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138 ..,. meeting of the Executive Committee of the Federal deserve Board was held in the office of the Federal deserve Board on Friday, September 1927 at 1 1:._0 a.m. P:1E3E1IT: Governor Crissinger Mr. James Mr. Cunninfaam hr. McIntosh Xoell, Asst. Secretary 1,:r. McClelland, Asst. The Governor presented a telegram dated September 1st frarli the Chairman of the Federal deserve Bank of ',San Francisco, advisinc, that the f,1 board of directors at their meeting on that date made no change in the batkes existinr: schedule of rates of discount and purchase. Discuss ion then ensued as to the failure of the directors of the Federal deserve allk of Jan 7rancisco to take action reducin:: the rediscount fate of Following the discussion, Mr. James moved that action on the telegram be deferred until the next meeting of the Board which will be held on Tuesday, September 6th. :Ir. James' motion being was carried. it by the Chair The Governor then stated that the question of rates at the Pederal deserve Banksof Chicao and San Francisco will be sDecial order pt business for Tuesday's meeting. Latter approved on initials yesterday, namely, application The ontgomery National Bank of Mt. Sterling, Lt. Sterling, Ky., for De rmission to exercise certain fiduciary powers under Section 11 (_:) of the Pederal deserve formally a;mroved. 139 9/2/27 -2_ TeleP;ram dated September 2nd from the Federal eserve Agent at San Francisco, with reference to the Board's telegram to him of Auust 26th, approving participation by Federal aeserve Examiners in an examination to be. made by the state banking department of the Security Trust and Savings Bank of Los Angeles and also anDroving of the Federal iieserve bank consent1.11g to be billed for copies of the report of examination in order to cover a part of the extra expense being incurred by the state bankin7 department in making the examination by simultaneous entry of the head office and all branches; the Agent's telegram reportiu ,- that the expense, which will amount to between ,,i1600 and ,1800, is the entire excess cost to the state banking department of illakin-s a simultaneous examination. . Upon motion, it was voted to approve of the Federal Reserve Bank of San Francisco absorbing the expense in question. ' Letter dated September 1st from the Assistant Secretary of the Federal deserve Bank of New York, advising that the board Of directors at '..11eir meeting on that .date made no chane in the bank's existing schedule Of rates of discount and purchase. Noted with approval. Letter dated AuF;ust 27th from the Assistant Federal Reserve Agent at San Francisco, advising that the American Trust Company of San Francisco, ilnaer authority previously granted by the 'ord, on August 19th established a branch at 3600 Balboa Street and. on LuE;ut 11th opened their 20th .Lvenue and. 2araval Street branch in temporary quarters at 1050 Taraval Street. Noted. II! 1_0 9/2/27 -3- Memorandum dated September 1st from the Director of the Division of Research and Statistics, advising that Miss A.ryness Joy, whose temporary appointment from July 1st to August 31st was approved by the Board on May 3rd, has completed her work with the Division. Noted. Memorandum dated September 1st from the Chief of the Division of Research and Statistics, recommending acceptance of the resignation of Miss Dorothy 4i. dright, stenographer in the Division, effective at the close of business August 31st. Accepted. deport of .1xecutive Committee on letter dated August 30th from the Comptroller of the Currency, recommending approval of the salary of ,3600 per annum for National Bank '4xaminer Charles E. Powell, assigned to the Seventh Federal deserve District; the Committee also recommending approval. Aqoproved. Memorandum dated September 2nd from the Deputy Comptroller of 111 the Currency, advising that the Comptroller of the Currenc:" issued a certificate, effective at the close of business September 1st, for the consolidation of the First National Bank of Los Angeles and the Pacific Southwest Trust and Savings Bank of Los Angeles, under the title "Los Angeles - First National Trust and Savings',Bank." Noted. Memorandum dated September 1st from the Deputy Comptroller of. the Currency, advising that the Los Angeles - First National Trust and Savings