Upon call of the Gov -iior a meotin of the federal :-.2,0002VC 230a-:d was

held in the offiee of the federal Reserve Board on 2riday, caauar 4th at

11:15

-2:?.1.11 .:...; C'Tovernor Criss ier

L.r. I

:1---.7..2121 i---1:11's:.:r. Badr, Jecrota1'.

ae minutes of of federal Reserve Board -field on

January 2nd read and ayiproved as air.ended.

'no readir.:2 of the :.-iinutos of the y.)....etin„:, of the Federal Reserve Beard

„

U• n Jc.nuarj 3rd v,,as diz,-oensed

11Q10:;:i dated January 3rd from- the federal Tr.'eserve .:3ent at Ban

, c letter addressed to him by the _ineriez.n Bank of Ban

'421o1s0o re luestin (1) The Board's ai-n - rovz..1 of the ...:erier of t:.z.2.t barB.

With the _,Tacricv,n 3anMoi Bcd lend and the First rational BanM of Oakland;

(2) 4::1:Irrovt-.1 e,.* the takin:, ovDr 1U the :ea tnsti,ution of the twelve

Present branches and the two .12rosed br.T.:_c" es of tfo Llerican Bank of

°a1c1c4nd; and (3) fdlowanc of ail* ica tise after .2'obraar,- 1st to put

tlieso arran:;e1.1ent s into effect

Referred to Co.-nittee on ..1--..alninations.

Letter dated January 3rd frori tTe Oin. o • t'ie federal Reserve

transzlitin.- the re:11st of t:7-le directors of that

bc1:11: for an o-T-ertunity to -,-:.recent to te Board the reasons ahich rontrolled

t11021

bank

increases in the salaries of cortaLl officers of the

which were cuss.,-,)roved by he Board and to discuss with the Board their

reraest for aut'liorit:7 '-

42,7)Drov

a bonus for the jear 1923 .which was also dis-

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1/4/241 ••••

Upon motion, -ricednesday, amuary 9th was fixed

t.,o, date for t'_e hearin:.

Letter dated January -nd 2ro-to C;:air::nn of the 2ederal 2oservo

Banl: of ihiladellthia, advisin: of the apointent of officers for the year

1924, the election of Lir. The to re_ J:esent that bank on the Federal _ivory

Council and the a 1,oinLment of hil1ics and jin:aer as Counsel for the

bait with retainer at Jie rate of .,:2,000 .per annum.

Noted and aproinent of Counsel referred to

the Law Co=littee.

Letter dated J-Lnuar .jrd fro:,-. the Chairman of the Federal Reserve

Bank of :To York, advisinL:; of the re-election of kr. laul L. ,irburh to

rol)resent t:ic.t bank on the Federal :dvisory Council for the year 1924.

Uoted.

Letter dated Januar:7 2nd from the Chairman of the Federal hoservo

Ban:7 of St. Louis, advisin-_; of th.e re-election 02 r. est,us J. ,;ado,

to represent that bank on the Federal 2dvisory Council for the year 1924.

Noted.

Letter dated January 2nd, from the Cioveri.er of the Federal Reserve

Bank of :ow York, with re:ard to the recent inquiry o: tao '7;overnor 02 the

2.0aera1 ...ese-ve Bank of Boston as to tLe liability of Federal 2ezorve banks in

v110 event of payment of 2ara Loan Ban:- bonds and co-a:0ns contrary to advice

to s'Lo-1) pay lent •2e4:orred to Law Committee.

Draft of letter, -.:...reared by Counsel, addressed to 7.12. h. F. 41a,..

3alt Lake City, in re:ay to his letter of December 17th, with re:ard to

tho elijbility of :"Lnaz;ers and .:_ssistant %.,-:,:ers of Federal Reserve Branch

'.a7.0.ks to hold office or arr. loyl-aent in member banks.

Lp.2roved, as =ended,.

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1/4/24

1

Draft of 10ter, prepared by Counsel, addressed to the :resident of

the Citizens Bank of lortland, 33..oion, in reply to his letter of Dece..11)er

In ,.uirin.c; whether a ballot cast by a ri).:2ber bank for a Class "B" Cirecor

of a .21ederal :leserve bank is valid if but one choice is indicated.

Approved.

