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A meetinc of the Executive Committee of the Federal Reserve Board Was held in Washington on Monday, April 17, 1933, at 11:35 a. m. PRESENT: Mr. Meyer Governor Mr. Hamlin Mr. Miller . James Morrill, Secretary McClelland, Assistant Secretary Harrison, Assistant to the Governor Goldenweiser, Director, Division of Research and Statistics Mr. Snead, Chief, Division of Bank Operations. Mr. Mr. Ur. 11r. The Committee considered and acted upon the following matters: Reply on April 15, 1933, approved by four members of the Board, to a tel dated April 14, from Governor Geery of the Federal Reserve Bank Of 441neapolis stating that,in the confusion of reo)ening banks, the Federal l'eserve be overlooked gettin„: the approval of the Beard of a rate of 1/2;, on advances to individuals, partnerships and corporations secured by obligations of the United States under the provisions of section 13 or the 2edera1 Reserve Act as amended by section 403 of the Act of I:arch 9, 1933_ ' 41144 requestin, approval of such a rate; Governor Geery also statina: that the bank telegraphed the Board on August U, 1932, that the board of eet of the bank had fixed a rate of 6,, on direct loans to individuals, DaztAey,l. --alPa and corporations under the provisions of the Act of July 21, and that no approval seems to have been received from the Board. el)ly The stated that the Board apjroves a rate of 4 1/2;, for advances by the ' 4113°1is bank to individuals, partnerships and corporations secured by clIrect ohl ---Ligationz of the United States, and that the Board telegraphed 1:baheli ' 2ecretary of the Llinneauolis bank, on August 9, 1932, approving a rte or . GH on discounts for individuals, partnerships and corporations in 4/17/33 -2- accordance with the provisions of section 13 of the Federal Reserve Act as " 41 Ilded by the Act of July 21, 1932. Approved. Telegraphic reply on April 15, 1933, approved by four members of the 'u'ard, to a telegram dated April 14, 1933, from Mr. Newton, Chairman of the Pederal Reserve Bank of Atlanta, stating that,subject to the approval the Federal Reserve Board, the board of directors of the bank had established a rate of 5';'; on all advances to nonmanber State banks and trust -.'"-Les under the provisions of section 404 of the Act of March 9, 1933, 48 4Zended by the Act of March 21, 1933; Ir. Newton also stating in another telegMa dated April 14, 1933, that no other change was made in the bank's 4418tiAg schedule of rates of discount and purchase. The reply stated that this Iloard approves the rate of 5';) fixed by the board of directors of the bkk, e ffective April 15, 1933. Approved, and, there being no objection, the action of the directors of the Atlanta bank in making no other change in the bank's existing schedule of rates of discount and purchase was noted with approval. Letter dated April 13, 1933, from Mr. Sproul, Secretary of the Fed"41 Reserve Bank of New York, stating that, at the meeting of the board of -"Ora on that date, no change was made in the bank's existing schedule re,te -8 of discount and purchase. Without objection, noted with approval. lieraoranda dated April 6 and 12, 1933, from Mr. Paulger, Chief of the 141141°4 of Examinations, recommending the appointment of Mr. William T. 1141I 'J'r.) and Lir. Joseph A. Turnbull and their designation as assistant 115 V17/33 -3- ' Federal reserve examiners with salary at the rate of eaullra, 0,600 and ::;2,500 per respectively. 1:essrs. mow and Turnbull were appointed examiners for all purposes of the 1?ederal Reserve Act, as amended, and of all other acts of Congress pertaining to examinations made by, for, or under the direction of the Federal Reserve Board; and were designated as assistant Alderal reserve examiners, with salary at the rate of :y3,600 and , 2,500 per annum, respectively, effective on the dates upon which the appointees take the oath of Office, Reply on April 15, 1933, approved by four members of the Board, to • 1"ter dated Earch 13, 1933, from Jr. Albertson, Secretary of the Federal 11"el 'Ire Aank of Atlanta, requesting approval of a change in the personnel elas ification plan of the /Tew Orleans branch to provide for the new t1on of "special custodian" in the Custodian-Reconstruction Finance °O.r1m v,,ration Department with a salary range of from .3,600 to ,4,200 per 4111111)1. The reply stated that,upon comparing the proposed salary range of the position with corresPonding salary ranges at other Federal reserve banks, it is found to be relatively hill, and that it will be appreciated if the 1).41k Will advise the Board of the previous experience of rr. 7. Val Westeraus v41°) "corain- to the _Board's records, has been appointed