A meting of the Federal Reserve Board was held in the office of the Federal Reserve Board on Wednesday, January 30, 1924, at 11:15 a.m. The PRESENT: Governor Crissinger Mr. Platt Mr. Hamlin Mr. Miller Mr. James Mr. Cunningham Er. Eddy, Secretary minutes of the meetings of the Federal Reserve Board held on , 'Textuary 28th were read and approved. The Law Committee submitted without recommendation the\application " the - Commercial National Bank of Washington, D. C., for fiduciary powers, tog e r with a memorandum thereon by Counsel and a letter from the Fed. - Reserve Agent at Riclunond. After discussion, it was voted to withhold approval of the application until such time as the bank makes further progress in improving its condition, as borne out by a subsequent regular examination. Memorandum dated January 28th, from the Director of the Division ot Research and Statistics recommending the extension from February 1 to 1141t14 3 1, 1924, of the temporary appointment of Mrs. Margaret T. Hammond. Approved. . Telegram dated January 29th, from the Denver Clearing House As- scleiat ion, requesting reconsideration by the Board of its recent action in 44113 ing Congress that in its opinion an expenditure of not in excess of Ck5 nr," (31 -vv should suffice for the erection of a suitable building for the Federal Reserve Bank at Denver. Noted. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
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Transcript
A meting of the Federal Reserve Board was held in the office of
the Federal Reserve Board on Wednesday, January 30, 1924, at 11:15 a.m.
minutes of the meetings of the Federal Reserve Board held on ,
'Textuary 28th were read and approved.
The Law Committee submitted without recommendation the\application
" the -Commercial National Bank of Washington, D. C., for fiduciary powers,
toger with a memorandum thereon by Counsel and a letter from the Fed.-
Reserve Agent at Riclunond.
After discussion, it was voted to withhold approvalof the application until such time as the bank makesfurther progress in improving its condition, as borneout by a subsequent regular examination.
Memorandum dated January 28th, from the Director of the Division
ot Research and Statistics recommending the extension from February 1 to
1141t14 31, 1924, of the temporary appointment of Mrs. Margaret T. Hammond.
Approved. .
Telegram dated January 29th, from the Denver Clearing House As-
scleiation, requesting reconsideration by the Board of its recent action in
44113ing Congress that in its opinion an expenditure of not in excess of
Ck5 nr,"(31-vv should suffice for the erection of a suitable building for the
Federal Reserve Bank at Denver.
Noted.
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Letter dated January 24th, from the Assistant Attorney General,
enclosing copy of a letter addressed to the Attorney General by the at-
torneys for the Reserve Deposit Company of Cincinnati, Ohio, regarding
advertising matter issued by that company.
Referred to Counsel.
Letter dated January 26th, from the Governor of the Federal Reserve
laallk of Eansas City replying to the Board's letter of Janwiry 17th with
raglard to the complaint of the Howells State Bank of Howells, Nebraska,
ac.a•lnst the collection of items drawn on it thrau!:7h another bank in that
city.
Referred to Committee on Clearings.
The Law Committee reported on the matter referred to it at the
t"ting on January 16th, namely, letter dated January 14th from the Governor
St the Federal Reserve Bank of New York with regard to the liability of
i'eclsral Reserve banks in the event of payment of bonds and coupons of Fed-
eral Land Banks contrary to instructions; the proposed letter stating that
the Board will leave to the discretion of the Federal Reserve banks questions
(Illsarning the payment of bonds and coupons of Federal Land Banks.
Approved aa amended.
Letter dated January 28th, from the Chairman of the Federal Reserve
Of St. Louis with regard to the organization of the Federal Commerce
t8 -ompany by those interested in the National Bank of Commerce of St. Louis
414 stating that the word "Federal" in the title of the Company was used with-
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out consulting the Federal Reserve bank.
Referred to Counsel.
Memorandum dated January 29th, from Counsel on the subject "Increase
c't Capital by State Member Bank Which has Given Notice of Withdrawal From
the 'Federal Reserve System".
Approved.
