19280313_Minutes.pdf

235

41 Meeting of the Federal eserve Board was held in the office of the

l'eclel'al :deserve Board on Tuesday, March 13, 1928 at 12:00 o'clock noon.

12th

10th from the Chairman of

The

Were

PRESEIT: Governor YoungYr. PlattMr. HamlinMr. MillerLr. James1.r. Eddy, SecretaryMr. McClelland, Asst. Secretary

minutes of the meeting of the Federal Reserve Board held

read and approved.

Ileport of Committee on Salaries and Expenditures on letter dated March

on March

the Federal Reserve Bank of Dallas reauesting ap-

14‘°17.41 of the action of the board

grarit additional leave of absence

rtaiPay, to "lass Marguerite Ferguson,

of directors of that bank in voting to

from February 15th to February 29th, with

an

434' who returned to her duties on March°4

account of illness; thesalary

Payment involved.

Approved.

Letter dated March 6th from the AssistantItew York,

advising that

414elliber institution,

bank, both of East Orange: N. J.:

l'eatment and Trust Company of East Orange", which

e°rPorate name to "Savings Investment and Trust

employee of the Accounting Depart-

1, 1928 after an extended absence

Board's Committee

at close of business March 5th the East

and the Central Trust Company of Essex County, a

were merged

recommending approval of the

Federal Reserve Agent at

Orange Bank,

non-

into the "Savings In-

at the same time changed

Company".

Noted.

Letter dated Narch 12th from the Assistant Federal Reserve Agent at

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

236

t(1

3/13/28 —2—

Ilsw York advising that the Municipal Bank, Brooklyn, N. Y. has been author-

ized bY the State Banking Department to establish a branch at the corner of

Pl'ospect Place and Saratoga Avenue, Brooklyn.

Noted.

Report of Executive Committee on letter dated March 9th from the

l'sderal Reserve Agent at Chicago, advising that he has discussed with the

4soutive Committee of his bank the cases of the Northwestern ?rust and

Salillga Bank and the Calumet National Bank, outlying institutions in Chicago

4117i11g reduced reserves under authority previously granted by the Board

414 that his committee recommends that both institutions be continued on a

b si4--s as regards reserves against demand deposits; the Board's Committee

"neurri--ng in the recommendation.

Approved.

Letter dated March 10th from the Chairman of the Federal Reserve Bank

Of Atialata, transmitting cow of resolution adopted by the board of directors

°t thatbank that because of unsettled conditions now existing in the city

Of

llietra, Fla. and the territory served by Miami banks, the revolving currency

flamIormerly maintained at Miami be re-established for a period of six

months

the amount of ,A,500,000, to be secured by the deposit of United States

ent obligations at their face value to the extent of 110;; of the amount

or ell

rrencY in said fund and to be administered by the First National Bank of

' as custodian, under an agreement between that bank and the Federal

cifacirv

Bank of Atlanta.

After discussion, Mr. Hamlin moved that the Board interpose

nO objection to the re-establishment of the revolving currency

fund at Miami for a period of six months in the amount and under


237

the conditions set out in the resolution of thedirectors of the Ltlanta bank.

:Lr. Hamlin's motion bein put by the Chair wascarried, the members voting as follows:

Governor Your, "aye"Yr. Platt, "aye"Mr. Hamlin, "aye"Mr. "no"Idr. James, "no"

.30arcp,'IiIxaminer,was ulso called into the room.

1Lt this point, Lr. Cunninc-ham joined the meeting and Mr. Herson, the

,711, Secretary read the followinr: telegram dated :larch 12th irom the

:leserve .Lgent at San Francisco:

i,lzona Superintendent of Banks has invited us to join in credit-;-:vestigation of Valley Bank, Phoenix, ,irizona, ::arch 31 and ad-:es that he cannot now or at any time in the future furnish ex-elners ;;ith which to conduct a simultaneous entry. If simultan-_ulzs entry is made we will have to furnish the men and conduct a1`;3°mPlete examination the cost of which includincr salaries -illb: neighborhood of .A,800. When last branch was approved fora744 it agreed to submit to simultaneous entry examinations butcl(1. so with the assurance of Superintendent of Banks that he mouldi°11auct sL.me. His reason for change now is that appropriation

aLl4sufficient to employ necessary men. In view of circumstances8-4 fact that Comptroller is not conducting simultaneous entryarnunations shall we proceed to conduct such an examination anda sess the charge against the bank or shall we join the state inprereait investigation without simultaneous entry. The same

wiTrrianc Confronts us in respect to the California member banks

a, Discussion ensued with respect to the necessity or141visab111ty of simultaneous entry of the Valley Bank of

in the light of the circumstances set out in the"aeral aeserve agent's telegram.

l'-fter the discussion, Mr. Platt moved that the Federal

, 've =Igent be advised that the Board will interpose no(c)jection to his exercisinL: his own discretion as to thenaraeter of eamination or investigation to be made.


2383/13/28 -4-

Mr. Miller moved, as a substitute for Mr. Platt'sm"i°n, that the Federal Reserve Agent be advised that

t.he Board has considered his telegram and sees nothingLa the situation that warrants abandonment of the principleof simultaneous examination.

Mr. Miller's substitute motion being put by the Chairwas carried, Yr. Platt voting "no".

Mr. Hamlin then suggested that in View of recent develop-ments in California the Board direct its Chief Examiner to”ke a new study of the question of simultaneous examina-"lft, and report as to whether it is possible to work out44Y practical plan for the simultaneous examination of largemember banks maintaining branches.

Upon motion, Mr. Hamlin's suggestion was adopted.

1111'0:ciTS OF STANDING C01.2.1I2TEE3:

Dateat Mares 12th, Recommending a change in stock at a Federal Reserve

Bank as set forth in the Auxiliary Minute Book of this

date.Recommendation approved.

The meeting adjourned at 1:

4.11)rovect

.m.

Seer


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19280313_Minutes.pdf