Executive Committee of that bark in 'toting to increase the salary of Edward L. Merkel, Chief Electrician, from 42580 to 42760 per annum, and the salary of Charles Koenig, First Assistant 141gineer, from 42400 to ,-,12580 per annum; the Committee reconznending approval. Approved. Memorandum dated May 27th from Counsel, suggesting that the Board Publiah in the complete edition of its Annual Report for 1923, the decision rendered by the Supreme Court of the United States, on April 26, 1924, in the so-called Burnes National Bank case; Counsel's recommendation being apProved by the members of the Law Committee. Approved. Memorandum from Counsel dated May 28th, submitting draft of a letter to the Governors and Chairmen of all Federal Reserve banks, advising that in tature all requests for rulings be addressed to the Board over the signature Of the Governor, Chairman or the acting senior officer. Upon motion, the proposed letter was approved. Memorandum dated May 28th from the Secretary of the Board, transmitting an order issued by the Secretary of the Treasury that for the period from June 16th, to September 15th all branches of the Treasury Department be closed at 1100 p.m. on Saturdays, and recommending that the Board on Jane 15, 1924, beRill granting its employees a half holiday on Saturdays and that an other work- days it fix the closing hoar for its offices at 5:00 p.m. instead of 4230 p.m., with the understanding that half holidays on Saturdays are to be ellanted throughout the year. -3- 6/29/24 Upon motion, it was voted that the Board grant its employees a half holiday on Saturday during the period June 15 to September 15, but that action with regard to the continuance of such half holidays and the extension of the regular working day to 5:00 p.m. be deferred until the Board can secure an expression of opinion on the matter from its employees. Letter dated May 23rd from the Secretary of the Federal Reserve Bank of Cleveland, advising that the Executive Committee of that bank has established e Minimum rate of 22% on open market purchases. Noted with approval. Letter dated May 28th from 7;. R. Grace and Company's Bank of New York CitY, requ?sting authority to accept drafts and bills of exchange up to 100j; of , apital and surplus after conversion on or about June 15, 1924, into a Itatienal banking association under the title "Grace National Bank of New York". Approved. Memorandum dated May 21st from General Counsel, submitting draft of a letter to the Federal Reserve Agent at Atlanta, with regard to the application Of the Farmers Bank of Canon, Georgia, for withdrawal from membership in the oral Reserve System and enclosing a su:gested form of certificate to be eltecuted by the Superintendent of Banks stating his authority under the laws or state of Georgia for taking over the ,?armers bank and making application rol" the surrender of its Federal Reserve bank stock. Upon motion, the proposed letter was approved. Memorandum dated May 28th from the Secretary of the Board, referring to letter dated May 21st from the Federal Reserve Agent ;.it Jan Francisco, with l'egard to recent action of the Bank of Italy in absorbing the Long Beach National Bank, Long Beach, California, with its two branches, and consolidating same with branches now operated by the Bank of Italy at that point. Noted. Letter dated May 28th from the Secretary of State, quoting a confidential telegram from the American Minister at Stockholm regarding negotiations for loan by the National City Bank of New York to the government of Sweden. Noted. Report of Law Committee on letter dLted May 7th from the Deputy GovOf the Federal Reserve Bank of Philadelphia, transmitting and requestI:1V approval of a proposed agreament between the Federal Reserve bank and the hrst National Bank of Johnstown, Pa„ providing for the custody of a sum ef Pederal Reserve notes in Johnstown to take care of requirements of member 1144ka in that city and vicinity; the Law Committee recommending approval. Approved. Telegram dated May 29th from the Cashier of the Federal Reserve Bank "Dallas, advising that the bank desires to close out its Federal Reserve baak note circulation liability and requesting that the Comptroller of the ellrrency be asked to withdraw the 2/; , Consols pledged with Treasurer of the United states and that they be forwarded to the Federal Reserve Bank of New York to be held in trust. After discussion, the Secretary was instructed to ascertain whether the bonds are being forwarded to New York for sale. 5/29/24 -5- Mr. Hamlin then submitted the following resolution: "WHEREAS, The Federal Reserve Board has learned indirectly that the Directors of the Federal Reserve Bank of Cleveland have leased rooms in the Federal Reserve Bank building for the use of the Republican National Committee during the coming National Convention; "BE IT RESUVED, That in the opinion of the Federal Reserve Board such lease should not have lie= made, s it is likely to establish a precedent which may bring severe criticism upon the Federal Reserve Bank of Cleveland and upon the Federal Reserve 3ystem. "BE IT 1URTHER RESCUED, That a copy of this resolution be sent to the Directors of the Federal Reserve Bank of Cleveland, and that, after the national elections, a circular be sent to each Federal Reserve Bank to the end that leases of part of the premises of the respective Federal Reserve banks shall be not made for the use of any political committee." At this point, Mr. Miller entered the meeting. Mr. Hamlin moved adoption of the resolution above ,iuoted. Mr. Hamlin's motion being put by the chair was carried. After discussion, ET. Hamlin moved that notice of the above action be sent to the 2ederal Reserve Bank of Cleveland under confidential cover. Carried, Mr. Platt voting "no". 2,PORTS OF STANDIlp COUNIITTEES: ' Recommending changes in stock at Federal Reserve Banks, as set forth in the Amiliary Minute Book of this date. Approved. Dated, May 29th, Recommending action on applications for fiduciary powers 29th, as set forth in the Auxiliary Minute Book of this date. Apnraved. b ated, May. 28th, Recommending approval of the application of Mr. Porter Sesnon to serve at the same time as director of the Santa Cruz County National Bank, Santa Cruz, California, and as Dated, May 27th, 28th, 5/29/24 -6- JAPORTS OF STANDING COLEIDTEES (Cont'd) employee of the Crocker National Bank, San Francisco, California. Approved, The meeting adjourned at 4:15 ' C o Governor. Approved: Secreta
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