Bank has been authorized to establish a branch in the vicinity il 141 9/2/27 -A- I, Of 561 South Spring Street, Los Anqeles. Noted. Letter dated September 1st from the Federal .eserve Agent at New Yo • 141 advising that control of the United -National Bank of New York City has been purchased by new interests' and that announcement regarding the Nrchase will be made in about ten days. _Letter dated September 1st from the Assistant Federal eserve Agent at Cleveland, recommendin,7 that the Citizens Trust and Savings Bank of lumbus be .granted permission to change the location of the branch now eQoraterl at :j.ip:h and .ussell Streets to the corner of Nigh and Buttles jtreets. Approved. Letter dated August 24th from the Federal eserve Agent at New .4(1.v1sing that control of the lostrand Bank of Brooklyn has been purchased by directors of the Municipal Bank of Brooklyn, and that the controlli interest in the Lonacre Bank of New York City has been Purchased by the Financial and Industrial Securities Corporation, which is allied with the Manufacturers ?rust Company of New York City. ••. Hoted. Letter dated .August 29th from the —ssistant Federal :,-ieserve Agent at lie4 York, advising that the Municipal Bank of Brooklyn expected on 411f;11st 30th to open a branch. on Bay Parkway, corner of West 9th Street, thlO Mapleton section of Brooklyn, and that the bank alSo proposes to 1_42 9/2/27 -5- open two other branches about October 1st one in the quarters of the 2Tostrand Bank and the other to be located at Avenue "Jn and Coney Island 4voaue. Letter dated August 25th from the Governor of the Federal Reserve Of New York, advising of further sales of Sterling from the Bank's Leadon account and of parchases of securities for the open market investMerit account, offsetting the sales of Sterling. Stron In his letter, Governor also referred to other purchases for open Market account from forein correspondents. Noted. Letter dated August 31st from the Governor of the Federal deserve Ilaia of ow York, referring to authorization given by the Board in August, . 1(317 for the a-000intment of the Banca d'Italia of Rome as agent and correspondent of the Federal .Aeserve Bank of New York and transmitting copies cf letters e::.chanqed with that institution relative to the opening of accounts and active reciprocal relations between the two banks. :oted. Letter dated Aur,nust 23rd from the Governor of the Federal ieserve Ban:4 Of New York, referring to the recent action of the Board in re l:ortillg to the Department of Justice certain apparent criminal violations "law on the part of Bernard I:. Marcus, President and Director of the -412c. of United States, New York City; the latter setting forth in detail the information which the Federal jeserve bank has regarding the apparent 23 1 /1 9/2/27 -6- '1 ) violations and its reasons for not reporting same to the local United States District Attorney. Thted. Memorandum dated .,11 tst lOth addressed o te ozrznittee on 2xam- 1natioLJ by 1,:r. Gilbert, Supervisor of i]xaminations, with reference to violations of conditions of membership on the Dart of the Oakland State Bank, Oakland, Nebraska, as disclosed -vy a recent examination of that bank; Li'. Gilbert submitting with his memorandum a letter dated .;lucust 15th from the Federal ..teserve 4:gent at Xansas City regrdinr,7 the condition Of the bank and the outlook for its rehabilitation. After discussion, the above memorandum was referred back to the Committee on Examinations for consultation with Counsel regarding certain legal questions involved therein. PIEPO.-aS OF STANDJUG COLUITTEES: 4-dated, 3eptember 1st, ilecommending changes in stock at Federal lieserve 2nd, banks as set forth in the 11.uxiliaw Minute Book of this date. Recommendations approved. R.ecommendin3 action on applications for fiduciary Dated, .e..ugust 31st, powers as set forth in the Auxiliary Minute Book of this date. aecommendations approved. .aecommonding approval of the application of 1.:r. Jated, Lugust 31st, 2. L;cLain ::atters for permission to servo at the same time as director of the National 13ank of Olney in Philadelphia an., as director of the National Bank of Mt. Airy, both of Philadelphia, Pa. ilecommendatiol. approved. 2h adjour Assistant Secretary 41-PprOved: Governor
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