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A meeting of the Federal Reserve 3oard was held in the office of the iedeiiai heserve Board on Thursday, November 8th, at 11:10 a.m. PRESENT: Governor urissinger Er. Platt Er. Hamlin Er. Miller Mr. James Yr... Cunningham Et. Dawes Et. Eddy, Secretary The minutes of the meeting held on November 7th were read. BY unanimous consent, the addition of the following entry, immediately after the action of the Board in voting the publication of the Uommittee on 4am1nat1on's majority report on branch banking, was authorized: "Er. James moved that publication of the minority report also be authorized. Carried, Er. Dawes voting "no"." lir. Hamlin moved that the Committee on Examinations be requested, for illecqlooration in the minutes, to extend its report on the application of the IralleY Bank of Phoenix, Arizona, for permission to take over the assets of the r8t National Bank of Glendale, Arizona, and assume its liabilities, operating It 48 a branch of the valley Bank; to give the reasons which actuated the e°11znittee in recommending the Board's approval of the application, and that, ba, ylew of the resolutions adopted by the Board, this procedure be followed in 411 future cases where applications for branches are approved: Carried. With the foregoing amendments, the minutes of the meeting of November 7t11 "re approved. Letter dated November 7th, from the Acting Comptroller of the currency, recop— ' 4u8nding a salary of 0,500 per annum for National Bank Examiner E. 3. to be assigned to the Eleventh Federal Reserve District. Approved. 0 r7", 11/8/23 -2- Report .of Committee on Branches on matter referred to it on November 6th, namely, a telegram dated November 5th, from Mr. Victor Reittz, recommending the purchase for the Cincinnati Branch of the Federal Reserve Bank of Cleveland, of the building to be vacated by the Fourth National Bank of Cincinnati. Upon motion of nr. Hamlin, the report of the Committee, as follows, vas approved: "The Committee on Branches herewith reports in relation to the attached te1e3.ram from Mr. Victor Heintz, that Mr. Heintz should be informed that his telegram has been sent to the Federal Reserve Bank of Cleveland. for its consideration and farther that pending a complete inqu.iry as to e.xist.ing Federal Reserve branches, the Board has voted to make no further authorizations for new buildings prior to the receipt of a report based on such an inquiry. The Cora- ' mittee further recommends that a dopy of the telegram be sent to Federal Reserve Agent ;Ulla for his consideration; he also to be infoimed of the Board's resolution above referred to". Memoranda datod November •7th, from General Counsel, containing an °Pinion to the effect that both the Federal Reserve Board and the Federal Reserve banks are without legal authority to abolish an existing Branch Federal Reserve bank, and suggesting a form of letter to the Secretary of tie Treasury, requesting a ruling on the question by the Attorney General Of the United States. Upon motion of Mr. Hamlin, action on the matter was postponed and Counsel's memoranda were ordered circulated. Report of Committee on Examinations on the matter referred to it on november 6th, namely, a letter dated October 31st, from the Federal Reserve Agent at San Francisco,' requesting to be advised Whether the Board hail taken any action on the application for membership of the Federal Trust I 11A/23 - 3and savings bank, Hollywood, ualifornia, subsequent to that of september 6tla when the applicatio n was disapproved, because of certa in discrepancies it s tatements made to the board as to stock ownership by the dank of Italy; the Uommittee recommendi ng that the following telegram be sent to the Federal heserve Agent at an Francisco: "Board disapproved application Feder al Trust and Savings, Hollywood, under date oeptember 6th, and sees no reason for reconsider ation of its action. Please advise applicant bank. Upon motion of kr. Hamlin, the repor t of the uommittee was approved, kr. _elatt not voting. Mr. I'latt expressed doubt as to the wisdom of excluding a bank from ltethbership in the Federal heserve System becau se of the ownership of its atock. The uommittee on uuba reported on the following matters referred to it at the meeting on ilovember 7th: (1) Letter dated iovember 5th, from veputy uovernor dullen of the Federal .Reser ve dank of doston, quoting from a letter received from the Havana Agency of that bank, with respect to an inquiry received by the Atlanta Agency from the uuban Treasury Departr.ent as to Whether said Agency would redeem mutilated United States currency. (2) Letter dated November 5th, from the Uovernor of the Federal _Reserve Bank of Boston, conveying information received by him to the effect that the ranager of the Havana Agency of the Federal heserve Bank of Atlanta had quoted the National City Bank of New York a rate of *4.00 per thousand for a cable transfer, for which the National City dank intended to make payment in gold coin. The Committee recmmended that both matters be taken up With the Federal Reserve Bank of Atlanta. Upon motion, the report of the Committee on Cuba was adopted and the matters were ordered referred to the Federal tteserve dank of Atlanta. 11/a/23 —4— The Governor brought up the matter docketed as special order of business, namely, the motion made by Mr. James at the meeting on November Gtlit that authority be given the Governor to employ a man properly (mantied to serve in the capacity of Assistant to the Governor. After discussion, Mr. Hamlin moved the adoption of a resolution as follows: "An Assistant to the Governor shall be appointed for the purpose of digesting roports received from the State Department and other departments of the Government, of coordinating the member bank relations departments of the respective Federal Re:II:rye banks, and the preparation of statements as to the workings of the Federal Reserve Syst em,It Mr. Hamlin's motion being put by the chair was carried, the members voting as follows: Mr. Hamlin, "aye" Mr. James, "aye" Mr. Cunningham, "aye" Mr. Dawes, "aye" Er. Platt, "no" Mr. Miller, "no" Governor Crissinger not voting. Mr. Miller stqted he had voted against the resolution on the ground that it will inevitably develop propaganda for the Federal Reserve System, and involve the Board in more difficulty than it will avoid. 11.r. Hamlin stated that it was not in his mind, nor doe's he believe in any member's mind, that any propaganda should be issued under the jurisdiction of the Assistant to the Governor, but that he should be absolutely confined as =pressed in the resolution. Governor Crissinger stated that he wanted to assure the Board that whatever stops he may take in accordance with the foregoing resolution will be taken only with the approval of the Federal Reserve Board or the proper Committee thereof, and, that he thourjA if any appointment is made it should be with the understanding that the individual members of the Board will have use for the services of the appointee. 11/8/23 ZEPORTS OF STAITD G CO1WITTEES: Dated November 7th Recomending changes in stock at Federal Reserve Banks, as set forth in the Auxiliary rirrate Book of this date. Approved. The meeting adjourned at 12:0 ..mn. Secretary. 41:11)ro overnor.
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