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406 A meet inn- of the Executive Committee of the Federal Reserve , Board was held in the office of the Board on Wednesday, May 5, 1.26 at 12 ps PRESEL7T: Governor Crissinger Mr. Platt Mr. Hamlin Mr. Miller Mr. Noell, Assistant Secretary. Mr. McClelland, Assistant Secretary. Memorandum dated May 3rd from the ActinF; Director of the Division of Re„_ rch and Statistics, recomending that the temporary appointment R,, uoert Irelson as messenger in the Division, which expires at the Close of business on May 7th, be extended for three months. Approved. Telegram dated ,A7-)ril 30th from the Secretary of the Federal Itesery. e,Bank of Chicago, advising that the Executive Com.Aittee of the Of on that day approved the following schedule of rates for nurchases a— ‘;eptances, effective April 27th: 1 to 15 days 16 to 60 " 61 to 90 4 months 5 to 6 months 3 1/8'; 3 1/4;; 3 1/2:; 3 l/24% Trade bills - 4% Sales contracts - Government securities 3 1/2'70. Noted with ap-oroval. Letter dated April 28th from the Governor of the Federal Reserve lansas City, advising that a badet system for control of expenses be 1,11.t into oneration at that bank on July 1st. Noted with allroval. 407 5/5/26 ".„ Letter dated April 30th from the Chairman of the Federal aeserve Bank of New York, advising that the Bank of the Manhattan C°11Pa 1Y, New York City, on May 10th will open its new Woodside Branch at 27 E1hth Street, Woodside, Borough of Queens, and a branch at 188 Central Avenue, St. Albans, Borough of Queens. Noted. Letter dated April 29th from the Assistant Federal Reserve 4A-erit at San Francisco, advising that the Pacific Southwest Trust and Saill=nles Bank, Los Anr,Ples, on April 26th, under the authority previous1Y granted by the Board, established branches in the nremises of the l'irst National Bank of Inglewood, 101 Commercial Street, the agency of that bank 1155 Hyde Park:Boulevard, and the Inglewood Savings Bank, 222 St queen Street. Noted. Letter dated May 4th from the Controller of Loans of the hcleral Reserve Bank of New York, recomiending that the Board extend t°1* three CorniDaziy, or four weeks the Period in which the First Trust and Deposit Oriskany Falls, New York, may accept conditions of vembershin 1111°2ed- Upon it by the Board and complete arrangements for its admission to th_ System. Upon motion, it was voted to grant a thirty day extension. Letter dated May 3rd from the Chairman of the Federal Reserve 11411k 111. tiot of New York, advising that the Peoples Trust Comnany, Brooklyn, 411ection with its program of becoming a national banking associaIor the Puroose of consolidatinr later with the National City Bank 408 5/5/26 'r New _3_ York, effective Mar 4th, will chnnFe its nrincipal office to 185 Montague Street, Brooklyn, and retain as a branch the office now located at 181-133 Montague Street. Noted. Letter dated May 4th from the Federal Reserve Agent at New York submitting further information with respect to t2e nrosnective b8orption of the First National Bank of Jamaica, New York, by the Mechanics Bank Of Brooklyn. Noted. Draft of letter to the Governors of all Federal reserve banks, recillestiaPP that they remit direct to the Federal Reserve Bank of San harleisco, their proportionate share of expense, amounting to $1,221.51, 13414 by the San Francisco Bank, covering services rendered by Honorable 17ewt0n D. Baker in connection with the anneal of the Brookins par learanca case. Anproved. In this connection, the Secretary reported that several days Lv a. pi -,railar letter was addressed to all Federal reserve banks in conliecti°11 with the nro-ratinr: of exnenses of the Federal Reserve Bank of york in connection with the netition filed with the Interstate C°Thz-lerce Commission on behalf of the Federal reserve banks in an effort to zectire a reduction in express rates on shinments of currency, coin, tleellritiess etc. Noted with approval. 409 5/5/26 Letter dated May 3rd frcYm the Federal Reserve Agent at Chicago, e°1111rminC telegraphic advice of the closing of the Second National Bank "Hampton, Iowa, which is the head bank of a chain of from twelve to °ill f°11rteen institutions in Iowa ani Minnesota, known as the Shaffer chain; the 4geat stating that he has been advised of the closing of other units the chain and enclosing a memorandum showing the status of the Second lIat1°11a1 Bank of New Hampton with the Federal Reserve Bank at the time of its closin,, Noted. Ok Report of Committee on Examinations on letter dated April 27th fl)D in the Federal Reserve Agent at Richmond, recommending approval of the (311t°111Plated merger of the Merchants and Farmers Bank of Cheraw, South °1j11a. and the Bank of Cheraw, under the name of the Bank of Cheraw; the Uoramittee recommending approval. Upon motion, it was voted to interoose no objection to the above merger. Report of Committee on Examinations on letter dated April 30th 1111/Z1 t'Ile Chairman of the Federal Reserve Bank of New York, advising that the 3aylk of the Manhattan Company, New York City, is negotiating for the 1-41‘chase Of the Greenpoint National Bank, Brooklyn, and stating that in 11t3"4 of the excellent condition of the Greenpoint National Bank, he is ()t the ()Pinion that its absorption by the Bank of the Manhattan Company 17°111(1 effect no unfavorable change in the general character of the assets °t thp4 - Latter, and since the Bank of the Manhattan Company already has a balT4be,.. 