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A meeting of the Executive Committee of the Federal Reserve Board was held in the office of the Fedecal Reserve Board on Wednesday, September 2, 1925, at 11:30 a.m. PRESENT: Governor Crissinger Mr. James Mr. Cunningham Mr. Eddy, Secretary Matter approved on initials on September 1st, namely, memorandum dated August 29th, from the Division of Exa_aination, recommending approval of an application of the First National Bank in Duncan, Oklahoma, for original stock (30 shares) in the Federal Reserve Bank of Xansas City, A) effective if and when the Comptroller of the Currency issues a certificate of authority to commence business. Formally approved. Matter approved on initials on September 1st, namely memorandum dated September 1st, from the Division of Examination, recommending apDroval of an application of the First National Bank, Eudora, Arkansas, for original stock (27 Shares) in the Federal Reserve Bank of St. Louis, effective if and when the Comptroller of the Currency issues a certificate of authority to commence business. Formally approved. Telegram dates September 1st, from Mr. Edward B. Aldrich of Providence R.I., requesting postponement of a hearing regarding his Clayton Act application scheduled for September 10th; together with draft of telegraphic reply stating that the hearing will be postponed as requested, a definite date therefor to be arranged later. e't , i -2- 9/2/25 Upon notion, the proposed reply was approved. Memorandum dated August 29th from the Assistant Secretary, advising that, under authority previously granted, Paul Aandall has been employed as efMessenger in the Board's Telegraph Office at a salary of 4600 per annum, fective September 1st, to succeed Paul McGee, resigned. Noted. Memoranaum dated September 2na, from the Secretary, advising that Ethell Edwards, messenger, salary 41,000 per annum, has tendered his resignadtion, effective at the close Of business August olst; the Secretary recammen ing acceptance and requesting authority for the employment of a successor. Upon motion, the resignation was accented and authority for the employment of a successor was granted. Letter dated August 28th from the Cashier of the State National g Bank, Frankfort, Ky., replying to the Board's letter of August 25th inquirin as to the manner in Which that bank proposes to exercise fiduciary powers trust for which it has applied, with particular reference to the investment of with reference funds ana the accounting for income derived therefrom, and also to the segregation of assets held in a fiduciary capacity; the reply stating aries the that it snail be the practice of the bank to give to the benefici their full return of all investments, less a reasonable fee, ana that it is Plan to segregate all assets held in a fiduciary capacity. Upon motion, it was voted to approve the oank's application for permission to exercise general fiduciary powers. 1 ,3- 9/2/25 Telegram dated August 31st tram the Deputy Governor of the Federal Reserve Bank of New York, advising of changes in the Bank's effective minimum Oloen market buying rates to the following: 3,) days, 3 lia%; 45 days, '6 1/4%; 45 to 90 (lays, 3 6/8/0; 4 months, 3 1/2;;; 5 and 6 months, 3 3/4/.; sales contract rate, 1/4%. Noted and. anproved. Letter dated August 28th from the Chairman of the Federal Reserve Bank of Chicago, transmitting copy of a communication aduressed to him by the Executive Vice-President of the National Association of Mutual Savings Banks, in which numerous inquiries are made regarding time deposits and the practical working of the Board's Regulation D covering the handling of such deposits. * After discussion, it was voted that the Chairman be advised that in the opinion of the Board the information requested is not available, and the Federal Reserve Bank of Chicago should not undertake the task of developing same. Memorandum from the Governor dated August 27th, with regard to the Matter referred to him at the meeting held August 25th, namely, letter dated August 21st, from the Deputy Governor of the Federal Reserve Bank of New York requesting approval of a salary of 0.,000 per annum for Colonel Hiram I. Bearss, amployed to take charge of the Protection function of the Bank; the Governor setting forth certain facts regarding the employment of Colonel Bearss and recommending approval of the salary submitted. After discussion, upon motion by Mr. Cunningham, it was voted to approve a salary of c,;4000 per annum for Colonel Bearss. f'N Draft of letter to the Federal Reserve Agent at Philadelphia, approved by the Committee on Research and Statistics, commenting upon Charts submitted for inclusion in the proposed Federal Reserve exhibit at the Fall Convention of the American Bankers' Association. Approved. Mr. James then submitted