Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, October 25, 1923, Volume 10, Part 2

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Cs

A .meting of the Fedaral Reserve Board was held in the office of
the 7•1ocrd on Thursday, October 25, 192a, at 11:00 asr.
PRESEYT:

Governor Crissinger
Yr. Platt
rr. Hamlin
Yr. riller
La.-. Cunningham
r.T. Eddy, Secretary

- oard held. on. October
The minutes of the r.;eeting of the federal Reserve 3
•
-Tore read and approved.
Governor Grissiner stated that Senator Curtis had advised him that

the Wichita Clearing House Association desired to reopen the craestion of the
"
tablishmr,nt In Wichita, Kansas, of a branch of the Federal 1.eserve 3ank of
i 11

R'enst's City, and submitted 2 telegram from the Mchita Clearing House Associatien, left with him by Governor Allen of Kansas in which offer is made to
.Lash office space and vaults for a branch free of charge and to pay all
of operation and maintenance of the branch over cost to the 2ederal
Reserve 13ank of Kansas City, of handling business in 7ichita territory.
rnen notion, it was voted to sat aside -Tedresday,
the question of the
October 31st, for a rehearing,
estalishment of a branch at 77ichita.
l'enorandum dated October 25th, from General Counsel, requesting auth°ritY to publish in the forthcoming

issue of the 3ullet 4 n, certain rulings

Of the
3oard.

Approved.
Letter dated October 23rd, from the General Secretary of the rat:rnal
aild

State lin-til'ers' Protective Association, citing an instance of the use

by

the -°ederal lieserve sanI:. of Chicago, of an agent other than a bank in collect111,?; iters drawn Ivor a non-par bank in the Seventh loederal Reserve District.



7

10/25/23

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•
Upon motion of rr. Hamlin, it was voted that the matter
be taken up with the Federal Reserve Bank of Chicago and that
the bank's attention be called to the Board's ruling of August
2nd that the use of such Agents be discontinued.
The Secretary was instructed to have the 3oard's Counsel
arrange for the publication of the ruling in the forthcoming
issue of the lulletin.
Letter dated October 23rd, from the Secretary-Treasurer of the rational
118sociation of Credit ren, transmitting copies of declarations of the directors
°f that organization en the leederal Reserve System and the par payment of checks.
Ordered circulated.
1-r. Hamlin, on behalf of the 3oard's Committee on 3ranches, submitted reOf the Committee containing recommendations as follows:

(1) That the 3oard approve of the directors of the Federal
Reserve 3ank of St. Louis proceeding; in accordance with the
terms of the Federal Reserve _et, with the erection of a building at Little Rock, Lrkansas, to house the branch Federal Reserve bank located at that point.
(2) That the 3oard approve the application of certain banks
located in the city of Tacomanshington, for the cancellation
of the designation of Tacoma as a reserve city.
(3) That the 3oard approve of the directors of the Federal Reserve 3ank of San Francisco proceeding, in accordance 7:ith the
terms of the Federal Reserve Let, and a resolution adopted by
the directors of the San Francisco bank on Yarch is, 1923, 7:ith
• the erection of a branch bank building at Salt Lake City.
(4) That the study covering operations of the branches of the
Federal Reserve Bank of San Francisco, submitted by the Governor
of that bank, be returned with advice that it may be resubmitted
to the T3oard at any time in support of any recommendations which
may be made by the directors of the Federal -oserve -3an"z of San
Francisco, affecting the present status of any or all of the branches of that bank.




. Uponlotin of rr. Harlin, it was voted to
- approve the termination of the designation of
Tacdta, 71ashinton, as a reserve city.

10/25/23

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•
After discussion, the other recommendations of
the 0o=littee were ordered laid on the table pending
the return of Yr. James.
Letter dated October 22nd, fr(m the Oorptroller.of the Currency, recormend- a salary of

2400 per annum, for rational Bank 1;n-miner Cecil Lsh7ood„ to

be assi,'ned to the second iedern1 Reserve District.
Approved.
Letter dated October 22nd, from the uotrtroller of the Currency, recornendilla' a salary of

2700 per annum, for rational Liank :41cariner Alfred 7. Johnson,

to'
°0 assir_7ned to the ranth IJederal Reserve District.
1.pproved.
renerandur dated October 25th, from Yr. Herson, recommending the appointeP'ective rovember 7, 1925, of Yr. ,lrer J. Griffin as Assistant federal
'"erve tAxaminer, %ith salary at the rate of

