The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
the office of the A meeting of the ,federal Reserve Board was hold in 11:10 a.m. Federal Reserve ioard on 2hursday, :7ovember 20, 1924 at PRESENT: Governor Crissinger Mr. Platt Mr. Hamlin Mr. Miller Ur. James Mr. Eddy, Secretary the minutes of the meetirr, of the Federal Reserve lAard held on November 19th were read and approved. . Letter dated November 19th from Congressman Burton of Ohio, referring to his letter of October 31st to the Secretary of the Treasury regarding a protest lodged with him aainst the appointment of Mr. Oscar Newton as Chairman Of the Board of Directors and Federal Reserve ',gent at Ltlanta, and advising that he has been unable to ascertain the grounds for the protest and fears it tas on political grounds. Noted. Memorandum dated November 19th from the Director of the Division of Research and Statistics, recommending the temporary appointment of Mr. T. E. Gregory to conduct a study of the London money market at a salary of2,000 • for the period he is en6aged in this work and an allotment of ,;450 for den and stenographic assistance for Mr. Jrcgory on a. visit to London during the first six months of 1925. Approved. IA this point Mr. Cunninjwn entered the meeting. Letter dated November 19th from the Federal Reserve Agent at Philadelphi Ilequesting the designation of Lssistants to Examiners of three enployces of the bank named therein. 200 11/20/24 Approved. Te1e3ram dated November 19th from the Governor of the Yederal deserve Bank of Ktnsas City, Ld isin,- that he will be in "„oshin ton on November 21st with his bank's architect Lnd Consultin,; Architect 2rowbrid,;e ,resent to the Board bids accepted 1j,7 the Kansas City directors for buildin, s at Omaha and Denver. Not ed. Letter dated November 19th from the Under Secretary of the 2reasury, .:eserve banks with . reouest±n.s. a short statement of the powers of the .-ederal regard to the extension of agricultural credits, including a brief outline Of the purnose and use of the'v'edercd iieserve banks. lieZerred to the 3ecr ,tary for the preparation of a reply. Letter dated November 19th, addressed to the Secretary by the Associate l'.1ditor of 2he Bankers :,:onthly of Chico ,o, reluestinc; an article descriptive Of the accomplishments of the ,v'ederal Operation. eserve System durinr: its period of Mr. Miller stated that he had received similar re uests from the TAitor of the )t.nkers :.11.7cazine of New York City and from Dr. J. P. Younr:, Secretary of the United States Commission of Gold and Silver Ineuiry. After discussion it vas voted that the Board could not undertake the preparation of those articles at this time. Memo r.ndum from Lssistant Counsel dc ,ed :overdo -!/. 18th, with regard to letter addressed to the Com) troller of the Currency under date of November 6th by the Commissioner of Bankin:*o; the State of 2exas, calling attention to the Act that certain mtionz 1 banks in that state are acting in fiduciary et,Tocit les under permits ,;ranted by the ioard comlyin Ivith the 11/20/24 _3- state law which ro uires state institutions exereisin: trust powers to deposit certain securities with the State 1reasurer; Counsel statin that Under Section 11 K of the Federal Reserve ,ct these rational banks mast deposit such securities and recommending that the Comptroller of the Currency be furnished with a list of such banks in order that he may take such action tiS may be necessary to see that the provisions of Section 11 K are com- lied With. Upon motion, the recommendations of Counsel were approved. :1raft of reLly to letter dated rovember 5th from the President of the 31ackstone Canal rational Bank of Providence, R. I., in:airing whether a national bank which has no deposits that are classed as time deyosits may make loans on un'mcumbered farm lands and real estate under the provisions Of Section 24 of the Federal Reserve ;et; the proTosed reply statin that .3 ection 54. merely limits the aggregate sum which a National bank may loan Upon real estate, that is, up to 25,6 of capital and surplus or to one-third Of time deposits, whichever may be the greater, and v;as not intended to restrict loans on real estate only to those banks havin time deposits. Upon motion, the proposed letter was approved and a copy ordered transmitted to all Federal Reserve banks :or their information. L, special committee appointed at the meeting on rovember 10th then reported on the matter refo;red to it, namely, a letter dated rovember 5th from the Chairman of the Federal _eserve Bank of Atlanta transmitting (1) L resolution adopted by the directors of that bank, rouesting reconsideration of the Board's decision that the fee of the