19240130_Minutes.pdf

A meting of the Federal Reserve Board was held in the office of

the Federal Reserve Board on Wednesday, January 30, 1924, at 11:15 a.m.

The

PRESENT: Governor CrissingerMr. PlattMr. HamlinMr. MillerMr. JamesMr. CunninghamEr. Eddy, Secretary

minutes of the meetings of the Federal Reserve Board held on ,

'Textuary 28th were read and approved.

The Law Committee submitted without recommendation the\application

" the -Commercial National Bank of Washington, D. C., for fiduciary powers,

toger with a memorandum thereon by Counsel and a letter from the Fed.-

Reserve Agent at Riclunond.

After discussion, it was voted to withhold approvalof the application until such time as the bank makesfurther progress in improving its condition, as borneout by a subsequent regular examination.

Memorandum dated January 28th, from the Director of the Division

ot Research and Statistics recommending the extension from February 1 to

1141t14 31, 1924, of the temporary appointment of Mrs. Margaret T. Hammond.

Approved. .

Telegram dated January 29th, from the Denver Clearing House As-

scleiation, requesting reconsideration by the Board of its recent action in

44113ing Congress that in its opinion an expenditure of not in excess of

Ck5 nr,"(31-vv should suffice for the erection of a suitable building for the

Federal Reserve Bank at Denver.

Noted.

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

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Letter dated January 24th, from the Assistant Attorney General,

enclosing copy of a letter addressed to the Attorney General by the at-

torneys for the Reserve Deposit Company of Cincinnati, Ohio, regarding

advertising matter issued by that company.

Referred to Counsel.

Letter dated January 26th, from the Governor of the Federal Reserve

laallk of Eansas City replying to the Board's letter of Janwiry 17th with

raglard to the complaint of the Howells State Bank of Howells, Nebraska,

ac.a•lnst the collection of items drawn on it thrau!:7h another bank in that

city.

Referred to Committee on Clearings.

The Law Committee reported on the matter referred to it at the

t"ting on January 16th, namely, letter dated January 14th from the Governor

St the Federal Reserve Bank of New York with regard to the liability of

i'eclsral Reserve banks in the event of payment of bonds and coupons of Fed-

eral Land Banks contrary to instructions; the proposed letter stating that

the Board will leave to the discretion of the Federal Reserve banks questions

(Illsarning the payment of bonds and coupons of Federal Land Banks.

Approved aa amended.

Letter dated January 28th, from the Chairman of the Federal Reserve

Of St. Louis with regard to the organization of the Federal Commerce

t8 -ompany by those interested in the National Bank of Commerce of St. Louis

414 stating that the word "Federal" in the title of the Company was used with-


1/30/24 -3-

out consulting the Federal Reserve bank.

Referred to Counsel.

Memorandum dated January 29th, from Counsel on the subject "Increase

c't Capital by State Member Bank Which has Given Notice of Withdrawal From

the 'Federal Reserve System".

Approved.

Report of Law Committee on letter dated January 24th from the Fed-

"51 Reserve Agent at Richmond with regard to the intention of the New Bern

and Trust Convany of New Bern, North Carolina, to withdraw from the

libederal Reserve System because of its desire to establish branches from

to time after February 1, 1924, without the approval of the Federal

48erve Board; the Committee in its report concurring in the statement con-

in a memorandum of Counsel dated January 26th that as the Board did

234t require the Now Bern Bank at the time it was admitted to membership to

Itree that it would not establish branches without the Board's approval,

it la not subject to expulsion from the System because of the establishment

°t branches without the Board's permission, and that the Board has no

atith°rity over the establishment of its branches so long as it maintains

Ital reserve and keeps itself in sound condition.

After discussion, the report was referred back

to the Law Committee for revision, and preparation of a

letter to the Federal Reserve Bank of Richmond.

