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11 314 e of the A meeting of the Federal Reserve Board was held in the offic 11:15 a.m. Federal Reserve Board on Tuesday, November 2, 1926 at PRESENT: P2ESENT ALSO: Governor Crissinger Er. Platt Mr. Miller Mr. James Mr. Cunningham Mr. McIntosh Mr. Eddy, Secretary Mr. McClelland, Asst. Secretary Mr. Goldenweiser, Acting Director of the Division of Research & Statistics. al Reserve The reading of the minutes of the meetings of the Feder Board held on October 28th, 29th and 30th was dispensed with. on the subject of the Ur. Goldenweiser read to the Board an article in the review Present cotton situation which he had prepared for inclusion Reserve Bulletin. Of the month in the forthcoming issue of the Federal During the reading of the article members of the at the Board made various suggestions for changes and the that moved r Mille r. , 17 ssion discu conclusion of the committee final revision of the article be left to a and Yr. James ngham Cunni Mr. nor, Gover consisting of the with power. Mr. Miller's motion being put by the Chair was unanimously carried. Mr. Goldenweiser then left the meeting. tant Secretary, advising Memorandum dated November 2nd from the Assis es one hunOred that the Chamber of Commerce of the United States desir al Reserve Board, and recommend°°Pies of the Digest of Rulings of the Feder more than paid for the cost inasmuch as the sales of this Digest have mplating reof same and due to the fact that the Board's Counsel is conte charge be made to .71sing the Digest after the first of the year, that no ed, the Board having about seven the Chamber of Commerce for the copies desir 315 11/2/26 -2- hundred and fifty on hand. Upon motion, it was voted to approve the recommendation that one hundred copies of the Digest be furnished to the Chamber of Commerce free of charge, and the Secretary was authorized to makB free distribution of the balance of copies on hand. Letter dated October 25th from the Assistant Federal Reserve Agent at San Francisco, adviSing that the American Bank of San, Francisco would on October 26th open in a temporary location at 1550 Market Street, the branch 4PP1oved by the Board on October 27, 1925 for the north side of Market Street at Van Ness Avenue. Noted. Letter dated October 28th from the Assistant Federal Reserve Agent at 84a Francisco, advising that the Security Trust and Savings Bank of Los 411Re1es on October 25th merged with the Bank of Van Nuys and established 84me as a branch under the Board's authority of September 23rd, the boaof the branch being 6302 Van Nuys Boulevard. Noted. Letter dated November 1st from the Assistant Federal Reserve Agent at New York, advising that the nanicipal Bank, Brooklyn, N. Y. on October 3°t11 opened ih temporary quarters at Fifth Avenue and Fourteenth Street, 40Ok1yn, the branch approved by the Board on October 7th for Fifth Avenue 44a Fifteenth Street. Noted. Matter approved on initials this morning, namely, letter dated 14%ber 2nd from the Comptroller of the Currency, recommending a salary 316 11/2/26 be assigned of ei- 7200 per annum for National Bank Examiner J. G. Hughes, to to the 5th Federal Reserve District. Approved. l Reserve Agent Letter dated October 28th from the Assistant Federa Pacific at San Francisco, transmitting copy of a letter addressed to the s, by the State Superintendent Scuthmest Trust and Savings Bank, Los Angele ry Of Banks relative to an examination of the bank which was started on Februa 6, 1926. Ordered circulated. ry of the Treasury, Letter dated October 29th from the Undersecreta reference to the recoml'egying to the Board's letter of October 27th with tax imposed Imendation of the Federal Advisory Council regarding the income commercial 04 foreign corporations for income received from investnents in g that the matter bills in the American market; the Undersecretary statin disposed haS already come to the attention of the Treasury which would be income, and further, that to recommend that 140 tax be collected on such law at the corning NIbile he is not sure there will be any changes in the tax will have the attention of session of Congress, if there are this matter the Treasury. Noted. itures on letter dated Report of Committee on Salaries and Expend Reserve Bank of Minneapolis, October 28th, from the Governor of the Federal salary of Mr. Clarence l'equesting the Board's approval of an increase in the effective November 1, 1926; the Boteler from y2,600 to ,1;3,000 per annum, e).4 CVAL. it -4- 11/2/26 Committee recommending approval. Approved. Letter dated October 30th from the Federal