19260302_Minutes.pdf

1.97

A meeting of the Federal Reserve Board was held in the office

Reserve Board on Tuesday, March 2, 1926 at

PrEYTT:

11:15 a.m.

Governor CrissingerMr. PlattMr. HamlinMr. MillerMr. CunninghamMr. McIntoshMr. Eddy, SecretaryMr. McClelland, Asst. Secretary

of the

The minutes of the meetings of the Federal Reserve Board. held. on February

24th end 25th were read and approved as amended.

Memorandum from the Governor dated March 2nd, with reference to the By-

laws adopted by the Board effective March 1st, setting forth the membership

Committees under Article VII thereof subject to the approval of the Board,

With the suggestion that

4 1/Eirieci of one year

°I. title effective as

krther

regUlar

/'ear be

ot each

Wet:1408days

in the future membership on the committees be for

and that appointments should be made for that period.

of the beginning of the calendar year; the Governor

recommending that in accordance with Article XIII of the By-laws

meetings during the period from October 1st to May 31st of each

held at 10:30 a.m. on Tuesdays, Wednesdays, Thursdays and Fridays

week, and during the period June 1st to September 30th on Tuesdays,

and. Thursdays of each week at the sane hour, with the Thursday

Illeetillee during both periods set aside for the consideration of special

niatterereferred to in Section 2 of Article XIII of the By-lams.

Upon motion by Mr. Miller, it was voted to approvethe meeting dates recommended by the Governor and the

committee personnel submitted by him as follows:

Law Committee Mr. Hamlin, ChairmanMr. McIntosh

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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Committee on Examination

Mr. Platt, ChairmanMr. Cnnringham

Committee on esearch & Statistics

Mr. Miller, ChairmanMr. Cunningham

Committee on Salaries and Expenditures

of Federal Reserve Banks

Mr. Janes, Chairman2.1r. Platt

Committee on District 41Mr. Hamlin, Chairman

Mr. Platt

Committee on District

Mr. Platt, ChairmanCrissinger

Committee on District #3Mr. Miller, ChairmanMr. Platt

Committee on District

Mr4 Crissinger, ChairmanMr. Haralin

Committee on District 45

Mr. Hamlin, ChairmanMr. James

Committee on District jP6

Mr. James, ChairmanMr. Hamlin

Committee on District #7

Mr. McIntosh, Chairman

1.1r. Cunningb.am

Committee on District 48

Mr. James, Chainnanidr. McIntosh.

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Committee on District 49 Mr. Cunningham, Chairman

Mr. Miller

Committee on District 410 Mr. Cunningham, ChairmanMr. Miller

Committee on District LL11 Mr. Platt, Chairman

Cminingham

Committee on District A2 Mr. Miller, Chairman

James

199

Thereupon ensued a discussion as to the special matters scheduled to be

c°42idered by the Board at its Thursday meetings, following which Mr. Miller

111°Ired:

"That in connection with meetings at which recommendations

for salary increases come before the Board at the end of the

year or the beginning of the new year, the recommendations with

the report of the Board's Committee on Salaries and Expenditures

be placed in the hands of all members of the Board three days

before date of action."

Carried.

laemorandum from Counsel dated February 27th, with reference to the Board's

Of January 25th in voting to defer for a period of thirty days action

"he Clayton Act application of Mr. B. Volk, Jr. of McKeesport, Pa., pending

1)Qaaible passage by Congress of the amendment te liberalize the Clayton Act

. 111tetleted by the Board; Counsel stating he has been advised that an effort

ill be made to add the proposed mmendment to the so-called McFadden Bill

t4 the Q- ,,enate and suggesting that action on Mr. Volk's application be further

'1X18t13°Ilecl- until it can be ascertained whether the proposed amendment will in

tact be added to the bill in question.


3/2/26 .4..

Upon motion it was voted to ars:prove the abovereconnendation and to defer action indefinitelyon the application.

Zemorandum from Counsel submitting drafts of letters to 1,:iessrs.

200

j • Ei

4rr, Cecil B. Denille and D. M. Dorman, to than the Board recently granted

13"Ilission to serve as directors of the Commercial National Bank and Trust

CernilanY, and the Bank of America, both of Los Angeles, but whose applications

t° serve also as members of the Advisory Board of the Los Angeles Branch of

Bait of Italy were preliminarily refused; Counsel referring to statements

ille4e to the Board at an informal meeting on February 26th by 11r. A. P. Gianinni,

Chairman of the Bank of Italy, and the proposed letters stating that on the

basis of evidence submitted, the Board is of the opinion that members of the

44vieorY Board of the Los Angeles Branch of the Bank of Italy are not properly

dArectors, officers or employees of the Bank of Italy within the Clayton Anti-

'411et Act, and that under the circumstances the remission of the Board to

kcal services is unnecessary.

Upon motion, the proposed letters were approved..

8024 of Mr. Peter J. iaalkner, Assistant Federal Reserve Agent at the

IcAzulati Branch of the Federal Reserve Bank of Cleveland,in the amountOf rti$50 000 •

Approved.