Report of Committee on Examinations on the matter referred to it at

he tneeting on January 28th, namely, telegram dated January 26th from the

?ea°mi. Reserve Agent at San Francisco, transmitting and recommendinc; ap-


1/30/24 -4-

Of the application of the Security Trust and Savings Bank of Los

4geles for permission to purchase the Citizens Savings Bank of Inglewood

and its branch in Hyde Park, with a view of establishing branches in the

PreMises now occupied by that institution and its branch; the Committee

recommending tentative approval but reserving final action until the details

of the arrangement shall have been completed and the records cleared as to

the approval of the State Banking authorities and the Federal.Reserve Bank

et San Francisco.

After discussion, Mr. Miller moved that the following

telegram be sent to the Federal Reserve Agent:

"Your wire 26th. Subject to the approval of the State

Superintendent of Banks being obtained, Board approves of

negotiations of Security Trust and Savings Bank to acquire

Citizens Savings Bank of Inglewood and its branch at Hyde

Park, with a view of establishing two branches in premises

occupied by the banks".

Carried.

Report of Committee on Examinations on matter referred to it at the

4leeting on January 28th, namely, letter dated January 26th from the As-

ant Federal Reserve Agent at Cleveland advising of the application of

t11° Provident Savings Bank and Trust Company of Cincinnati to establish

three additional branches in Cincinnati; the Committee recommending that

the Board acknowledge receipt of this notice and instruct the Secretary

to advise the Federal Reserve bank that it will be necessary for the Board

to haVe definite information, showing the approval of the State Banking

4/1thor1ties, and also the approval of the Federal Reserve Bank of Cleveland,


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either through its directors or Executive Committee, before the applica-

tion oan be approved.

Upon motion, the report of the Committee onExaminations was approved.

Report of Committee on Examdnations on letter dated January 24th,

trobilthe Federal Reserve Agent at San Francisco, transmitting formal ap-

lioation of the Security Trust and Savings Bank, Los Angeles, to acquire

the First Vational Bank of Monrovia and the Monrovia Savings Bank and to

ePerate branches in premises now occupied by those institutions, tentative

ItInftval to which was given at the meeting on January 28th; the Committee

"ille that it does not feel that the application is complete in detail

atd,further, that before the Board finally passes upon or gives approval

to aPPlications of this character, the records should be complete as to the

41P1)rcl,a1 of the State Banking authorities and their having been reviewed

13'7the Board of Directors or Executive Committee of the Federal Reserve

11411k Of the District.

Mr. Miller moved that the following telegram be sentto Mr, Perrin:

"Your letter 24th. Subject to approval of the StateSuperintendent of Banks being obtained, Board approves of

negotiations of Security Trust and Savings Bank to acquire

First National Bank of Monrovia and the Monrovia SavingsBank with a view of establishing two branches in premises

occupied by the banks".

Carried.

RePort of Committee on :caminat ions on matter referred to it at the

14etilm.--z,) on January 28th, namely, telegram dated January 21st and letter


6 1/30/24 -6-

d4ted January 22nd from the Federal Reserve Agent at San Francisco transmit-

and, recommending approval of the application of the Pacific Southwest

411st and Savings Bank to acquire, through exchange of stock, the ',first

114110nal Bank and Trust Company of Santa Paula and its affiliated institutions,

thela.,nta Paula Savings Bank and the Farmers and Merchants Bank of Santa Paula,

t°gether with branches of the latter institution at Saticoy and Fillmore, and

to establish one branch at Saticoy, one at Fillmore and tv...o at Santa Paula,

l'e8"eving the right later to consolidate the two Santa Paula offices into

°Ile branch; the Committee recommending approval of the application.

Mr. Hamlin moved that the report of the Committee be approved.

.Mr. Hamlin's motion being put by the chair was lost,the members voting as follows:

Governor Crissinger, "no"Mr. Miller, "no"Ur. Cunningham, "no"Mr. Platt, "aye"Ur. Hamlin, "aye"Mr. James, "aye"

Letter dated January 23rd, from the Federal Reserve Agent at San

taco, transmitting and recommending approval of the application of the

BItlik of Italy to establish a branch at 5716 Geary Street, San Francisco.

Referred to Committee on Examinations.

