19250616_Minutes.pdf

A meeting of the Executive Committee of the Federal Reserve Board

was held in the office of the Vice Governor on Tuesday, June 16, 1925

at 11:00 a.m.

PRESENT: Vice Governor PlattMr. MillerMr. James (Serving in the absence

of Governor Crissinger)Mr. Eddy, Secretary

Memorandum dated June 12th from the Secretary, advising that Mr.

Cunningham before leaving had given notice that the salary of his

stenographer, Miss Leona Beller, was to be increased from ,411600 to

1700 per annum, effective July 1st.

Noted.

Memorandum dated June 12th from the Director of the Division of

Research and Statistics, advising that Professor 0. M. Sprague is now

giving the Board his entire time and that effective June 1st his salary

should be at the rate of „;12,000 per annum.

Noted.

Telegram dated June 5th from the Chairman of the Board of Directors

Of the Federal Reserve Bank of Kansas City, advising of the death of

11" John C. Mitchell, Class "A" Director of the bank.

Noted, with regret.

Memorandum dated June 15th from Counsel, sabmittini_: bond in the

Mount of .)100,000 covering Mr. Jas. R. Stevens as Acting Assistant

Federal Reserve at the New Orleans Branch; Counsel calling attention

to the fact that the name of Mr. Stevens has not been inserted in one

Of the clauses of the bond but that this defect is not material and

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

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does not affect the validity of the bond or the right of the Federal Reserve

bank to recover thereon in case of possible default.

After discussion, it was voted to approve

the bona with the understanding that it would

be returned for correction.

Letter dated June 8th from the Governor of the Federal Reserve Bank

Of San Francisco, advising of the receipt of an unsigned, "Revised List

Of Banks Removed from the Par List By the Federal Reserve Bank of Kansas

CitY", for the publication or circulation of which the Federal Reserve

Saak of Kansas City disclaims any responsibility, and inquiring Whether

the Board wishes any action taken toward circularizing the balks in the

12th District regarding the matter.

Upon motion, it was voted to defer action on

the inquiry pending receipt of a copy of the list

and a statement of fact regarding it from the

Federal Reserve Bank of Kansas City.

Draft of letter to the Governor of the Federal Reserve Bank of

Ilinneapolis, prepared in accordance with action taken at the meeting of

allne 11th, on his request that the Board reconsider its previous action

111 disayproving salary increases recommended by the directors of the bank

for Deputy Governors Geery and Moore and Assistant Deputy Governor Yaeger.

Approved, with suggested revision.

Telegram dated June 12th from the Governor of the Federal Reserve

4,11k of San Francisco, with regard to an appeal from the decision of the

13istrict Court in the par clearance case brought against it by the Brookings

State Bank; Governor Calkins stating that he believes the System is interested


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6/16/25

in the appeal and that it would be highly desirable to have Mr. Baker

Participate in its preparation and presentation and proper that his com-

Ponsation should be pro-rated among all banks.

Noted.

Letter dated June 11th from the Federal Reserve Agent at St. Louis,

With regard to the application of the Lincoln Bank and Trust Company of

Louisville, Kentucky, for permission to guarantee the principle and interest

Of real estate mortgage loans which it sells to the public and to issue its

OW n obligations secured by such loans, a broadening in the functions of the

bank exercised at the time of its admission to the System; the Federal Reserve

&gent stating that the Bank Commissioner of Kentucky has approved the proposal

alad recommending that the request of the bank be granted upon condition that

its liability arising from the business does not assume undue proportions in

the judgment of the Federal Reserve Board.

After discussion, it was voted to request

the Federal Reserve Agent for a further ex-

pression of his opinion as to the general char-

acter of the business the bank desires to con-

duct, whether he regards it as safe, the extent

of compensation for such business, etc.

Report of Committee on Examinations on letter dated June 5th from

the Chairman of the Federal Reserve Bank of New York, with regard to the

action of the Bank of the Manhattan Company and The Corn achange Bank of

Ilftr York City in establishing branches without the Board's approval, and

Illeillorandiza dated June 4th from Counsel with regard to the establishment of

branches by the Manufacturers ?rust Company of New York City without first


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6/16/25 -4-

submitting applications for approval of the Board; the Committee recommend-

tag that the Board grant the request of the Chairman that no further action

be taken in the matter until he shall have had an opportunity of discussing

it with the Board.

