19271228_Minutes.pdf

538

meeting of the Federal deserve Board was held in the office of the

:ederal deserve Board on :ednesday, December 26, 1927 at 11:30 a.m.

-2: Vice Governor PlattLir. HamlinZ..r. LinerMr. James

CunninghamMr. .A.dy, Secretary

LeClelland, sst. Jecretary

2he minutes of the meetin., of the Federal deserve Board held on

December 22nd were read and approved.

The Vice Governor reported that in accordance with the action taken

at the meeting on December 22nd he and :Ir.. ::511er discussed with ::r. 3rouciiton,

Commissioner of the Public Debt, the matter of continuing on the new form of

Federal deserve note a reference to the fact that the note is redeemable in

7)1d and that ;:r. Broughton is of the opinion that it will be practicable1/

to include on the fact'of the new note a brief legend to that effect.

Letter dated December 22nd from the .-1.ssistant Secretary of the Federal

Reserve Bank of New York and telegram dated December 22nd from the Chairman

of the Federal deserve Bank of Lansas City, both advising that the boards

of directors at meetings on that date made no changes in the banks' ex-

isting schedules of rates of discount and narchase.

Without objection, noted with approval.

Memorandum dated December 27th from the Secretary, suumittinrs and

recommending approval for payment of a statement presented by :.,:r. .i,.. B.

T.rowbrida coverin-7 the balance of A00 due him by the Board on account of

Services in connection with the erection of the Detroit Branch buildin.

Upon motion, the payment in quest ion wasauthorized.

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

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12/28/27. -2-

Letter dated December 20th from the Chairman of the Federal deserve

Bank of Dallas, suDmittin:; an amendment to the By-laws of the Houston Branch

bringing up to date the list of counties in the present Houston Branch ter-

ritory which was changed at the time of the establishment of the San Antonio

Branch.

Upon motion, the amendment was approved.

Memorandum from Counsel dated December 27th, with reference to

letter dated December 20th from Messrs. Shearman and Sterling, attorneys

for the National City Bank of New York, submitting an application by that

bank for permission to establish a branch in Mukden, Manchuria, China;

Counsel stating that the application is in proper form and that he knows

of no legal reason why it should not be approved.

Upon motion, the followin9: was adopted and

ordered spread upon the minutes; Mr. Cunninghamvoting "m5":

"THE NATIONAL CITY BANK Oi 1iE3 YUK, having on or about

December 22ndi 1927, filed an application with this Board for

the purpose of obtaining authority to establish a-Branch in

Nukden, Manchuria, CHINA, and the said Application having been

considered; and it agp.3aring that the said Application is proper-

ly made under the laws of the United States of America and should

be granted, Now, tharefore, it is

OdDED, that the said Application be and it hereby is

approved, and that the said Bank be and it hereby is authorized.

to establish a Branch in hUkden, Manchuria, OHIKiL."

aeport of Committee on - alaries and Expenditures on letter dated

December 22nd from the Deputy Governor of the Federal eserve Bank of De*

York, transmitting list of employees' for whom the directors of that bank

have approved leave of absence, with pay, on account of illness durin7,

the months of October and November, where the total of such absence since


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12/28/27 -3-

January 1, 1927 has exceeded thirty days; the Bo2rd's )ommittee recommend-

in- approval of the salary payments involved.

Lpproved.

deport of Committee on Salaries and Expenditures on letter dated

December 19th from the Chairman of the Federal Reserve Bank of Dallas,

requesting approval of the action of the board of directors of that bank

in voting to extend from December 15th to December 31st, with full pay,

leave of absence on account of illness previously granted Miss Marguerite

Ferguson, an employee of the Accounting Department; the Board's Committee

recommending approval of the salary payment involved.

Approved.

Letter dated December 17th from the Chairman of the .iederal Reserve

Bank of =Jan Francisco, submitting for the approval of the Board an amend-

ment to the By-laws of the Branches of that bank made necessary by the

recent reduction in the size of the branch directorates from seven to five

members.

Approved.

Letter dated December 17th from the Federal Reserve Agent at

Atlanta, requesting approval of the desimation of Messrs. E. P. Paris

and J. J. Byrne as Examiners for the year 1926 and the designation as

3pecial Examiners of the following officers of the bank:

'3ard Albertson ..ssistant 2edera1 Heserve Agent

.Creed Taylor _ Deputy -_Awernor

d. S. Johns - General Auditor

J. W. Honour - Lssistant Auditor

H. .P. Conniff - Assistant Cashier

7. K. Bowman - Assistant Cashier

J. A. walker - Assistant Langer, Lew Orleans Branch

Approved.