Telegram dated January 29th, from the Federal Reserve Agent at San

11141".800 transmitting the application of the Bank of Italy to purchase the

Bank of Hini;sburg and to establish a branch in its premises.

Referred to Committee on Examinations.

?re.


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tneGttaig on January 24th, namely, a letter dated January 22nd, from the As-

Blatant Federal Reserve Agent at Chicago, enclosing a letter from the Dan-

aCer of the Detroit Branch advising that it is the intention of the Highland

l'"k State Bank, Highland Park, Dichigan, to open a branch in that city;

the Committee recommending approval of a lotto; requesting further infolzation,

844re5sed to the Federal Reserve bank by the Secretary of the Board under

4to clf January 26th.

Upon motion, the report of the Committee onExaminations was approved.

Report of Committee on Examinations on letter dated January 21st

*1514 the Federal Reserve Agent at San Francisco, transmitting and recom-

tell:1111C approval of the application of the Pacific Southwest ?rust and Say-

14'8 Bank to take over the First National Bank of Wilmin3ton.and to merge

the ,uuelness of the 7iilmington bank with that of its Wilmington branch; the

01511"tee stating that this application does not involve the establishment

Or ft.-c'41 additional branch and recommending approval.

Upon motion, the report of the Committee onExaminations was approved, Governor CrissinL;er voting"no".

Report of Committee on Examinations on letter dated January 25th,

Dtlithe Federal Reserve Agent at St. Louis transmitting and recommending

vlial Of the application of the Liberty Insurance Bank of Louisville,

for permission to open a branch in Louisville; the Committeetee°

trtnending that the Board give its approval with a possible condition


1/30/24

that the the approval of the directors of the Branch Federal Reserve Bank at

Louisville shall be secured before the Board's approval becomes effective.

Upon motion, the report of the Committee on

Examinations was approved.

Report of Committee on Examinations on letter dated January 26th,

rtom the Issistant Federal Reserve Agent at Cleveland, transmitting the

aPPlication of the Cleveland 2rust Company for permission to establish a

btanch in inkewood, Ohio; the Committee stating that as it has been the

13(lar'd es policy to grant approval only after applications have had the ap-

Pt°val Of the State Banking authorities and of the Bord of Directors or

ecutive Committee of the Federal Reserve bank of the District, this ap-

I)lication should take the proper course in this regard before the Board

Thres its epprJval.

Upon motion by LLr. Platt, the report of the Committee

was approved, Governor Crissinger voting "no".


41"ing on Janu. Ty 25th, namely, letter dated January 24th from the Federal

1(18(51*ve Agent at Boston transmiuting and recommending approval of the appli-

ti11--O4 Of the Industrial 2rust ComTany of Providence, Rhode Island, for

Ile/11138ton to open four branches within the city limits of Providence, one

btctriCh at Centredale and one at Central Falls; the Comaittee stating that

ided the State Banking authorities and the Board of Directors or .:1xecu-

tIe00Mmittee of the Federal Reserve Bank of Boston approve the application,

se88 no reason why the Federal Reserve Bord should not in turn grant

t4toval,


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After discussion, Mr. Millr moved that the

Federal Reserve Agent be advised that the Board will

suspend action on the application until it has re-

ceived a report from the Executive Committee of the

Federal Reserve Bank of Boston and the Superintendent

Of Banks of the State of Rhode Island, and that he

should inform the bank that its application will be

treated as filed prior to February 1st and all rights

reserved under it.Carried.

Letter dated January 26th, from the Bank Commissioner of the State of

1121(xle Island stating that if the Board can consistently allow the Rhode

'Bland Hospital Trust Company to establish branches in certain cities and

t°17ills as they desire, they have permission to act provided they conform

to state laws.

Noted.


iteetinG on January 24th, namely, a letter dated January 18th from the

Neral Reserve Agent at Boston, transmitting and recommending approval

or application of the Rhode Island Hospital Trust Company of Provi-

cle4ce, Rhode Island, for permission to open branches in 4ester1y, Nemport,

°011mocket, Warwick, West Warwick, '.;arren and Bristol; the Committee sub-

Itittine a majority report signed by Messrs. James and Dawes and a minority

signed by Mr. Platt as follows:

MaAprity Report

"Committee recommends that before acting on these applica-

tions, approval of the State Banking authorities of Rhode Island

should be submitted tlth the approval also of the Federal Reserve

Bank at Boston, through its Board of Directors or Executive Committee".