Memorandum dated Janlary d from Counsel s,est in a form of

letter to .,he Deputy Comptroller o" the Currency, in reply to his letter

Of Doceffoor 'th, ard to real estate iartici-fation certificates

ich the ::aL,ional 2armers 13ank. of Owatonr,:iinnosota, proposes to

Ordered circulated.

2eport of Committee on Laminations on letter dated December ;,8th,

from the President of the Liercantile frast Co:Ti any of Jan 2rz.-.,TrAsco, re-

fluestinL; the Board's ,:ermicsion to complete t: oir -Liror;ram for a brzlzach

bankinr, system to serve the metropolitan area of 3an 2rar:dsco by the

establishment of branches in twenty conriTanities listed; the Com:aittee

reconnonding that the bank be advised by wire that only bona fide

applications comirks to the Board with the' apriaoval of the 3t at o Liu.L er-

int =dont of Baaks and tho report of the directors of the...-,lederal :Reserve

bank, or a Committee thereoi; can be considered by the Board under the

limitation sot out in its resolution of roverabor 7, 192

2eport of Co ,ittoe on ::arainations on letter dated December

2Gth, from the Tresident of the Jecurity and 3a.vir„:s Bank of Los

An':eles, roJerrin3 to his letter of December 4th in 7.-hich he re._uested

appro%-al by the Board o the jro.ram of that bank for the c,,stabl ishment

of a !limber of additional branches; the Committee reportily; that '..here is

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--

1/4A4

nothing in the Board's resolution o rovomber 7th that interferes with

the est• blishmQat of branches in the city of Los ...nceles and cent iguous

territory, and that it sees no justiication for connit t in • itself or the

Baird with reference to branches in non-centi;uoue. territory.

..'-fter discussion, Mr. Miller moved that the followIng advice

be sent to Mr. Perrin:

"The Board has had before it applications from the

Mercantile 2rust Comrany of San 2rancisco and the Security

2rust and 3avinis Bank of Los .n:;eles for permission to

proceed with their pro,2rams for the establishment of z,(2.-

aitional branches and the application of the 2_merican Bank

of San PrLI7C:d.SCO for permission to merge with the 1.merican

Bank of Oakland and the 2'il-st National Lank of Oakland and

to take over branches of the L.,....erican Bank of Oakland.

"You are rejuested to inform these institutions that the

Board can not grant blanket authority to establish branches.

The Board has, however, considered the situation which has

arisen under its resolutions Of ::ovenler 7th and has decided

to clarify the application of the principles therein laid

dovrn. It has raled that it will, in lieu of snecific appli-

cations, entertain the submission of pro ;rams for the contem-

plated establishment of branches, provided they are filed with

the Board not later than 2ebrx ry 1st and provided the places

in which it is ex; acted to establish bra:1-hes are definitely

named or the areas in which branches are to be established

are definitely described."The Board, however, reserves to itself the riht to

pass uon the merits of each separate application made under

the 1--,ros.rams and to act accordingly when such applications

are rrnde."You are re iilested to inform the above named banks of

the position of the Board and to in:orm all other interested

banks of this amencbnent to the Board's resolutions."

U.-1,on mot ion, it was voted that Mr. Miller's not ion be

referred to the 11-.Av Committee for the nreparation of a for of

riling to be submitted to the Board at a meeting to be hold on

Monday, Jamary 7th, at 10:00 o'clock, which date was fixed by

the 3.overnor ;:or the consideration o :all applications for branches

now before the Board.

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1/4/24

;iEPORTO OP S=DIITG cor,

••111.

1111 114:4.44 .

Dated, January 4th, Recommending changes in stock at Federal Reserve

banks, as set forth in the _11::iliLry rlinute Book

of this date.4praved.

Dated, January 4th, Reco=londinz. action on application for fiduciary

powers as cot forth in the Minute Book

of this date..4pproved.

Dated, January 3rd, Recoll,:cmdin:), approval of the arplicatiOn of Er.

John A. Perkins to serve at the sane time as director

of the Bay 'State rati,nal Bank of Lawrence, "lass.,

and as director of the rational Bank of Methuen,

Methuen, :ass.Approved.

Dated, January 3rd, Recommendins apl-,roval of the application o

Eimball G. Colby to serve at the same time as director

of the Bay State rational Bank of Lawrence, Mass.,

and as director of the 1Tatiern1 Bank of ilethuen,

Lethuen, Lass.4prgved.

Approved;

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