19260505_Minutes.pdf

406

Itesery.

A meet inn- of the Executive Committee of the Federal Reserve

Board was held in the office of the Board on Wednesday, May 5, 1.26 at, 12 ps

PRESEL7T: Governor CrissingerMr. PlattMr. HamlinMr. MillerMr. Noell, Assistant Secretary.Mr. McClelland, Assistant Secretary.

Memorandum dated May 3rd from the Actin F; Director of the Divisionof Re„_

rch and Statistics, recomending that the temporary appointmentR,,uoert Irelson as messenger in the Division, which expires at the

Close of business on May 7th, be extended for three months.

Approved.

Telegram dated ,A7-)ril 30th from the Secretary of the Federal

e,Bank of Chicago, advising that the Executive Com.Aittee of the

on that day approved the following schedule of rates for nurchasesOf a—

‘;eptances, effective April 27th:

1 to 15 days 3 1/8';16 to 60 " 3 1/4;;61 to 90 3 1/2:;4 months 3 l/2-5 to 6 months 4%

Trade bills - 4%Sales contracts - Government securities 3 1/2'70.

Noted with ap-oroval.

Letter dated April 28th from the Governor of the Federal Reserve

lansas City, advising that a badet system for control of expensesbe 1,11.t into oneration at that bank on July 1st.

Noted with allroval.

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

5/5/26".„

407

Letter dated April 30th from the Chairman of the Federal

aeserve Bank of New York, advising that the Bank of the Manhattan

C°11Pa1Y, New York City, on May 10th will open its new Woodside Branch

at 27 E1hth Street, Woodside, Borough of Queens, and a branch at 188

Central Avenue, St. Albans, Borough of Queens.

Noted.

Letter dated April 29th from the Assistant Federal Reserve

4A-erit at San Francisco, advising that the Pacific Southwest Trust and

Saill=nles Bank, Los Anr,Ples, on April 26th, under the authority previous-

1Y granted by the Board, established branches in the nremises of the

l'irst National Bank of Inglewood, 101 Commercial Street, the agency of

that bank 1155 Hyde Park:Boulevard, and the Inglewood Savings Bank,

222 St queen Street.

Noted.

Letter dated May 4th from the Controller of Loans of the

hcleral Reserve Bank of New York, recomiending that the Board extend

t°1* three or four weeks the Period in which the First Trust and Deposit

CorniDaziy, Oriskany Falls, New York, may accept conditions of vembershin

1111°2ed- Upon it by the Board and complete arrangements for its admissionto th_

System.

Upon motion, it was voted to grant a thirtyday extension.

11411kof New York, advising that the Peoples Trust Comnany, Brooklyn,

111.

411ection with its program of becoming a national banking associa-tiot

Ior the Puroose of consolidatinr later with the National City Bank

Letter dated May 3rd from the Chairman of the Federal Reserve


5/5/26 _3_

408

'r New York, effective Mar 4th, will chnnFe its nrincipal office to185 Montague Street, Brooklyn, and retain as a branch the office now

located at 181-133 Montague Street.

Noted.

Letter dated May 4th from the Federal Reserve Agent at NewYork

submitting further information with respect to t2e nrosnective

b8orption of the First National Bank of Jamaica, New York, by the

Mechanics Bank Of Brooklyn.

Noted.

Draft of letter to the Governors of all Federal reserve banks,

recillestiaPP that they remit direct to the Federal Reserve Bank of San

harleisco, their proportionate share of expense, amounting to $1,221.51,

13414 by the San Francisco Bank, covering services rendered by Honorable

17ewt0n D. Baker in connection with the anneal of the Brookins par

learanca case.

Anproved.

In this connection, the Secretary reported that several days

Lv a. pi-,railar letter was addressed to all Federal reserve banks in con-

liecti°11 with the nro-ratinr: of exnenses of the Federal Reserve Bank ofyork in

connection with the netition filed with the Interstate

C°Thz-lerce Commission on behalf of the Federal reserve banks in an effortto zectire a

reduction in express rates on shinments of currency, coin,

tleellritiess etc.

Noted with approval.


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Letter dated dated May 3rd frcYm the Federal Reserve Agent at Chicago,

e°1111rminC telegraphic advice of the closing of the Second National Bank

°ill" Hampton, Iowa, which is the head bank of a chain of from twelve to

f°11rteen institutions in Iowa ani Minnesota, known as the Shaffer chain;

the 4geat stating that he has been advised of the closing of other units

the chain and enclosing a memorandum showing the status of the Second

lIat1°11a1 Bank of New Hampton with the Federal Reserve Bank at the time of

its closin,,

Noted.

Report of Committee on Examinations on letter dated April 27thOk fl)D

in the Federal Reserve Agent at Richmond, recommending approval of the

(311t°111Plated merger of the Merchants and Farmers Bank of Cheraw, South

°1j11a. and the Bank of Cheraw, under the name of the Bank of Cheraw;

the Uoramittee recommending approval.

