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3e A meeting of the Executive Conmittee of the Federal Reserve Board was held in the office of the Governor on Wednesday, September 15, 1926 at 10115 a.m. Pmszta: Governor Crissinger Mr. Miller L:r. Cunningham Mr. Noe11, Asst. Secretary Mr. McClelland, Asst. Secretary Telegraza dated September 8th from the Deputy Chairman of the Federal Reserve Bank of Boston, advising of the establishmant of the following on Market rates: Acceptances, 1 to 45. days tf 46 to 120 days tt 121 to 180 days It Repurchase " Governments - 33/4 $ 3 4% Noted, with approval. Letter dated September 9th from the Assistant Secretary of the Federal Reserve Bank of New York, advising that the board of directors on that day Made no caq.ange in the bank's existing schedule of rates of discount and pur011.9,Se e Noted. Telegrams dated September 10th and 14th from the Secretary of the Federal Reserve Bank of Cleveland, advising that the board of directors of the bank on September 10th made no change in their existing schedule of rates of discount and purchase,except to establish 1/2/Q as a minimum rather than a fixed rate for purchases of bankers' acceptances under agreetrellt to resell. Noted., with approval. _ 9/15/26 -2- Telegram dated September 9th from the Chairman of the Federal 'Reserve Bank of Richmond, advising that the board of directors on that day made no change in the bank's existing schedule of rates of discount and purchase. Noted. ?elegram dated September 13th from the Chairman of the Federal Reserve Bank of Atlanta, advising that the board of directors on that day made no change in tale bank's existing schedule of rates of discount and purchase. Noted. Telegram dated September lith from the Secretary of the Federal Reserve Bank of Minneapolis, advising of the establishment of the following rates for Purchases of acceptances: 1 to 45 days 60 to 120 days 121 to 160 days Trade Bills 1/2d 3 4% 41% XY Noted, with approval. Telegram dated September 9th from the Chairman of the Federal Reserve Ballk of Kansas City, advising that the board of directors an that uay made no :ilan(3 in the bank's existing schedule of rates of discount and purchase. Noted. Telegram dated September 7th from the Chairman of the Federal Reserve 131941k of Dallas, advising that the board of directors on that day made no Change in the bank's existing schedule of rates or discount and -,)urchase. Noted. Letter dated September 14th from the Chief Clerk of the Treasury DePartment, advising that the War Finance Corporation, which is vacating 159 9/15/26 -.3- aPeoe in the Treasury Building to be assigned to the Federal Reserve Board, Ilas carried three charwomen on its payroll and. recommending that Lucy '2embleck be appointed charwoman on the payroll of the Board at forty cents per hour, effective Septeraber 16th. Approved. Letter dated September 14th from the Chief Clerk of the 2reasury Department, advising of the transfer t'o another building, effective September 16th of Liz's. Annie H. Smith, charwoman now carried. on the rolls of the Board at a salary of forty cents per hour and. recommending that Rachel 'Williams be aPpointed to succeed her at the same rate of pay, effective September 16th. Approved. Letter dated September 4th from the Comptroller of the Currency, 84vi8ing of the acceptance of the resignation of Miss Martha J. Martin, bookin the Federal Reserve Issue and Redemption Division, salary 41620 per 41321u/n, effective at the close of tusiness August 31, 1926. Noted. Letter dated September 8th frau the Board's Chief Examiner, who is 14 San Francisco, advising that in accordance with authority previously el'anted by the Board he has employed :Ir. H. 0. Koppang as an Assistant Exat a salary of 42700 per annum, effective September 1, 1926. Noted, with approval. Letter dated. 'Aptember 8th from the Board's Chief Examin er, recoratieliclirz the appointmnt of Mr. John D. Heising as Assistant Examiner at an 441-148.1 salary of si;4230 per annum, effective October 1st Approved. 160 1 9/15/26 -.4-- Letter dated September 9th from the Assistant Federal Reserve Agent at Cleveland, advising that the Guardian Trust Company, Cleveland, Ohio on August 28th opened its branch at Parkwood Drive and St. Claire AWCWW34, Noted. Letter dated September 8th from the Assistant Federal Reserve Agent at Cleveland, advising that the Union Trust Company on September 7th consolidated its Columbia Bank office at Broadway and East 55th Street with its Broadway Bank office at the same corner; the Columbia office having been one Of the branches of the State Banking and Trust Company which was taken over by the Union Trust Company last spring. Noted. Letter dated September 10th from the Chairman of the Federal Reserve 134tk of New York, advising of recent rumors that the Italian Disoount and Trust Company is for sale ani that two or three uanks, among them the Hamilton National Bank, are negotiating for it. Noted. Telegram dated Septenber 8th from the ehairmaa of the Federal Reserve Bank of San Francisco, advising