Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, October 23, 1923, Volume 10, Part 2

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A meeting of the Federal Reserve 3oard was held in the .office of
the Federal Reserve Board on Tuesday, October 23, 1923, at 11:00 n.r-4
PRESE7T:

The ninutes of the meetin

Governor Crissiner
Fr. Platt
Fr. Tiarlin
- Fr. Filler
Fr. James
Fr. Onnnin7,ham
Yr. Eddy, Secretary
of the Federal Reserve 3oard held on

October 16th, mere read and approved.
Upon motion, the Board a-oproved bonds of Yossrs. Charles F. Gettemy
and S. G. Sargent, Assistant Federal Reserve Agents at the Federal Eeserve
3anks of Boston and San Francisco, respectively, in the sum of -. 50,000
eadh.
Letter dated October 20th, from the Comptroller of the Currency,
6

recornending a salary of

400, for Motional 3ank Examiner F. P. 3rennan,

assi rned to the '2enth Federal Reserve District.
Approved.
Femorandum dated October 17th, from the Corrtroller of the Currency
recommendirr7 approval by the Federal Reserve Board of the applic--tion of
the rational Iron 3ank of Falls Village, Connecticut, for permission to
reduce its capital stock from

100,000 to *50,000.

Approved.
Letter dated October 11th, from the Chairman of the Federal Reserve
'iaf-11., of Atlanta, trarmitting application of the Albany Exchange National
13ank, Albany, Georgia, for permission to accept uT. to 100:,, of its capital
and surplus.




ieferred to Committee on Examinations.

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11.11,

the Federal AdLetter dated. October 20th, fror the rresident of
'Isory Council, advising that the next meeting of the Council till be
aeld in -]asilinr;ton on Ionday, Foverber 19th, and rermesting to be advised
discuss at that time.
°f anY tol)ics the Joard mould like the Council to
Referred to Executive Oormittee for
to des for discussion by auncil.
of
list

reraration of

Letter dated October 18th, from the Chairman of the Federal

eserve

Bank- of Richmond, with respect to the bonding of trust officers in national banks which have been granted fiduciary powers by the Federal Reserve

0
Referred to the Law Corr. ittee.
Letter dated October 13th, fro-n

. Trowbridge, Consulting

'
11c1hitect, with regard to the desirability of rakini7,public information
respect to the typo of vault construction in use at the Federal
Reserve banl(s.
Referred to the Governor - ith power.

Letter dated October 13th, from the Chairman of the Federal Reserve
aniz f Chicago, commenting upon certain suggestions made by the Chairman
Of

the Federal Reserve 3ank of iTew York, in regard to the control of ad-

I.Tertising matter usekby state member banks.
Referred to Law Corrittoe.
Letter dated October 16th, from the Governor of the Federal ResBank of Boston, with respect to certain statements rade before the




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Joirt Con,,ressional Cormittee of IrJuiry on rembership in the Federal
noserve System by Yr. Alfred I. Aiken, of 3oston, with respect to the
alleged practice

or

certain member banks in the city of Boston in de-

POsitin,g with the Federal .serve 3ank at close of business each da77
tileir vault cash for the purpose of maintaining required reserves.
leferred to counsel.
Letter dated October 17th, from the Governor of the Federal
Reserve 3f,ni1 of 3oston, requesting approval by the Board of an expenditure
bY the gederal Reserve 37n:: of approximately

3,600, to be used to defray

transportation expenses only of representatives of member banks in the
- irst'.?ederal 1,eserve District attending a meeting to be held in Boston
for the purpose of formulating a permanent organization of the member banks
Of

that District.
Ti'. Harlin moved that the expenditure be approved
as :a contribution by the 2edera1
3ank to the organization of member banks proposed, with the understanding
that the approval of the contribution is not to be construed
as a precedent under which the bank may make any further
contributions to help defray the expenses of my future meeting
or activities of the proposed organization. Carried, rr. Tiller
voting "no".
Yemorandumi dated October 18th, from General Counsel, suggesting that

there be published, in the forthcoming issue of the Federal Reserve Bulletin
a revision of the digest of all state laws relating to bank reserves which
arpeared in the Bulletin

of October 1917.