4. of branches in greater New York, the absorption would represent no in the scone of the functions exercised by them. 410 5/5/26 -5- The Board's Committee noting the pronosed consolidation with approval, it was voted to interpose no objection thereto. Memorandum dated May 4th from the Chief of the Division of vperations, submitting statements showing brokers' loans and borrow1s from Federal reserve banks of individual reporting member bans in 414 " )rk City and Chicago as of April 28th. Ordered circulated. Memorandum from Counsel submitting draft of reply to letter dated. April 19th from the Federal Reserve Agent in New York, incuiring Whether the exception to the Clayton Act dealing with common stock owner- elltA a7,)Dlies to the Highland Trust Company of Union City, New Jersey, and th"115-011 Trust and Hudson County National Bank of Jersey City, in connec" with the annlication of Mr. Frank C. Ferguson, who is also a director or the New York and New Jersey Joint Stock Land Bank of Newark and the Itercilants National Bank of Jersey City; the proposed reply stating that the eception referred to is not an?licable to the case in question and it wi 11 be necessary for Mr. Ferguson to resign from one of the institutio 2 which he is now serving, and to make annlication to the Board for 1)(*Illissiori to serve the other three, unless, he should resign from the 414t R -took Land Bank, in which event the application already filed to 41've t, 'e other three institutions is sufficient. Upon motion, the nronosed reply was approved. Letter dated April 30th from the Chairman of the Federal rys -uank of New York, advising of the action of the Board of Directors or tliat bank in voting to grant leave of absence without pay for a period 411 5/5/26 -6- oftroll ' . eight to twelve months, commencing the early Dart of September, to Lir. Howard. :T. Jefferson, one of the officers of the bank, so as to Ilira to accompany Professor B. ';1.4. Kemmerer of Princeton University as rrnber of a finencial mission to the Ecuadorian _lemblic, and possibly to other South. .American countries, to assist in the reorganization of the banir; aad nom tary systems of such countries. Noted without objection. 2he Secretary then Tresented a letter addressed to the President ei‘ tile United States, under date of April alth, by the President of the C4411lber Of Commeme of the United States, a:Wising of that irctitution's 3111313°It of the renewal of the charters of the Federal reserve banks; the letter e xpressing the opinion that the subject of the renewal of charters ehoilld not be made contingent upon changes in the Federal aeserve Act, but that any changes should be considered. and acted upon entirely on their inerits. The secretary stated that the above letter had. been referred. by the President to the Secretary of the Treasury, who in turn submitted. it to the Board with the request that a form of acknowledgnent be suggested.. After discussion, it was voted that the ackncwledgnent to be drafted by the Board merely express appreciation of the position of the Chamber of Commerce. liemorandum dat ed. Lay 1st from the Chief i:xaminer, prepared in 4ecc/M-ance with the Board's action of April 27th, requesting a report tile ouestion of exeraination of foreign banking corporations doing 1)1181.11°as Wider an agreement with the Board; the Chief _;marniner in his memo1‘44(111-rn. setting forth the status with respect to the examination of the various 0. 412 5/5/26 -.7.- Ii ins titutions in question. Referred to the Committee on Exa2nina.t ions. Memorandum from Counsel, submitting draft of reply to letters dated. 4-11 21st and 23rd from the Federal Reserve Agent at Chicago, 1.8°cIlanellaing that Mr. C. A. Woodhouse, now in the Credit Department of tile Detroit Branch, be authorized to receive, receipt for ani. deliver '944 reserve notes for the Federal Reserve Agent or in his name and to act in such capacity during the absence or disability of the Assistant Peci"ea Reserve Agent at the branch; the proposed reply stating that illaarillIch as Mr. Woodhouse is an employee of the Credit Department of the 131'411449 he would not be authorized to perform the duties of an Assistant tacle1113. Reserve Agent with reference to the receipt and handling of unPederal reserve notes, and in addition that the Board is not advised Iteth "Mr. Woodhouse complies with the