19230306_Minutes.pdf

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A meeting of the Federal Reserve Board was held in the o ffice of the

Federal eserve Board on Tuesday, March 6th, at 11:10 a.m.

PM1SaTT: Vice Governor Platt

Mr. Hamlin

Mr. Miller

Mr. Cris& nger

Mr. Hoxton, Secretary

Minutes of the meeting of the Federal Reserve Board held on February

28th were read and approved as amended.

Minutes of the meeting of the Federal Reserve Board held on March 1st,

were read, and. wproved.

The Vice Governor reported. the reserve positions of the several Federal

Reserve banks as at close of business February 07th, 28th, March 1st, 2nd and

3rd.

Matter laid over from the meeting of February 28th, namely, telegram

ciated February 26th, from the Chairman of the Federal Reserve Bank of San Fran-

as follows:

"Referring to your telegram 24th stating that Board will

not approve further branches for the California banks now hav-

ing numerous branches until the examination problem is settled,

does the Board intend that the term "branches",shall be inter-

preted as incluling also a branch de novo, or a so-called re-

ceiving and paying station in the city of a California bank's

head office or in a city in which it has already established

a branch or branches".

After discussion of the above telegram from Mr. Perrin,

Mr. Miller was requested to prepare and transmit a reply there-

to, it being the sense of the Board that for all administrative

Purposes, save any exceptions heretofore trade by the Board, that

there is no distinction between branches and receiving sta-

tions and assuming that Mr. Perrin's inquiry refers to the ex-

aminat ion problem, each separate o ffic e should b e regarded as

a branch, and for the purposes of examination is to be considered

and treated as such.

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Letter dated February 28th, from the Federal Reserve Agent at San Fran-

cisco, transmitting without recommendation, the application of the Bank of Italy

f01. Permission of the Stockhdlder's Auxiliary Corporation, to purchase the First

National Bank of El Centro, California, Mr. Perrin's letter firthoz stating that

it is understood that the Board's approval of this application will not commit

it aPProval of the application later to convert the 13l Centro Bank into a

branch ofthe Bank of Italy.

Upon motion, the Secretary was instructed to transmit thefollowing telegram in reply:

"Inasmuch as the Board, as at present advised, would notauthorize a branch of the Bank of Italy at a Centro, theBoard does not approve the application of the Bank of Italyfor permission of the Stockholder's Auxiliary Corporation topurchase the First National Bank of El Centro, California.

Letter dated March 2nd, from the Chairman of the Federal Reserve BankOf e,,

protesting against the provisions of Board's circular letter

X-3649, dat ed February 28th, subject "Advertisements of Merit er Banim " .

Ordered circulated through the Executive Folder.

Telegram dated March 1st, from the Chairman of the Federal Reserve

Bank °f St. Louis, protesting against the provisions of Board's circular let-to

4‘-3649, dated February 28th, subject "Advertisements of Member Banks".

Noted.

Letter dated March 2nd, from the Consulting Architect, with referenceto'"0 amendment to the Federal Reserve Act, approved February 6, 1923, said

eltleliclment specifying the expenditure vthich a Federal Reserve Bank is authorized

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to make in theerection of branch bank buildings and making recommendations

With reference to the Board's construction of the words "building proper"

end the words "permanent equipment" which appecr in the amendment aforesaid.

Referred to General Counsel for report.

Letter dated n,rch 3rd, from the Supervising Architect having reference

to the letter of March 2nd above mentioned and making recommeniations with

reference to the Little Rock Branch of the Federal Reserve Bank of St. Louis.

Referred to General Counsel for report.

Letter dated February 21st, from the Chairman of the Federal Reserve

BaIlk of St. Louis, requesting advice as to vthetheer or not the Board approves

-the acceptance by the Federal Reserve Bank of St. Louis of certain bids, speci-

fied. in Mr. Martin's letter, covering the construction of the Little Rock Branch

131. the Federal Reserve Bank of St. Louis, this letter having by action of the

Board taken on February 28th, been ordered laid over until the return of Mr.