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12/28/27 -4-

Letter dated December 15th from the Federal .teserve Agent at

San Francisco, requesting approval of the redesi7nation of the following

Examiners for the. year 1928:

G. Sargent, Chief Examiner San Francisco

_,. S. Jernegan, i.sst. Chief Examiner - San Francisco

H. A. Sonne, Examiner San Francisco

J. P. Read, Examiner San Francisco

H. D. Swengel, Examiner Los Angeles

John F. Prahl, Examiner Los Angeles

C. R. Huff, Examiner Salt Lake City

E. 3. McBride, Examiner Spokane

G. A. Snow, Examiner Portland

Approved.

Matter approved on initials on )ecember 27th, namely, teler7ram

dated December 10th from the fssistant 'iashier of the Federal deserve

Bank of Minneapolis, requesting approval of a change from three clays to

two days in transit time from Minneapolis to Baltimore.

Formally approved.

Matter approved on initials on December 23rd, namely, teler:Taphic

reply to telegram dated December 22nd from the Federal Reserve Agent at.

San Francisco, with reference to a promsed consolidation of the United

Bank and Trust Company of San Franciscc, a member bank, with the Banca

Popolare Fugazi, a non-member bank of San Francisco; the reply stating

that if the corporate existence of the constituent banks is continued in

the merged bank the latter may retain and operate all branches established

and in operation on February 25, 1927, that the head office is not tech-

nically a branch out may be converted into a branch if it is within the

corporate limits of the same city as the head office of the merged bank,

and that where the non-member bank merges with the member bank an aupli-

cation for membership must be filed by or on behalf of the merred bank.


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12/28/27 -5-

Upon motion, the telegraphic reply was formally

approved.

Latter approved on hiitials on December 23rd, namely, letter dated

December 23rd from the Comptroller of the Currency recommending approval

of increases effective January 1, 1928 in the salaries of employees of

the Federal Heserve Issue and aedemption Division, as follows:

Lrs. -. 1. Burchard - j1080 to .„;1500

:1rs. L. Cranmer - 1440 to 1500

hrs. Dora I. Fox - 1440 to 1500

:Irs. . C. Poston - 1500 to 1560

Formally approved.

Latter approved on initials on December 23rd, namely, memorandum

witeu December 15th from the ..ctinF7 Jomptroller of the jurrency, reco:rn-

mending approval of an application of the Haskell National Bank, Haskell,

Okla. for permission to reduce its capital from 4;50,000 to .25,000 on

condition that no money be returned to the shareholders, but that the

amount of the reduction be credited to undivided profits, that doubtful

assets in the amount of 020,000 be charged off but remain the property

of the bank and that .5,000 be transferred to surplus.

Formally approved.

l_atter approved on initials on December 23rd, namely, memorandum

from Counsel dated December 23rd, recommending approval of Clayton Act

applications of Messrs. James A. Baker, James A. Baker, Jr., d. L. Blaffer,

Ennis Cargill, John L. Dorrance, L.. M. Graves, F. A. Heitmann, and Edwin B.

Parker, involving the Jouth ?ex.as Jommercial 1:ational Bank and the Guardian

?rust Jompany, both of Houston, Texas and the ap-olicLtions of ::.essrs. . . P.


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12/28/27 -6-

Farish and H. C. Schumacher, involving the Union National Bank and the

Guardian Trust Company, both of Houston, Texas.

Upon motion, the applications referred to

above were formally approved.

deport of Committee on Examinations on letter dated December 23rd,

from the Federal deserve Agent at Dallas, recommending that the Harrisburg

ilational Bank, Harrisburg, Texas, a suburb which has recently been merged

into the city of Houston, Texas, be granted the privilege of carrying res-

erves of 7, against demand deposits, instead of 10,,; the Board's Committee

recommending approval.

Approved.

Letter dated December 22nd: from the Secretary of the Federal deserve

Bank of Cleveland, requesting approval of a salary of :4,000 per num,

effective January 1, 1928,.forMr. Paul G. Looney, , employed for the purpose

of managing the bank's cafeteria which is to be reopened on that date.

Approved.

