486

A meeting of the Federal .leserve Board was held in the office of the

?ecleral 2eserve ioard on ,ednesday, June 9, 1926, at 11:15 a.m.

The

P2ESITITT: Vice G-overnor 2latt

Mr. HamlinMr. Miller

Mr. Janes

Mr. Cuuninghom

Mr. Eddy, Secretary

Mr. McClelland, Assistant Secretary.

minutes of the meet of the Federal deserve Board held on June

24(1 aw. 3rd. were read and aoroved.

-Lae Liecretarj reported that 0onF7ressman McFadden had returned the

Board.' s letter to him of June 2nd, a_ -)roved at the Board meeting on that

iltli refc,,rence to the Hull Lmendraents to H. Li. 2.

Letter dated June :)-rd from the lecrotary of the Federal deserve Bank

of Ilovi York, advising that the Board of Directors on that day considered

,ualLzt s schedule of rates of discount and purchase and made

cl

1;0.

1:oted.

Tele-ram dated June 4th from the Secretary of the Federal '.,,eserve

°f Cleveland, advisin that the 2O rd of Directors on that day made

elialige in the bana:'s e:isting schedule of rates of discamt and purchase.

Telegram dated Juno 2nd from the Chairman of the Federal deserve

114:11t Of St. Louis, advising that the Board of Directors on that day adopted

terschedule of rates for the purchase of b rs ' acceptances:

1 to 30 days

31 to 90 days

S3 1/4,,

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91 to 120 days121 to 180 clays

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ONO

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"Toted, with approval.

Telegram dated June 7th from the Chairraan of the Federal eserve L'ank

t Dallas, advising that the Board. of Directors on that day- made no change

Ule bank's existing schedule of rates of discount and purchase.

1Tot ed.

Telegraia dated June :Jrd from the Deputy Chairman of the Federal .2.eserve

Bark of an Francisco, advising that the Board of Directors on that day

840Pted. theiollowinc schedule of rates for purchases of bankers' acceptances:

1 to 30 days 3 1/8-73

31 to 60 days 3 1/4

61 to 90 days 5 1/44

Sales contract 3 1/2;a

',Toted., with approval.

Bond of Kr. John C. Baskin, Assistant Federal lleserve Agent at the

et1-• •alt Branch of the Federal '..'eserve Bank of Chicago, in the amount of

,A0,000.

Approved.

B°11d. of Kr. Fulton Saussy, Assistant Federal Ileserve Agent at the

ille Branch of the 'Federal aeserve Bari: of Atlanta, ,in the amount

ot y100,000.

Approved.

2*Ild of Kr. Courts P. Kendall, alt e mat e Ass is taut 'Federal hose rve

ka'el't at the Jacksonville Branch of the Federal Heserve 3ank of Atlanta,

14 the a-ri o un t of ,..;100,000.

Approved.

t:.

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riemora-ndum dated June 7th from the 3ecretary, reqqesting authority to

ellilD1°Y temporarily two laoorers or painters at the per diem rate paid by

tile government for this class of hel-o, for the purpose cd* painting his

Offices

Approved, and the Secretary instructed to

arrange for the painting at the same time of

the Board :::x)om.

:lerilorauchim dated June ilth from the Acting Direc.,or of the Division

Of :168earch and. 3t•-'tictics, recommendi4; the a-apointmnt of 1:rs. Helen 3.

'laz`d. as statistical Jlerk in the Jivision, at a salary of •)140 per

tilorlth01. the jxriod from Jane 21st to irovember 1st, cull recornmendtig also

that the t er:v)o rary aPP0 tnen ts of :.:rs . B. Bess Hard lt on and hrs. 11-athle en

8, ?eIlrY be ch-n•_:ed from a per diem basis to a monthly basis, with allow-

for leave, at salaries of ,,130 per month.

Approved.

Memorencium dated June rd from the Secretary ad.visiIl that the 2re asufy

vciartment will allot the Board about July 1st suffici.mt additional space in

t11

Off i

441:1

l'easlary Building to house the Board's Division of ]xanination aid the

cos Of the 2iscal Agent, both of 7Lich now housed in the Otis Buildinc, • ,

Pro-lid.° a -private office for 1:r. Herson, Chief of the Division of

;lillations; the Secr-utary further stat iik3 that he can thai enlarge his cvn

(21Z1-,le° bY removing a temporary -_rartition a-ad requesting approval of an ex-

161-11"0 of not to exceed ,4500 f or the puithaze of additional cCf ice e quip-

A-oproved.

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(4,'.ect01' 01 the Philadelphia Javiix,D• Fund Society, which has been accepted.

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1:ot ed.

Letter dated. June 7th from the Chairma.n of the Federal R3serve Bank

010_; \re land. , vi sing that the board of di mot ors of the bank at their

489

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ilernorand.um dated June tjrd. from the Secrctary, r ec OM ending a7yorov 1

at ail increase from 4,2200 to ,,2400 rr annum in the salary of 7.:r. Madison P.