Mitchell to Washington.

Upon motion of Mr. Miller, ordered laid upon the

table.

Telegram dated March 1st, from the Chairman of the Federal Reserve Bank

°I) San Francisco, advising that the Board of Directors of that Bank had, sub-

ject to the review and determination of the Federal Reserve Board, voted to in-

crease the discount rate of all paper, all maturities, from 4 to 4i-%, effective

Mlirch 6, 1923.

Formally approved, having been previously approved

by the initials of the Board ment ers.

Mr. Platt stated that a circular letter prepared in accordance with action

°I' the Board taken January 30th, authorizing a conference of Federal Reserve

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Agents at Washington to discuss the reserve to be carried against special

savings deposits, had through oversight not been transmitted, and that he

had telegraphed on the subject to Mr. Perrin under date of March 2nd. He

then submitted a telegram dated March 2nd, from the Chairman of the Federal

Reserve Bank of San Francisco, urging that the Board not call any conference

°f Reserve Agents nor joint conference of Reserve Agents and Governors to con-

sider the subject of reserve against special savings deposits until all Fed-

eral Reserve banks shall be sent copies of certain legal opinions prepared on

this subject for consideration and comment by the Counsels of the respective

zederal Reserve banks, and subsequent review by Mr. John W. Davis or other

C°11nsel of the Board.

After discussion of the above telegram, Mr. Hamlinmoved that Mr. Perrin be authorized to cone to Washingtonupon the occasion of the next conference of Federal ReserveBank Governors. Mr. Hamlin's motion being put by the chairwas lost.

Upon motion, the Secretary was instructed to transmitto Mr. Perrin the following telegram:

"Referring to your wire of March 2nd, the Board willhold no conference of Federal Reserve Agents on the subjectof reserve against special savings deposits stop The /ratter,however, will be taken up by the Board with the next confer-ence of Governors, on March 26th, and if there are any ad-ditional facts to be submitted to the Board, such factsshould be submitted at that time so that the Board can thendetermine whether or not it will reconsider its action pre-viously taken in this matter."

Letter dated February 26th, from the Chairman of the Federal Reserve Bank

"San Francisco, advising of the Bank of Italy's interpretation of the Board'sto

approval of the proposal of the Bank of Italy to purchase the Com-

Mercial National Bank of Los Angeles.

Not ed.

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Upon notion the Poard approved the bond of Mr. Joseph A. McCord, Federal

Reserve Agent at the Federal Reserve Bank of Atlanta in the sum of ?!1100,000.

Letter dated March 1st from the Acting Chairman of the Federal Reserve

Bank of Dallas, transmitting with favorable recommeniation, the application

Of the Second National Bank of Houston, Texas, to accept drafts and bills of

ezoriange up to 1001,, of its capital and surplus which now amounts to 6,1,500,000,

it being noted that the Bank has recently increased its capital in the amount

Of $500,000, and that the Board had previously granted authority to accept up

to 1007: of its capital and. surplus when that capital and. surplus amounted to

$1,000,000.

Approved.

Letter dated February 27th, addressed by lir. "r. H. Steiner of 50 Broad

Stlteet, New York to Mr. Miller requesting that the Board express its approval

°f the Federal Reserve Bank of Atlanta, furnishing certain information to

111%* Steiner concerning Federal Reserve Bank credit methods, said information

being desired for use in connection with the text on credits of the American

Institute of Banking.

Approved.

Letter dated March 1st, addressed to Mr. Pau1.74. Warburg, prepared

bY General Counsel for the signature of the •Acting Governor with reference

to the domestic acceptance business of the International Acceptance Bank of

Ilevi York.

Approved.

