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https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CONFIDENTIAL Secretary’s Minutes GOVERNORS CONFERENCE October 10, 11, and 12, 1933. Washington, D. C. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FEDERAL RESERVE Bank OF C L E V E L A N D November BE 4 Mr. Wm. McC. Martin, Governor, Federal Reserve Bank o f St. Louis, St. Louis, Mo. Dear Governor Martin: My attention has been called t o the typographical error o n page eleven, paragraph thirty, o f the Secretary's minutes o f the last Governors' Conference which were recently sent t o you. T h i s paragraph refers t o "more than 200 applications which are now held a t the Federal Reserve Board" whereas this should have been "at the Federal Reserve banks". I am enclosing copy o f revised page eleven which please substitute for the page similarly numbered i n the copy of the minutes sent t o you. Very truly yours, Secretary, Governors! Conference. 8H-214—150M—7-33 Directed by To File Checked O General O Par List O Failed Bank OD Bank Relation (] Library OF. R . Agent When initialed by those indicated (J Martin OlWood ¢ < f Wirtered i [JMcConkey ODHaill (1 Gilmore 0 Hall 0 Hollocher 0 Phillips (J Stewart CDNovy. | eA a e haloes St (J Subject Matter ODAcknowledgment Return on........ To Their reply © isdated............ https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis primep UX https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FEDERAL RESERVE BANK OF C L E V E L A N D November 2, 1933. o y CONFIDENTIAL Mr. Wm. McC. Martin, Governor, Federal Reserve Bank o f St. Louis, St. Louis, Mo, Dear Governor Martin: There i s enclosed a copy of the Secretary's minutes o f the Conference o f Governors held i n Washington o n October 10, 11, and 12, 1933. I shall appreciate i t if you will call m y attention t o any errors which should b e corrected o r omissions from the record which you may detect, a n d hope you will feel free t o suggest any changes you think necessary. Kind personal regards. Very truly yours, Se L O G t f ooleaes Secretary, Governors! Conference, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis INDEX T O SECRETARY’S MINUTES GOVERNORS’ CONFERENCE OCTOBER 10, 11, AND 12, 1933. Paragraph i n Secretary’s Minutes Acceptance Practice, Report o f Committee o n Development o f Applications f r o m State banks f o r membership in Federal Reserve System Appointment o f Chairman a n d Secretary f o r year 1934 Appointments t o fill vacancies o n standing committees Appropriation for Pension Plan Auditing, Increasing cost o f Branch Banking, Publication o f Report o f Committee o n Bruere’s (Mr.) discussion o f tentative plans for release o f frozen deposits i n closed banks Business and Credit Development, Dr. Goldenweiser’s memorandum on ... Chairman, Appointment of, for year 1934 Coin, Currency, a n d Circulation t o f Auditing, Increasing s o C Credit Transactions a n d Policies Disappearance o f incomplete F. R. notes from Bureau of Printing and Engraving Discount Rates and Open Market Operations e g drafts .... n a h c x E https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Paragraph i n Secretary’s Minutes Extension o f Provision f o r 10(b) L o a n s Federal Deposit Insurance Corporation r a c i c s Federal Reserve B o a r d advised o f action taken by Conference i ‘ Federal Reserve exchange and transfer drafts Federal Reserve Bank notes, Policy regarding issuance o f Federal Reserve notes, Responsibility for loss arising from disappearance o f incomplete Federal Reserve System, Admission o f banks t o Fiscal Agency Expenses, Reimbursement for l Agency Operations .. a c s i F Foreign Exchanges Franchise t a x f o r last half o f 1932 Reimbursement f o r abrasion o n Goldenweiser, Dr., Memorandum o n Business and Credit Developments Government instrumentalities, Operations f o r various Insolvent National and State member banks, Admission t o temporary insurance fund e Committee, R e p o r t o f c n a r u s n I Intermediate Credit Bank debentures, Subscriptions for = e Interpretation o f Banking Act o f 1933 a s i t applies t o issuance o f preferred stock https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Paragraph i n Secretary’s Minutes Legislative Problems fe Governor, Telegram t o ... , l a g u o D c M 4 Morgenthau, Governor, Letter o f $1 New York Federal Reserve Bank, Reimbursement for expenses i n handling transactions for foreign banks 