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(71. JL A meeting of the Federal :Leserve Board was held in the office of the Federal Reserve Board on Tuesday, September 15, 1925 at 11:15 a.m. PI7.3=T: Vice Governor Platt Mr. Miller Mr. James Mr. Cunningham McIntoSh Mr. 'Eddy, Secretary The minutes of the meeting of the Federal Reserve 'Board held on September 9th were read and approved. Matter approved on initials on September 11th, namely, application Of the Hugo National Bank, Hugo, Okla., for the surrender of 135 shares Of stock in the Federal Reserve Bank of Dallas. Formally approved. Matter approved on initials on September 14th, namely, application Of the Seaside rational Sank, Long Beach, Cal., for original stock (198 shares) in the Federal Reserve Bank of San Francisco, effective if and when the comptroller of the Currency issues a certificate of authority to commence business. Formally approved. Letter dated Septenber 11th from the Assistant Secretary of the Treasury, requesting that the Secretary and the General Counsel of the Board be permitted to assist a new committee desimated by the Secretary of the Treasury to consider the matter of reducing the size of currency notes, changes in redemption procedure and other related matters. Upon motion by Mr. James, Messrs. Eddy and Wyatt were authorized to assist the committee. 9/15/25 -2- Telegrams dated September 11th and 13th, respectively, from Honorable W. B. Pine and Honorable J. '. Harrold, United States Senators from Oklahoma, recommending the appointment of Mr. A. D. Kennedy of Okmulgee, Okla. as a director of the Oklahoma City Branch of the Federal Reserve Bank Of Kansas City, together with other telegrams and letters endorsing Kennedy, Mr. E. J. Murphy of Clinton, Okla., and Mr. A. K. Wootten of Chickasha, Okla., Noted. Report of Committee on District No. 10, dated September 12th, recomInending the appointment of Mr. E. J. Murphy of Clinton, Okla. as a director Of the Oklahoma City Branch of the Federal Reserve Bank of Kansas City, for ii the unexpired term of Mr. W. A. Stuart, resigned, ending Decem)er 31, 1927. Upon motion by Mr. Cunningham, it 1.7as voted that the appointment in question be tendered to 11r. rtrp*. Report of Committee on Examinations on memorandum dated September llth from the Com -troller of the Currency, recommending approval of the aoplioation of the First National Bank of Fort Gaines, Ga., for permission to reduce its capital stock from 455,500 to 450,000; the Committee also recommending approval. Approved. Ao)ort of Committee on Examinations on letter dated September 8th from the Federal Reserve Agent at Kansas City, transmitting and recommending approval of an application of The Citizens Bank, Aztec, New Mexico, for perMission to purchase the Aztec State Bank; the Committee recommending ap- proval. Approved. 1 *a —4— Lir 9/15/25 -3- aeport of Committee on Examinations on letter dated September 8th from the Executive Committee of the Federal aeserve Bank of Atlanta, transmitting a statement of condition of the Farmers Bank of Pelham, Ga., at the Close of ousiness September 5, 1925, and recommending approval of the bank's application for permdssion to establish a branch at Sale City; the Committee recommending approval of the application in view of the improved condition of the institution and also in consideration of the action of the Board in approving the application on Aualst 6th, which action was reconsidered at the meeting on August 26th and the application held in abeyance. Upon motion by Mr. James, it vas voted to reconsider the action of August 26th, holding the application in abeyance, and. to again approve same. September Aerort of Committee on Examinations on memorandum dated 5th from the Comptroller of the Currency, recommending approval of the for permission application of the First National 3ank of Stillwater, 1:_inn. to reduce its capital stock from v350,000 to ,;200,000; the Committee also recommending approval. Approved. at Telegram dated September 14th from the Federal deserve Agent San Francisco, advising that the President and Vice President of the hearing accorded them by American Bank of San Francisco desire that the the Board on the bank's application to establish branches at Alameda be held as early as possible after September 23rd, and suesting September 24th as the date for the hearing. 