the following motion, action on which was deferred: "That, following the Convention of the American Bankers' Association to be held in Atlantic City this fall, the Federal Reserve Banks discontinue the practice of displaying exhibits at such Conventions". Telegram dated September 1st from the Federal Reserve Agent at San Francisco, replying to the Board's telegram of August 27th, and advising, in the matter of the Fall Conference of Federal Reserve Agents, that eight of the twelve Agents have expressed a preference for a joint conference of Governors and Agents, preceded by a separate Federal Reserve Agents Conference, two or three days in advance. After discussion, it was voted to informally suggest that the separate Federal Reserve Agents' Conference be held on October 29, 30, and 31, and the separate Governors' Conference on November 2, 3 and 4, to be folloued immediately by a joint conference of Governors and Agents. The Secretary then reported that the reserve position of the Federal Reserve Bank of St. Louis had been reduced an August 31st to 41.1% and that a telegram had been addressed to the Bank inquiring as to the activities in the Eighth District that are responsible for the Bank's present reserve position, and to what Districts the St. Louis Bank is k -5_ 9/2/25 losing gold and why. He then read telegrams dated September 1st and 2nd, from the Chairman of the Bank, commenting uoon the trend of the Bank's earning assets and auvising of the movements in the Gold Settlement fund. The Secre- tarY also reported that on September 1st the St. Louis bank sold off 46,000,000 Of bills to the Federal Reserve Banks of Dallas and Minneapolis and that at. Louis had received credit therefor in the Gold Settlement Fund clearing of that date, which increased the reserve percentage of the bank to 47.4%. He called attention to the fact that the St. Louis bank had decided and had advised the Open Market Investment Committee that for the time being it would not participate in the SYstem's open market purchases. 2B.plaaTs OF STANDING COMMITTEES: Dated, August 26th, Recommending changes instock at Federal Reserve Banks, 31st, as set forth in the Auxiliary Minute Book of tills date. Sept. Approved. 2nd, Dated, August 27th, Recommending approval of the application of Mr. Ed Mays for permission to serve at the same time as director and Vice President of the Grand Avenue National Bank of St. Louis, Mo., as President and director of the First National Bank of Clayton, Mo., and as Vice President and director of the First National Bank of Eureka Springs, Ark. Approved. Dated, August 27th, Recommending approval of the application of Mr. Earle P. Charlton for permission to serve at the same time as director of the B.M.C. Durfee Trust Company of Fall River, Mass., as director of the First National Bank of Boston, Mass., and. as director of the National Exchance Bank, Providence, R. I. Approved. Dated, August 27th, Recommending approval of the application of Mr. W. C. Johnson for permission to serve at the same time as President and director of the Arkansas National Bank of Heber Springs, Ark., as Vice President and director of the First National Bank of Clayton, Mo., and as Vice President, Cashier and director of the Grand Avenue National Bank of St. Louis, Mo. Approved. 9/2/25 -6- REPORTS OF STANDING COMMITTEES: (Cont'd) Dated, August 27th, Recommending approval of the application of Mr. T. F. Guthrie for permission to serve at t1e. sare time as Vice President and director of the Grand Avenue National Bank of St. Louis, Mo., and as Vice President and director of the First National Bank of Clayton, Mo. Approved. Dated, August 28th, Recommending ap,roval of the application of Mr. Joshua M. Holmes for permission to serve at the same time as director of the Broad Street National Bank and as director of the Oak Lane Trust Company both of Philadelphia, Pa. Approved. Dated, August 28th, Aecammending approval of the application of Mr. Robert E. Macgregor for permission to serve at the same time as airector and officer of the Northwestern National Bank and as airector and officer of the Second Northwestern State Bank, both of Minneapolis, Minn. Approved. Dated, August 29th, Recomnending approval of the application of Mr. John C. Welsh for permission to serve at the same time as director of the Clinton National Bank of Clinton, N.J. and as director of the First National Bank of Morristown, N.J. Approved. Dated, August olst, Recommending approval of the application of Mr. Arthur W. Nelson for permission to servo at the same time as director of the Inter-State National Bank of Kansas City, Mo., and as director of the Boonville National Bank of Boonville, Mo. Approved. The meeting adjourned at 12:15 p.m. rq-S4/ 1 Secretary. A pproved:
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