19230410_minutes.pdf

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

Nieral Reserve Board on Tuesday, April 10, 1923, at 11:00 a.m.

PRESENT: Vice Governor Platt

Mr. HamlinMr. MillerMr. CrissingerMr. Hoxton, Secretary

MERE WIME LLSO PRESENT BY INVITATION:Senator Smoot of Utah, and

Mr. H. L. Remmel of Little Rock, Arkansas.

These gentlemen presented to the Board reasons why, in their opinion,

the Board should reconsider action formerly taken with respect to Branch bank

111114inge so far as the action affects the proposed Branch bank buildings at

Lake. City, Utah and Little Rock, Arkansas, and should permit these two

ecilletruction projects to proceed. Senator Smoot and Mr. Rommel then withdrew

NM the room.

The minutes of the meetings of the Federal Reserve Board held on April

5th end 7th were read and approved.

The Vice Governor reporteu the reserve positions of the several Federal

Ilefierve banks as at close of business April 4, 5, 6, and 7.

Upon motion, it was ordered that hereafter the reading

of the reports of the reserve positions Shall be discon-

tinued, and in lieu thereof the members of the Board shall

receive each day a report showing a comparative statement

of the discounts, investments, note circulation, etc., of

the Federal Reserve banks.

talit of

1116,--4vuent of an agency by that Bank at Havana,. Cuba.

110,4400

Letter dated April 6th, addressed by Vice governor Platt to the Chair-

the Federal Reserve Bank of Boston, with reference to the proposed estab-

Ordered circulated, together with a memorandum expres-

sing the opinion of General Counsel on this subject.

Telegram dated April 6th, addressed by Vice Governor Platt to Mr. W. G.

in reply to Mr. McAdoo's telegram of April 5th, requesting infornation

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

4/10/23 -2-

as to when the Federal Reserve Board is likely to dispose of the pending ques-t

tion of bank examinations, ani urging that the Board approve the applicat ion

cif the Bank of Italy to acquire, through its Stockholders' Auxiliary Corporation,

the First National Bank of El Centro, California.

Noted, it being the sense of the Board that the ViceGovernor should advise Mr. McAdoo that the Board on March6th voted to disapprove the application of the Bank ofItaly to acquire, through its Stockholders' AuxiliaryCorporation, the First National Bank of El Centro, Cali-fornia, and had voted not to reconsider this decision.

Telegram dated April 9th, from the Governor of the Federal Reserve Bank

Or rinneapolis, stating that the Board of Directors of that bank had, subject

to the review and determination of the Federal Reserve Board, voted that the

ent rate of the bank, namely, 4e, shall also apply to discounts of agri-ellitilrel paper with maturities not in excess of nine months; also, advising

that the Board of Directors had limited the acceptance of this type of paper

to 5% Of the assets of the Federal Reserve Bank of Minneapolis.

Upon motion, the rate recommended by the Federal ReserveBank of Minneapolis, was approved and the Secretary wasinstrtzted to advise the Federal Reserve Bank of Minneapolisthat the Board will, at a later date, fix the limit of theamount of nine months' paper which maybe taken under discountby Federal Reserve banks.

Telegram dated April 9th, from the Chairman of the Federal Reserve Bank

clt Dallas, advising that the Board of Directors of that Bank, subject ts the re—

IlteNv etzd determination of the Federal Reserve Board, had fixed a rate of 4e On134134321 Of all maturities incluling bills of exchange payable at siftt or discount,

414 Ithae months' paper made eligible under the recent Agricultural Act, said

4te to be effective upon its approval by the Board.

Approved.


I

4/10/23 -3-

At 1:10 p.m. a recess was taken until 2:7,0 p.m.

At. 2:30 p.m. the Board reassembled, those members being present who

"Ile Present at the morning session.

Mr. Miller moved that the resolution adopted by the Board on April 7th,

with reference to the liquidation of open market investments by the Federal

Reserve banks as a precedent to an increase in rates, be submitted by the Vice

4"ernor to the Open Market Investment Corrmittee for the Federal Reserve System,

at its /meting to be held in Philadelohia on 1/.1.day, April 13th.

Carried.

Mr. Hamlin presented. the following resolut ion, with the request that

it be recorded upon these minutes, but laid aside for the present as Unfinished

/34einess:

"Resolved:

That, in passing upon the establishment of Branchesby Member State Banks and Trust Companies, whetherde novo or through voluntary purchase of existingBanks, the Board will take into cansiderat ion theneed of the cormunity for additional or improvedfacilities and the effect of the establishment ofthe proposed Branch on the condition of the ParentBank.

Resolved:

That the Board will not undertake to lay down anygeneral policy as to territorial limitations orspheres of influence, but will accept the policy

of the State with regard thereto, as determinedby the State authorities."

Telegram dated April 9th, addressed by the Vice Governor to the Fed-

"41 Reserve Bank of Cleveland, approving for that Bank, effective April 9th,

tile rate of 4.-?;1) for agricultural paper six to nine months, maturities.

Upon motion, ordered ratified.


