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24 A meeting of the Executive Oommittee of the Federal leserve Board was held in the office of the Governor on ;iednesday, September b, 1928 at 11:00 era, PRESENT: Governor Young James Mr. Hamlin Mr. McClelland, Asst. Secretary Letter dated August 30th from the Secretary of the Federal Reserve Bank °f New York and telegram dated September 5th from the Chairman of the Federal Reserve Bank of Philadelphia, advising that their boards of directors at meetlugs on the dates stated made no changes in the banks' existing schedules of rates of discount and purchase. Without objection, noted with approval. iiatter approved on initials on August 29th, namely, letter dated August 29th from the Comptroller of the Currency, requesting approval of a salary of 45000 per annum for National Bank Examiner Jesse Strong, assigned to the Second Federal Reserve District. Formally approved. The Assistant Secretary then stated that Mr. Vernon Ott, mail clerk in the Secretary's office, who has been on extended leave of absence with pay, °4 account of illness, since July 1st will not, according to his physician, be able to resume his duties for a month or more. He recommended that 1..r. Ott be granted additional leave of absence, with pay, for one month beginSeptember 1st. Approved. Telegram dated August 31st from the Deputy Governor of the Federal Reserve Bank of Dallas, advising of a request received from the Federal -2- iatermediate Credit Bank of Houston for an advance of 43,500,000 against the liediscount of eligible paper or against the Intermediate Credit bank's ninety clay debentures, at the rediscount rate in effect when the transaction is handled; the telegram stating that the bank is disposed to grant the accommodation but "al not accept paper for rediscount unless the Board is willing to waive the Pftvision of its Regulations prohibiting a Federal Reserve bank from rediscountfor any Federal Intermediate Credit bank when its own reserves amount to less than tiap. The Secretary presented copy of a telegraphic reply made on initials (34 4ugust Olst, referring to the amendment to Subdivision (d) of Regulation "A" adopted on August 30th and advising that the Board grants permission to the Federal Reserve Bank of Dallas to rediscount eligible paper for the interCredit Bank of Houston up to 43,500,000. Upon motion, the telegraphic reply was formally approved. Telegram dated September 1st from the Governor of the Federal Reserve )34111c of Minneapolis, advising that the Federal Intermediate Credit Bank at St. Paul is now rediscounting with that bank approximately v2,000,000 of agriclatural paper and inquiring whether the Board will approve if they should doto rediscount an additional .4,1,000,000 on September 15th. The Governor presented a telegraphic reply which he made on September 1st, advising that the Board will approve the additional rediscount in • qllestion. Upon motion, the telegram sent by the Governor was approved. -3- Letter dated August 24th from the Federal Reserve Agent at San Fran°isco, calling attention to comments made by the Bank Commissioner of Idaho, 14 letters of criticism addressed to state member banks, regarding the cost cq. the banks' membership in the Federal Reserve System, based upon loss of i terest on reserve deposits carried with the Federal Reserve bank. After discussion, it was voted to request the Chief of the Board's Division of Bank Operations to advise the Board as to the difference in the reserves carried by the state banks as members of the System and the amounts they would be required to carry were they not members, with a statement as to the loss, if any, suffered by the member banks in view of the reduced reserves carried by them as members of the System. Letter dated August 28th from the Federal Reserve Agent at Kansas City, transmitting and recommending approval of an application of The American-First Igetional Bank, Oklahoma City, Okla. for permission, under Section 13 of the Nieral Reserve Act, to accept drafts and bills of exchange drawn upon it up to 100p of its paid-up and unimpaired capital stock and surplus. Approved. Report of Committee on Examinations on letter dated August 30th from the Federal Reserve Agent at San Francisco, concurring in a recommendation Of the Executive Committee of the bank that approval be given to a proposed reauction from 450,000 to 425,030 in the capital of the Gunnison Valley Bank, 41144ison, Utah, the amount of the reduction to be used to eliminate losses Whi AUL at present result in a capital impairment; the Agent also recommending that consideration of the question of forfeiting the bank's membership in the 2/'atem, which has been taken up with the Board informally, be deferred until 01..9 t -4- 9/5/28 after an examination of the bank has been made subsequent to the reduction in Capital. Upon motion, on recommendation of the Committee on Examinations, it was voted to approve the proposed capital reduction, as well as the recommendation of the Federal aeserve Agent that consideration of the question of forfeiting the bank's membership in the System be deferred. Memorandum from Counsel dated August 