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Upon call of the Governor, a meeting of the Federal Reserve Board was

held in the office of the Federal Reserve Board on Friday, August 14, 1925,

at 11:10 a.m.

PRESENT: Governor Crissinger

Mr. PlattMr. MillerMr. James

Mr. Noell, Assistant Secretary

The minutes of the meeting of the Federal Reserve Board held on

August 5th were read and approved.

The minutes of the meetingp of the Federal Reserve Board held on

August 6th and 12th were read and approved as amended.

Letter dated August 13th from the Deputy Governor of the Federal

Reserve Bank of New York, enclosing copy of a letter from the South African

aeserve Bank advising that the question of that bank's opening an account

With the Federal Reserve Bank of New York has been deferred for the present.

Noted.

Report of Committee on Salaries, Expenditures and Efficiency on letter

dated August 11th, from the Federal Reserve Agent at Chicago, requesting

approval of the employment of Mr. Nels E. Hanshus as Federal Reserve Bank

Examiner, with salary not to exceed ci13600 per annum; the Committee also

recommending approval.

Approved.

Report of Committee on Salaries, Expenditures and Efficiency, stating

that the functional expense report for the second quarter of 1925 shows that

while two banks are showing small net profits on the operation of their

Elfeterias the other ten show net losses in an amount which would aggregate

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00,000 a year for the System as a whole; the Committee recommending that

a copy of the report be sent to each Federal Reserve Agent and Board of

Directors with the belief that the banlcs showing losses would insist upon

having their cafeterias run upon a self-sustaining basis.

Upon motion, the recommendation of the

Committee was approved.

Letter dated August 7th from the Federal Reserve Agent at San Francisco,

advising that because of failure to develop certain essential facts, it will

be necessary to defer reporting to the Board on his investigation concerning

the so-called special savings accounts carried by the Pacific Southwest Trust

anLt Savings Bank and the Security Trust and Savings Bank of Los Angeles.

Noted.

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

Cleveland, prepared in accordance with action taken at the meeting on

August 12th, advising him of the Board's opinion that the Commercial Savings

Bank and Trust Company of Toledo, Ohio, before further expanding its business,

by the establishment of additional branches, should considerably increase

the ratio of its capital assets to its deposit liability.

Approved.

Draft of letter to the Federal Reserve Agent at San Francisco, prepared

in accordance with action taken at the Board meetings on August 5th and 12th,

With reference to the desire of the American Bank of San Francisco to establish

c)ne or more additional branches in San Francisco and its inquiry as to the

probable attitude of the Board toward the establishment of these branches.

Approved.

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

New York, prepared in accordance with action taken at the meeting on August

12th, advising of the action of the Board in voting to approve a recommendation

Of the Board of Directors of that bank, submitted to the Board in the Deputy

Governor's letter Of August 3rd, for increases aggregating 41320 in the salaries

Of seven employees of the bank, effective AaP;ust 1st.

Approved.

Memorandum dated August 13th from the Committee on Salaries, Expenditures

and Efficiency, submitting report of functional expenses of the Federal Reserve

banks and brarches for the second quarter of 1925, together with a memorandum

from the Chief of the Board's Division of Bank Operations commenting on same.

Ordered circulated.

-REPORSTANDING COMMITTEES:

Dated, August 13th, Recommending action on application for fiduciary powers

as set forth in the Auxiliary Minute Book of this date.Approved.

The meeting adjourn

Approved:

5p.m.

Assistant Secretary..

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