12 n 8 e p Policy O Market 13, 14; 18, 16,28; 20, 21, 35, 36 Operation and Administration Operations for various Government instrumentalities 14 Pension Committee, Report o f 25 Pension Plan: Appropriation for Continuance o f superannuated employees pending adoption o f Policy regarding issuance o f Federal Reserve Bank notes Publication o f Report o f Committee o n Branch Banking Reimbursement for: Extraordinary expenses during a n d immediately bank holiday from Treasury ... r e t f a Federal Reserve Bank o f New York for expenses in handling foreign bank transactions l Agency expenses a c s i F Gold abrasion Relations with Foreign Banks Reports o f Committees: Development o f Acceptance Practice Insurance 26 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Paragraph i n Secretary’s Minutes Pension 2 Sub-committee o f General Committee o n Bankers Acceptances 5 2 Reserves for losses, Setting u p Secretary, Appointment of, for year 1934 Security issues b y Governmental agencies, Subscriptions for Setting u p reserves for losses ...... Subscriptions for: Intermediate Credit Bank debentures Security issues b y Governmental agencies Sub-committee o f General Committee o n Bankers Acceptances, R e p o r t o f Committee o n Transfer drafts Treasury reimbursement for extraordinary expenses during and immediately after bank holiday Vacancies o n standing committees, Appointments EOC SET Ss. War Loan Collateral, Elimination from Treasury Circular 9 2 of customers’ paper as 8 https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis CONFIDENTIAL P R O G R A M GO°V ER NO RS O20 NS R e a Nee October 10, 11,. a n d 12, 19335. Washington, D. C. ELECTION O F CHAIRMAN AND SECRETARY FOR YHAR 1934 CREDIT TRANSACTIONS A N D POLICIES A. Discount rates and open market operations. 1. O p e n market policy. N 2. Discount rates. Gold. e N w York Chicago w York e N e Relations with foreign banks. 1. FPoreign exchanges. w York N e N w York w York e Elimination from Treasury Circular 92 of customers paper as acceptable war loan collateral, C h i c a g o LEGISLATIVE PROBLEMS we B x t e n s i o n o f Provision for 10(b) loans, P h i l a d e l p h i a OPERATION AND ADMINISTRATION Federal Reserve exchange and transfer drafts. Franchise tax for last half of 1932. P . R . B o a r d M i n n e a p o l i s Cleveland Policy involved i n handling subscriptions for Intermediate Credit Bank debentures re- ferred to in Governor Morgenthau’s letter of September 26. C h i c S a t , Louis g o Admission of banks to Deposit Insurance and to Federal Reserve membership. N 1. W h a t should be the course regarding admission of insolvent National e w York and State member banks t o tempor- ary insurance fund. S a n Francisco Bear O P E R A T I O N AND ADMINISTRATION (Cont’) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis E. F i s c a l Agency Operations. 1. Reimbursement for Fiscal Agency expenses. New York Kansas City St, Louis Chicago Minneapolis Operations f o r various Government in- strumentalities. New York Kansas City Cleveland Reimbursement b y the Treasury for extraordinary expenses during and immediately after bank holiday. Minneapolis Reimbursement for Gold abrasion. Minneapolis Increasing cost of auditing. Kansas City Setting u p reserves for losses. New York COIN, CURRENCY, A N D CIRCULATION A. P o l i c y regarding issuance of Federal Reserve Bank notes. Minneapolis New York Chicago Responsibility for loss arising from disappearance o f incomplete Federal Reserve notes from Bureau o f Printing and Engraving. REPORTS O F COMMITTEES. Ay I n s u r a n c e Committee. B. P e n s i o n Committee. Committee o n Development o f Acceptance Practice. Sub-committee o f General Committes o n Bankers Acceptances. Minneapolis VII. S U P P L E M E N T A R Y TOPICS A. W h e t h e r employees who have been in the service o f a Federal reserve bank for a long period, a n d whose services are discontinued, should b e continued o n the payroll o f the bank a t a nominal salary, o r o n a leave o f absence without pay, i n order that they may have the benefit of any Pension Plan which may b e adopted b y the Federal reserve banks i n the near future. B. Applications from nonmember State banks for membership i n the Federal Reserve System are becoming very numerous, a n d the Board understands that more than 200 applications are now held at the Federal reserve banks, which have not yet been forwarded t o the Federal Reserve Board with