to the position, • of atlY special circumstances surrounding the special custody arrangewhich would justify the proposed salary range. Anproved. ,eply on April IS, 1933, approved by three members of the Board, to ' e letter dated Larch 23, 1933, from Deputy Governor Attebery of the Federal ' ve Bank of St. Louis, requesting approval of the change in the bank's Dora n Classification plan to provide for the new Position of "clerk" 116 4/17/33 -4- 14 the credit-discount department with a salary range of from ;2,700 to 43,00n - Per annum. The reply stated that the salary range provided for this P°sit"TA, the duties of which are given as bond pricing, would seam to be hidh compared with salary ranges provided for other positions in tle department, and that it will be appreciated if the bank will advise the /3()Ocl more fully with regard to the duties required and of conditions eill'z'°1111clind the position which would warrant the proposed salary range. Approved. Letter dated April 15, 1933, from Mr. Stevens, Chairman of the Fed41 Reserve Bank of ' 61 Chicago, stating that at the meeting of the executive °c4Zlittee on April 14, 1933, it was voted unanimously to grant Mr. McDougal, raor of the bank, a leave of absence for 90 days from April 15, 1933, 144 841erY in full, in order to enable him to regain his full health and "l'ellgth before returning to his duties. The salary payment involved in the action Of the executive committee of the bank was approved. Letter dated April 12, 1933, from M. McClure, Chairman of the Fedeserve Bank of Kansas City, advising of the selection by the board of *ectore of the bank of hr. w. T. Kemper, Chairman of the board of the ee Trust Company, Kansas City, Missouri, as a member of the Federal ' C°411Lel -J--,ar Council representing the Tenth Federal Reserve District to succeed *0 Walter S. MbLucas, resigned. Noted. Letter dated April 12, 1933, from Mr. McClure, Chairman of the Fed- arpo geserve Bank of Kansas City, stating that the board of directors of the bikk on that date appointed Mr. W. Dale Clark, President of the Omaha V17/33 -5- National Bank, Omaha, 1:ebras1:a, as a. airector of the Omaha branch for the 1111e)cPired portion of the term endinG December 31, 1933, to succeed Ni'. R. C. 11E1111°11) deceased. Noted. Letter dated April 13, 1933, fromLr. Lichtenstein, Secretary of the lecieral Advisory Council, stating that the next meeting of the Council will b0 Ileld in 'dashinGton on Tuesday, Ilay 16, 1933, and recuesting a list of the tc9ics which the -:'ederal Reserve Board desires the Council to discuss at that tilneNoted. TeleL;ram dated April 15, 1933, approved by four umbers of the Board, to /;!,. " Ilexton, federal Reserve Agent at Richmond, stating that the Board has Etl)i) roved the application filed by the American. Security and Trust Company, '4 ' ' 1 111c-ton, D. C., for membership in the Federal Reserve System and for hares of stock of the Federal Reserve Bank of Richmond, subject to the c ontditions prescribed in the telegram. Approved. Letter to Jr.L Case, Federal Reserve Agent at New York, replying to hta etter of Earch 2,1, 1933, with regard to a proposed application by the Title G uarantee and Trust Company, New York City, for membership in the Fe aeserve System. The reply stated that from the infonnation submitted 4PI)e ars clear that the Primary business of the comnany is that of examining a/lci titles to real estate and making and selling mortgage loans and thEtt, as the Federal Reserve Act apparently did not contemplate that llt"ns of this class would be eligible for membership, it is very 118 4/17/33 -6- elotIbtrta that the Board would be able to take favorable action on the ' 8 application unless the character of its business should be '8117 C(11143 Inateri.1 1 -4-J-Y changed. The reply also stated that if the company desires to P1 for nembership, it would be necessary for the Board, in view of the (1°1111341:Ws wide field of interest, to have a full and detailed analysis of its c°1130rate functions and relations in addition to the results of recent examOf its affiliates and subsidiaries, and that,in order to avoid 1.4111"es8arY delay in the consideration of the matter by the Board, it is Neested that special care be exercised in the preparation of such an 41:14*Ysis and that the agent transmit it with the application, accompanied 13/r 111IY recommendation that he may wish to make. Approved. Letter dated April 15, 1933, to rir. Stevens, Federal Reserve Agent 4t Chicago, prepared in accordance with the action taken at the meeting on 4111 11 1933, and approved by four.nembers of the Board, replying to the 4ciel'el reserve agent's letter of rarCh 22, 1933, requesting advice as to Whetal er the Personal Loan