Report of Law Committee on letter dated January 24th from the Fed-
"51 Reserve Agent at Richmond with regard to the intention of the New Bern
and Trust Convany of New Bern, North Carolina, to withdraw from the
libederal Reserve System because of its desire to establish branches from
to time after February 1, 1924, without the approval of the Federal
48erve Board; the Committee in its report concurring in the statement con-
in a memorandum of Counsel dated January 26th that as the Board did
234t require the Now Bern Bank at the time it was admitted to membership to
Itree that it would not establish branches without the Board's approval,
it la not subject to expulsion from the System because of the establishment
°t branches without the Board's permission, and that the Board has no
atith°rity over the establishment of its branches so long as it maintains
Ital reserve and keeps itself in sound condition.
After discussion, the report was referred back
to the Law Committee for revision, and preparation of a
letter to the Federal Reserve Bank of Richmond.
Report of Committee on Examinations on the matter referred to it at
he tneeting on January 28th, namely, telegram dated January 26th from the
?ea°mi. Reserve Agent at San Francisco, transmitting and recommendinc; ap-
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Of the application of the Security Trust and Savings Bank of Los
4geles for permission to purchase the Citizens Savings Bank of Inglewood
and its branch in Hyde Park, with a view of establishing branches in the
PreMises now occupied by that institution and its branch; the Committee
recommending tentative approval but reserving final action until the details
of the arrangement shall have been completed and the records cleared as to
the approval of the State Banking authorities and the Federal.Reserve Bank
et San Francisco.
After discussion, Mr. Miller moved that the following
telegram be sent to the Federal Reserve Agent:
"Your wire 26th. Subject to the approval of the State
Superintendent of Banks being obtained, Board approves of
negotiations of Security Trust and Savings Bank to acquire
Citizens Savings Bank of Inglewood and its branch at Hyde
Park, with a view of establishing two branches in premises
occupied by the banks".
Carried.
Report of Committee on Examinations on matter referred to it at the
4leeting on January 28th, namely, letter dated January 26th from the As-
ant Federal Reserve Agent at Cleveland advising of the application of
t11° Provident Savings Bank and Trust Company of Cincinnati to establish
three additional branches in Cincinnati; the Committee recommending that
the Board acknowledge receipt of this notice and instruct the Secretary
to advise the Federal Reserve bank that it will be necessary for the Board
to haVe definite information, showing the approval of the State Banking
4/1thor1ties, and also the approval of the Federal Reserve Bank of Cleveland,
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either through its directors or Executive Committee, before the applica-
tion oan be approved.
Upon motion, the report of the Committee onExaminations was approved.
Report of Committee on Examdnations on letter dated January 24th,
trobilthe Federal Reserve Agent at San Francisco, transmitting formal ap-
lioation of the Security Trust and Savings Bank, Los Angeles, to acquire
the First Vational Bank of Monrovia and the Monrovia Savings Bank and to
ePerate branches in premises now occupied by those institutions, tentative
ItInftval to which was given at the meeting on January 28th; the Committee
"ille that it does not feel that the application is complete in detail
atd,further, that before the Board finally passes upon or gives approval
to aPPlications of this character, the records should be complete as to the
41P1)rcl,a1 of the State Banking authorities and their having been reviewed
13'7the Board of Directors or Executive Committee of the Federal Reserve
11411k Of the District.
Mr. Miller moved that the following telegram be sentto Mr, Perrin:
"Your letter 24th. Subject to approval of the StateSuperintendent of Banks being obtained, Board approves of
negotiations of Security Trust and Savings Bank to acquire
First National Bank of Monrovia and the Monrovia SavingsBank with a view of establishing two branches in premises
occupied by the banks".
Carried.
RePort of Committee on :caminat ions on matter referred to it at the
14etilm.--z,) on January 28th, namely, telegram dated January 21st and letter
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d4ted January 22nd from the Federal Reserve Agent at San Francisco transmit-
and, recommending approval of the application of the Pacific Southwest
411st and Savings Bank to acquire, through exchange of stock, the ',first
114110nal Bank and Trust Company of Santa Paula and its affiliated institutions,
thela.,nta Paula Savings Bank and the Farmers and Merchants Bank of Santa Paula,
t°gether with branches of the latter institution at Saticoy and Fillmore, and
to establish one branch at Saticoy, one at Fillmore and tv...o at Santa Paula,
l'e8"eving the right later to consolidate the two Santa Paula offices into
°Ile branch; the Committee recommending approval of the application.
Mr. Hamlin moved that the report of the Committee be approved.
.Mr. Hamlin's motion being put by the chair was lost,the members voting as follows: