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043 te-e f A meeting of the Federal Reserve Board was held in the office of the ?sclera1 Reserve Board on Wednesday, November 7, 1928 at 11:30 a.m. PRESENT: Governor Young Mr. Platt 1,Ir. Miller Mr. Cunningham Mr. McIntosh Mr. Eddy, Secretary Mr. McClelland, Asst. Secretary The reading of the minutes of the meetings of the Federal Reserve Board ileldo on October 30th and 31st was dispensed with. Matter approved on initials on November 2nd, namely, application of the CoMmercial National Bank and Trust Company, New York, N. Y., for original stock (84°° shares) in the Federal Reserve Bank of New York, effective if and when tlie Comptroller of the Currency issues a certificate of authority to commence bUsineas4 Formally approved. Bank Letter dated November 1st from the Secretary of the Federal Reserve ()t New York and telegram dated November 1st from the Chairman of the Federal lieserve Bank of San Francisco, advising that their boards of directors at meet1486 on that date made no changes in the banks' existing schedules of rates of aleaolult and purchase. Without objection, noted with approval. Division of ReMemorandum dated November 2nd from the Director of the and statistics, recommending that the temporary appointment of Yrs. Itlici ed, D. zurphy (nee deHart) as stenographer in that office, which expires 114eraber 15th, be extended until February 15, 1929. Approved. 244 11/7/28 2-. Report of Executive Committee on letter dated November 2nd from the Acting Comptroller of the Currency, recommending approval of a salary of per annum for National Bank Examiner Elbert L. Williams, assigned t0 tha Tenth Federal Reserve District; the Board's Committee also recommending approval. Approved. Report of Committee on Salaries and Expenditures on letter dated 11c/veMber 2nd from the Chairman of the Federal Reserve Bank of St. Louis, tran smitting list of employees for whom the directors of that bank approved leeves of absence with pay on account of illness during the month of October, Where the total of such absences since January 1, 1928 has exceeded thirty cleYe; the Board's Committee recommending approval of the salary payments in- Approved.. Letter dated October 30th from the Chairman of the Federal Reserve 44k Of Chicago, advising of the death on that date of Er. Charles H. McNider, Director of the bank, whose term would have expired December 31, 1928. Noted, with regret. Memorandum dated November 1st from the Assistant Secretary with refereliee to proposed changes in the Interdistrict Time Schedule of the Federal Res"" Bank of Cleveland and its Branches; the Assistant Secretary stating that , the 0 L4enges are agreeable to the other Federal Reserve banks concerned and recomke4aing approval by the Board. Upon motion, the changes were approved as follows: From Cincinnati to Detroit " Cleveland " St. Louis From 2 days to 1 day ft If 1 It 2 If 245 11/7/28 r1) From Cleveland to " Cleveland It ft Cincinnati Ii Pittsburgh Cleveland It Cincinnati 11 Pittsburgh Cleveland 11 Pittsburgh It Cleveland Cleveland Cleveland Cleveland it Cincinnati cc Cincinnati ft Cincinnati it Pittsburgh Pittsburgh it Pittsburgh " Pittsburgh Louisville Oklahoma City Oklahoma City Oklahoma City Dallas Dallas Dallas El Paso El Paso Los Angeles Portland San Francisco Seattle Los Angeles San Francisco Seattle Los Angeles Portland San Francisco Seattle From 2 days to 1 day 2 days It If 3 tt cc ri Vt 3 cc It ft 2 3 It It It 2 ff 3 ci cc 2 It 3 it ft 2 ci 3 ci ff ft 3 ft 4 It 3 ft 4 cc If ci 4 cc 5 It If ft If 4 tI 5 ft Of 4 Vi 5 cc It 4 if 5 It 4 if 5 ft ft it 4 cc 5 tt 4 It 5 ft Vt it 4 tt 5 cc cc 4 It 5 If it It 4 5 11 cc 4 ft 5 ci Report Of er 1st from the Committee on Examinations on letter dated Novemb aecratary of the Federal Reserve Bank of New York, transmitting and recommend14g approval of an application of the Bank of America National Association, tiew y bills of exchange drawn upon °rk City, for permission to accept drafts and ions of SecIt 413 to 100% of its paid-up capital and surplus, under the provis tion ending ap13 of the Federal Reserve Act; the Board's Committee also recomm sion 11121111. calling attention to the fact that the Bank of America before conver on from the Board. 14t° 4 national association received the authority in questi Approved. at Letter dated November 5th from the Assistant Federal Reserve Agent y 0rIC and Trust Company, Newark, advising that the New Jersey National Bank 4 a 01 -• will probably take over The Colonial Trust Company and the Vailsburg Trust (31111141V, both nonmember banks in Newark. Noted. l advising that the United 240morandum dated November 3rd from General Counse 11/7/28 States -4- District Court has dismissed the complaint filed against the Federal Bank of iieserve Bank of New York in the case of Haichle v. Federal Reserve 41/v York; Counsel stating that the plaintiff will probably attempt to appeal the ease ground that directly to the Supreme Court of the United States on the It Court involves a constitutional cmestion but that if