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302 A meeting of the Executive Committee of the Federal Reserve Board Was held. in the office of the Vice Governor on Thursday, October 28, 1926 at 12:15 a.m. PliESE1712: PiaSENT ALSO: Vice Governor Platt Mr. Miller Mr. Cunningham Mr. Eddy, Secretary Mr. McClelland, Asst. Secretary Mr. James Mr. James stated that Mr. Yohe of the Department of Agriculture called on him this morning, with reference to a meeting which he had with all association of canners regarding the systematizing of methods of handlthei r products ani cooperation with ths Department of Agriculture in the administration of the Warehouse Act. Mr. James reported that there Was a probability of a movement to standardize the credit situation as legaxtis this iniustry and that Mr.Yohe had suggested. it might be desirable ' for him to come before the Board for the purpose of discussing it. Mr. James stated he had suggested instead that at the time of the Conferences of 4437ernors and Federal Reserve Agents Mr. Yohe might appear before them. Mr. James inquired as to the attitude of the other members toward this suggestion and no objection being expressed, he moved that the Secretary of the Board be authorized to communicate with Mr. Yohe at the time of the Conferences and advise him when it will be most convenient to have him appear. Mr. Janes' motion being put by the Chair was carried.. Application of The Central National Bank of the City of New York, ap131."ed by the Law Committee, for permission to act as trustee, executor, 303 10/28/26 -2- administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics and in any other fiduciary capacity ill which state banks, trust companies and other corporations which come into competition with national banks are a3rmitted to act under the laws of the State of New York; together with a memorandum from Counsel dated October 25th e4vising that this application was filed under authority of a resolution Passed by the Executive Committee of the bank instead of a resolution passed by the board of directors, and suggesting that if the Board approves the 410P1ication its approval be made effective only if and when the full board Of directors of the bank passes a resolution ratifying the action taken bY the Executive Committee. Upon notion, it was voted to approve the application of The Central rational 3ank of the City of I:aw York for permission to exercise generl fiduciary powers effective if and when the board of directors of the bank passes a resolution ratifying the action taken by the Executive Committee in authorizing the application. Memorandum dated October 27th from the Secretary recommending that Bliss Plains, messenger, be granted a sixty-day leave of absence, without PaY, beginning October 29, 1926. Approved. The Secretary then requested authority to employ a messenger temporarilY for a period of sixty days to fill the vacancy caused by the leave Of absence just granted to Bliss Plaine and authority to employ one additional messenger permanently, the latter to be detailed to serve the Divisions to be moved into the Treasury Building from the Otis Building in the course 304 Ii _3_ 10/28/26 of the next day or so and both appointments to be at the rate of 41,000 Per alanam. Upon motion, the authority requested by the Secretary was granted. Report of Committee on Salaries and Expenditures on letter dated October 21st from the Chairman of the Federal Reserve Bank of San Francisco, l'equesting approval of the action of the board of directors of that bank in voting to grant to .1.1r. Hans Flo, an anployee of the Salt Lake City Branch, a leave of absence with full pay, on account of illness, for three months 11V/a October 1, 1926; the Committee recommending approval. ' Approved. Report of Committee on Exaninations on memorandum dated October 26th fMm the Acting Comptroller of the Currency, recommending approval of an aPPlication of the Winder National Bank, Vander, Ga. for permission to teduce its capital stock from 4200,000 to 4100,000 on condition that no 4:)11.eY be returned to the shareholders but that the amount of the reduction, together with the necessary amount of undivided profits and possibly sarPlus, be applied to talce out losses and doubtful paper where loss is probable and, in view of the large amount of reported slaw and doubtful assets, that the charged off items be set aside and recoveries therefrom credited tO the undivided profits account rather than trusteed in the interest of Shareholders of record at the date of reduction; the Board's Committee also recommending approval. Uron motion, it was voted to approve the above application subject to the conditions recommended by the Acting Comptroller. 