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4110/23 -4-

Letter dated. April 5th, from Mr. R. C. White, Acting Secretary of the

Department of Labor, enclosing a communication from the United Brotherhood of

CarPenters and Joiners of America at Jacksonville, Florida, and complaining

that there has been a violation of the so-called eight-hour law in the con-

strUction of the building of the Jacksonville Branch of the Federal Reserve

)3ank of Atlanta.

be

H.

Upon motion, the Vice Governor was requested to makethe same reply Nth ic h he made in a letter dated March 31,1923, addressed to the Honorable Park Trammel, United. StatesSenator from Florida, in reply to the same complaint.

Several letters addressed to Mr. Cris singer recommending that Ur.

Nash, Vice President of the First National Bank of Checotah, Oklahoma,

appointed to the position of Federal Reserve Agent and Chairman of the

4ard of Directors of the Federal Reserve Pank of Kansas City, in the event

that Mr. Asa E• Ramsay tenders his resignation.

Referred to the Committee on nomination of Class "C"Directors.

Draft of letter dated April 5th, prepared for the signature of the

Secretary, addressed to the Federal Reserve Agent at Philadelphia, with ref-

to an advertisement issued by a national bank in the Third Federal Reserve

131strict, with respect to the exercise of its fiduciary powers9

Approved.

Letter dated April 9th, from the Federal Reserve Agent at Philadelphia,

418ing that the Supreme Court of Pennsylvania has handed down a decision con-

till:fling the judgment of the Superior Court in the case of the Corn Exchange

114tional Bank of Philadelphia against the Orphans' Court of Philadelphia.

Noted.


4/10/23 -5-

Draft of proposed circular letter to be sent to the Governors of all

Pederal Reserve banks, regarding the existing conditions surrounding the pre-

Paration and. mailing of currency shipments by banks, and advising that if re-

Ports are correct, safer methods should be adopted.

Approved.

Letter date-t. February 21st, from the Chairman of the Federal Reserve

Bank of Kansas City, submitting copies of revised by-laws of the Federal Reserve

8azk of Kansas City and of the branches at Omaha and Denver.

Referred to the Law Conmittee.

Memorandum from General Counsel dated April 5th, requesting authority

to PlIrchase for his office the 1923 Supplement to the Compact :j1dition of

the United States Compiled Statutes at a cost of $5.00.

Referred to the Law Committee. Mr. Hamlin examined thismemorandum and recommended that it be approved. It was there-upon approved.

Menorandam dated April 7th, from the Comptroller of the Currency, trans-

kitting with favorable recommendation, and under certain conditions the pppli-

ealion of the Logan County National Bank of Sterling, Colorado, to reduce its

c4P1tal stock from :t150,000 to 100,000.

Approved.

Memorandum dated April 5th, from the Deputy Comptroller of the Currency

sing that on April 6th, 1923, the Comptroller of the Currency issued a

elEtil for re)ort of condition of National Banks as at the close of business

I•lesday, April 3rd, 1923.

Noted.


4/10/23 -6-

Letter dated April 7th, from Mr. J. Miller, Lincoln, Nebraska,

accepting the Board's appointment as a director of the Omaha Branch of the

Federal Reserve Bank of Kansas City.

Noted.

Letter dated April 7th, from the Governor of the Federal Reserve

of Philadelphia, advising that the Board. of Directors of that Bank believe

that the bank should at this time seci.re a certain property adjacent to the

Present building of the Federal Peserve Bank of Philadelphia.

Upon motion, the Vice Governor was requested to reportupon this matter after his return from his forthcoming visitto Philadelphia.

Letter dated April 6th, from the Secretary of the Federal Reserve Bank

"Chicago, transmitting advice that the Executive Committee of that Bank had,

Ort April 6th, voted to raise the salary of Mr. Pavey, Manager of the Collection

13e0artment, from4500 to $5000 per annum, effective April 1, 1923, subjectto the approval of the Federal Reserve Board.

Approved.

Memorandum dated April 6th, from the Assistant Secretary of the Board,

4418ing that Miss Sue Boot, Statistical Clerk in the Division of Analysis and

Iteaearch, salary $1600 per annum, has tendered her resignation, effective April

313th; and requesting authority to employ a Statistical Clerk to fill the vacancy

Itt. a salary of $1440 per annum.

Upon motion, the resignat ion of Miss Boot was accepted,but a. thority to employ a nee Statistical Clerk to fill thevacancy was withheld*

Memorandum dated April 6th, from the Assistant Secretary of the Board,

l'eltlesting authority to employ, for a period of two months a telegraph operator


*

_

4/10/23 _7-

at the rate of 1165 per month, and of a typist at M.50 per evening for service

the fdrthcoming vacation period.

Approved

Copy of letter prepared by General Counsel and addressed to the Cashier pf

the Globe National Bank of Denver, Colorado, advising that in view of information

te°eived from the State Banking Commissioner. of Colorado, expressing his views

interpretation of the provisions of the Colorado law Which relate to the capi-

tal requirements of state banks and trust companies exercising trust powers in a

City Of the size of Denver, that the Board is of the opinion that it is authorized

11 Section 11 (k) of the Federal Reserve Act, to grant permission to exercise

tidlloiary powers to the Globe National Bank, provided the aggregate of its capital

4" allorplus is not less than 10'70 of its average deposits for the last preceding

ealender year.