Telegram dated February 27th from the Chairman of the Federal Reservetkik

Of Chicacp, advising that the board of directors of that bank on the

Ilrevi—s day made no change in their exist in schedule of rates of discount

4141 134rchase,

Noted.


2013/2/26

Telegram dated dated February 25th from the Chairman of the Federal

Reserre Bank of Kansas City, advising that the directors of that bank on

that day made no change in the schedule of rates of discount ancl purchase

iu effect.

Noted.

Letter dated. Februa.ry 26th from the Chairman of the Federal Reserve

18413:4 Of St. Louis, advising that the. board of directors of that bank has aC-

cePtsci, the resil.ation of Mr. V. S. Fuqua as Managing Director of the Memphis

Bl'auchs effective March 1st, and has elected Mr. W. H. Glasgow, formerly

Ilseistant Cashier at the head office, to succeed him, with no change in salary

/*itch is at the rate of ,,36,000 per annum.

Noted.

Memorandum dated February 27th from Counsel submitting draft of

ietter to the Federal Reserve Agent at Atlanta, advising of the Board's dis-

41113rOval of the action of the board of directors of that bank in authorizing

1341flellts Of additional compensation aggregating595, made under date of

Dee either 24, 1925, to Messrs. L. L. Magruder and H. C. Frazier, and Misses

Batallier and Grace Brown, employees of its Havana Agency.

Approved.

Memorandum dated February 25th from the Division of Examination,

ins list of insolvent national banks, thirty-four in number, which

1144 been exercising trust powers under permits granted by the Board.

Upon motion, copies of the above statement were

ordered sent to each member of the Board.

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Letter dated February 25th from the Chairman of the Federal Reserve

8411k Of ITew York, referring to the Board's letter of February 15th (X-4531)

ot the subject of compensation of attorneys employed by Federal Reserve banks

Other than regular counsel; the Chairman reporting that the New York bank

l'ecently employed a firm of attorneys to look over contract and deed in con-

with the purchase of a building to house the Buffalo Branch, but

that it is expected the compensation of the firm will be very moderate.

Noted with approval.

Letter dated February 24th from the Federal Reserve Agent at New York,

84via111g that the Bank of Europe of that city has been authorized by the

144 York State Banking Department to convert from a state bank to a trust

illaPallY under the name "Bank of Eurore Trust Company"; the Agent giving

vrmation as to the condition of the institution and stating that it ap-

12ear8 to be well and conservatively managed.

Noted with approval.

Letter dated February 24th from the Federal Reserve Agent at New

1.(*ki, advising that the Federation Bank of that city has received permission

tr°12 the New York State Banking Department to convert into the "Federation

114 and Trust Company"; the Agent stating that the bank is well operated

414 in satisfactory condition and that it is probable that the change will

4" be completed until -2,Iay 1st.

Noted. with approval.

Letter dated February 26th from Messrs. Shearman and Sterling, attorneys,


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at Lew York giving notice on behalf of the National City Bank of New York of

that Institution's intention to close the sub-branch of its Cuban branch

located. in Bayern°, Cuba.

Noted, without objection.

Letter dated March 1st from the Chairman of the Cormnittee on Banking

alla Currency of the United States Senate, transmitting and requesting the

13°4111:Ps views on 616, a bill to provide that any bank of the Federal

Serve System may buy or sell farm loan bonds, that any member bank may

accein time drafts against a deposit of such bonds as security, and that

4°"Ptances of a member bark thus made, or the direct obligation of such

ballit maturing within sixty days, when accompanied by farm loan bonds as

collateral security not less in face value than the amount of such direct

obli ation,shoal be eligible for discount by any Federal Reserve bank.

Upon motion, the above letter was referred

to the Lao Committee for preparation of an adverse

report on the bill.

The Governor reported certain statements which

had come to him with respect to the operations of the

Federal Farm Loan System vthich would make legislation

of the kind contemplated in the above bill particularly

objectionable at the present time, and upon motion by

Mr. Hamlin, he was authorized, to confer regarding the

matter both with Senator McLean and with Senator Fletcher

who introduced the bill.

Letter dated March 1st from the Chairman of the Committee on Banking

441c1 Cillil'oncy of the Senate, transmitting and requ.esting the Board's views

°II Senate Joint Resolution 61, to authorize the Federal Reserve Bank ofOhin„

`#4̀•00 to enter into contracts for the erection of a building for its

/Detroit Branch on the site now owned, provided the total amount expended


204

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t110 erection of said building, exclusive of the cost of the vaults, Derma -

te/itequipment, furnishings and fixtures, shall not exceed the sum of :600,000.

During the discussion which followed, Mr. Miller

suggested that the Board in replying to the above letter

should report the amounts expended in connection with the

construction of several branch bank buildings recently

completed, with information as to the volume of businessOf various kinds at the respective branches, the number

Of employees to be provided for and the provision made for

contemplated future expansion, stating the probable costOf a building at Detroit an a comparable basis, and stating

further that it is for Congress to determine whether it

Wishes to authorize a greater expenditure in Detroit because

Of the size and importance of the city or in view of probable

growth.