bank's Counsel, Randolph 20 11/20/24 -4- and Parker, in the case brought against it by the Prscagoule rational Bank and court costs tssessed against the Federal Reserve bank should not be Pro-rated among the twelve Federal Reserve banks, but should be borne by the 2t1anta bank itself, and (2) Copy of a letter addressed to the :overnor Of the Bank by _itndolph and Parker, suggesting a fee of „:10,000 for their services in connection with the ease. Mr. Hamlin moved that the Federal Reserve Bank of Atlanta bear the expense of the fees of its own counsel but that the fees of special counsel be pre-rated among the other eleven Federal Reserve banks. Mr. James stated that as this suit was brought against the Federal Reserve Board by a Uational bank, supported by a national organization, and Cs the prosecution o2 the suit is participated in b banks all over the United States through contribution, it seems tht the Federal Reserve System is involved to a greater extent than the Federal Reserve Bank of Atlanta and that it tould be proper for the _otrd to assume entire charge of the defense of the suit and pro rate among the twelve Federal Reserve banks all of the expenses thereof. Mr. James then moved, as a substitute for Mr. Hamlin's motion that because of the conditions stated above, the Board authorize the levying of an assessment against all Federal Reserve banks to include and cover all expenses of the litigation. After discussion, Er. James, by unanimous consent, moved that action on both motions before the Board be deferred until such time as the Board has an opportunity of consulting with Messrs. Baker and Vjyatt. Carried, LIr. Miller voting "no". 20C. 11/20/24 -5- Mr. Miller then stated that he wished to record the following motion to be voted on by the Board at the same time as the above motions Of Messrs. Hamain and James were acted upon: "That the letter dated November 8th from the Chairman of the Federal Reserve Bank of Atlanta, regarding fees of the bank's Counsel in the case brouP7ht against it by the Pascagoula National Bank, be replied to along the following lines It is the sense of the Federal Reserve Board that a fee of not in excess af ',::5,000 will be proper compensation for the incidental services necessary to be performed by Randolph and Parker, Counsel for the Federal Reserve Bank of Atlanta, in connection *ith the defense of the suit brouOlt against the bank by the Pascagoula National Bank and that such fee ill be paid by the Federal Reserve Bank of Atlanta and not pro-rated among the twelve Federal Reserve banks." The Governor then stated that the above motions would be made special order for a date to be fixed later. The Governor then brought up the spedial order business for this morninOi s meetim;, namely, consideration of the introduction of a proposed bill to incorporate the Federal Reserve Pension Fund. 1fter discussion of the proposed bill, during which Mr. Miller presented a proposed amendment to restrict the benefits of the pensions to participants having salaries not in excess of 5,000 or to ::'5,000 only of salaries in excess of that amount, Mr. Hamlin moved that the question be postponed for a meeting of the entire Board, I.:xi. Hamlin's motion being put by the chair was carried. Mr. Miller then called attention to the sharp increase in the holdings Of bankers acceptances purchased through the Open Market Investment Committee stated that in his opinion the Federal Reserve buying rate on these ac- 20 -6_ ' 11/20/24 -ceptznces is too low. 2hereupon it W5S voted that the weekly reports of the Open Market Investment Committee and the daily letters of the Federal Reserve Bank of New York include hereafter the actual rates at Which acceptances of different maturities have been bouL;ht. ? 3TLITDIN1 COLIMI.223ES: REPORTS 0, #• Dated, November 20th, Recommending action on application for admission of state bank, subject to the conditions stated in the individual reports attached to the application, as set forth in the Luxiliary Minute Book of this date. Lpproved. Dated, November 20th, 2ecommendinL: approval of the application of Mr. H. K. 7Alkinson to servo at the same time as Vice President and Director of the Contintental National Bank of Ft. Worth, 2exas and as Director of the Commercial National Bank, Sherman, Texas. Approved. Dated, November 20th, 2ecommondin,n; approval of the application of Ur. C. P. Webster to servo at the same time as Director of the Swarthmore rational Bank, Swarthmore, ra. as Director of the Marcus Hook National Bank, Marcus Hook, Pa. and as President of the Delaware County National Bank. of Chester, Pa. Lpproved, The meeting adjourned at 12: .M. Secretary. Approved: (Jovernor f:.
@FedFRASER