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358 Upon call of the Governor a special meeting of the Federal Reserve Boar d was held in the office of the Federal _ieserve Board on Monday, november 22. 1926, at 3:50 p.m. PEESENT: Governor Crissinger Mr. Platt Yr. Hamlin Yr. Miller Mr. Cunningham Yr. McIntosh Mr. Eddy, Secretary Mr. McClelland, Assistant Secretary The Governor stated that the meeting was called for the purpose of bri4ging up for action the following resolutions submitted at the meeting this morning: (1) That the report of the Board's Committee on Examinations, dated October 30, 1926, which report was tentatively approved by the Board at the meeting on November 3rd, be now definitively approved, and the recommendation contained therein, to the effect that a competent examiner be appointed "to make a survey, and report as to the efficiency and thoroughness of examinations and credit investigations made by each Federal reserve bank, and as to the efficiency and thoroughness of examinations of State banking departments", be adooted; (2) That the outline of the scope of the proposed survey, presented today in a supplementary report of the Committee on Examinations, be approved; (3) That for the purpose of making this inquiry and survey lir. Claade Gilbert be emoloyed by the Board effective November 24, 1926, with the title of Supervisor of Examination, With comoensation at the rate of •,„10,000 a year, and that for administrative purposes he be connected with the office of the Secretary of the Board; and (4) That action under that paragraph of the Board's resolution of August 11, 1926, reading "in order that there may be available a staff of examiners to conduct such si)ecial examinations of state member banks as may be found necessary by the Board following the report of the bank examiner referred to in the previous resolution, that the Governor be authorized to employ as and when necessary the services of a sufficient number of bank examiners", be suspended until the results of the survey to be undertaken by the Supervisor are available, when it may be determined how far it may be necessary for the Board to go in 359 11/22/26 -2- itself undertaking member bank examinations through a division of member bank: examination. After discussion, Mr. Cunningham moved adoption of the resolutions* Cunninham's motion, being put by the Chair, vas unanimously carried. Telegram dated November 22nd from the Chairman of the Federal aeserve 8azik of St. Louis, advising of the death of Mr. C. P. J. Mooney, Class "C" Director of that bank. Noted, with regret and referred to the Committee on District -;43. The Secretary then referred to the fact that among national banks to Which the Boaru has granted permission under Section 11 (k) of the Federal aeserve Act to exercise fiduciaiv powers, there are about 900 banks which have never availed themselves of the privilege, and a considerable number t4at, having accepted only one or two small trusts, have not set up a separate trust department or designated a trust officer or officers for the 14allagemout of such department as provided in the Board's regulations. He 4.11bI1litted and rocommended approval of draft of a letter to be addressed °1rer the signature of the Comptroller of the Currency to the boards of directors of such banks, calling their attention to the provisions of the Board's l*e&Illations and transmitting draft of a resolution for adoption by them consome of the important requirements for the organization and operation Of 4.) a trust department in accordance with the Federal Heserve Act and the regu- lations of the Federal deserve Board, and requesting that a certified copy of slich resolution when adopted be filed with the Uomptroller of the Currency. After a discussion, during vhich the Comptroller stated that he saw no objection, :360 11/22/26 -3- it was unanimously voted to approve the transmittal of the letter as reooranended by the Secretary. The meeting adjourned at 4:30 p.m Secretor
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