Upon motion, it was voted to interoose noobjection to the above merger.

Report of Committee on Examinations on letter dated April 30th

1111/Z1 t'Ile Chairman of the Federal Reserve Bank of New York, advising thatthe 3aylk of

the Manhattan Company, New York City, is negotiating for the

1-41‘chase Of the Greenpoint National Bank, Brooklyn, and stating that in

11t3"4 of the excellent condition of the Greenpoint National Bank, he is

()t the()Pinion that its absorption by the Bank of the Manhattan Company

17°111(1 effect no unfavorable change in the general character of the assets

°t thp4- Latter, and since the Bank of the Manhattan Company already has abalT4be,..

4. of branches in greater New York, the absorption would represent no

in the scone of the functions exercised by them.


11 be necessary for Mr. Ferguson to resign from one of the institu-

5/5/26410

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The Board's Committee noting the pronosedconsolidation with approval, it was voted to inter-pose no objection thereto.

Memorandum dated May 4th from the Chief of the Division of

vperations, submitting statements showing brokers' loans and borrow-1s

from Federal reserve banks of individual reporting member bans in414")rk City and Chicago as of April 28th.

Ordered circulated.

Memorandum from Counsel submitting draft of reply to letter

dated. April 19th from the Federal Reserve Agent in New York, incuiring

Whether theexception to the Clayton Act dealing with common stock owner-

elltAa7,)Dlies to the Highland Trust Company of Union City, New Jersey, and

th"115-011 Trust and Hudson County National Bank of Jersey City, in connec-

" with the annlication of Mr. Frank C. Ferguson, who is also a director

orNew

theYork and New Jersey Joint Stock Land Bank of Newark and the

Itercilants National Bank of Jersey City; the proposed reply stating thatthe

eception referred to is not an?licable to the case in question andit wi

tio2 which he is now serving, and to make annlication to the Board for

1)(*Illissiori to serve the other three, unless, he should resign from the

414t R-took Land Bank, in which event the application already filed to

41've t,'e other three institutions is sufficient.

Upon motion, the nronosed reply was approved.

Letter dated April 30th from the Chairman of the Federal

rys-uank of New York, advising of the action of the Board of Directors

or tliatbank in voting to grant leave of absence without pay for a period


4115/5/26

-6-0.

oftroll.' eight to twelve months, commencing the early Dart of September,

to Lir. Howard. :T. Jefferson, one of the officers of the bank, so as to

Ilira to accompany Professor B. ';1.4. Kemmerer of Princeton University

as rrnber of a finencial mission to the Ecuadorian _lemblic, and possibly

to other South. .American countries, to assist in the reorganization of the

banir;aad nom tary systems of such countries.

Noted without objection.

2he Secretary then Tresented a letter addressed to the President

ei‘ tile United States, under date of April alth, by the President of the

C4411lber Of Commeme of the United States, a:Wising of that irctitution's

3111313°It of the renewal of the charters of the Federal reserve banks; the

letter expressing the opinion that the subject of the renewal of charters

ehoilld not be made contingent upon changes in the Federal aeserve Act, but

that any changes should be considered. and acted upon entirely on

their inerits.

The secretary stated that the above letter had.

been referred. by the President to the Secretary of the

Treasury, who in turn submitted. it to the Board with therequest that a form of acknowledgnent be suggested..

After discussion, it was voted that the ackncwledgnentto be drafted by the Board merely express appreciation of

the position of the Chamber of Commerce.

liemorandum dat ed. Lay 1st from the Chief i:xaminer, prepared in

4ecc/M-ance with the Board's action of April 27th, requesting a report

tile ouestion of exeraination of foreign banking corporations doing

1)1181.11°as Wider an agreement with the Board; the Chief _;marniner in his memo-

1‘44(111-rn. setting forth the status with respect to the examination of the various


Ii

4125/5/26 -.7.-

institutions in question.

Referred to the Committee on Exa2nina.t ions.

Memorandum from Counsel, submitting draft of reply to letters

dated.4-11 21st and 23rd from the Federal Reserve Agent at Chicago,

1.8°cIlanellaing that Mr. C. A. Woodhouse, now in the Credit Department of

tile Detroit Branch, be authorized to receive, receipt for ani. deliver

'944 reserve notes for the Federal Reserve Agent or in his name and

to act in such capacity during the absence or disability of the Assistant

Peci"ea Reserve Agent at the branch; the proposed reply stating that

illaarillIch as Mr. Woodhouse is an employee of the Credit Department of the

131'411449 he would not be authorized to perform the duties of an Assistant

tacle1113. Reserve Agent with reference to the receipt and handling of un-

Pederal reserve notes, and in addition that the Board is not advised

Iteth" Mr. Woodhouse complies with the requiremant of the Federal Reserve

Act that an assistant to the Federal Reserve Agent be a perscn of tested

114331ting experience, for which reasons the Board does not approve of his

415°13atrent to act in the capacity outlined.