31st, submitting draft of reply to letter dated August 28th from the Secretary of the Equitable Eastern Banking Co rporation, New York City, requesting authority for the establishment of a branch in the city of Tientsen, China; the proposed reply stating that neither the Board's Aegulations nor its agreement with the Equitable Eastern Banking Corporation require the Corporation to secure the Board's permission before establishing the branch office. Upon motion, the proposed letter was approved. Memorandum from Counsel dated Autmst 31st, submitting draft of letter to Mr. Ben Lays replying to his communication to the Board dated AuFust 10th alld advising that the BotAid has carefully considered the information contained therein and does not feel that it can change the decision made on his Clayton Itct application, involving the Grand National Bank of St. Louis, Lo. and the ?irst National Bank of Clayton, 1:o. Upon motion, the letter submitted by Counsel was approved. Memorandum from Counsel dated August 28th, with reference to the Clayton 41't application of Mr. Vann Howell, who has heretofore been authorized to eerve at the same time as director of the American-Southern Trust Company 128 9/5/28 -5- of Little Rock, Ark. and the First National Bank of Junction City, Ark., f°r permission to serve also as officer and director of the First National Bank of Batesville, Ark.; Counsel calling attention to the fact that the Federal Reserve Agent at 3t. Louis not only recommends that the present apPlication be refused, but that the Board revoke the permit previously granted 4r. Howell to serve the American-Southern Trust Company and the First National Bank of Junction City, Ark. In his memorandum, Counsel called attention to the fact, however, that the Board's Regulations provide for revocation of elaYton Act permits only after "reasonable notice and opportunity to be heard". After discussion, it was voted to advise Mr. Howell that the Board believes it would be incompatible with the public interest for it to approve his present application and, further, that it believes that the public interest requires revocation of the permit previously granted him, but that he may, if he desires, appear before the Board, or preferably before the Federal Reserve Agent at St. Louis, for the purpose of presenting additional information in support of his application or in support of continuance of the permit heretofore granted him. 44-LMITS OF 3TAI1DIalCOMMITTS: Dated, August 29th, 30th, September 1st, 4th, Dated, August 28th, September 1st, Dated, August 29th, Recommending changes in stock at Federal Reserve Banks as set forth in the Auxiliary Minute Book of this date. Recommendations approved. Recommending action on applications for fiduciary powers as set forth in the Auxiliary Minute Book Of this date. Recommendations approved. Recommending action on an application for admission of a state oank, subject to the conditions stated in the individual report attached to the application, as set 'forth in the Auxiliary Minute Book of this date. Recommendation approved. 29 9/5/26 -6- 111421iTS OF STANDING COMMITT2:ES: (Cont'd) Dated, August 28th, Dated, August 30th, Dated, August 30th, Dated, August 30th, !Jated, August 29th, Dated, August 27th, Recommending approval of the application of Mr. Walter J. Ailey for permission to serve at the same timeas director of the Chicago Trust Company of Chicago, Ill., as officer and director of the First National Bank & Trust Company of East Chicago, Ind., and as officer and director of tfie United States National Bank of Indiana Harbor of East Chicago, Ind. Recommendation approved. Recommending approval of the application of 1.:r. Robert Lamberton for permission to serve at the same time as director of the Lamberton National Bank of Franklin, Pa. and as officer and director of the First National Bank of Cochranton, Pa. Aecommendation approved. Recommending approval of the application of Yr. Harry Lamberton for permission to serve at the same time as director of the Lamberton National Bank of Franklin, Pa., and as director of the First National Bank of Cochranton, Pa. Recommendation approved. Recommending approval of the application of Mr. Chess Lamberton for permission to serve at the same time as director of the Lamberton National Bank of Franklin, Pa., as officer and director of the First National Bank of Cochranton, Pa., and as Class A director of the Federal Reserve Bank of Cleveland, Ohio. Recommendation approved. Recommending approval of the application of Mr. Leon D. Rothschild for permission to serve at the same time as direotor of the Ithaca Trust Company of Ithaca, N. Y., and as director of the Tompkins County National Bank of Ithaca, N. Y. Recommendation approved. Recommending approval of the application of Mr. S. Harold Greene for permission to serve at the same time as director of the American Trust Company of Boston, L:ass., as director of the Newton Trust Company of Newton, Mass., and as director of the First National Bank of Plainfield, Conn. Recommendation approved. ,c.it , The mting adjourn so .m. eeegged Assistant Secretary. APproved: Govern (,)
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