305 10/28/26 .1.11441•14 Report of Committee on Examinations on the matter referred to it at the meeting on October 21st, namely, letter dated October 19th from the Assistant Federal :Reserve Agent at New York, with reference to the contemplated merger of the Irving Bank and Trust Company and the American Exchange Pacific National Bank, both of New York City; the Committee recommending approval of the proposed merger. Approved. Memorandum dated October 27th from the Chief of the Division of Bank OPerations, with reference to reporting bills which the Federal Reserve banks IllaY purchase from the National Bank of Belgium miner the authority granted b7 the Board on October 5, 1926; the memorandum stating it is assumed that the same procedure is to be follawed as was approved by the Board in conllection with bills that might have been acquired under the credit granted the Bank of England, namely, that they be included in the weekly statement with other "Bills bought in open market" and shown in the Federal Reserve Blaletin as "Bills payable in foreign currencies", in the detailed statement Of the volume of bills purchased during the month and of holdings at the end Of the month; the memorandum also suggesting that it might be desirable to 434ke sone brief reference in the statement following the first purchase of bills as: "The Federal Reserve banks made the first purchase of bills under the credit recently established for the National Bank of Belgium on (date). The naunt of the bills purchased., , is included with other 'Bills bought in open market'." 306 10/28/26 -5After discussion, it was voted that purchases of Belgian bills should be reo)rtel in the same manner as al)iiroved for the British bills and that a reference alon7 the lines suggested by the Chief of the Division of Bank Operations be made in the statement following the first purchase. The Secretary then stated that Goldenveiser, Acting Director of the Board's Division of .esearch and Statistics had spoken to him with reference t° the publication in the Federal ieserve Bulletin of a brief article regaraing the authority granted by the Board for the purchase of these Belgian bills, with some reference to the plan for Belgian currency reform, and had sliested the publication in this connection of the :;oyal Decree of :.:onetary Stabilization issued by the King of Belgium. After discussion, upon motion by hr. Cunninham, it was voted that no article referring in any way to the Belgian credit or the plan for Belgian currency reform should be printed in the Bulletin without first having been approved by the Board. aeport of Executive Committee on letter dated October 27th from the Act ina' Comptroller of the Currency, requesting amroval of a salary of per annum for National Bank Examiner Harry A. Laird, to be assigned to the Seventh Federal 2eserve District; the Committee recommending approval. Approved. Letter dated October 25th from the Secretary of the Federal Advisory C°11ncil, advising that the next meeting of the Council will be held in • -uln2ton on Friday, November 19th, and requesting a list of topics viich the Federal joserve Board desires the Council to consider. After a brief discussion, it was understood that the Executive Committee would report back to the Board a list of topics for consideration at the meeting of the Council. 307 4 10/28/26 Memorandum from the Secretary dated October 28th, submitting replies l'eceived by the Board from the Federal. Reserve Agents to the Board's letter Of September 23, 1926 (X-4676) with reference to the procedure in connection with the election of Class A and B directors of the Federal Reserve banks, together with a memorandum from the Assistant Secretary summarizing these replies. Ordered circulated. cr STANDING COMMITTEES: Dated, October 27th, Dated., October 26th, Dated., October 26th, Dated, October 26th, Dated, October Date 26th, October 26th, Recommending changes in stock at Federal Reserve Banks as set forth in the Auxiliary Minute Book of this date. Approved. Recomending action on application for f iduciary powers as set forth in the Auxiliary Minute Book of this date. Approved. Recommending approval of the application of Mr. William N. Hutchinson for permission to serve at the same time as director of the Bayonne National Bark, Bayonne, N. J. and as director of the Bayonne Trust Company, Bayonne, N. J. Approved. Recommending approval of the application of Mr. ',7i11iam L. Barrell for permission to serve at the same time as director of the Atlantic National Bank, Boston, Mass. as director of the Granite Trust Company, :„uincy, Mass. and as director of the Bay State National Bank, Lawrence, Mass. Approved. Recommending approval of the application of Mr. Charles V. Bailey for permission to serve at the same time as Director & Vice President of the Atlantic National Bank, Boston, Mass. anti as Director of the Granite Trust Company Quincy, Mass. Approved. liecommending aoproval of the application of Mr. Henry L. Kincaid° for permission to serve at the same time as Director of the Atlantic National Bank, Boston, Mass. and as Director of the Granite Trust Company, ,,uincy, Mass. Approved. a 308 10/28/26 PORTS OF STANDING COMITTEES: (Cont,d) Dated, October 26th, Aecomnending approval of the application of Mr. Harry A. Smith for permission to serve at the same tine as director of the Central National Bank, New York CiV, N. Y. And as director of the Phoenix State Bank & Trust Company, Hartford, Conn. Approved. Dated, October 26th, aeconmending approval of the application of Mr. Joseph H. Reaney for permission to serve at the same time as President of the First National Bank, St* Johnsville, N. Y. and as director of the First Bank & Trust Company, Utica, N. Y. Approved. The meeting adjourned at 1:00 p.m.
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