Upon motion, the above letter was referred tothe Law Committee.

Letter dated April 30th from the Deputy Goveraor of the Federal

Itee"" Bank of‘New York, advising that it is not the intention of that

azik at this time to enter into a formal agreement with the Czechoslovak

ITEttiozal Bank but to continue the relations already established with the

4ittik°74.1 urad Ministerstva Finan,ci of Prague, of which the Board is already

444184c1; the Deputy Governor stating that if they should at any time in the


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tittlzre consummate a formal agreement with Czechoslovak National Bank, they

will forward a cony to the Board in in usual manner.

Noted.

11°inorandum from Counsel on letter dated April 16th from the Federal

Agent at Atlanta, with reference to the condition of the Citizens

State--)attli: of Marianna, 1?lorida, as disclosed by a recent exazninatio

n, aid.

callinF'-; attention particularly to a donation to the bank of its own stock

itz. the amount of .,000 by the cashier of the bank, in cons id.erat ion of

Whichacnation the cashier received the cancellation of i3,000 of his in-

d•ebtecine2s .0t the bank, which action, the ent states, raises a question

ilillether or 11 _,ot the bank has violated its condition of membership or t

he

zieglaations of the Board; Counsel in his memorandum stating that there is

E(3rile dclubt as to whether the purchase or acquisition a bank of its ovn

stock constitutes in legal effect a reduction of the bank's capital, which,

the ip l'esent case, would bring the capital below that required for a

111°141)e bank, but pointinp: out that the examination shows the reserves of

the balik Were deficient at the time of examination, and suggestinp: that

if the Board believes the bank is an undesirable member and

its memborshiP

the sYste•:a should be forfeited, it nnzi make the failure of the bank to

ec>1111)1Y with the reserve reauirements the grounds for action.

After discussion, upon motion, it was voted to

refer the above matter back to Counsel for further

information with respect to the reserve deficiencies

Of the bank in question and for information as to the

laas of the State of Florida bearing on the nuestion

Whether the above namd bank has effected a reduction

in capital.


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Prepared

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•

3.11er then broubilt up the ciuestion of the desirability

a bibliography of the Federal ileserve System.

Mr. Miller stated he understood the Library of

Congress formerly undertook work of this kind and

moved that the matter be referred to the Division

Of _tesearch and Statistics to ascertain whether the

Library of Congress would be willing to undertake

the preparation of a bibliography, either with or

without the cooperation of the Board, and if not,for report as to the ability of the Board's Divisionto prer.are same.

Mr. Miller's motion being put by thechair was carried.

4

of having'.

I.Ir• Platt, on behalf of the Executive Cormittee, then presented a tenta-

ti" )'ist Of tonics to be submitted to the Federal ,Icivisory Council for con-

&aeration at its rreeting on May 21st.

A:b.0--LITS op

Dated.

After discussion, the Vice-Governor was requestedto address a letter to the President of the Council

submitting the topics suggested by him.

DIMc C01.711I2,21ES:

9 APril 30th,L-ai.Y 4th,

1)4teci.,1:0•Y 4th,

bataci, :,:ay 3ra.,

4ateci-aNY 3rd,

Ltecommending changes in stock at Federal :teserve Banks,

as set forth in the Auxiliary Minute Book of this date.

Approved._tecommending approval of the application of Mr. Jo Zach

Miller, 3d., to serve at the same time as director of the

Bolton National Bank of Belton, Mo. and. as director and.

Vice President of the Commerce 2rast Company of Kansas

City,Approved.

_kecornmending approval of the application of Mr. Louis

A. Bize to serve at the same time as director of the

First National Bank of Clearwater, Fla., as director

of the First National Bank of St. Petersburg, Fla.,

and as President and director of the Citizens Bank and.

Trust Company of Tampa,Approved.

Ilecommenclirc a.pproval of the application of Mr. John F.

Pitz to serve at the same time as President of the National

Bank of -lidgewood in New York of _Iidgewood and. as director

of the _tichmond Hill National Bank of Richmond Hill, :Tow

York.

Approved.


8/5/26-10-

4°ZeS OP STANDING COLMITFEES: (Cont,d)

• Dated, me‘y 3rd,

11°Iloved:

44.5

Recommending approval of the application of Er. ni1 G.Raeder to serve at the same time as director of theNational Baak of Ridgewood in New York of Ridgewood, N.Y.and as Vice-President of the Richmond Hill National Bank.of Richmond Hill, N. Y.

Approved.

The meeting adjourned at 1:00 p.m*

•

ifiL41Assistant Secretary.


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