and Savings Bank of Chicago, Illinois, would be 8.Clkitt d e- to membership in the Federal Reserve System. The reply stated that it 13 Understood that the institution is engaged in the business of making 1361'30nal loans repayable in installments and does not do any commercial b44king business; that the provisions of section 9 of the Federal Reserve Itct rewire the Board, when acting on an application by a State bank for sherab.ip in the Federal Reserve System, to consider not only the financial e°4d1ti0n of the institution and the character of its management, which in lal'eeent case are understood to be satisfactory, but also whether or not 119 4/17/a3 -7- the corporate poaers exercised are consistent with the purposes of the FederEaReserve Act; that it seems clear that the Act did not contemplate the Et(Illiesion to memberdhip of institutions of this class; and that, accordingly, (tete". careful consideration of all the facts involved, the Board does not teq that it can approve the application of the Personal Loan and Savings 1141* and requests that the agent so advise that institution. Approved, together with a circular letter to the Federal reserve agents of all other Federal reserve banks, enclosing for their infornation a copy of the letter to the Federal Reserve Agent at Chicago. Letter dated April 11, 1933, to the National Bank of Commerce, Dallas, Texas $ approved by three members of the Board, stating that, in addition t°tIle authority previously granted to the bank to act as trustee, executor, 4( 114 . 11, . 1strator and registrar of stocks and bonds, the Federal Reserve Board ' anim. --oved the bank's application for permission to act as guardian of eatate, -1 aesiCnee, receiver, committee of estates of lunatics, or in any other ,, ' 411ciary capacity in Which State banks, trust companies or other °°I'D'crati ---ons which come into competition with national banks are permitted Under the laws of the State of Texas, the exercise of such rights " - ubject to the provisions of the Federal Reserve Act and the regula- t or the Federal Reserve Board. Approved. Reply on April 11, 1933, approved by three members of the Board, to lettivo dated March 18, 1933, from Mr. Newton, Federal Reserve Agent at inclosing a certified copy of an amended resolution adopted hr the board of directors of the bank on March 16, 1933, authorizing the 1/17/33 -0- °'°17ernor to enter into an agreement with the Federal reserve agent covering the custody of unissued Federal reserve notes at the Los Angeles, Salt Lake 01t7 and Portland branches of the bank, and a certified copy of the amended 4glIsenyant entered into by the Governor and Federal reserve agent in accordance the e., Ir. Newton calling attention to the fact that the agreement pro- es that custody may be held by representatives of the Federal reserve 4Cellt) the bank and auditing department attached to the head office or es involved, and supersedes previous resolutions and agreements placing c11"°dIr solely in representatives attached to the head office. The letter ' e lee stated that, as soon as the present emergency has passed, it is planned to terminate the apnointments of acting assistant Federal reserve agents at the branches and to retain the custody of unissued Federal reserve notes with the '2ederal reserve agent and assistant Federal reserve agents attached to the head office. The reply surr]ested two changes in the wording of the l'ee°11-1ti011 and agreement in order to bring them into conformity with the "lon above referred to, and stated that,if there are any other respects 1111111ich the language of the agreement is not in accord with the actual ecti -ce, it is suggested that the agent have the bank's counsel prepare €tIlDroy, vl'iate changes in the agreement to bring it into conformity with the DtaQtice. Approved. Letter to La.. Case, Federal Reserve Agent at New York, referring to hie etter of February 28, l9, replying to the Board's letter of February 241., 19 36, with regard to the application of :a.. W. Yurray for permission to eel*ve at the same time as a director and officer of the First-Lierchants 121 4/17/33 a). 