Mernorandtun dated March is t, from the Chief of the Division of Examination

lichrising that at the last examination of the Federal eserve Bank of New York,

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the Board's 2.xaminer had borrowed thirty men from the Federal Reserve Banks

of Boston, Cleveland and Philadelphia, to assist for the first three days, and

that bills are now being presented to the Board requesting reimtursernent for the

aoti)al expenses incur red for the transportation, maintenance and. subsistence of

these men. Mr. Herson stated that while he does not deem it necessary to make

reimbursement to the. banks for the salary outlay it appears desirable that an

arn°1ant, say :t25.00 for each man, be allowed to compensate him for the long

hours of overtime which he was required to work. Mr. rTerson requested approval

°f settlement along the lines indicated.

Approved.

Memorandum dated March 6th, from the General Counsel, approved by the

Chairman of the Law Committee, requesting that the salary of Mr. George B.

Vest,Law Clerk, be increased from !!',2400 to $3,000 per annum, effective March

16th, arxi that Mr. Vest be given the title of Assistant Counsel.

Approved.

Memorandurn March 2nd, from the Assistant Secretary of the Board, ad-

/ising that Dr. Stewart wishes to consult with Messrs. W. A. Beveridge of

131"°\v/1 University, Providence, Rhode Island and R. C. Hurlin of the Russell

Sage Foundation, New York, in connection with the make up of an employment

Index now in the course of preparation, and requests that the Board authorize

Pa.Yrnent of their travel and subsistence expenses which should not amount to

tri°re than $125.

Approved.

Memo rand= dated March 5th, from Mr. Wyatt, General Counsel, recommend-

that the text of the Agricultural Credit Act of 1923 be published in the

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Law Department of the forthcoming March number of the Federal Reserve Bul-

letin.

Approved.

Mr. Hamlin submitted a memorandum dated February 28th, with reference

to the publication of the Index Digest of the Federal Reserve Bulletin for

1922, and requested authority to have printed 3,000 copies at an estinated

cost of :,-4;755.20 to be sold by the Board at a price to be determined. later.

Approved.

Mr. Miller stated that the Committee on Economy and Efficiency would

have to secure a new secretary on account of the retirement from the Federal

Reserve system of the present Secretary, Mr. A. A. Vogt of the Federal Reserve

Bank of Chicago.

Referred- to Mr. Millar with power.

Letter dated March 3rd, from the Comptroller of the Currency recommending

a salary of S'3,000 per annum to be paid to Mr. John H. Ketner, National Bank Ex-

In the Third Federal Reserve District.

Approved.

Letter dated March 2nd, from the Comptroller of the Currency recommending

44 iJicrease in the sPlary of National Bank Examiner 2roderick J. Affeldt, Jr.,

trclin :t4,000 to $4,500 per annum.

Approved.

Letter dated March 3rd, from the Comptroller of the Currency recommending

the reinstatement of Yrs. Madeline C. Emerson as a Money Counter in the Federal

11es,-rye Issue and Redemption Division at $3.440 per annum.

Approved.

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Letter dated March 1st, from the Comptroller of the Currency, advising

Of the various changes in the National Bank :]xamining Force

month of February.

Noted.

R2PORTS OF COMMITTEE NO. 1

Dated March 3rd,5th,

Dated March 1st,

Dated march

Dated March

Dated March

441'oved:

Lnd,5th,

1st,

3rd,

Recommending action

as set forth in theApproved.

Recommeniing action

as set forth in theApproved.

made durini, the

on applicat ions for changes in stock

Auxiliary Minute Book of this date.

on applications for fiduciary powers

Auxiliary Minute Book of this date.

Recommenaing action on applications for admission of state

banks, subject to the conditions stated in the individual

reports attached to the applications, as set forth in the

Auxiliary Minute Book of this date.Approved.

Recommending approval of the applicat ion of Mr. Henry J.

Zimmerman, to serve at same time as director of the First

National Bank, Olean, New York and as director and. officer

of the First National Bank, Allegany, New York.

Approved.

Recommending approval of the application of Mr. L. L.

14)nerson, to serve at sane time as president and director

of the Third National Bank, Mt. Vernon, Illinois and as

director of the Ridgley Farmers State Bank, Springfield,

Illinois.Approved.

The meeting adjourned at 1:20 p.m.

Vice Governor.

Secret ar y.

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