Approved.
Yemorandum dated October 10th, from General Counsel, on the subject
Of the surrender of Federal Reserve Bank stock upon reduction of mar-bar - qank
slIrplus, and suggesting a form of letter on the subject to be sent to all




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Pectlral Reserve Acents.
Ordered circulated.
Letter dated October 19th, from the Department of State, with
' respect to the proposed forrulation of a standardized international
code for the reulation of 71il1s of eI:chnnge.
Referred to Fr. Filler for conference with
the Secretary of tTle Treasury, and the Socrry of
Commerce, to whom similar coTrronications have been
addressed.
Fr. Platt submitted a letter dated October 17th, addressed to hI;.
bY the Chairman of the Federal Reserve 3ank of St. Louis, advising that
the Board room of the Bank of Ccrmerce has been secured for the use of the
Congressional Committee of Inc liiry on rembership in the Federal Reserve
System and suLgestins' the advisability of the Cormittee examining the
lank Relations men of the Federal Reserve 3ank of St. Louis -hile In that
City.
Referred to the Vice Governor with the re—
quest that he communicate with the Chairman of the
. Conressional Cormittee and advise him of the suestion
made.
remorandum dated October 13th, fror Counsel, submitting draft of a
letter addressed to the Chairman of the rational Sharnut 'lank of Boston,
in reply to his letter of October 8th, inouiring whether national banks
actine; under the terms of the 3oardts Regulation "G" are permitted to
take participation

in first mortgage loans which corp17 —ith all the

rerroirerents of the Regulation.




Upon motion, the Govrl'or was requested to
submit this matter -persona117 to the Comptroller of
the Currency.

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rr. Trarlin, on behalf of the Law Conmittee, submitted a
Preliminary memorandur dated October 20th, from General Counsel, with
respect to the decision of the Comptroller General, stated in his letter
to the 3oard of
the

ctober 6th, disallowin7 certain items in the accornt of

ioard's Ascal Agent.
Hamlin moved that the matter be referred
back to the Law Committee and that Counsel be directed.
to prepare n detailed memorandum on the suject, upon
Board will decide whether or not
receipt of
the questions raised therein should be formally submitted to the Comptroller General for a rehearing. Carried.

Tr.

Cunningham submitted letters dated October 11th and October

17th, addressed to him by the Governor of the Vederal Reserve Bank of
Chicago, the former enclosiny copies of letters received from member ban27s
Protesting against the discontinuance by Aderal Eeserve banks of their sonon-cash collection services.
Ordered circulated and copies sent to the Chairren of the Governors' Committee on Vo1untal7 Services.
Tr. Tiller reported briefly to the Soard on the results of his
recent visit t

California, and his several conferences there with repres-

entatives of certain of the larer brench banking institutions and the State
DePartrrent of Banking, and presented a letter dated October 8th, addressed
to the Board by representatives of the Yercantile :.rust Coma*, the Pacific
enthimst '2,rust and Savings Bank, and the Security crust and Savings 3ark,
sltrnitting for the consideration of the Board, certain principles upon which
s7
'1°1-11d be based its polic

with respect to the extension of branch banking

in the state of California.




Odered mimeographed and distributed !TTron
members of the Board.

the

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ItIgETS OF STATTDDIG COLT; ITIMS•
Dated, October 17th,
18th,
22nd,
Dated, October 23rd,

Dated, October 20th,

Recommending chan2ps in stock at Federal Reserve
Banks, as set forth in the Auxilior-7 Finute Book
of this date.
Approved.
7decommending action on application for adrission
of state bank, subject to the conditions stated In
thp individual reports attached to the application,
as set forth in the Auxiliary rinute Book of this
date.
Approved.
Recomending approval of the npplic-tion of rr.
William L. Adam to serve at the sane tire as
director of the Agricultural Yational sank of Pittsand as director of the Housatonic rational
iank of Stockbridge, both in rassachusetts.
Approved.

211e meeting adjourned at one ot

/.ck.

Secretary
k proved:




Governor.