2he Secretary advised the Board of the receint of the stenographic

report of the hearings held beginning December 12th before the board of

airectors o: the Zederal deserve Bank of Dallas in connection with com-

plaints made by certain member bankers in the 11th District against the•

policies and administration of the Dallas bank. He stated that the

hearings were adjourned until January 6th, and in this connection pres-

ented a telegram dated December 27th from the Chairman of the Federal

deserve Bank of Dallas, requestinF: that the Board authorize an additional

expenditure by that bank sufficient to absorb expenses incident to the

adjourned meeting.


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12/26/27 -7-

Upon motion, it was voted to approve the expenditure

referred to with the understanding that the amount will

not be in excess of that authorized in the ori:7inal hearinr-:.

Memorandum dated December 27th from the Jhief of the Division of Bank

Operations, submitting statements of exoenditures by iederal deserve banks

for educational and welfare work, etc. lurinf7 the month of lovember and

for the eleven month period ending November 30th.

Ordered circulated.

The 3ecretary then presented letters from the various Federal Reserve

,gents, requesting approval of the designation of Assistant federal deserve

....r,eltts to serve during the year 1928:

Upon motion, the proposed designations were ap-

proved as follows:

Boston Jharles F. Gettemy

Ilew York

Jlevoland

iandolph Burgess

Herbert S. DownsH. Dillistin

,rthur *-1,. Post

Ernest C4 Hill

J. Prank 21ehiuss (LctinE:)

W. H. FletcherB. Anderson

A.chmond j. G. FryL. 3hepherd (ctin)

,:ard ;abertson

Chicago H. ,hite

3t. Louis ,ilarence L. L-itewart

3. 7ion Panin (.:,cting)

,urtis L. Losher

F. L. ')ailoy

Lansas Jity


54512/28/27

Dallas Charles C. Hall3. J. Evans

iari Francisco S. G. Sargent

;ullan Sproul

Upon motion, it was also voted to approve the re-

designation of Mr. Glenn Kirk to act for the Federal .

Reserve Agent at Chicago in the receipt and delivery

Of Federal Reserve notes and in the receipt and delivery

of other currency and coin.

The Vice Governor referred to a request received over the telephone

from the Chairman of the board of directors of the Federal Reserve Bank

of New York that the Board waive, for the y_ar 1928 the requirement of

the by-laws of the puffalo Branch that the director appointed by the

Board whose term expires with the current year shall be selected as Chair-

man of the Branch Directorate.

Upon motion, it was voted to approve the request.

The Vice Governor then presented a letter addressed to the Secretary

of the Treasury by a student in the ::_ilwaukee Chanter of the ,merican

Institute of Baning requesting. information with respect to the recent

reduction in the discount rate of the Federal Reserve Bank of Chicago.

Referred to the Vice Governor with power.

Memorandup dated December 27th from Counsel, with reference to letter

aated December 15th from 1:_essrs. Stout, .Lose, :ells and ::_artin, attorneys

of Omaha, Nebraska, requestiK- a certified cony of the document filed by

the Corn Exchange National Bank of Omaha signifying its acceitance of the

Federal Reserve Act and its desire to became a member of the Federal

Reserve System; Counsel's memorandu:.: stating that it has been the Board's

policy to decline requests of this kind except when made by court order. The


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12/28/27 -9-

Vice Governor stated that, the document in question is on file and that he

sees no reason for refusint to comply with the request.

Upon motion, the matter was referred. to -ne

Vice Governor with power.

2.EP0“' OF STI.:1".DII;G C=I2TEE3:

Dated, Jecember 23rd, Recohlmending changes in stock at Federal aeserve

27th, banks as set forth in the Auxiliary Linute'Book

28th, of this date.aecommendations'approved.

liated, December 20th, aecammending action on applications for fiduciary

28th, powers as set forth .in the .luxiliary'Linute Book

of this date.Recommendations approved.

Dated, December 23rd, ecommending approval of the application of Lr.

.1nil A. Stake for permission to serve at the same

time as officer of the First National Balk, Chicago,

Ill. as director and officer of the First 2rust

Joint Stock Land Bank, Chicago, Ill, and as director

and officer of the First Trust Joint 3tock Laud

Bank, Dallas, Tex.Recommendation approved.

Dated, December 23rd, ecommending approval of the application of :Ir.

Howard F. Barker for permission to serve at the

same time as director of the Hih Street Bank,

Providence, a. I. and as director of the National

Bank of Commerce, Providence, I.

2.ecommendation approved.

?he meetinr; adjourned at 12:15

Secretary.

Vice-Governor.


Documents

19271228_Minutes.pdf