recommendations - about 47applications are awaiting action by the Federal Reserve Board. F. R. Board GC. Interpretation of Banking Act of 1933 as it applies t o issuance o f preferred stock b y National banks having a capital of less than $50,000; also, the effect of charging off losses and bond depreciation on the common capital structure o f such bank. K D. Publication of report of Committee o n Branch Banking. A t l a https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis a n n s a t s City a https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis G O V E R N O R S C O N P O R A N G B October 10, 11, a n d 12, 1933. Washington, D. C. First Day’s Session, Tuesday, October 10, Morning The meeting w a s called t o order a t 10:40 a. m. Present: G o v e r n o r Calkins, Chairman, a n d Governors Young, Harrison, Norris, Fancher, Johns, Martin, Geery, Hamilton, and McKinney; Deputy Governors McKay and Peple. Also the following members o f the Federal Reserve Board: G o v e r n o r Black and Messrs. Hamlin, James, Miller, Szymezak, Thomas, and 0’Connor. Mr. Strater, Secretary. Dr. Goldenweiser of the Board’s staff distributed a confidential memorandum o n Business and Credit Developments, which he explained i n detail. Governor Black discussed with the Conference the progress o f plans t o strengthen the capital structure o f weakened mem- ber banks t o place them in a satisfactory condition for membership in the Federal Deposit Insurance Corporation. H e also stated that plans for liquifying part of the frozen deposits i n banks closed during the year were being formulated, a n d suggested that the Conference a s k Mr. H e n r y Bruere t o confer w i t h t h e Governors. At 11:30 a. m., upon the invitation o f the Conference, Mr. Bruere entered the meeting and discussed tentative plans for the release o f a substantial part o f the frozen deposits i n banks https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis closed since January 1, 1933. These plans involve the extension of credit based upon the assets o f these closed banks o n a liberal and expeditious basis through a n appropriate agency. The members and staff o f the Federal Reserve Board and Mr. Bruere retired from the Conference a t 12:25 p. m. The Chairman was requested t o send a telegram t o Governor McDougal expressing the Governors’ regret a t his inability to be present and their cordial wishes for his speedy recovery. At 1:00 p. m. the Conference adjourned t o reconvene at 2:30 p, m. First Day’s Session, Tuesday, October 10, Afternoon The meeting was called to order at 2:40 p. m. as the Federal Open Market Committee, with Governor Harrison presiding. At 6:00 p. m. the meeting adjourned t o reconvene a t 10:00 a. m. o n Wednesday, October 11, 1933. Second Day’s Session, Wednesday, October 11, 1955. Morning The meeting was called to order at 10:45 a. m. as the Federal Open Market Committee, with Governor Harrison presiding, and adjourned a t 11:45 a. m. t o reconvene immediately a s the Governors’ Conference, The attendance o f the Governors w a s the. same a s a t the previous day’s session. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TOPIC I. E L E C T I O N O F CHAIRMAN AND SECRETARY FOR THE YEAR 1934 VOTED t h a t Governor Calkins be reappointed Chairman, ( 5 ) and Mr, Strater b e reappointed Secretary, for the calendar year 1934. 7 T o r t e T a s C R E D I T TRANSACTIONS A N D POLICIES D. Blimination from Treasury Circular 92 of customers paper a s acceptable w a r l o a n collateral, After discussion, i t was ( 6 ) VOTED t h a t the Conference recommends t o the Treasury Department that this class of paper be eliminated as acceptable for war loan deposits. os ~MOP EG Zits L E G I S L A T I V E PROBLEMS ot A . E x t e n s i o n o f Provision for 10(b) loans, The Conference g a v e consideration t o the effectiveness ( 7 ) of this provision during the recent banking crisis, a n d discussed informally the discount rate o n this class o f loans. I t was the con- sensus of opinion that the provision serves a useful purpose i n providing additional credit based upon good assets but which are ineligible for rediscount. I t was VOTED t h a t the Conference recommends that the pro- vision be extended for one year after March, 1934, under the discretionary powers granted t o the President. ee https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TOPIO I T 4 O R E D I T TRANSACTIONS A N D POLICIES A. D i s c o u n t rates and open market operations. 