he does so the Supreme Will probably refuse to hear the case and will remand it to the Circuit Court °f 4Peals. Noted. Yr. George 'latter approved on initials on November 3rd, namely, letter to refusing his applicaregarding the recent action of the Board in 04 for permission to serve at the same time as director of the Equitable Trust " Company letter reand the Harriman National Bank, both of New York City; the of the date glleeting. that jr. Morrill advise the Board at the end of the year 1113°10. which his resignation as director of the Harriman National Bank is accept- Formally approved. The Governor then reported an the matter referred to him with power at representathe meeting of the Board on October 60th, namely, the question of a tive Of the Division of :/esearch and Statistics attending the Conference on auspices of the League of 011o—""lo Statistics which will be held under the 114ti°ns on November 26, 1928. He stated that after consultation with the C44irman of the Board he signed and transmitted the letter to the Secretary of State, submitted by the Director of the Division of Asearch and Statistics Wit4 his memorandum of October 30th, inquiring whether it is agreeable to that Department to have a member of the Board's staff attend the Conference. Noted. 247 11/7/28 -5_ Letter dated October 29th from the Federal Reserve Agent at Minneapolis, ty granted l'ePlYing to a letter addressed to him by the Governor under authori t the meeting on October 26th, with regard to the recommendation of the Fed.8serve Agent that thd Board direct the Comptroller of the Currency to brillg suit for cancellation of the charter of the First National Bank of Denton, 1104 tana; the Federal Reserve Agent advising that the reserves of the First Nat1°11a1 Bank have been adjusted and recommending that action by the Board , be s on of "sPended pending a recurrence of the unsatisfactory reserve conditi the institution. Noted. At this point, Yr. James joined the meeting. reference to letter Illemorandum dated October 30th from Counsel, with 4ataa uctober 95th from the Foreign Trade Securities Company, Ltd., submitting Discount and Lntentat ive draft of stock prospectus of the proposed "Foreign Federal Reserve Ireettnant Trust", to be organized under Section 25 (a) of the the proposed 'and requesting the Board's approval of a change in title of Act 'voration to "Foreign Banking and Investment Trust". use of Discussion then ensued with respect to the d organize ions the title "Investment Trust" by corporat Act. Aeserve under Section 25 (a) of the Federal fact that one The Secretary called attention to the "First Federal title the such corporation is opJrating under approved and has Board the Foreign Investment Trust" and that nt Trust" Investme and t Discoun reserved the title "Foreign "Federal title the and on discussi for the corporation under corporaproposed another for International Investment Trust" tion. Counsel, 1,1r. Miller moved that the memorandum from proposed the of title of change regarding the prospectus and the table. on laid be Trust" nt "Foreign Discount and Investme Carried, 1:.r. Platt voting "no". 11/7/28 -6- Mr. Miller then moved that the Board reconsider its action in the case of the two pending titles for proposed Edge Act Trust". corporations which include the words "Investment Carried, Mr. Platt voting "no". by the 1.ir. James then moved that a Committee be appointed on questi the Governor to consider and report to the Board on in proper whether the use of the term "Investment Trust" is tne titles of corporations organized under Section 25 (a) of the Federal Reserve Act and is correctly descriptive of the ted to engage, ousiness in which such corporations are permit Carried. Platt as a The Governor then appointed Messrs. Miller and James' 1.1r. in to ed referr Committee to consider the question a submit to or endeav to motion and requested the Committee er Novemb g, mornin ay Saturd report at a meeting to be held on 10th. n of the ComMr. Janes suggested that if upon consideratio an agreement on the mittee report the Board is unable to reach advice from certain bankers question, it may be advisable to seek engaged in acceptance and investment business. The before the forthcoming ConGovernor then requested permission to place lCe Of the subject of examination Federal Reserve Agents the memorandum on "atat on October -8 member banks which he submitted at the meeting of the Board lith a ria on which no Lction has yet been taken by the Board. Approved. Conference which Messrs. Platt, The Governor then reported the results of the 441e8 of directors of the Federal .Aesanct he had on last Thursday with the board EtIN 8 the Board by the Straus eak Of New York, regarding the application filed with 4(4104 se general al Bank and Trust Company, organizing, for permission to e:.erci fia4ci ation to organize the bank was arY powers. He stated that when the applic teqelv Federal cy and referred by him to the ea by the Comptroller of the Curren ztetlerv8 l Aeserve Agent, made an un4gent at New York, Mr. McGarrah, as