°°Ell Clerk in the Secretary's Office, effective July 1st.

Appraved.

liemoraadum from Co an se I dated. June 5th, submitting draft o'f letter to

the'vAleral aeserve Agent at Boston, with reference to the necessity for Mr.

son Curtis to file a new application for permission to serve as director

°I. the 1:ational iieckland. Bank and. the United States '2rust Company, both of

ostoecause of the establishment of a branch by the "'rational ilockland

)4.1c-1t1in a half mile of the trust company; the proposed letter stating

that110Cwithsta1d.ing the establishment of the branch the Board understands

thattie titutions are the sane corporate, entities which 1:r. Curtis

Zle e

1)011-flitted to serve by the Board in 19Z3 and that in viav of the Federal

e gent's opinion that subtantial competition does iiot exist between

the tvA--) banks no action of tny kind seems to be necessary.

,Upon motion, the p/Dposed letter was 1-

apiproved. P

,Letter dated. June 3rd from the Chairman of the Federal aeserve Bank

,,

ladelphia, advising that ::.r. Alba 3. Johnson has elected to continue

"'lass B Dinctor of that bank and has tendered his resi7nation as a e;

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nkietinr.e, on Jump 4th elected Lx'. B. H. Kroger, President of the Provident

Baleing and Trust Company, Cincinnati, a director of the Cincianati Branch,

to till the unexpired term of Mr. A. Clifford Shinkle, resigned.

Noted.

Draft of reply to letter dated June 1st from the Federal lieserve

4gelit at St. Louis, inquiring as to the disposition of meMbership certifi-

0 Of the Dardanelle Bank and Trust Company, Dardanelle, Ark. whose

ibership was terminated on 'Lay 21st; the proposed reply stating that

1114emach as the original papers of nemberShip in the System are on file

Ilere it is thought that it would be well to have all certificates of Man-

be I' ruturned for filing with such papers as ban lcs cease to be members.

Aeferred to the Executive Cannittee aith

Dower.

Letter dated June 7th from the Federal deserve Agent at Atlanta,

41)1Ying to the Board's letter of :day 27th, requesting a definite recom-

4dation as to whether, on thb basis of its continued deficient reserve,

Board should take action to forfeit the membership of the Citizens

Nvt„Daak, Marianna, Fla.; the Agent stating that on account of th

e un-

%IAA-4 conditions in Florida at this time he fears that if ac

tion should

be-en requiring the bank to forfeit its membership it might be t

he

448s of the bank's failure and have a very bad effect on other mothers

14 thm.-- section of the state, and recommending, therefore,

that action

be A'eferred until after the next examination of the bank.

Upon motion, it was voted to adopt the recom-

mendation of the Federal Reserve Agent.

11

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491

Draft of reply to letter dated. ',lay 12th from the Federal Reserve

4'1)14 at Cleveland, inquiring whether a national bank which has received

kthority from the Board to act as trustee and. rinich goes into liquidation

°all continue to act as trustee or whether it should transfer any trustee-

slit Which it has taken to some individual bank or trust company; the pro-

'°8E3c1 reply stating that a national bank vihich goes into liquidation should

tEke tile proper steps to transfer all of its appointments as trustee, that

tile Board desires the liqu.idating agent or committee of such bank to make a

aeral-anzrual report to it showing the progress made in the liqaidat ion and.

48130sit1on of its trust estates, and that the shareholders of the bank

3431134 adopt an appropriate resolution at the time it is decided to place

the"uat in liquidation, requiring the liquidating agent or committee to

ti8ke such semi-annual reports to the Board..

Approved.

Letter dated May 27th from the Federal Reserve Agent at Boston,

4clUestim, that if consistent with the policy of the Board that bank be

171413,4 _,'Lied. for its credit files copies of reports of the examinations made

or fn„

141 —alga trade banks in the First District operating under agreement

ith the Board; the Secretary presented a letter from the Board's Chief

3,11er stating that it has not been the practice in ti past to supply

the t'48ton bank with copies of such reports, but that if the Board sees fit

to.E•cant the request of Mr. Curtiss he can arrange to type an additional

'11:157' and send it to Boston.

1.

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Upon motion, it was voted that the FederalReserve Bank of Boston should be furnished withcopies of such reports.

Letter dated June 3rd from the Chairman of the Committee on Banking

444 Currency of the, Senate, requesting the views of the Federal Reserve

13(lard on a proposed amendment to Section 202 of the Agricultural Credit

Aet of 19 23 •

Referred to the Law Committee.

riemorandum from Counsel dated May 27th, with reference to the action

°e the recent Conference of Governors in voting that the Federal Reserve

4"6112, acting through the Federal Reserve Board, retain as special counsel,

Newton D. Baker, to consider litigable matters only and that all Federal

'44c1I've banks shall refer to the Counsel of the Federal Reserve Board as

8°1)1a as it arises every litigated question, together with all papers relat-

ille thereto and that the Counsel of the Federal Reserve Board shall referto etich s

ecial counsel all such cases as he thinks concern the System as

e.whOle and any other cases which Counsel for the forwarding Federal Reserve

bazitsrequest be referred to the Special Counsel.