9/15/25 -4- Uton notion, it was voted that the Federal :Reserve Agent be advised that September 24th will be agreeable to the Board for the hearing but that Messrs. Miller and Hamlin will not be in Washington on that date. Letter dated September 8th from the Federal aeserve Aaent at Chicago, advising of the probable rosiaation of Mr.E. L. Harris, Acting Assistant Federal Reserve Agent and Secretary of the Board of Directors of the bank, settinp: forth the necessity for two Assistant Federal Reserve Agents at Chicago, and requesting an expression of ooinion regarding the appointment Of Mr. Ralph H. Buss, one of the bank's Managers of Loans; the Federal Reserve Agent stating that Mr. Buss would be anpointed at a lower salary than that received by Mr. Harris and without an increase at the present time and that he would assume the duties of Manager of the Bank Relations Department which title would be abolished. After discussion, upon motion by Mr. James, it was voted to refer the above letter to Mr. Cunningham for report. Letter dated September 9th from the Governor of the Federal Re erve Bank of Minneapolis requesting further consideration by the Board of the matter presented in his letter of September 17th, 1924, namely, a saggestion that the Board amend its regulations so as to make eligible for rediscount or purchase by a Federal Reserve bank, acceptances drawn by an elevator company secured by regular registered terminal warehouse receipts of the elevator company that draws the draft. After discussion, it was voted that the above matter be referred to Counsel for the preparation of a form of amendment to the Board's regulation which would make eligible the acceptances in question. ; ;....40 . -5- Letter dated September 3rd from the Chairman of the Federal deserve Bank of San Francisco, submitting a resolution adopted by the Board of Directors of that bank requesting approval by the Board of a leave of absence for Mr. Ernest C. L:ailliard, Assistant Cashier, for three months, beginning September 1, 1925, with full pay, and for an additional three months, beginning December 1, 1925, without pay. After discussion, it was voted that the above matter be referred to the Committee on Salaries, Expenditures and Efficiency. Memorandum from Counsel with reference to application of the Ohio Trust Comoany of Cleveland, Ohio, for the surrender of Federal deserve Bank stock held by the deliance Trust Company and the Commonwealth Banking and Trust Company, cloth of Cleveland, which were consolidated to form the Ohio True t Company; Counsel stating that the Board may properly aoprove the apPlication for the surrender of excess Federal Aeserve Bank stock held by the Ohio Trust Company but calling attention to the fact that the consoliaation in question was effected without the approval of the Board. After discussion, upon motion by Mr. Cunningham, the Secretary was instructed to inquire of the Federal deserve Bank of Cleveland why the Board was not notified of the consolidation in question and to inquire further whether the new institution is willing to accept the conditions of membership imposed upon banks now admitted, in accordance with the regulations of the Board. Letter dated September 15th from the Comptroller of the Currency, l*ecommending approval of an increase from '6500 to7500 per annum in the salary of ITational Bank Examiner Ohlei - , . P. Folger, who has been desinated as National Bank Examiner of the 5th Federal Approved. eserve District. /11.. 5/25 -6- 1:r. Platt then reoorted that in accordance with the suc•_:,-7estion made at the informal meeting yesterday, he had called. -uty L.Toverno r Case of the Federal _toserve 3ank of .i;ew York over the telephone and had Inquired regarding a meeting of the Open 1.1arket In restm;nt Committee some time this week. He stated. L:r. Case had advised him t:--at it not be feasible to hold. such a meeting. ould He also stated. that U.overnor Strong was expected to return today but that it would. be impossible for him to come to lashi_gton before next week. :Mar then introduced the following resolution and. asked that it be made special order for the meeting of the 3oard. on 2uesday, :jolt ember 22nd.: "Resolved, That a reduction of holdings of government securities, to be followed in due course by an advance in the discount rate of the Federal _Zeserve Bank of 1,Tew York, should. its discounts show an eopreciable increase, will be conducive to the maintenance of a npod state of business sentiment and, to a healthier credit situation." Thereuoon followed, a discussion of the above resolution, during which :Ir. 2.1cIntosh left the meeting. stated that it was his intention, in the event the above resolution was adopted, to move that a coy of it be sent to the directors of the Federal ,eserve Bank of iiew York with a request for an expression of their views aria recommendations. - 70,n5 OF : C07.1•2:2EES: Dated, Septemb )r 10th, .ecornmending changes in stock at Federal deserve 11th, banks, as set forth in the Auxiliary :::inute Book 14-th, of this date. 9/15/25 -7- OF STAKDING JOY1HT=S: (Cont'd) Dated, Jeptember 9th, Dated, Geptember Jth, Aecommendinr, approval of the a-Tlication of John ':i. Snowden for oermission to serve at the same time as director of the Northern :ational Bank, and as President and director of the jaeen Lane National Bank, both of 2hiladelphia, Pa. Approved. ecommending approval of the application of 2,:r. Janes T. :ilson for permission to serve at the same time as director of the First National *Bank of Kenosha, ',:is., and as director of the ::echanics National Bank of Lilaukee, pproved. The meetinp: adjourned at 1:15 p.m. 1 Secretary. Approved:
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