Federa 249 11/7/28 _7._ favorable recommendation on the application; having certain objections to its %royal the Comptroller. some of which were set forth In his letter to He Comptroller were 41418ed, however, that when the objections made known to the Comptroller to the effect that he ItIt 157 the organizers Mr. McGarrah wrote the Wae Prepared to withdraw his unfavorable recommendation on the application to eratize the bank. when the application for The Governor stated, however, that directors of Permission to exercise trust powers was submitted to the board of t e of the directors Ilew York bank in accordance with their usual procedure, some Wera of the tot satisfied with the business ethics of certain of the organizers bank for trust powers be dieand, therefore, recommended that the application received., believing that the bank should demonstrate its quality before trust powers. expressed the opinion that Individual directors, he stated, th. - "Worable Agent on the application to recommendation of the Federal Reserve Nem; the application for trust powers " 4 ze and their unfavorable recommendation on are organizers of a nation' 3t inconsistent, feeling that in certain eases while 41 barar Institution they would not neees-- may be fitted to direct a commercial trust powers. He stated that be capable of supervising the exercise of the results of an investigation made "uiections of the New York bank involve the the York into the business activities of Attorney General of the State of New tlerteti„ desires it can probably secure - Of the organizers and that if the Board a co through the New York bank. PY of the report an the investigation Board request the New Mr. Cunningham moved that the the report of the York bank to furnish it with a copy of the State of New of Investigation by the Attorney General York, referred to by the Governor. Carried. 250 \ 11/7/28 -8_ The Governor then submitted a memorandum dated November 3rd, with reference t° revision of the Board's practice in the matter of granting trust powers to nationel banks, especially in the case of new banks at the time of organization. Re also submitted a memorandum from Counsel dated November 5th expressing the °Pillion that the present general policy of the Board (to which exceptions have been made) of waiting one year after the organization of a new national bank bef°re granting trust powers is contrary to the policy of Congress. Upon motion, it was voted that copies of the Governor's memorandum, together with that of Counsel, be furnished to each member or the Board and brought up for consideration at the meeting on Saturday. Draft of letter prepared by Counsel, and approved by the Law Committee, rePlYing to letter dated October 6th from the Governor of the Federal Reserve Baro„ Of Boston, requesting consideration by the Board of the question of the eligib' ility for rediscount or purchase by Federal Reserve banks of so-called bamr, set--rs acceptances issued by the Shawnut Association; the proposed reply t1 forth a ruling that the proposed acceptances of the shawmut Association w°111ct not be bankers acceptances within the meaning of the Board's Regulations, 44a therefore, as such by Fedwould not be eligible for rediscount or purchase eral neserve banks. Upon motion, the letter was approved. a4oxi, COMLITTEES: 14tea, Recommending changes in stook at Federal Reserve Banks as set forth in the Auxiliary Minute Book of this date. Recommendations approved. 14ted October 29th, Recommending action on applications for fiduciary powers n ovember 7th, as set forth in the Auxiliary Minute Book of this date. Recommendations approved. November 2nd, 11/7/28 -9- RIZ"ORTS OF STANDLNG COMITTESS: (Cont'd) Dated, October 27th, Yr. Maurice Recommending approval of the application of as a memtime same the Newton for permission to serve at and Comarten Hallg of ber of the firm of private bankers Narcial Comme the of pany, New York, N. Y., as director as and Y., N. York, tional Bank and Trust Company of New icew York, ny, Compa director of the State Bank and Trust N. Y. Dated, October 29th, Dated, Dated, October 29th, October 29th, Dated, Dated, Dated, October 29th, October 29th, October 31st, Recommendation approved. cation of Mr. parker Recommending approval of the appli at the same time as serve for permission to S. of Philadelphia, Bank nal director of the Central Natio dent Trust Provi the of Pa., as officer and director tor of the direc a as and Company, Philadelphia, Pa., Pa. re, Ardmo ny, Compa Merlon Title and Trust Recommendation approved. of Mr. A. G. Aecommending approval of the application time as ofsame the at serve to Casper for permission Milwaukee, Bank, nal Natio nsin Wisco ficer of the First nal Bank, Natio rn weste North the of Wis., and as director Milwaukee, 'Uis. Recommendation approved. cation of Mr. Charles Recommending approval of the appli at the same time T. :akefield for permission to serve and Trust Company, as director of the Bank of Philadelphia Northeast NationPhiladelphia, Pa., and as director of the Pa. al Bank of Holmesburg, Philadelphia, ved. appro tion menda Recom n of Mr. H. C. Recommending approval of the applicatio time as director same Wiess for permission to serve at the Houston, Bank, nal of the South Texas Jommercial Natio Bank, nal Natio can Texas and as director of the Ameri Beaumont, Texas. Recommendation approved. n of 1.1r. E. H. Recommending approval of the applicatio time as disame the at serve Buckner for permission to Bank, Houston, al Nation rcial Comme rector of the South Texas Company, to :rust Jacin San Texas and as director of the Houston, Texas. Recommendation approved. n of 1.1r. Harold Recommending approval of the applicatio same time as the at serve to sion O. Barker for permis Jesup & Lammot, of s banker e privat member of the firm of rcial NationComme the of tor direc New York, N. Y., and as Y. N. York, New al Bank and Trust Company, Recommendation approved. 11/7/28 -10- ilF4P°.-iTS OF STANDING COMIITTEES: (Cont'd) Dated, October 31st, Recommending approval of the application of 1.:r. J. Ford -Dated, October 31st, time Johnson, Jr., for permission to serve at the same D. s Charle of bankers private of firm as member of the of or direct as and City, York New Barney and Company, the Commercial National Bank and Trust Company, New York, N.Y. . Recommendation approved. Samuel Recommending approval of the application of 11r. as time same the at serve to ion permiss L. Fuller for , EinniKissel of bankers private of firm the member of cutt & Company, New York, N. Y., and as director of the Commercial National Bank and Trust Company of New York, N. Y. Recommendation approved. Dated, October 31st, Recommending approval of the application of Mr. _Uchard Dated, October 31st, as memF. Hoyt for permission to serve at the same time and , Stone Hayden of ber of the firm of private bankers Commer the of or Company, New York, N. Y., and as direct Y. N. New York, y, cial National Bank and Trust Compan Recommendation approved. Recommending approval of the application of Mr. "Alliam time B. Scarborouch for permission to serve at the same l iarwel Hitt, of as member of the firm of privats bankers the of or and Company, New York, N. Y., and as direct Commercial National 9ank and Trust Company, New York, N. Y. Recommendation approved. Recommending approval of the application of Mr. C. M. Keys for permission to serve at the same time as member y, of the firm of private bankers of C. M. Keys and Compan ial the Commerc of or direct as and New York City, N. Y., National Bank and Trust Company, New York, N. Y. Recommendation approved. -Dated, tion of Mr. Josiah November 1st, Recommending approval of the applica the same time as at serve to ion permiss Richards for n Trust Company, Easter and e Spokan director of the First National the of or direct as and Spokane, Wash., gton. Washin Bank, Medical Lake, Recommendation approved. Dated, the application of Mr. Dale M. November 2nd, Recommending approval of at the same time as memserve to ion permiss Parker for of W. A. Harriman and bankers private of ber of the firm or of the Comas direct and Y., N. York, Company, New New York, N. Y. y, Compan Trust and Bank l Nationa mercial Recommendation approved. Dated, October 31st, 253 11/7/28 QTs OF STANDING COMMITTEES: (Cont'd) of the application of Mr. G. 2. November 5th, Recommending approval the same time as officer Dowis for permission to serve at Bank, Blackwell, Okla., nal and director of the First Natio Bank, Wichita, and as director of the Fourth National hansas. Recommendation approved. Dated, November 5th, Recommending approval of the application of Yr. John L. the same time as diAlcock for permission to serve at Stock Land Bank, rector of the Maryland-Virginia Joint Equitable Trust the of Baltimore, Md., and as director Company, Baltimore, Md., Recommenuation approved. Dated, the application of Mr. Stuart November 5th, Recommending approval of at the same time as diOlivier for permission to serve Joint 6tock Land Bank, inia rector of the Maryland-Virg of the Equitable Trust tor direc Baltimore, Md., and as Company, Baltimore, Md. Recommendation approved. Dated, the application of Mr. Alfred November 5th, Recommending approval of at the same time as W. Gieske for permission to serve Joint Stock Land Bank, ia irgin and-V director of the Maryl the Equitable Trust Baltimore, Md., and as director of Company, Baltimore, Md. Recommendation approved. Dated, the application ol Mr. Elmore November 5th, Recommending approval of at the same time as B. Jeffery for permission to serve Stock Land Bank, director of the Maryland-Virginia Joint Equitable '2rust Baltimore, Yd., and as director of the Company, Baltimore,Md. Recommendation approved. Dated, the appl cation of Mr. Frank November tith, Recommending approval of at the same time as C. Nichols for permission to se Bank, Salem, Mass., director of the Merchants Natio I Bank, Boston, awmut and as officer of the National Mass. Recommendation approve Dated, he meeting adjourned at 1:20 Secreta 4PPrOved: m. Ii U Gov1r.
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