Upon motion by Mr. Hamlin, the Board's Secretary and

Counsel were requested to prepare for submission to the Board

a letter along the lines of the above, including a suggestion

for an amendment to the bill making the final cost of the

Detroit building subject to the amraval of the Board.

en10

Of n9"0 against the Federal Reserve Bank of Atlanta rendered by Honorable

ewtoBaker, in connection with services in the case of the Capital Feed

alla .4171 Company versus the Federal Reserve Bank of Atlanta; Counsel review-

t, 0 history of the case and its aspects as a System matter, and recomnendr-

l'axiclum from Counsel dated March 2nd, submitting statement in the amount

t ha f.-Lie Board approve the bill and transmit it to the Federal Reserve

Of Atlanta for payment, with the understanding that if the Atlanta bank

raise8 4 7 question about paying the bill, the matter can then be taken up

'4.(3 other Federal Reserve banks with a view to having them agree to pro-

th expense and reimburse the Federal Reserve Bank of Atlanta.

Upon motion by Mr. Hamlin, Counsel's recommends,-

tions were approved.


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205

Report of Law Committee recommending approval of the matter referred

t° it at the meeting on February 24th, namely, draft of a letter to the

Federal Reserve Agent at Atla'nta, with reference to the practice at that

benk and its Nashville, Jacksonville and Birmingham Branches by which checks

114Yment of notarial services are mid over to and endorsed by the employees

Performing these services and deposited to the credit of the anployees' bene—

fit fund of the Federal Reserve Bank Club; the letter stating that in the

°Pillion of the Board it is contrary to nublic policy for a Federal Reserve

b44k to enter into any agreement or understanding with a Notary Public where—

bY the Notary makes an assignment of official fees, and advising that the

ilractiee should be discontinued, and that hereafter the notaries must be

3-Permitted to retain the full amount of all legal fees paid them for their

official services.

Upon motion, the proposed letter wasapproved*

The Governor then brought up the question of approval and publication

et the Board' s Annual Report for the year 1925, drafts of which have been

l'rrashed each member of the Board.

tOpics

The

After discussion, the Governor was authorizedto communicate with Dr. Stewart former Director of

the Board's Division of Research and Statistics,who assisted in the preparation of the draft inquestion, and to arrange for him to attend a meet—ing at which consideration of the re-fort will be

made special order of business.

Governor then inquired whether the Board wished to submit any

for consideration at the Conference of Governors which convenes on

LIal'°13" 22rici, in addition to that placed on the program at the meeting on


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Pebrn--arY 24th, namely, the advisability of an amendment to the Board's Regu-

latioil A to eliminate the requirement that member banks designate on notes

Ilealsoounted for whom such notes were discounted, except in cases where they

are ac qui red from non-member banks.

At the suggestion of Mr. Platt, the following topicwas ordered placed on the program -"Discussion of capitaliz-ation and other requ.irements imposed by state law on statebanks and trust companies exercising fiduciary Down's, andadvisability of Board adopting for all national banks aminimum capital requ.iremnt and. imposing other requirementsin connection with its granting authority to such banks toexercise trust powers."

1Z'OlIDSP STAITDING COI7IITTEES:

13Ettea, February 25th, Recommending changes in stock at Federal Reserve

27th, Banks as set forth in the Auxiliary Minute Book ofthis date.

Dated, Approved.

Pebruary 27th, Recommending action on applications for fiduciaryMarch 1st, powers as set forth in the Auxiliary Minute Book

of this date.

T)Ettea, Approved.March 1st, Recommending action on application for fiduciary

powers as set forth in the Auxiliary Minute Bookof this date.

1)4teci, ary

Refused.Febru 25th, Recommendirg approval of the application of Mr.

W. A. Parks for permission to serve at the sametime as director of the Overbrook National Bank andas director of the Parkway Trust Company, both ofPhiladelphia, Pa.

33etea, February

Approved.27th, Recommending approval of the application of Mr.

H. LI. Pflager for permission to serve at the sametime as director of the First National Bank andas director of the St. Louis Union Trust Company,both of St. Louis, Mo.

134tecis Approved.

Pebruary 27th, Recommending approval of the application of Mr.

T. R. Akin for permission to serve at the same

time as director of the 1st National Bank, St. Louis, Mo.

and as director of the St. Louis Union Trust Company,

St. Louis, Mo.Approved.


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-41?-°122Laj.1.411g2LCaaliTTEES: (Cont'd)

Dated, Pebruary 27th, Recommending approval of the application of Mr.

B. B. Culver for permission to serve at the same

time as director of the 1st National Bank, St° •

Louis, Mo. and as director of the St. Louis Union

Trust Company, St. Louis, no.Approved.

The meeting adjourned at 12:50 p0m.

APPrelied:

Secre tar


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