19221003_minutes.pdf

A meeting of the Federal Reserve '-,oard was held in the office of the

Board on Tuesday, October 3rd, 1922, at 11:00 a.m.

PRESENT: Vice Governor PlattMr. HamlinMr. MillerMr. MitchellMr. Hoxton, Secretary

Minutes of the meeting of the Federal Reserve Board held on September

27tb, were read and on motion approved.

The Vice Governor reported the reserve positions of the several

Reserve banks as at close of business September, 26, 27, 28, 29 and

30,

Letter dated September 26th, from the Federal Reserve Agent at San

?rateisco, transmitting with favorable recommendation, the application of the

44 Francisco Savings and Loan Society to establish a branch in West Portal

San Francisco.

Approved.


o

—8009 transmitting with favorable recommendation, the application of the

ic Southwest Trust and Savings Bank of Los Angeles, to establish a branch

the tawn of Lemoore, Kings County, already approved by the Superintendent

4114, and for the Board's tentative approval of its plan to establish various

1)1411che5 between now and the first of the year, it being noted that the plan

NItem—p.uates entering the towns of Pomona, Santa Ana, Anaheim, Fullerton, Ocean

Pa.*$ Santa Monica, Venice, San Fernando, Burbank, Van Nuys, Riverside and San

Upon motion, the Boand voted to approve the establishmentOf the branch at Lemoore, and to refer to Messrs. Miller andMitchell the plan of the Pacific Southwest Trust and Savings

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

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10/3/22 -2-

Bank to establish various branches between now and thefirst of the year at the points named above.

Letter dated September 22nd, from the Federal Reserve Agent at San Fran-

°taco, transmitting with favorable recommendation, the application of the

Ilercantile Trust Company of Sari Francisco, to purchase the Bank of 1Tapa,

Pa, Califotnia, and to establish a branch in Napa.

Approved.

Letter dated September 22nd, from the Federal Reserve Agent at San Fran-

transmitting with favorable recommendation, the application of the

14etcantile Trust Company of San Francisco, to take over the Portugese-American

Of San Francisco, and to establish four branches; one in the head office

or the Portugese-American Bank at Clay and Front Streets; one at 11th and

'111'1.1k-lin Streets, Oakland; one at "0" and. Fresno Streets, Newman; and one

111 the Burch Building, Los Banos, California.

Approved.

Two letters dated September 22nd, from the Federal Reserve Agent at

Ptancisco, transmitting with favorable recommendation, the application of

the Pacific Southwest Trust and Savings Bank of Los Angeles, to establish two

illiallehee; one at Wilmington (Los Angeles) and the other at Normandie Avenue44d ,

iollywood Boulevard, it being noted that these branches will constitute

tW0 Of the twenty-five Los Angeles branch or agency locations for which blanket

4131311cation has been previously approved by the Board.

Approved.

Letter dated September 23rd, from the Federal Reserve Agent at San Fran-

-̀'09 transmitting with favorable recommendation, the application of the Aler-

--e 2rust Company of San Francisco, to establish up to a given number of'Reliciese

Referred to Messrs. Miller and Mitchell.Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

10/3/22


?I`saloisco, requesting the approval of the appointment of certain employees as

Assistant Federal Reserve Bank Examiners, and advising Of an examination of

the Bank of Italy, to be undertaken jointly with the State Banking Department,

as at close of business September 30th, 1922.

Upon motion, referred to the Executive Committee with

power.

Memorandum dated October 2nd, addressed to the Vice Governor by the

Assistant secretary of the Board, submitting a proposed regulation governing

leaves

Of absence on the part of employees of the Board.

Approved, subject to circulation and any changes which may

be suggested by members of the Board.

Memorandum dated September 34th, from ,the Secretary of the Board

"-sing that the term of Mr. Hanain as a member of the Executive Conndttee

etPtred October 1st, 1922.

Upon motion, Mr. Miller was designated as a member of the

Executive Committee in accordance with the By-laws to serve for

a term ending December 31st, 1922.

Upon motion, it was also ordered that beginning January 1st,

1923, the rotating members of the Executive Committee shall serve

terms of three months each.

Copy of circular letter dated October 3rd, 1922, addressed to the

ehet irmen of all Federal Reserve banks, and setting forth the manner in which

the Board desires that annual reports as to salaries and personnel shall be

"ftitted by the Federal Reserve banks.

Approved, it being noted that the proposed letter has

received the approval of the members of the Committee on

Economy and Efficiency.

Letter dated October 2nd, from the Railway Loan Advisory Committee

"the Federal Reserve Board, recommending approval of the form of obliggtion


7

10/3/22

submitted by the Tennessee Central Railray Company for a loan of ":937,000

Under the provisions of Section 210 of the Transportation Act, 1920, as amended.

Approved.