After discussion, the above memorandum was

referred to the Law Committeefbr recommendation.

21ie Vice Governor then presented a telegram dated June 8th from the

beptv__V Governor of the Federal Reserve Baak of New York, who is Acting

°1141-11 .-ka of the Open Market Investment Cormittee, stating that a meeting

(It the Committee will be held on flOndgy, JUMD 21st, either in Washington

orlzYork, whichever the Bosrd desires.

Upon motion, it was voted that the meeting

of the Committee should be held in ":fashington.

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4e

Report of Examination of the Federal Reserve Bank of Philadelphia

as at the close of business April 10, 1926.

Referred to the Committee on Examinationsand. Committee on District #3.

Report of Examination of the Federal Reserve Bank of Richmond

Bait imore Branch made as at the close of tusiness on March 23,

Referred to the Committee on Examinationsand Committee on District #5.

Report of Examination of the Federal Reserve Bank Of Dallas and.

Its Houston and. El Paso Branches made as at the close of business on

PebIllarY 20, 1926.

Referred to the Committee on"..7,xaminationsa,nd Committee on District

'ZITS OP saUDIITG 00172.II22EES:

Dated, June 2nd,3rd,4th,5th,

1) 8th, 4ea, Juno 2nd,4th,

4tea I June 3rd,

4ted, June 8th,

julow 4th,

Recommenling changes in stock at Federal Reserve Banks, asset forth in the Auxiliaw Minute Book of this date.

Approved.

Recommending action on applications for fiduciary powersas set forth in the Auxiliary :„:inute Book of this .date.

Approved.,lecomnending action on application for fiduciary powersas set forth in the Auxiliary Minute Book of this date.

Refused.Recommending action on application for admission of statebank, subject to the conditions stated in the individualreports attached to the application, as set forth in theAuxiliary Linate Book of this date.

Approved.Recommending approval of the application of Mr. Frank C.Ferguson for permission to serve at the same time asdirector of the Union 2rust & Hudson County NationalBank, Jersey City, N.J., as director of the Hi011and

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494

Trust Company, Union City, N. J. and as director

of the Merchants National Bank, Jersey City, N. J.

Approved.Dat8ds June 4th, Recormending approval of tIE application of Mr.

William R. Pentz for permission to serve at the

same time as officer of the Bank of California,

N. A., San Francisco, Cal. and as director of the

California National Bank, Sacramento, Cal.

Approved.Dated-, June 4th, ilecormending approval of the application of Mr.

Leon LI. Little for permission to serve at the same

time as Assistant Vice President of the First

National Bank, Boston, Mass. and as President and

director of the First National Bank, Ipswich, Mass.

Approved.Dated, June 4th, Recommending approval of the application of Mr.

Wilmot R. Evans for permission to serve at tile same

time as director of the First National Bank of

Boston, Mass. and. as Vice President and. director of

the Everett National Bank, Everett, Mass.

Approved.Datecl, June 4th, Recomraending approval of the application of Mr 0

Vann U. Howell for rmission to serve at the same

time as director of the American Southern Trust Co.,

Little Rock, Ark. and. as director of the First

National Bank, Junction City, Ark.

Approved.i)ated, June 4th, Recommending approval of the application of Mr.

John R. Hamoton for i-Jannission to serve at the sametime as director of the American Southern Tru.st Co.,

Little Rock, Ark. and as director of the First National

Bank, Fordyce, Ark.Approved.

1)ated June 4th, Recommend.ing approval of the application of Mr.

David C. Shepard for peimission to serve at the same

time as President and director of the National Exchange

Bank in St. Paul, :.:inn. and as director of the First

National Bank, St. Paul, Mimi.

Approved.138"ted, June 4th, -Recommending approval of the application of Mr.

C. Reinold. Noyes for permission to serve at the same

time as director of the Merchant s Nat ional Bank of

St . Pail, Mimi. mid as director of the Nat ional

Exchange Bank in St. Paul, Mimi.

Approved.

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6 / 9 / 2 6 -10-

Dated, Jima

41:Troved:

T2ANDMG C012:122EES: (Contld)

-1th, ilecomm_nxiinf3 a-oproval of the application ofGord.on for permission to serve at the sane tino asdirector of the First National Bark, St. Paul,and as director of the National Exchange 3an:: in 3t. Paul,Minn°,

Approved.

The meet i.ng ad.journod at 12:00 o'clock noon.

Vice-Governor.

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