Upon motion, the recommendation of theCommittee was approved.

Letter dated June 9th from the Chairman of the Federal Reserve Bank

Of Richmond, advising that a special committee of directors of that bank

has completed the survey of the organization of the bank, which the Board

requested be furnished it on or before July 1st, and inquiring whether there

would be any objection to their forwarding it after July 9th, on which date

it could be presented at the meeting of the Board of directors of the Bank.

Upon motion, it was voted to interpose no

objection.

Draft of reply to telegram dated June 15th from the Governor of the

Pederal Reserve Bank of San Francisco, inquiring whether they are at liberty

to withdraw their offer to member banks to pay charges on outgoing shipments

Of standard silver dollars, in view of statement by the Assistant Secretary

°f the Treasury at the last Governors Conference that the campaign to put

Silver dollars into circulation would be discontinued; the proposed reply

stating that the Board would interpose no objection to the discontinuance

Of the assumption of such charges.

Upon Motion, the proposed reply was

approved.


6/16/25 -5-

Mr. James, on behalf of the Committee on Salaries, Expenditures

and Efficiency, then submitted a memorandum, with supporting data, ad-

dressed to him under date of June 15th by the Chief of the Board's Division

Of Bank Operations, with regard to the necessity for definite rules and

regulations covering the assessment against state member banks of the

costs of examinations made by the Federal Reserve banks. Mr. James suggest-

ed that tin subject be referred to the Federal Reserve Agents with the

request that at the Fall Conference they present for the approval of the

Board a set of rules to apply to all Federal Reserve banks.

After discussion, the matter was ordered

circulated among the members of the Board.

Mr. Miller reported that the Connittee on District 410 had not

reached a decision with regard to the appointment of a director of the

Oklahoma City Branch to succeed Mr. Stuart and that the matter muld not

now be acted upon until Er. Cunningham had returned.

The Secretary then presented telegram dated June 15th from Er. C. C.

';ialsh, with respect to the salary of 4s?15,000 per umium approved for him

as Federal Reserve Agent and Chairman of the Board of Directors of the

Pederal Reserve Bank of Dallas, as compared with the salary of 18,000

received by the present incumbent.

Ordered acknowledged and referred to the

Committee on District 411.

?OATS OF STANDING COMMITTEES:

Dated, June 12th, Recommending changes in stock at Federal Reserve Banks,

15th, as set forth in the Auxiliary Minute Book of this date.

Approved.


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Dated,

Dated,

6/16/25 -6-

li:ETTS OF STANDING COMMITT3ES: Cont td)

Dated, June 16th, Recommending action on applications for fiduciarypowers as set forth in the Auxiliary Minute Bookof this date.

Approved.Dated, June 12th, Recommending approval of the application of Mr.

Clifford A. Spoerl for permission to serve at thesame time as Vice President of the First NationalBank, Jersey City, N. J., and as director of theBergen National Bank, Jersey City, N.J.

Approved.Dated, June 12th, Recomenclinc; approval of the application of Mr.

W. D. Reynolds to serve at the same time as directorof the Fort Worth National Bank, Fort 77orth, Texasand as director of the First National Bank, Albany,Texas.

Approved.June 12th, Recommending approval of the

Viilliam B. Frear to serve atof the Manufacturers NationalDirector of the National BankN.Y.

application of Mrthe same time as directorBank, Troy, N.Y. aad asof Rensselaer, Rensselaer,

Approved.June 12th, leconnending approval of the application of Mr. Cornelius

F. Burns to serve at the same time as director of theManufacturers Ntional Bank, Troy, N.Y. and as directorof the National Bank of Rensselaer, Rensselaer, N.Y.

Approved.

APProved:

The meeting adjourned at 12:15

Vice-Governor.

Secretary.


Documents

19250616_Minutes.pdf