that the Gunnison Valley Bank, uunnison, Utah a member, absorbed the Bank of Centerfield, a non-member, effective sept ember 7th and that the Gunnison Bank has been requested to file an application for the Board's approval and to furnish details of the consolidation. Cl looted. Letter dated September 8th from the Federal Reserve Agent at St. Louis, referring to the Board's letter of August 26th and. stating he has 16.1 9/15/26 -5- advised all Kentucky state member banks in his district exercising fidaciary Powers that trust funds should be invested and that the fiduciary should acoaant to the beneficiary for all actual profit realized, and further, that 44Y austom or practice of fiduciaries in accounting to beneficiaries for °41Y 5% of the amount of the trust funds, regardless of actual income deIlve.i by the fiduciaries from the use of such funds, is not authorized by law, Noted. Letter dated September 9th from the Chairman of the Federal Reserve 13aak Of Atlanta, expressing the opinion that Mr. Claude Gilbert, Assistant ?sclera]. :ieserve Agent at Atlanta, can well be employed in that district for aeveral months longer in visiting member banks. in Georgia, Alabama and Louisiana. Noted. Letter dated Segtamber 12th from Mr. Claude Gilbert, Assistant Federal 3Elarve Agent at Atlanta, written from Orlando, Florida, setting forth his Iriews with respect to present conditions in the state of Florida and in the bell-king institutions of that state. Ordered circulated. Letter dated Septenber 10th from the Chairman of the Federal Reserve 11411k Of Dallas, requesting approval of an amendment to the By-laws of the 11°Ilatan Branch of that bank changing the hour of meetings of the Branch Board *Ona 10:00 a.m. to 4:00 p.m. Approved. Letter dated September 9th from the Federal Reserve Agent at :Kansas 1_62 9/15/26 -6- City, advising that he is leaving 'Kansas City W.I. September 29th to attend. the annual convention of the American Bankers Association in Los Angeles ezid at that time will take his vacation, having arranged to return to the Federal Reserve bank about October 20th. Noted, without objection. Letter dated September 14th from the Secretary of the Open 1.1arket Investment Committee, submitting.copy of revised minutes of the meeting of the Open Market Investment Committee held in Washington on September 10th. Ordered circulated. Letter dated September 13th from the Deputy Governor of the Federal 14218erve Bank of New York, viho is Acting Chairman of the Open llartet Investment Committee, acimowledging receipt of advice of the Board's action of September 1°th with reference to the System's Special Investment Account, and. calling attention to the action taken on that day by the Open Market Investment ComMit tee The Governor stated that he had talked to Mr. Case over the telephone and explained to him that the action of the Board had been taken after consideration of the recommendation of the Omni ttee 1:emorandum dated September 8th from the Division of Examination, with reference to letter dated September 4th from the Assistant Federal Iteserve Agent at Atlanta, with reference to the action of the Bank of Monroe, 14011roe, Ga. in taking over the Union Banking Company of Monroe, another member bank; the memorandum setting forth the conditions under which the Bank of llonroe was admitted to the System and suggesting that the Board may desire to require the Bank of Monroe to file a formal application for permission to take over the other institution. Beferred to the Committee on Examinations 163 9/15/26 13 I —7— Telegram dated September 10th from Honorable 7i11iam J. Harris, United. States Senator from Georgia, with reference to the proceedings of the Board. against Mr. Joseph L. Campbell, Denuty Governor of the Federal Reserve Bank Of Atlanta; the telegram stating that Lr. Campbell is highly regarded by Georgia business men and barotars who have come in contact with him. Noted. LIemomndum from Counsel dated September 8th, with reference to the aPplication of the Citizens National Bank of Harlan, Icy. for permission to exercise fiduci ary powers; Counsel submi tting draft of le tter to the bank requesting a statement as to the manner in which it proposes to exercise the fiduciary powers which may be granted it by the Board, with particular reference to the investment of trust funds ani the accounting for income derived. therefrom and also with regard. to the segregation of assets held in a fiduciary capacity. Upon motion, the proposed letter was approved. Lemorandum from Comsel dated. September 10th, with reference to r'equest from the Defartment of Justice that an (3np1oyee of the Federal aeSe rye Board. be named who may be subpoened to produce at the trial of the eaSe of United States against Beaucarap, which involves the Union and. Planters 13ezik and. Trust Company of Memphis, Tenn. the original application made by the bank for stock of the Federal .deserve Bank of St. Louis in order to introduce this doCument into the evidence. After discussion, the Board's Secretary, Mr. Walter L. Eddy, was desigiated to amear at the trial if necessary. 