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"Committee further recommends that each application

should be made separately and not in blanket form as here-

in presented. In the event the details cannot be completed

by February 1st, Committee would recommend the understanding

on the part of the Board that the application was on file

prior to February 1st."

Minority Report.

"The letter from the President of the Rhode Island

Hospital Trust Company states that the Superintendent of

Banks of Rhode Island has given his approval of the applica-

tions :or branches enclosed, and the Federal Reserve Agent

at Boston also expresses approval. The Board has never re-

quired, so far as I am aware, a fdrmal statement from the

Superintendent of Banks but has always relied upon the state-

ment of the Federal Reserve Agent to the effect that the

Superintendent had approved. If the Board wishes to obtain

a letter of formal approval from the Superintendent of Banks

and also wishes the matter submitted to the .:xecutive Commit-

tee of the directors of the Federal Reserve Bank of Boston,

I see no objection."

"I concur in general in the Committee's recommendation

that each application should be made separately but I sec

no reason in a case like this why several applications Should

not be submitted together. I assume that it is not the inten-

tion of the Rhode Island Hospital 2rust Company to rush into

the establishment of all these branches immediately. It mere-

ly wants assurance, as I understand it, that it can establish

the branches as details are worked out and plans perfected.

".;ith this understanding I concur in the final recommendation

Of the Committee that the applications are to be treated as

on file prior to February 1st, with details to be worked out

later, so that they come within the limit set by the Board's

resolution of Novamber 7th."

After discussion, Mr. Hamlin moved that the ap-

plication of the rihode IA.and Hospital 2rust Company

ue aDproved.Carried, Mr. Cunningham voting "no", and

Governor Crissinjer "not voting".


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Letter dated January 29th, from Mr. M. C. Ealiott, Counsel for the

1110* of Italy, making application on behalf of that bank for permission to

flocruire by purchase from the Bancitaly Corporation the assets of the First

44tional Bank of El Centro, the American rational Bank of Santa Ana, the

l'irat National Bank of Shafter and the First rational Bank of San Juan,

414 to establish branches at the existing locations of those banks.

Upon motion by Mr. Hamlin, the applications

were received and referred tothe Committee on

Examinations.

IkPATS OF STANDING COMMTTEES:

bat ea ,

bated,

bat ea,

be. d,

January 28th,29th,

January 30th,

January 26th,29th,

January 28th,

January 28th,

Recommending changes in stock at Federal Reserve

banks, as set forth in the Auxiliary Minute Book

of this date.Approved.

Recommending action on applications for fiduciary

powers as set forth in the Auxiliary Minute Book


Recommending action on applications for admission

of state banks, subject to the conditions stated

in the individual reports attached to the applica-

tions, as set forth in the Auxiliary Minute Book


Recomnending approval of the application of Hr.

Frank TtLi Male to serve at the same time as director

of the Newton Trust Company, Newton, Mass., of the

First rational Bank, West Newton, Bass., and of the

First National Bank, Boston, Mass.

Approved.Recommending approval of the application of Mr.

George W. Donaghey to serve at the same time as Rodk

president and director of the Bankers Trust Company, Little/

and as vice president and director of the First

National Bank, North Little Rock, Ark.


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ORTS 0

bated,

Dated,

STANDING COMMITTEES: (CONT'D)

January 29th, Recommending approval of the application of Mr.

Howard Bayne to serve at the same time as director

of the Morristown Trust Company, Morristown, N.J.

and of the Seaboard National Bank, New York City.

Approved.January 29th, Recommending approval of the application of

John O'Brien to serve at the Immo time as director

of the First National Bank, Wolcott, N.Y. and as

director and officer of the National American Bank,

New York City.Approved.

414Droveci.:

•

The meeting adjourned at 1:15 p.m.

Secretary.


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