requiremant of the Federal Reserve Act that an assistant to the Federal Reserve Agent be a perscn of tested 114331ting experience, for which reasons the Board does not approve of his 415°13atrent to act in the capacity outlined. Upon motion, the above letter was referred to the Law Committee. Letter dated April 30th from the Deputy Goveraor of the Federal Itee" "Bank of‘New York, advising that it is not the intention of that azik at this time to enter into a formal agreement with the Czechoslovak ITEttiozal Bank but to continue the relations already established with the 4ittik°74.1 urad Ministerstva Finan,ci of Prague, of which the Board is already 444184c1; the Deputy Governor stating that if they should at any time in the 413 5/5/26 -0- tittlzre consummate a formal agreement with Czechoslovak National Bank, they will forward a cony to the Board in in usual manner. Noted. 11°inorandum from Counsel on letter dated April 16th from the Federal Agent at Atlanta, with reference to the condition of the Citizens State --)attli: of Marianna, 1?lorida, as disclosed by a recent exaznination, aid. callinF'-; attention particularly to a donation to the bank of its own stock itz. the amount of .,000 by the cashier of the bank, in cons id.erat ion of Which acnation the cashier received the cancellation of i3,000 of his ind•ebtecine2s .0 t the bank, which action, the ent states, raises a question ilillethe r or 11 _, or the ot the bank has violated its condition of membership zieglaations of the Board; Counsel in his memorandum stating that there is E(3rile dclubt as to whether the purchase or acquisition stock co a bank of its ovn capital, which, nstitutes in legal effect a reduction of the bank's for a the ip l'esent case, would bring the capital below that required 111°141)e bank, but pointinp: out that the examination shows the reserves of the balik that Were deficient at the time of examination, and suggestinp: if the Board believes the bank is an undesirable member and its memborshiP the sYste•:a should be forfeited, it nnzi make the failure of the bank to ec>1111)1Y with the reserve reauirements the grounds for action. to After discussion, upon motion, it was voted further for Counsel to back refer the above matter cies information with respect to the reserve deficien the to as ion informat for Of the bank in question and the nuestion on bearing laas of the State of Florida a reduction Whether the above namd bank has effected in capital. 411 5/5/26 -9- • Prepared 3.11er then broubilt up the ciuestion of the desirability of having'. a bibliography of the Federal ileserve System. Mr. Miller stated he understood the Library of Congress formerly undertook work of this kind and moved that the matter be referred to the Division Of _tesearch and Statistics to ascertain whether the Library of Congress would be willing to undertake the preparation of a bibliography, either with or without the cooperation of the Board, and if not, for report as to the ability of the Board's Division to prer.are same. 4 Mr. Miller's motion being put by the chair was carried. I.Ir• Platt, on behalf of the Executive Cormittee, then presented a tenta'ist Of tonics to be submitted to the Federal ,Icivisory Council for conti" ) &aeration at its rreeting on May 21st. After discussion, the Vice-Governor was requested to address a letter to the President of the Council submitting the topics suggested by him. A:b. 0--LITS op DIMc C01.711I2,21ES: Dated. 9 APril 30th, L-ai.Y 4th, 1)4teci., 1:0•Y 4th, bataci, :,:ay 3ra., 4ateci -aNY 3rd, Ltecommending changes in stock at Federal :teserve Banks, as set forth in the Auxiliary Minute Book of this date. Approved. _tecommending approval of the application of Mr. Jo Zach Miller, 3d., to serve at the same time as director of the Bolton National Bank of Belton, Mo. and. as director and. Vice President of the Commerce 2rast Company of Kansas City, Approved. _kecornmending approval of the application of Mr. Louis A. Bize to serve at the same time as director of the First National Bank of Clearwater, Fla., as director of the First National Bank of St. Petersburg, Fla., and as President and director of the Citizens Bank and. Trust Company of Tampa, Approved. Ilecommenclirc a.pproval of the application of Mr. John F. Pitz to serve at the same time as President of the National Bank of -lidgewood in New York of _Iidgewood and. as director of the _tichmond Hill National Bank of Richmond Hill, :Tow York. Approved. 44.5 8/5/26 -104°ZeS OP STANDING COLMITFEES: (Cont,d) • Dated, me‘y 3rd, Recommending approval of the application of Er. ni1 G. Raeder to serve at the same time as director of the National Baak of Ridgewood in New York of Ridgewood, N.Y. and as Vice-President of the Richmond Hill National Bank. of Richmond Hill, N. Y. Approved. The meeting adjourned at 1:00 p.m* • Assistant Secretary. i fiL41 11°Iloved:
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