Memorandum dated September 26th, from the Chief of the Division of Bank

°Perat ions, suggesting certain modifications in the annual reports of the

Federal Reserve Board, with respect to the incorporation of the reports of

ederal Reserve Agents.

Referred to Mr. Miller.

Letter dated September 27th, from the United States Veterans' Bureau,

requesting that said Bureau i be furnished with 300 coeies of a pamphlet issued

bY the ,,ederei Reserve Board, entitled, "Approved Methods for the ?reparation

°I* Balance. Sheet Statements" for the use of Vocational Trainees under the

hrisdiction of the United States Veterans' Bureau.

Upon motion, it vas voted that the United. States Veterans'Bureau be furnished gratis 300 copies of the pamphlet requested.

The Vice llovernor stated that he•had been asked by the Federal Reserve

Eallk of Dallas if the Board would look with favor r)on the purchase by the

.'e(3-el-al Reserve Bank of Dallas, from a certain c000rative association, certain

'ers' acc9ptances under a fifteen-day repurchase agreement.

Upon motion, the secretary was instructed to advise the FederalReserve Bank of Dallas that the Board interposes no objection toits purchase of the bills described under a fifteen-day repurchaseagreement.

Letter dated ,,.ug-ust 31st, audreseed to the Vice Governor by the Federal

iles„'4:1713 4',e-;:ent at San Francisco, reporting upon the experience of California

baro„in the matter of special savings accounts as com:ared with ordinar7 savings

4ccou1ts and making reply to certain questions addressed to !..7r. Perrin by

' 13-Latt in the latter's letter of June 24th.

Ordered circulated.


10/3/22 -5-

The vice Governor stated that the Federal Reserve pank of Kansas City

had made a request upon the '7a,r Finance Corporation for reimbursement for

Certain items of expense which apparently are not regarded as reimbursable by

ether Federal Reserve banks.

The Vice Governor was requested to advise the FederalReserve Bank of Kansas City that the Board does not approveits charging the 17Tar Finance Corporation for items not chargedfor by other Federal Reserve banks, but as a matter of recordthe Federal Reserve Bank of Kansas City should keep a closeaccount of expenses of all kinds incurred, for the account ofthe 'Air Finance Corporation.

Memorandum dated September 7th, from the Chief of the Division of Bank

-erations requesting the Board to determine vhether or not the Federal Reserve

batiks in computing reserves should count as reserve the subsidiary silver held

blr them.

Upon Motion, it was voted that in the future, beginningat a date to be determined by the cecutive Committee, theFederal Reserve banks in computing their reserves shall notinclude in their reserves, subsidiary silver held, by them.

The Vice Governor submitted a letter from Mr. Kent, President of the

lietchants Bank of Passaic, Mew Jersey, criticizing the Federal Reserve banks

t.ot accepting "out of town checks" for immediate credit.

Referred t) the Vice Governor with power.

Mr. Hamlin brouft.t before the Board a proposal to have printed a new

tion of the Federal Reserve Act with all amendments.

Referred to the Law Committee with prwer.

Mr. Hamlin stated that early next week there would be a consolidation

or 'banks in Boston, that a recommendation for the favorable action of the

'tal Reserve Board would come from the Federal Reserve Bank of Boston and

tr0111 the Boston Clearing House, and that it would 'be necessary to act prompt-

the application of the merged institution for admission to the Federal


10/3/22 -6-

Reserve System.

Referred to the Executive Committee with power.

At one o'clock a recess was taken until three o'clock this afternoon.

The Board reassembled at three o'clock, the same members being pres-

ent who were present at the morning session.

In view of the importance of questions whidh have arisen with regard

to the policies and operations of the Federal Reserve System during the

Years 1919 to 1921, inclusive, it was upon motion, voted that the Vice

G"ernor address a letter to Yr. W. P. G. Harding, former Governor of the

Pederal Reserve Board, and request him to prepare for the records of the

80ard, a memorandum of his views upon the history and operations of the

N.eral Reserve System during the years 1919 to 1921, inclusive, and it was

tUrther votea that the Vice Governor be authorized to provide Yr. Harding

11th such facilities as may be necessary for the purpose of the preparation

Of the material requested by the Board, including the assignment of a sten-

°gtepher and the allotment of space in the Otis Building.


Nalcisco, requesting the appointment of certain employees of that Bank

"Assistant Examiners, and advising of the examination of the Bank of

ItalY to be undertaken jointly with the State Banking Department as of

olose of business September 30th, said letter having been referred at

the morning session to the Executive Committee with pover. The Executive

COMMittee subratteu the follming telegram addressed to Yr. Perrin, which

Ivaupon motion approved.