164 9/15/26 -8EAmorandann from Counsel dated September 1st with reference to the Clayton Act application of /Ir. Bruce i. Failey who was recently advised by the Board that in vieu of the fact that a consolidation of the banks in Terre Haute, Ind. which he is serving is being considered, the Board will not inon any change in his banking connections until January 1st; Counsel submitting draft of reply to letter on the subject fram the Federal Reserve Agent at Chicago, advising that the Board will not insist that certain other gentlemen having interlocking directorates in 2erre Haute file applications with the Board or make adjustLents in their directorates until after the °lose of the present calendar year, but that the .oari will expect prompt action at that time. Upon motion, the proposed letter was approved. Memorandum from Counsel dated September 3rd, submitting draft of reply to letter dated August 28th from the Federal Reserve Agent at San Praacisco, with reference to the Clayton Act permit of nr. i. D. loolwine Who in 1916 was granted permission to serve the Security Irust and Savings Benk, The Hibernian Savings Bank and the National Bank of California, all Of Los Angeles, the last of which in 1917 went into voluntary liquidation, its assets being purchased by the Merchants National Bank of Los Angeles; the proposed letter stating that a Clayton Act permit authorizing a person to serve as director of a national bank and of other banks continues to be effective after the national bank merges with another institution only when there has been a consolidation muier a statute which passes by operation Of law all of the rights and interests of the constituent institutions to 165 9/15/26 the consolUated consolidated bank and that it will accordingly be necessary for WOolwine to file applicationwith the Board in order to continue to serve the Merchants National Bank and the other banks with utAdh he is connected. Upon motion, the proposed letter was approved. Letter dated September 9th from the Governor of the Federal Reserve Beak of Dallas, setting forth circumstances surrounding a recent refusal to extend. to the Oity National Bank, Decatur, Texas the use of the Federal Beserve Bank's rediscount facility except upon certain conditions. Ordered circulated. Letter dated September 10th from the Chairman of the Federal Rese Bank of Dallas, setting forth in detail discussion at the last meeting of the board of directors with regard to a possible change in the redisccunt rate of taat bank. Ordered circulated. Letter dated Sertauber 13th from Professor Charles A. Dice of the t3hi0 State University, requesting permission to use in a text book being Prepared for college classes a chart showing the relation of the Federal Beserve Bank rediscount rate to rates on commercial paper and bankers' acceptances, which appeared in the July 1926 issue of the Federal Reserve Bulletin. Upon motion, it was voted to interpose no objection to the use of the chart with the understanding that proper credit will be gtraa. 166 9/15/26 -10- Memorandum from Counsel dated September 7th, submitting draft of letter to tha Attorney General with referenee to request for a cony of report of examination of the First State Bank and. Trust Company of Hereford, Tex,. during which certain apparent violations of the Revised Statutes were disclosed; the proposed letter transmitting a copy of that part of the ec.aminer's report which has to do with the apparent violations. Approved.. 1 .g.PORTS OF STANDING COMIMEES: Dated, September 8th, 9th, 10th, 13th, Dated, September 4th, 13th, . 15th, Dated, September 11th, Dated, September 14th, Dated, September 14th, Dated, September 14th, Recormarding changn in stock at Federal Reserve Banks as set forth in the Auxiliary Minute Book of this date. Approved. Rec°mending action on applications for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Approved. Reconmending action on application for admission of state bank, subject to the conditions stated in the individual reports attached to the applications, as set forth in the Auxiliary Minute Book of this date. Approved. Recorrmending approval of the anplication of :Ir. John D. Ankeny for permission to serve at the same time as Director and. Vice President of the First National Bank, Pendleton, Ore., as Director and President of the First National Bank, Walla Wash. and as Director and. President of the Columbia National Bank, DT ton, Wash. Approved. Reccmmending awroval of the application of Mr. J• Lewis Hay for pe miss ion to serve at the same time as director of the Central National Bark, New York, N. Y. and. as director of the Fidelity Union Trust Company, Newark, N. J. Approved. Recormrending approval of the application of Mr. Henry D. Moore for permission to serve at the same time as director of the Haddonfield National Bank, Haddonfield, N. J. and as director and. Vice president of the Security Trust Company, Camden, N. J. Approved.
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