1. O p e n market policy. As the open market policy had been carefully considered ( 8 ) by t h e Federal O p e n Market Committee, a n d a n appropriate recommendation made b y the committee t o the Federal Reserve Board, a f t e r a further general discussion, the topic was passed without action. At 1:00 p. m. the Conference adjourned t o reconvene a t 2:30 p. m, Second Day’s Session, Wednesday, October 11, 1933, Afternoon The meeting was called t o order a t 2:35 p. m. Same attendance a s a t the morning session. LOPTG. Lis C R E D I T TRANSACTIONS A N D POLICIES As D i s c o u n t rates and open market operations. Be D i s c o u n t rates. After discussion, this topic was passed without action. ICIE B. G o l d , Governor Harrison presented data relating t o the pro- duction and distribution of newly-mined gold and international gold movements, Topic II. C R E D I T TRANSACTIONS AND POLICIES G5 R e l a t i o n s with foreign banks, 1. _ Foreign exchanges. Governor Harrison discussed the developments i n foreign exchanges, a n d acquainted the Governors with the status o f the https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Central bank credit t o the National Bank o f Hungary and the pending negotiations for a renewal. Governor Harrison also discussed, a t the request o f several o f the Governors, t h e matter o f reimbursement f o r expenses incurred b y the Federal Reserve Bank of New York i n handling transactions for foreign banks. T h e practice has been to deduct these expenses f r o m t h e earnings accrued f r o m the purchase o f foreign bills. I n a s m u c h a s the volume o f these purchases has steadily fallen off, and the earnings are now inadequate t o take care o f expenses, i t was VOTED t o be the sense o f the Conference that the Federal Reserve Bank o f New York b e reimbursed o n a pro rata basis for these expenses. TOPIC IV, O P E R A T I O N AND ADMINISTRATION D. Admission of banks to Deposit Insurance and to Federal Reserve membership. 1, _Whet should be the course regard-_ i n g _ a d m fi insolvent s s o i o nNatlonal and State member banks to temporary insurance fund, After discussion, this topic was passed without action ( 1 3 ) as having been adequately covered i n the discussions o f the previous day’s session. o e O P E R A T I O N AND ADMINISTRATION E. F i s c a l Agency operations, j n t for Fiscal Agenc expenses. 2. O p e r a t i o n s for various Government instrumentalities. Discussion o f these topics revealed that reimbursement ( 1 4 ) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis for actual out-of-pocket expense b y the Treasury was gradually becoming less, and that there was a possibility o f the Reserve banks being requested t o absorb at least a part of actual expenses incurred in the operations performed for other governmental agencies. It was VOTED t h a t a committee b e appointed t o confer with the Federal Reserve Board and a representative o f the Treasury t o arrive at some equitable basis for reimbursement for Fiscal Agency expenses, a n d t o report back t o the Conference, Thereupon the Chairman appointed the following committes: G o v e r n o r s Fancher, Martin, a n d McKinney. TOPEO IV, O P E R A T I O N A N D ADMINISTRATION J. S e t t i n g u p reserves for losses, There was a general discussion o f the propriety o f setting u p such reserves, and Governor Harrison agreed to advise the other Governors a s t o certain items which should b e taken into consideration. APPOINTMENTS T O FILL VACANCIES O N STANDING COMMITTEES The death of Mr. EH. R. Kenzel has created vacancies on several standing committees o f the Governors’ Conference. A f t e r discussion, i t was VOTED t h a t Mr. L. R. Rounds, Deputy Governor o f the Federal Reserve B a n k o f New York, b e appointed a memberf o the Insur- ance Committee a n d its Chairman, a n d that Dr. W. R. Burgess, Deputy Governor o f the Federal Reserve B a n k o f New York, b e appointed a https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis member of the following committees and Chairman of each: Committee for the Study o f American Acceptance Practice; General Committee o n Bankers Acceptances}; Sub-committee o f Generel Committee o n Bankers Acceptances, The Chairman reported that, with the approval o f the individual Governors and in order to expedite the work of the committee, h e had appointed Mr. L. R. Rounds, Deputy Governor o