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309 Meeting of the Executive Committee of the Federal Reserve Board was hell* in the office of the Federal Reserve Board on Friday, April 13, 1928 at 11:00 a.m. PRESENT: Vice Governor Platt Mr. Hamlin Mr. Miller Mr. James Noell, Asst. Secretary Mr. McClelland, Asst. Secretary Telegram dated April 11th from the Chairman of the Federal Reserve Ballk c)f Boston, and telegram dated April 12th from the Chairman of the '"Lerlil deserve Bankof Richmond, both advising that their boards of diat meetings on the dates stated made no changes in the banks' exschedules of rates of discount and purchase. Without objection, noted with approval. Telegram dated April 12th from the Deputy Governor of the Federal .ve Bank of New York, advising of the establishment of the following 4cheri Of rates for purchases of bankers acceptances, effective April 13th: 1 to 30 days 31 to 120 days 121 to 180 days Repurchase ONO .11 / 3 5/8=; 3 3/4/, 47, 3 3/4/ lithout objection, noted with approval. Letter dated April 12th from the Secretary of the Federal Reserve 11844c0 f New York, advising that the board of directors at a meeting on that a ate made no change in the bank's existing schedule of rates of dis- %11/1t alid purchase, other than to approve the establishment, effective 4pril Deputy 13th, of the buying rates quoted in the telegram from the 31_0 -2_ • Or of the oank above referred to. Uithout objection, noted with approval. Telegrams dated April 12th from the Chairmen of the Federal Reserve 1140:8 Of Chicago and 3t. Louis, both advising of the establishment of the toll OWing schedule of rates for purchases of bankers acceptances, effective 414'11 13th: 1 to 30 days 31 to 120 days 121 to 180 days 3 5/8/0 3 3/4,; Without objection, noted with approval. Telegram dated April 13th from the Chairman of the Federal Reserve Bank Of at ond, advising of the establishment of the followinrr schedule of rates to 111zollases of bankers acceptances, effective April 13th: 1 to 30 days 31 to 120 days 121 to 180 days 3 3/0 3 7/8i; 470 Without objection, noted with approval. Telegram dated April 12th from the Chairman of the Federal Reserve Bank q 448as City, advising that the board of directors of the bank at its on that date made no change in the existing schedule of rates of clis"Illt and purchase, including the following schedule of rates for pur418es Of bankers acceptances: 1 to 30 days 31 to 90 days 91 to 120 days 121 to 180 days 3 1/2;; 3 V8p 3 3/40 Without objection, noted with approval. --,Orandum dated April 11th from the Secretary, advising that George Board's 'messenger under a temporary appointment, is leaving the 48 311 4/13/28 -3- services at close of business, April 20th. Noted. aePort of Committee on Salaries and 1".;xpenaitures an letter dated April 7t4 fram the Secretary of the Federal Reserve Bank of Cleveland, requesting SI1Provel of a salary of .,3,000 per annum for Mr. Grover C. Hardesty, to be ert/131c3rea as Chief of the Guard Force of the bank; the Board's Committee recom menaing approval. Approved. Ileport of Committee on Salaries and Expenditures on letter dated AlDril 9th from the Assistant Federal Reserve Agent at St. Louis, advising 11 tliat the Executive Committee of the Bank has voted, subject to the approval Of t/le Board, to extend for a period of thirty days from April 16th, with reY, leave of absence on account of illness previously granted aobert Yr. Zeller, an employee of the Money Department; the Board's Committee rec"°rftending approval of the salary payment involved. Approved. aeport of Committee on Salaries and Expenditures on letter dated 441.41 10th from the Governor of the Federal aeserve Bank of Minneapolis, edvis ing that the Executive Committee of the bank has voted, subject to the 4DPro A, 1r-- of the Board, to extend for a period of three months,,tiith full ileave of absence on account of illness previously granted Mr. Levi C. Dattiel acni an employee of the bank; the Board's Committee recommending ap- 11 Drava). 01: the salary payment involved. Approved. 312 4/13/28 - I)' Report of Committee on Salaries and Expenditures on letter dated April 6t14 from the Federal Reserve Agent at Kansas Gity, advising that the Executi: "C ommittee of the bank has voted, subject to the approval of the Board, to °Italia for a period of one month from April 1st, with full pay, leave of absalIce on account of illness previously granted Miss Marguerite Kihm, an etPloYee of the Discount Department; the Board's Committee recommending apProval Of the salary payment involved. Approved. Report of the Executive Committee on letter dated April 6th from the p0deral ' ‘b Reserve Agent at Cleveland, advising that the board of directors bank has riven consideration to the question of the reserve requireOf Cne Second National Bank of Allegheny, Pittsburgh, Pa. and is of the n, --aniMous opinion that the reouirements of the bank should not be altered. *°111 their • present status, namely, 3",; of time deposits and of demand cleP°sits; the Executive Committee recommending approval of the recommendation Of the Cleveland directors. Upon motion, it was formally voted that no change be made in the present reserve requirements of the Second National Bank of Allegheny. The Secretary then presented letter dated April 12th from the Presicleiit Or the Liberty State Bank and Trust Company, Mt. Carmel, Pa., accepting the "11clitions of membership imposed upon it by the Board at the meeting °I:14141.1 4th; the letter also statin, with reference to Condition 3, that the ballk now owns 67 shares of stock in the National City Bank of New York 414 expects to shares to which exercise its right to purchase 12 additional it 13 entitled when new stock is issued. 