3,000 per annum*

Approved.
The Law Committee reported on the matter referred to it on October :3,
1923
namely, letters dated October 10th and October 15th, from the Chairmen
Of the 2ederal heserve lanks of Hew YorTh and OlAca-o,
respectively, an the subject Of the control of advertising matter used by state member
lttee
eion

the

recommending that the Federal Eeserve Agent at Chicago be instructed to

Ult in th.1 ratter with the President of the Financial Advertisers' Assoeic-

ti n

located in Chicago and that the Chairman of the Federal Eeserve Bank of
tTei,
‘1 York take the matter up with the advertising syndicates having he
druarters
ill that city.




Upon motion, the report of the Coyrittee was adopted.

1012t 23

Corilittee on i7.c.,-Aninations reported adversel:.T upon the matter
referred to it on October 23rd, namely, the application of the Albany
I]xchange
3ank, Albany, ieorgia, for authority to accept drafts and bills of
1:117Ce un.to 100

of its cartal and surplus, under the -pro7isions of Section

13 of
the 2ederal .7:eserve Act.
Upon motion, the rerort of the Committee was
adopted, and the application o.;: the Albany Exchange
7ational Sank was disapproved.
Letter dated October 5t11, from the Assistant 2ederal Eeserve Agent
at "v.
i.
Louis, transmitting the application of the Southwest Sank of St. Louis,
a reduction in reserve reouirements from 100 of demand deposits and Zp•
tirfe de,
osits
%

O\r

ions

of

to 7% of del and deIosits and 3p of time de ositst under the

of Secton 19 of the Vederal iieserve Act.
Upon vote of the five members of the 3oard present,
the tT1ication of the Southwest Sank of St. Louis for the
reduction in reserves above mentioned, was approved, if and
when it becomes a member of the System.

Ir. Yiller inouired v.ilen the ioard would be prepared to consider the
letter

rolatin:: to branch banking, dated October Oth, addressed to it by repres-

tr'tivos of the Yercantile Trust Comrany, the Pacific ScrIth-est Trust and
:nd the Security Trust and Savings 3ank, presented by him it the
teet1ng held on October 23rd.
Upon motion, it was voted that this ratter he made
sy)ecial order business for a meeting to he held tornorrcr.
0.1-,1213 0 s

(`- Cn17- Tin.111S:

jjted, October 23rd, 1:ecorinendib:; changes in stock at .tlederal ...eserve
25th, Janice, as set forth in the ATE7iliary hinute 3ock
o: this date.
Approved.




10/25/23

REPoop
•

-.5-

OF STAITr-c- COir:ITTLT,S:(ContIrd)

bated, October 25th, Recommending action on applications for fiduciary

Dated, October 25th,

Dated, October 24th,

Dated, October 19th,

Dated, October 24th,

Dated, Octobei. 24th,

Dated, October 24th,

powers as set forth in the Auxiliary Yinute Book
of this date.
Approved.
Recommending action on applicationsfor admission
to state banks, subject to the conditions stated
in the individual reports attached to the applications, as set forth in the Auxiliary Yinute Book
of this date.
Approved.
Recommendiir; approval of the application of rr.
N. Thompson to serve at tho same time as director
of the rahaffey National Bank of rahaffoy, Pa. and
as director of the County rational Bank of Clearfield,
Pa.
Approved.
Recommending approval of the application of Yr.
J. Henry Harrison to serve at the same time as director
of the Caldwell National Bank of Caldwell, Irew Jersey,
and as director of the Yontclair 'ssex Trust Oompany
of iontclair, i:em Jersey.
Approved.
Recommending approval of the application of Li.
Mlliam A. Smith to serve at the same time as director
of the rontclair Essex '2rust Company of Yontclair,
row Jersey, ard as director of the Verona National
13ank of Verona, Uew Jersey.
Approved.
Eecormending approval of the application of Er.
Gates lcGarrah to serve at the same time as director
of the rechanics & Yetals National Bank and as director
of the J. Henry Schroder 3anking Corporation, both of
hew York City0
Approved.
Recommending approval of the application of Yr.
Joseph S. Lovering to serve a, the same time as Vice
President of the Hanover rational Bank and as director
of the Colonial 3ank, both of rew York CitTr
Approved.

The meeting ad -ourn.ed at 1'

4PProved:




Secretarz