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0 -1- kJ kJ mootinc; of the Federal Reserve Board was hold in the office of the Federal Reserve Board on Wednesday, Thvember 19, 1924, at 11:05 a.m. PR3SENT: Governor Crissinger Mr. Platt Ur. Hamlin Mr. Millor Er. Junes Mr. Cunnin:':ham Mr. ::ddy, Jecretary The minutes of the meetinL; of the Federal Reserve Board held on rovembor 13th were read. Lfter discussion, the motion adopted by the Board with reference to the application :or the establishment of a branch of the Federal eserve Bank of Richmond w:_s reconsidered and, upon motion by Mx. Miller, unanimously adopted in the following form: "Whereas, the Board has before it a petition of the Federal Reserve Bank of Richmond for authority to establish branch in the southwestern portion of the Fifth District; Be it Resolved, that the Board on some future date grant c hearing to the Directors of the Federal Reserve Bank of Richmond to show cause why a branch should be established. 2he minutes of the m3otins, of rovember 13th were then aiproved. 2he minutes of the meeting of the Board held on November 17th were read and approved. t this point the Board's Counsel, Mr. 7:yatt, entered the Meeting and advised the Board that suit .was being braa ht to test the exercise of trust powers by national banks in the District of Columbia authorized by the Board to exorcise such povers but having a capital of less than ,1,000,000, the count re,iuired by the code of the District of C°11)niuia of state banks, trust companies and corporations exercising such Powers. Mr. -;yatt stated that these ',emits had been granted under an 7 11/19/24 opinion rendered by the Board's former Counsel, Mr. M. C. Elliott, to the effect th.2..t the Board was not restricted by this limitation because the District of Columbia is not a state, and that counsel for the national bank in the above mentioned suit desired a copy of Mr. Elliott's opinion refrred to. Upon motion by Mr. Hamlin, the Board's Counsel was authorized to furnish counsel for the national bank with a copy of the opinion desired. Letter dated November 14th from the t.ctir4; Comptroller, re -uestin -,; approval of a salary of ,2700 per annum for National Bank Examiner 'rank T. Krippel, to be cssi,;ned to the 3ixth 2ederal Reserve District. Mr. Mill r moved that hereafter all recomendations of the Comptroller of the Currency for salaries of national bank examiners take the usual course of all expenditures that the law requires to be approved by the 2edera1 Reserve Board and go to the Board's Committee on 3alaries, Expenditures and Efficiency for review and recommendation. Carried. In accordance with this action, the above letter from the Acting Comptroller was referred to the Committee on salaries, Expenditures and Efficiency. Letter dated 17ovember 11th from Mr. Chas. h. Hodges, requestinL that he be not considered for reappointment as a director of the Detroit Branch Of the 2edera1 -eserve Bank of Chicago at the expiration o: his present term on December 31, 1924. Referred to Committee on District 47. .,, e,)ort of Colimittee on Examinations on memorandum dated November 14th from the :.ctinc Comptroller of the Currency recommendin, approval of a reduction from .35,000 to .,;25,000 in the capital of the Hugo National Bank, llUBO Colorado, ith the understanding that ,12,000 secured through this reduction in capital and a small reduction in surplus will be utilized as 11/19/zi. -3- n fund to keep the assets of the bank free from any criticisable matters; the Board's Committee also recommending approval. Approved. Report of Committee on Examinations on letter dated November 10th from the edoral Reserve ',gent at Jan Francisco, transmittin- and recommending Lpproval of the application of the Bank of Sausalito, Jausalito, California, for permission to establish e branch de novo at Belvedere-2iburon; the Board's Committee also recommending approval. Approved. :.etter dated November 13th from the 1,ssistant Federal Reserve ilent at Cleveland,advisim: that the -:ashington Bank and Savin ;s Company of Cincinnati, Chip, whose applicItion for admission to the Federal Reserve 3;:stem was approved by the Board on AuL;ust 22, 1924, has definitely decided to postpone membership; to,sether with a memorandum, dated :Tovembbr 15th, approved by the Secretary, recOmmending that the ca-se be considered closed and that the Federal Reserve 4gent at Cleveland be instructed to so advise the bank and to state that should the bnnk decide to renew its application at some future date, a new application \7111 be required. Upon motion, the above recommendations were approved. Letter dated November 7th