The above letter was, upon motion of the Chairman of theLaw Committee, approved.

Mr. Miller stated that the statement for the tress issued by the Federal

ileael've Board on March 27, 1923, with respect to certain rumors as to the Board'scorw.-‘arlIplated actions, had been sent to all upon the general mailing list of the

toall as well as to the newspapers, and moved that hereafter when the Federal

liese„*ve Board issues statements to the press, such statements are to be distrib-

Atea to the press representatives in Washington, and are not to be sent to thetlaln ea

414 _unter until Mr. Mitchell's return; and with respect to the Salt Lake City case,the v.

lee Governor was authorized to transmit the following telegram to the ChairmanOt tv‘ _'4'.e Federal Reserve Bank of San Francisco:

ttPon the mailing list.

Carri ed.

After a discussion of the representations made earlier in the day by Senator41°0t and Mr. Remmel, it was voted that action upon the Little Rock proposal be


4/10/23 -8-

"It has been represented to the Board by persons familiarwith Salt Lake condit;ons that building costs there have not ad-

vanced as in other m.rts of the country, that there is little build-

ing in progress, that nn are out of work, and that nothing wouldprobably be gained by postponing erection of branch bank building

there. 7111 you investigate and report to :Board."

Letter dated April 5th, from the Comptroller of the Currency, recommending

Pprov,cu. of an increase in the salary of National .5ank ..t;xam.in.er lred S, Mansfield

4200 to 4500 per annum.

Approved.

----____11'411 RTS OF C 01WITTiL,' MO. 1:

rjated April 4th,5th,6th,9th,10th,

Aoril 3rd,

4teci

4ted

4tect

April 3rd,6th,9th,

April

April

Acril

6th,

rd,

6th,

Recommending changes in stock at Federal Reserve Banks, asforth in the Auxiliary Minute Book of this date.

Approv ed.

Recommending action on applications forset forth in the Auxiliary Minute Book

Approved.Recommending action on applications forsubject to the conditi ors stated in thetached to the application, as set forthBook of this date.

App-oved.

Recommending refusal of the a plication of Mr. E. C. Hutchin-son to serve at the same time as director of the Broad StreetNational Bank and of the Mercer Trust Cornoany, both of nrenton,

New Jersey.Approv ed.

Recommending approval of the applic ion of Mr. Claude A.Simpler to serve at the mme time as director of the PennsylvaniaT‘TItional Bank and as of2icer of the Land Tutle Trust Company,both of Philadelphia, Pa.

Approved.Recommending approval of the application of Mr. H. H. Porter

to serve at the sane tine as director of the First National

Bank, of the State Bank of Clearing and of the First Trustand Savings Bank, all of Chicago, Illinois.

Approved.(Board decides latter institution not within

its jurisdiction, therefore, consent of Board

unnecessary.)

set

fiduciary powers asof this date.

admission of state bank,individual reports at-in the Auxiliary Minute


4/10/23-.9-

,11_21)ORTS OF COMITT'itE NO.]. (Cont ,d)

Dated April 6th, Recommending approval of the application of Mr. B. F.Mechling, Jr., to serve at the same time as director ofthe Nat icmal Bank of Germantown and of the Pelham TrustCompany, both of Philadelphia, pa.

Approv ed.

Dated April 6th, Recommending approval of the application of Mr. Robert W.Bartlett to serve at the same time as director of theVentnor City National Bank, Ventnor City, New Jersey, andas o ffic er of the At lant ic safe Depo sit and Trust Companyof Atlantic pity, N.J.

Approv ed.

Dated April 9th, Recommending approval of the application of Mr. W. L. Seamanto serve at the same time as Vice President and director ofthe First National Bank, Fort Smith, Ark., and. as Chairmanof the Board of Directors of the National Bank of Mansfield,Ark.

Approved.

Dated April 6th, Recommending afproval of the applicat ion of Mr. Victor S.Fisher to serve at the sane time as director of the VentnorCity National Bank, Ventnor City, N.J., and of the AtlanticSafe Deposit and Trust Company, Atlantic .City IT. J.

Approved.

Dat ed April 9th, Recommending approval of the application of Mr. Wallace I.Stimpson to serve at the same time as director of the NationalUnion Bank, Boston, Mass., and of the Home National Bank,rillford, Mass.

Appro'v ed.

Dated April 7th, Recommending approval of the application of Mr. G. AyresSwayze to serve at the same time as director of the South-western National Bank and as president of the JeffersonTitle and Trust Company, both of :)hiladelphia, Pa.

Approved.

41314.°1red:

The meeting adjourned at 4:30 p.m.

Vice Governor.

Secretary.


19230410_minutes.pdf

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federal reserve board

federal reserve bank

board of directors

reserve positions

national bank

board shallreceive

board reasons

bank examinations