Reserve Agent at Kansas City, transmitting report of examination of the Commerce Trust Company of Xansas city which was commenced on March 13, 1926; the Agent stating that tile bank examined is the largest member bank in the district and an efficient 1 examination could have been accomplished only with the assistance of the examiners of the Federal Reserve Board who cooperated in the examination. Noted, with the miderstanding that the Chief Examiner is to prepare for the information of the Board. an analysis of the examination report. The Governor then presented application of the First National Bank Of Clinton, Ind. for remission to exercise general fiduciary powers, action on vdiich was deferred at the meeting on October 12th with the understanding that the Comptroller of the Currency would correspond. with the bank with reference to a possible increase in its capital. The Governor also presented a letter addressed to the Comptroller by the President of the bank stating that if they are to be compelled to increase their capital to secure tru.st 1:owers they will abandon the idea of having trust powers issued to them and stating that while they know their capital is small for the amount of their deposits, business conditions in their territory are bad and they do not know that their deposits will continue as they are. Following a discussion, Mr. McIntosh moved that the Board approve the application of the First National Bank of Clinton, Indiana, for permission to exemise general fiduciary powers. tt 31.8 11/2/26 -5Mr. McIntosh's motion being put by the Chair was carried, Messrs. Platt and Miller voting "no". Memorandum from Counsel submitting draft of reply to letter dated October 28th from Honorable Isaac Badharach, with reference to the Clayton Act application of Mr. Richard McAllister which the Board on, October 6th temporarily refused with the understanding that Mr. McAllister might within thirty days present additional evidence to show that the banks involved in Iii.s application are not in substantial competition; the proposed reply stati4e that the Board will be glad to extend the tine in which additional evidence iu this case may be presented awl requesting Congressman Bacharach to advise the Board when it will be convenient for him to take the matter up. Upon motion, the proposed reply was approved. Matter ordered circulated at the meeting on October 12th, namely, memorandum from Counsel dated September 30th, with reference to the power Of the Federal Reserve Board to regulate or eliminate collection charges Oh checks collected through Federal Reserve banks. Noted and ordered filed. The Secretary then presented a further letter dated October 29th I'D= the Assistant Federal Reserve Agent at New York with reference to the Matter discussed at the meeting on October 26th, namely, a suggestion for the 9ar11er release of figures shoving the condition of reporting nember banks in New York City and Chicago; the Assistant Federal Reserve Agent stating that he does not believe the earlier release of the New York and Chicago figures would in any way impair the usefulness of the statement of continue to condition of all member bankswhich it is contemplated would 319 —6— be released as usual. Following a discussion, Mr. nller moved that the suggested change be laid on the table for the time being. Carried. Report of Committee on Examinations dated October 30th on the matter referred to it at the meeting on September 17, 1925, namely, resolution introduced bylAr.11iller that the Committee on. Examinations be requested to investigate and report to the Board on the advisability and practicability Of coordinating all examining work in the Federal Reserve System under the supervision of the Board, acting through its Division of Examination, which l'esolution was later rsferred to the Federal Reserve Agents' Conference held in November 1925 and by it referred to the Federal Reserve Agents' Standing Committee on Examinations, Which, in turn reported its findings to the Board's Committee. The above report was read to the Board by the Secretary and after a brief discussion was made special order of business for a meeting to be held tomorrow. P0aT3 OF STADI1TG Recommending changes in stock at Federal Reserve Banks as set forth bathe Auxiliary 1,:inute Book of this date. Approved. 33ated, October 30th, Recommending action on applications for fiduciary November 1st, powers as set forth in the Auxiliary Minute book of this date. Approved. Dated, October 30th, November 1st, The meeting adjourned at 1:15 p.m.
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