f the Federal Reserve Bank o f New York, a member o f the Pension Committees and its Chairman. TOELG av. C O I N , CURRENCY, A N D CIRCULATION A. P o l i c y regarding issuance o f Federal Reserve B a n k notes. In the light of the informal discussion with the Federal Reserve Board during the previous day’s session, i t was VOTED t h a t those Federal reserve banks that have not brought u p their Federal reserve bank note circulation t o approx- imately one-tenth of their Federal reserve note circulation proceed t o do s o as soon as possible. Governor Hamilton and Deputy Governor McKay voted i n the negative, a n d Deputy Governor Peple asked t o b e recorded a s not voting. a O P E R A T I O N AND ADMINISTRATION A. F e d e r a l Reserve exchange and transfer drafts. Discussion developed that the exchange draft was https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis actively used by many member banks during the recent banking crisis, and was still the only exchange medium available t o a number of smaller member banks which do not carry accounts with many correspondent banks. I t also developed that the transfer draft has not been in active use for a number of years. I t was therefore VOTED t h a t the use o f transfer drafts b e abolished and the use of exchange drafts be continued, with no change i n form or procedure, pending further consideration at a future Conference. LOPLO I V , O P E R A T I O N A N D A D M I N I S T R A T I O N B. F r a n c h i s e t a x f o r last half o f 1932, General discussion pertaining t o the possibility of obtaining a refund from the Treasury of the franchise tax for the last half o f 1932. a e N o action w a s taken. I V . O P E R A T I O N A N D ADMINISTRATION G. Reimbursement b y the Treasury for extraordinary expenses during and immediately after bank holiday. H, Reimbursement for Gold Abrasion. After a general discussion, i t was VOTED t h a t the committee appointed t o confer with the Federal Reserve Board and the Treasury, i n regard t o reimbursement for Fiscal Agency expenses, take up these matters a t the same time. EUG RANG Renate O P E R A T I O N AND ADMINISTRATION I. Increasing cost of auditing. Governor Hamilton stated that this was probably a n indi- ( 2 1 ) vidual problem, s o the topic was passed without action. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis T O P I C V. C O I N , CURRENCY, A N D CIRCULATION ai Rae a n P j 1 ] F e d d Engraving. G overnor Geery stated that a sheet o f twelve incomplete (22) Federal Reserve notes i n the $100 denomination had disappeared from the Bureau of Printing and Engraving o n March 11, 1933. T h e sheet of incomplete notes had apparently come into the possession o f some one who had counterfeited the seal and supplied ea serial number be- fore disposing of them. S e v e r a l of the counterfeit notes had been detected when they were sent in for redemption to the Treasury Department, a n d t h e Treasury h a d asked t h e forwarding Federal reserve bank t o absorb the loss. N o action was taken as i t was understood that the Federal Reserve Board end the Treasury had the matter under consideration. : SUPPLEMENTARY TOPIC C. _Interpretetion of Banking Act structure o f such bank. Governor Hamilton asked the Conference t o consider this topic, particularly as a ruling of the Comptroller of the Currency and the Federal Reserve Board will not permit reduction o f common capital for the purpose o f removing criticized assets below a n amount that would reduce the combined common and preferred capital (23) https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis to less than $50,000. A f t e r a general discussion, i t was VOTED t h a t Governor Hamilton be appointed ae committee of one to discuss the matter with the Federal Reserve Board and the Comptroller o f the Currency, a n d t o report t o the several Federal reserve banks. TOPIC VI. R E P O R T S O F COMMITTEES ie I n s u r a n c e Committee, VOTED t h a t the report be accepted and filed. TOPLO V i R E P O R T S O F COMMITTEES Ba P e n s i o n Committee. VOTED t h a t the report b e accepted and filed. Governor Fancher read a letter from Mr. Rounds i n which he stated that the funds appropriated for the Pension Committee were almost exhausted, a n d asked f o r e further appropriation o f four or five thousand dollars to complete the Pension Plan, VOTED that the Pension Committee b e authorized t o expend not i n excess o f five thousand dollars for the completion o f its work. TOP LO Vilg R E P O R T S O F COMMITTEES C, C o m m i t t e e o n Development o f Acceptance Practice. VOTED t h a t the report be accepted and filed. TOPIC VI. R E P O R T S O F COMMITTEES D> Sub-committee o f General Committee on Bankers Acceptances. VOTED that the report be accepted and filed. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis The Conference adjourned a t 4:45 p. m. t o reconvene at 10:00 a , m. Thursday, O c t o b e r 12, 1933, Third Day’s Session, Thursday, October 12, 1933, Morning The meeting was called to order at 10:20 a. m. Same attendance as at previous session. Governor Black entered the meeting and requested that the Governors include the following topics and make appropriate recommendations: 1. W h e t h e r employees who have been in the service of a Federal reserve bank for e long period and whose services ere discontinued should be continued o n the payroll of the bank at a nominel salary, o r on a leave of absence without pay, in order thet they may have the benefit of any Pension Plan which may be adopted b y the Federal reserve banks i n the near future; 2. Applications from nonmember State banks for membership i n the Federal Reserve System are be-~ coming very numerous, a n d the Board understands that more than 200 applications are now held at the Federal reserve banks, which have not yet been forwarded to the Federal Reserve Board with recommendations ~ about 47 applications are awaiting action by the Federal Reserve Board. Governor Black stated that the Board felt i t was essen- tial that pending applications b e disposed of as promptly as possible, a n d that steps have already b e e n taken t o expedite action on the applications n o w before the Federal Reserve Board. Governor Black then retired, a n d the Conference pro- ceeded to the consideration of the remaining topics o n its program. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TOPIO IV. O P E R A T I O N A N D ADMINISTRATION C. P o l i c y i n handling subscriptions for Intermediate Credit Bank debentures referred to in Governor Morgenthau’s letter of September 26, There was a general discussion o f the policy involved in the Federal reserve banks undertaking t o accept subscriptions for Intermediate Credit Bank debentures i n view of the fact that these debentures are not direct obligations o f the United States Government, and the possibility that the reserve banks may be asked to handle subscriptions for other security issues b y other Governmental agencies; a n d i t was VOTED that the Chairman appoint a committee t o discuss Governor Morgenthau’s letter t o the Federal Reserve Board, requesting that the Federal reserve banks b e asked t o handle subscriptions t o Intermediate Credit Bank debentures, with the Under- secretary of the Treasury and to report back to the Conference. The Chairman thereupon appointed Governor Fancher a committee o f one t o communicate with the Undersecretary a s promptly a s possible and t o report b a c k t o the Conference. Later, Governor Fancher reported that h e had conferred with Undersecretary Acheson and the Undersecretary felt that further consideration should b e given t o the subject b y the Treasury, Governor Morgenthau, a n d t h e Governors. I t was therefore VOTED that the Chairman appoint a committee o f two to give this matter further consideration i n cooperation with representatives o f the Treasury Department and Governor Morgenthau, a n d https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis to report b a c k t o the individual Federal reserve banks; a n d that t h e Federal Reserve Board b e requested + o ask Governor Morgenthau t o defer his request that the Federal reserve banks act as agents i n handling subscriptions for Intermediate Credit Bank debentures until after the subject had been further considered. T h e Chairman thereupon appointed the following committee t o represent the Governors: G o v e r n o r Norris and Doctor Burgess, SUPPLEMENTARY TOPIC D. P u b l i c a t i o n o f Report o f Committee o n Branch Banking. Governor Johns requested t h a t t h e Conference consider the propriety of making public the report of the Committee o n Branch Banking which was prepared for confidential use only. D u r i n g the discussion, i t developed there was some possiblility o f the report be- ing circulated as a public document; and further that the Committoe on Branch Banking, having completed the work assigned t o it, had been discharged before the banking crisis. I n a s m u c h as conditions have radically changed since the banking holiday was declared, i t seemed desirable that a further study o f branch banking should b e conducted in order t o bring the report u p t o date. I t was therefore VOTHD t h a t t h e Conference recommends t o the Federal Reserve Board that the Committee o n Branch Banking b e reconstituted to make a further study o f the question and revise its report, a n d submit i t to the Governors’ Conference. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SUPPLEMENTARY TOPIC A . W h e t h e r employees w h o have been i n the service o f a Federal reserve bank for a long period and whose services are discontinued should b e continued o n the payroll of the bank at a nominal salary, o r on a leave o f absence without pay, i n order that thoy may have the benefit of any Pension Plan which may b e adopted b y the Federal reserve banks i n the near future, It. was VOTED t h a t it is the sense of the Conference that pending the adoption of a Pension Plen the Federal reserve banks may , with the approval o f the Federal Reserve Board, extend the employ- ment of a member of its staff with or without compensation depending upon the circumstances, i n order that the employee’s name may not be removed from its list of employees and thereby preserve eligibility for benefits under the Pension Plan. SUPPLEMENTARY TOPIC B. Applications from nonmember State banks for membership in the Federal Reserve Sys- tem are becoming very numerous, and the Board understands that more than 200 applications are now held a t the Federal reserve banks, which have not yet been forwarded to the Federal Reserve Board with recommendations - about 47 applications are awaiting action b y the Federal Reserve Board, After a general discussion of the reasons for delay in https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis forwarding applications for membership t o the Federal Reserve Board, i t was VOTHD t h a t it is the sense of the Conference that under present circumstances particularly, i t is most important that final action be taken on all applications for membership i n the Federal Reserve System a s soon as possible, a n d that the Governors will cooperate with the Federal Reserve Agents t o that end to the fullest possible extent i n order t o expedite the final dis- position of every application. ZOPIC IVs O P E R A T I O N AND ADMINISTRATION BR. F i s c a l Agency Operations, 1. Reimbursement for Fiscal Agency expenses, H, Reimbursement for Gold abrasion, Governor Fancher, Chairman of the committee appointed at the first day’s session o n October 10, reported that the matters had been discussed with the Federal Reserve Board, and the committee learned that the Board was already negotiating with the Treasury Department i n this connection, and that it did not seem advisable for the committee t o approach the Treasury Department a t this time. After a general discussion, i t was VOTED t h a t the committee continue t o work with the Federal Reserve Board i n the consideration and discussion o f this subject, and submit its findings t o the several Federal reserve banks, https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis TOPIG IV; O P E R A T I O N AND ADMINISTRATION G. R e i m b u r s e m e n t b y the Treasury f o r extreo n i2 S say immediately after the bank holiday. Governor Fancher, C h a i r m a n o f the committee appointed at the first day’s session o n October 10, reported that this matter had also b e e n discussed w i t h t h e Federal Reserve Board, a n d called attention t o a telegram sent b y Assistant Secretary o f the Treasury Douglas o n April 22, 1933. A f t e r a general discussion, i t was VOTED t h a t the Treasury b e requested t o fully reimburse the Federal reserve banks for extraordinary expenses during a n d imme- diately after the bank holiday, i n accordance with the telegram o f Assistant Secretary o f the Treasury Douglas dated April 22, 1933. ma. At 12:15 p. m., a t the invitation o f the Conference, the Federal Reserve Board entered t h e meeting a n d t h e Chairman o f the Conference advised the Board of the action t a k ey nb the Conference. At 12:50 p. m., the Conference adjourned. H. F, STRATER, Secretary. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis
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