from the Federal Reserve _Agent at San Francisco, enclosinL; copy of a letter from the Vice 'resident of the Pacific Southwest st and Savings Bank, advisinr; that the luesti n of the establishment of a branch at Long Beach, California, approved by the Board on October 17, 19L2, is hrvi their careful consideration. moved thtt the Board should be not before this branch is established. Carried. -4- 11/19/24 limit of letter to all Federal Reserve Agents requesting them to send to the Board before December 15th the names of those whom they desire to be appointed as Assistant Federal Reserve Agents, both at head offices and branches. Approved. Mbmorandum dated November 18th from the Secretary with regard to letter dated October 23rd from the Governor of the Federal Reserve Bank Of Minneapolis suggesting that the daily gold fund clearing wires of the Helena Branch be sent to the Board at Government rates over commercial wires direct from Helena rather than at Government rates over commercial wires from Helena to Minneapolis and over leased wire from Minneapolis to Washington as at present; the Secretary stating that -while the added cost would be slight and practical operating difficulties might develop, he sees no objection to permitting a thirty day trial of the plan, but Pointing out that to secure the government rate it would be necessary for the Board to absorb the cost of the coramercial vires from Helena to Washington just as it now absorbs the cost from Helena to Minneapolis. After discussion as to the desirability of the Board's absorbing the cost of such telegrams, however sent, Mr. Miller moved that the matter be referred to the Committee on Salaries, Expenditures and Efficiency with poser. Carried. the Governor then brought to the attention of the Board telegram addressed to the Secretary of State by Mr. Henry C. Breck, Assistant Federal Reserve Agent at San Francisco, tendering his acceptance of a position as executive assistant to Ur. 3. F. Gilbert, Agent General for the Reparation Payments at Berlin. 11/19/24 -5- After discussion, the Secretary was instructed to recluest the resi;nrtion of Lr. Brook as :ssistant Federal Reserve Agent, effective when he leaves the Federal :ieserve Bank of San Francisco to accept the position above referred to, frid to ascertain the status of lir. Shepard Moran, 2ssistrnt Federal Reserve Agent at Now York, who it is understood has accepted a similar position. Letter dated Novamber 13th fmm the Secretary of the Federal Reserve Bank of Atlanta, requestins , approval of the action of the directors of that bank in votin to contribute not to exceed :500 to the Atlanta Chapter of the Lmerican Institute of Banking. Referred to the Committee or Salaries, Expenditures and :fficioncy. 1»rt of Committee on District ,r5 on the matter referred to it at the meeting on November 10th, namely, letter dated November 8th from the Governor Of the Federal Reserve Bank of 'lichmond, reluesting approval of the action Of the directors of ',hat bank in votin; to authorize the lecutive Committee to purchase iroperty in the rear of the bank building for use as a storage building and garage, at a cost of 45,000; the Board's Committee recommend- ing that the Board interpose no objection to the purchase. Upon motion, the recommendation of the Committee vas approved. T.he Secretary then inquired whether the Board desires to renew its subscriItion to oody's Investors Service, 1925 edition, consisting of four volumes. After discussion, the Board approved the purchase of this service. Memorandum dated November 15th from rir. James advisin that the Chairman of the recent Federal Reserve ;tents' Conference had requested 195 11/19/24 -6- him to bring to the Board's attention the following resolution of the Conference: "RESOLVED, that the program outlined by the Open Market Committee and approved by the Federal Reserve Board, should, in the judgment of this Conference, cover the period of the few weeks immediately ahead, and is one with thich it is in full sympativ. 