313 _5Upon motion, it was voted to interpose no objection to the purchase of the bank stock referred to. Letter dated April 10th from the Managing Director of the Baltimore Branch "the Federal Reserve Bank of Richmond, with reference to the proposed conetzlIction of a tunnel connecting the new branch bank building with the poste building diagonally across the street, which was held in abeyance be- call "0f the fact that there has been Postoffice some agitation for the removal of the building to a new location; the Managing Director stating that it has 44beeadecided to erect a new postoffice building on the present site and 4cm —eating that the Board take up with the proper official of the Treasury 4Partment the matter of securing a permit for the construction of the pro- tunnel After discussion, the Secretary was directed to address a letter to the Treasury Department requesting issuance of the necessary permit for the tunnel construction. Letter dated April 9th from the Governor of the Federal deserve Bank or cl4aas, advising that the board of directors at their last meeting voted to .44zhorize the Dallas Dank to act as agent for the Federal Intermediate 0/. ealt -ank of ' Berkeley, Cal. under the conditions outlined in Deputy Gov(1ernor , illbertis telegram to the Board of March 29th and with the understanding that °ract reasonable charge will be made for the services involve, the amount thel„ f to be determined by the rocecutive Committee of the bank; the Governor -- reporting the opinion of his directors that the question of the charge 1 to , -0 Made should be placed upon the program for discussion at the forthcomillge °Ilforence of the Governors and suggesting that if the topic is submittea 4 4t batIca also include the desirability of a uniform charge by Federal Reserve for handling securities for Federal Land Banks, Intermediate Credit 314 4/13/28 -6- 0, Joint Stock Land Banks, etc. as it is understood the Federal Reserve ' 13141 411.1t Of St. Louis is making a charge for such safekeeping service, which is Perfoxted gratuitously by the other Federal deserve banks. After discussion, it was voted to approve the action of the directors of the Dallas bank in authorizing the institution to act as agent for the Federal Intermediate Credit Bank Of Berkeley, with the understanding that some reasonable charge Will be made for the services involved. It was also voted to advise the Governor of the Dallas bank that there will be no objection to his suggesting discussion at the forthcoming conference of Governors of the question of a proper charge for the services involved in the above agency arrangement, including, if he desires, the question of Federal Reserve banks charging for safekeeping services rendered the Pederal Land banks, Intermediate Credit banks, Joint Stock Land banks, etc. Letter dated April 10th from the Federal Reserve Agent at Chicago, transkittirig copy of a memorandum from the bank's Counsel with reference to the i es of the Iroquois Trust Company, Chica?:o, Ill, and suggesting that the 80ard may wish to report the institution's methods of advertising and eellitg s ecurities to the Attorney General of the United States as a possible llolation of the Act approved May 24, 1926. :teferred to the Law Committee. Secretary then read to the Board the following letter dated April , th "Im the Chairman of the Federal aeserve Bank of Richmond: reet"I have just advised you by telegraph that our Board of Dior ors, in meeting today, voted no change in existing schedule libratss. Accompanying this action, and as a result of our deand rate, the fol1r2ratione upon the questions of credit supply -"lng motion was made and unanimously carried: 'To aid in protecting the credit supply and in Preventing further inflation, which has occurred for the second time within ten years, the Directors of this bank believe it to be necessary that the investment securities of the System be sold in the Open Larket, and they 315 4/13/28 -7- "direct that the investment securities now carried by this bank be sold in an orderly manner at the discretion of the officers. If inflation is not decisively checked, the Directors of this bank believe that it will be necessary to raise the discount rate." After discussion, during which it was brought out that the security holdings of the Richmond bank outside of the open market investment account amount to only „1,153,000, the above letter was noted, no action being consiiered necessary. Mr. Platt then submitted letter addressed to him by the Governor under (tate °I April 12th, advising that unaer the authority granted by the Board 011April 4th he has enaged Mr. Newton D. Baker as special counsel to represent the Board in the case brought against it on behalf of the orp;anizers of the Proposed United States Foreign Financing Corporation, with a fee in advance °I 1$2,500 for the trial of the case in the Supreme Court of the District of e°111111bia and an aggrep:ate of .)5,000 for s-ich further service as may be regiall'ed to be rendered by him in any and all appeals or error proceedings 14 "id case. Upon motion, it was voted to approve the action of the Governor in fixing a fee of y2,500 for 11r. Baker for services in handling the above mentIoned case in the Supreme Court of the District of Columbia, With provision for an additional fee of ,A,000 in the event the case is tried in a highur court or courts, it being understood that the above fee is in addition to all necessary expense incurred by 1.:r. Baker in connection with the case. °I1 " 3 OF SaNDING COL2IN I 1-1Pri1 10th, 11th, IJth, 4tecl, April 10th, : Recommending changes in stock at Federal Heserve banks as set forth in the Auxiliary Minute Book of this date. liecommendations approved. state Hecammending action on application for admission of a individual the in stated conditions bank, subject to the the report attached to the application, as set forth in 4 13 -5'jiNG Oa. (Cont'd) :-.uxiliary Minute 300k of this date. ecommendation approved. The meeting adjourned, at 12:00 o'clock noon. Assistant Secret Vice-Governor.
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