Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, May 8, 1925, Volume 12, Part 1

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moqting. of the 1,xecutive Committee of the Federal .deserve
Board was held On Frid.ay, May 8, 1925. at 10:30
PdESaTT:

C..111.

Governor Criss
Mr. Miller
Mr. Eddy, Secretary

2elegram dated. May 6th from the Federal deserve Agent at Dallas,
recommending approval of an application of the security State Bank
Of Cooper, Texas for the surrender of (60) shares of stock in the
Federal .teserve Bank; the same havinr: been approved on May 6th on the
initirqs of two membersof the iixecutive Committee.
Upon notion, the above application was
.roved.
formally ao
nibLiemo --_-_-aclurn dated May 5th from the Division of Examinat'on,
mitting application of the First Ilational Bank in Jumby, Texas for
stock (45) shares in the Federal .teserve Bank of Dallas; the
sr-r() having been approved on

.a;"
2.1

6th, on the initials of two members

Of the 3oard, effective if and when the Comptroller of tile Currency
issues. a certificate of authority to coLunence business.
Upon motion, the above application was formally
approved.
llemorand.um dated May 6th from the Division of _Ixamination, recomMoran,
Inending approval of an application of the Moran National 3c,..:1-fic,
r-2-.1,72:as for a-fir-Anal stock in the Federal deserve Bank of Dallas; the
solne havin7 been approved .on May 6th on the initials of two members
of the

Lec-Litive Committee, effective if and when the Comptroller of

the Currency issues a certificate of authority to comence business.
Upon. motion, the above application was formally
approved.




310
5/8/25

-2-

Memorandum dated May 7th from the Division of Examination, recomrIenJina. approval of an application of the First National Bank, lleedville,
Texas for original stock (30) shares in the Federal deserve Bank of
Dallas; the same having: been approved on 1;ay 7th on the initials of
two members of the Executive Conimittee, effective if and when the
Com.otroller of the Currency issues a certificate of authority to com—
raonco
Upon motion, the above application was
formally aajroved.
Memorandum dated May 7th from .the Board's Chief Examiner, advistag that unler authority granted by the Board on April 17th 1:.r. John ...
Pelton has been employed as an , sistant E
- xaminer at a salary of ,1300
per anntul, effective May 1, 1925.
roted.
Memorandum dated Lay 5th from the Jhlof of the Gold Settlanent
D ivision, recommendinn: that vacation leave with pay be Txauted to the
0,1:11,loyees on the

ht force of the Division, equivalent to the number

of days each cla_doyJe would ordinarily

work in one week and at the same

rates of pay.
Upon motion, the Secretary was authotized to
r:rant the vacations reconmended.
Letter dated May 4th from the Chairman of the Federal 2,eserve

BA-114 Of Jt. Louis, enclosing a communication addressed to him by
Mr.
..tuart

Director of the Little ,loc1: 3vanch, injuiring whether

his servlce as Commissioner ;;;,nd 2reasurer of Draina.:e Districts Nos. 4 and




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25

Letter dated Liay 6th from the ;Jecr3tary of the 0:.,en Llarket
Investment Committee, enclosing copy of minutes of meet"nr: of the
Committee held at the Federal 2eserve 3alik of

.:7C

:ork. on April 30,

1925, together with schedule of plan adopted at the meet in

for the

redistributLon of a portion of the government securities held in the
oystem „;pccial Investment Account aggregating v83,000,000.
Ordered dociyited for the next
meeting of the Board.
Letter dated May 5th from the Chairman of the 2ederal :Leserve
of Boston, advising of the desire of the Carroll County 12rust
Corripany of Conway, New Hampshire, to establish an agency in .

ndwich,

ew Uampsliire, and inquiring 'whether the bank should make application
for permission to establish such arency in acc -)r,iance with the provisions of the Board's .1eGulation "H".
In view of the statement contained in the
Federal .,eserve Agent's letter as to the functions
of the proposed agency, it was the opinion of the
Jommittee that its establislincnt Jos:.,s not come
within the provisions of the Board's reculation,
and that application for the Board's approval of
its establishment is not necessary.
.ipplication of the Peoples Bank and '2.rust Company of Los Angeles,
California, made on behalf of the proposed Peoples National Bank and
-rust Company for permission to er.lercise fiduciary powers under the
t(ms of ;(c.tion 1 1 (k) of the Federal :.':eserve

ct, if and when said

Peoples i;:tional Bank and 2r1lst Company is authorized by the Comptroller
Of the.Currency to commnr:e 1)- slness .




-5-

he Committee considered the unfavorable
recommendation made by the Federal eserve Agent
at 'Jan 2rancisco and the basis therefor, as contained in the last report of examination of the
Peoples Bank and Trust Company, and voted to
disapprove the application, with the understand.jug that if the 2e0ples Bank and 2rust Company
converts at this time into a national bank and
after o12erating as such for a reasonable period
of time desires to make application for permission
to exercise trust po:iers, the Board will give
consideration to such application.
2elegram dated May 7th from the Federal deserve A7ent at Dallas,
advisin: of the action of the Board of Directors of that bank at its
mooting on May 5th in accoptiuf the resignation of Governor LcKianey,
, and
effective May 16th, and of 2'-rion 3. Jansom, Class "B" Director
Of their action in tendering to him (the Federal Aeserve 3nt) the
reassigning
Position of Governor of the Bank and in promoting and
the duties of certain junior officers as a result of the recent
e as of
resignation of Val J. (..A-al)d, ije lty Governor, all effectiv
'qune 1, 1925.
Ordered held for the next mooting of the
Board.
the a -,$)lica;.iemo:andum dated May 5th from Counsel, with regard to
tion of Mr.

Skinner for permission to serve at the za o time

as diroctor of the icving Bank - Columbia ?rust Company and the 2-.cific
1;atienal jafi:,. of

York City, if z...21' when the Pacific ,2,an

of 1Tew York

City is converted into a datIon.,1 bank under the title of Pacific National
which will later consolidate with the American .:.:x3han:7e National




I,
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nk of New York Uity; Uounsel sugr:esti_nf, that if the ‘',oard approves
,th

pplicat ion it advise Mr. ikiimar that it has done so, with the

land rstaudincr that the proosed conversion of the Pacific Dank into
tional bank and its consolidation with the American

chane

Bank will be effected within sixty days from the time the application is granted.
Upon motion, it was roted to approve the
application subject to the understanding suggested in Uounsel's memorandum.
:121)0a23

00:21I=ES:

Dated, May 5th,
7th,

Dated, May 8th,

Datol,

8th,

d, riA7,7 7th,

t d,

y 7th




Aecommeading chan.r2es in stock at Federal ..teserve
Banks, as set forth in the Auxiliary Minute Book
of this date.
Approved.
2,ecommendin: action on applications for fiduciary
powers as set forth in the Auxiliary Minute Book
of this date.
Approved.
re,:endina:
. L.ction on 2plications for fiduciary
:econ,
powers as set forth in the Auxiliary Minute 3ook
of this date.
ordered neld.
:iecommending approval of the c.oplication of L*.r.
Aay Uarter to serve at the same time as director of
the First National Bank in 3t. Louis and, as director
Lo
of the t. Louis Union Trust Company, both of
Approved.
Aecommeading approval of the applict ion of Mr. J. F.
tor of the
Ballard to serve at the same time
sirector of the
First 1:ntional Bank in Qt. Louis
• Louis.
St. Louis Union Trust omuy, b '
Approved.
Ii
The meeting adjoui.