2his Conference see no reason for (?. xl immediate increase in discount rates". Noted. Memorandum dated November 15th from Mr. James transmitting an opinion Of the Board's General Counsel on the subject of permitting country banks to deduct items in process of collection from gross demand deposits and stating that the present situation results in an injustice to country banks and should be changed as soon as a scientific plan can be worked out and enacted into law; Mr. James in his memorandum recommending that this opinion Of Counsel "be submitted to the Law Committ ee with instructions that it Undertake the necessary procedure for correcting the unjust situation referred to". Referred to the Law Committee. Mr. Platt, Chairman of the Committee on Examinations, then reported On the matter referred to the Committee on October 29th, namely letter dated October 27th from the Chairman of the Federal Reserve Bank of Chicago on the subject of the delay in securing reports of examination of state member banks it Michigan. Mr. Platt submitted correspondence on the subject with the 9hairman of the Federal Reserve Bank of Minneapolis and stated that he had discussed this matter with Messrs. Heath and Mitchell while they were here 41 Washington attending the recent Conference of Federal Reserve Agents, and cic)es not think there is any immediate necessity for Federal Reserve examinations 10C -7_ 11/19/24 Of Michigan member banks. After discussion, all correspondence on the subject was ordered circulated. Memorandum dated September 30th from the Assistant Counsel, submitting draft of a bill, proposed by the Attorney General, to provide for the punishMent of banking crimes in the District of Columbia. Upon motion, the suggestions contained in the bill submitted by the Assistant Counsel were approved. Mr. Platt stated that while he would not vote in the negative on the above matter, he did not approve of some of the provisions of the proposed bill. Draft of letter to the Chairman of the Committee on Banking at. Currency of the House of Representatives, requesting the reintroduction of H.R. 9344 or the introduction of a Amilar bill amendin(^ Jection 8 of the Clayton Anti-trust Act. Approved, lir, Miller voting "no". .2he Governor then stated that the American Bankers' Association Committee on the abolishment of non-cash collections by Federal reserve banks wished to al:pear before the Board on December 4th or 5th. The members of the Board expressed no objection to a hearing on either of the above dates. Mr. Hamlin submitted a memorandum dated November 14th from the Board's General Counsel transmitting the resignation of Mr. E. W. Freeman, Assistant Counsel, effective December 31, 1924, and recommending that Mr. Freeman be granted leave of absence with pay from December 15th to 31st. Upon motion, the Board voted to accept Mr. Freeman's resignation and to grant the leave recommended for him. 1 11/19/24 -0- Lir. Miller then referred. to the action of the recent JovernJrs' Conference in recommending that the Board reconsider that port ion of its regulations governing the appointment of directors of branch Federal reserve banks thich re iuires that each branch board shall consist of seven members and alloy; the number of directors to be determined by conditions in the various districts. Lfter discussion, the Jecretary ;as instructed to ascertain the increased cost to the Federal reserve banks Of the proposed addition to the number of branch directors. 23 02 a1:DI1.7q C0111122.F.3: ga, t OR Dated, November 13th, 15th, 19 th, Recommending changes in stock at Federal reserve banks, as set forth in the Auxiliary Minute Book of this date. .A-nproved. Dated, November 19th, 19th, 19th, 19th, Recommendinz Lotion on applications for fiduciary powers as set forth in the .I:uxiliary Minute Book of this date. .;,pp roved. Dated, November 19th, 19th, Recommending action on applications for fiduciary porers as set forth in the Auxiliary Minute Book of this date. Held. Dated, November 19th, Recommending approval of the application of Messrs. Henry C. Van 3chaack :,,nd 0. T. Hicks to serve at the same time as Directors of the Denver National Bank and the Central -;.avin;:-_;s Bank & Trust Company, both of Denver, Colo. Approved. Dated, November 19th, Recommending approval of the application of Mr. Michael Gallagher to serve at the same time as President and Director of the Peoples National Bank of Lit. Pleasant, Ohio, and as Director of the Midland Bank of Cleveland,O. Approved. Dated, November 19th, Recoirg.iendin: approval of the application of Lir. G. T. Thompson to serve at the same time as Director and Vice President of the Commercial National Bank of Lluskogee, 198 11/19/24 Hulbert, Okla., as Director of the First rational Bank of of Bank al Nation ns Okla., and as Director of the Citize Fort Gibson, Okla. 4pproved. application of Mr. Dated, November 19th, Recommending approval of the as Director and time Gordon Hollis to serve at the same Director and as Bank, Officer of the Broadway National Director as and Officer of the Drovers National Bank, Company, Trust and Bank s and Officer of the Central Saving all of Denver, Colo. Approved. The meeting adjourned at 1:1 0,(1. Secretar Approved: Governor.
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