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"Referring your letter September 26 requesting approval ofassistant examiners and advising of examination of Bank of Italy tobe undertaken jointly with the State Banking Department as of closeOf business September 30 Stop The Board's Counsel doubts whether theFederal Reserve banks have authority to undertake joint examination

with State authorities Stop Board therefore'advises that in the exam-ination of the Bank of Italy either the same procedure be followed aswas directed in Board's telegram of September 2 in the case of the LosAngeles Trust and Savings Bank or, in the event that you think best,that exam'nation be made by State authorities, that you furnish theState authorities with sufficient examiners and assistant examinersWith the understanding that the Federal Reserve Bank is to be reim-bursed for all expenses incurred by it through the detail of itsemployees for the use of the State Banking Department Stop To the ex-tent that you may find it necessary Board approves designation as as-

examiners of names mentioned in your letter of 26th."

The Vice Governor submitted the reports of examination of the Federal Res-

lank of Minneapolis as of July 15th, 1922; of the Federal Reserve Bank ofelev

e'Land as of May 20th, 1922; and of the Federal Reserve Bank of San Francisco

Jnne 17th, 1922.

Noted. The Secretary was instructed to advise the aboveFederal Reserve banks of the receipt and consideration of thereports by the Federal Reserve Board.

remorandum doted October 2nd, from the Assistant Secretary of the Board ad-

Of the resipnat ion of Miss itiriam -Iright son, key-punch operator at 1440

1511' 411411m, Division of Bank Operations, effective as at close of business Septem-

el' 3°th, and requesting authority to appoint riss Inez Maley to fill the vacancykt a

salary of 1320 per annum.

Approved.

Letter dated September 30th, from the Comptroller of the Currency, recom-

e the approval of a salary of 2,700 per annum to be paid to Mr. GustaveIt, 40

1.1'e8, National Bank _11,caminer in the Twelfth Federal Reserve District.

Approved.

Letter dated September 30th, from the Comptroller of the Currency,

4141511ding the approval of a salary of :1'2,700 per annum to be paid to


10/3/22 -8-

Mr. Charles H. McLean, National Bank Examiner in the Twelfth Federal

Reserve District.

Approved.

Letter dated Septetber 30th, from the Comptroller of the Currency,

recommending the approval of a salary of 2,700 per annum to be paid to

Mr. R. Foster Lam'', National Bank 3xaminer in the Twelfth Federal Reserve

District.

Approved.


recommending the approval of a salary Of 12,700 per annum to be paid to

1114. 2. Raymond Peterson, National Bank Faaminer in the Tenth Federal Reserve

District.

Approved.

Letter dated Septelaber 30th, from the Comptroller of the Currency,

recommending the approval of a szAlary of 4•2,700 per annum to be paid to

11r. John O. Fredlund, National Bank 'xaminer in the Tenth Federal Reserve

District.

Approved,

Letter September 30th, from the Comptroller of the Currency,

recommending the approval of the following increases in salaries of

Xational Bank Examiners, effective October 1st, 1922:

ITame---.- Present salar7 New Salary Recommended

George 2. Armstrong :135,000 5,500Roland F. Brock 3,000 3,300Zaward L. Chapman 3,600 4,000Vlarren W. Dunaway 3400 3,600Harry N. Horner 3,300 3,600;teon G. Kennedy 2,700 3,000tiovard S. Lehman 3,000 3,300


10/3/22 -9

(Continued)

Name Present Salary New Salary Recommended

J. Oscar Roots 34,000 $5,000

Roy E. smith 3,300 3,600

Sam P. spllenberger 4,200 ' ' 4,500

Approved..

Letter dated Septebber 30th, from the Comptroller of the Currency,


National Bank Examiners, effective October 1st, 1922:

Name Present Salary New Salary Recommended—.........

John B. Chenault %,500 N.,800

Leo r. Cutts 3,600 3,900

A. Burton Faris 3,600 3,900

B. L. Furbee 3,000 3,300

10M. C. Griswold 4,000 4,500

Henry B.'Hane 4,500 5,000

Approved.



National Bank Examiners, effective October 1st, 1922:

Name Present Salary,

New Salary Recommended

Claude O. Craig $3,300 3,900

J• B. Greenfield 4,500 5,100

B. K. Patterson 4,800 5,400

H. W. Walker 3,900 4,500

Approved.

BZPORTS OF ccrnITTEE NO. 1.

Dated September 27,28,29,

Dated October 2,

Recommending changes in stock at Federal Reserve

banks as set forth in the Auxiliary Yinute Book

of this date.Approved.


10/3/22

RZPORTS OF CONTITTER NO. 1. (Cont'd)

Dated September 14th, Recommending action on Applications for fiduciary25th, powers as set forth in the auxiliary minute book

of this date.Approved.

Dated SepteMber 28th, Recommending approval of the application of Mr.

John T. Dorrance to serve as director of the

National Bank of Commerce, New York City, the

Old Colony Trust Company, Boston, Massachusetts

and the First National State Bank of Camden, New

Jersey.

Approved.

At 3:15 p.m. the meeting adjourned.

Vice Governor.

•

Secretary


19221003_minutes.pdf

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