13811k and Trust Company, Zaddletown, New York, as director and (3rricer of the Tuxedo National Bank, Tuxedo Park, New York, and as director 441 officer of the National Bank of Orange County, Goshen, New York; Er. Case atEttinZ that after a careful consideration of all the factors involved, 11:4111G nr. Eurray's past record as a banker, he can see no reason from the atandpoint of the public interest why Er. llurray should not be permitted tC) ""ve, the three banks named and that his forced withdrawal from director844 °I' the banks would be more apt to be detrimental than otherwise at this The reply stated that it is understood that the Firist-Merchants liational Bank and Trust Company has not yet been licensed to reopen, and that it is possible that a new bank may be authorized to take over its ' eltEtil‘31 and that, accordingly, action on the application will be deferred te14130 .rarillr since I.ir. Murray's service of the other two banks involved does 141t c°43titute a violation of the Clayton Act. The Board's letter also noted the -"Eitement contained in Er. Case's reply that he does not find in the e44414e"ial pages of the examiner's report to which reference is made in the 13C1°C118 letter of February 24, 1933, any comments which reflect personally c1111111. 114rraY and that, althouGh the lanGuaGe used represents a serious tn4iotinent of the manaGement of the bank, it is written in such General tel1488 to make specific answer difficult. The Board's letter quoted at 1131111 frora the examiner's criticisms, and stated that unless there is l'el34°11 to believe that the examiner's confidential report is not justified 4' tile i'411.0t8 of the situation it is difficult to understand why sons l'el)claalbilitY for the condition described by the examiner should not be Etttl'iblIted to lir. Murray in view of the fact that he is President of the il18.t ituti°11, and that the Board would be Glad to have any further comments 122 4/17/33 -10- " brie agent thinks will be helpful to it in arriving, at a correct undert> of the matter. Approved. iteply on April 13, 1933, approved by four members of the Board, to a 4uele Crau dated April 11, 1933, from L. Curtiss, Federal Reserve Agent at I3est;on -1 quoting a telegram addressed to the Secretary of the Treasury with Nard to the Is 418Worth, 'Jaime of a license to reopen to the Union Trust Company, for which a conservator has been appointed under State 417 `1• 11(1 inguirin,, (1) whether a doubt as to the constitutionality of a State 0 .t'41;11te under which the bank may be reorganized would prevent the bank from °Orltin as a member bank and (2) whether, in the event the trust company elickld wish to request the waiver of the usual six months notice and to J.tharaw from nembership at the earliest possible date, the matter should he ated by a resolution of the board of directors authorizing the c°43ellvtItor to make the application, whether it should be initiated by an (3(le1 s e'r the court directing the conservator to :lake the aoplication and to 41"rarice J:or withdrawal, or whether both the resolution of the board of 4reet°r8 and the court order should be furnished. •ball The reply stated that Would continue as a member unless its membership should be terminated through voluntary withdrawal, forfeiture for violation of law 0r other 1 t thod hod prodded by the _2bderal lieserve act, and that, should the he'laizge i-oe to Withdraw from membership, notice of intention to withdraw "• -ic"ion for waiver of the six months notice should be filed with 13(34rq bY the con.,conservatorervator, accompanied by a certjfied copy of a court °1 ' cl r riz nr; the authoi to file such notice and agolication 123 4/17/33 -11- "11 to perform all other necessary acts in connection with the withdrawal Of slach bank from the Federal Reserve System, and by a certified copy of the resolution of the board of directors of the bank consenting to its blalediate withdrawal from the System. Approved. Telegraphic reply on April 15, 1933, approved by four members of the 13°41rd, to a telegram dated April 13, 1933, from Governor rancher of the Ilederal Reserve Bank of Cleveland, inquiring whether it is permissible for the Pecleral reserve bank to apply the old reserve balance of a State member bank, 4°17 14 the hands of a conservator under State law, to the reduction of the Payable of the member bank to the Federal reserve bank at the request Of the conservator and under authority of the State Superintendent of Banks, With the retention of all collateral to assure payment of the balance 1'84414111e Payable by the State member bank; Governor rancher stating that 411 8e gregated funds, including the unrestricted portion of the old balances 41'e Protected by a 100-:) reserve in cash or in the conservator's special 40001r.... -444 with the Federal reserve bank. The reply stated that the Board sees 134) °Jeotion to the application of the old reserve balance to the reduction °:e the 111/ Member bank's bills payable to the Federal reserve bank under the eire4 rast6t4ces outlined, with the understanding that the special accounts with the 1., eld"al reserve bank in which are deposited the proceeds of special trust Posits received by the conservator or amounts made available for Withdrn ' 4174a1 Will not in any way be affected. The reply also suggested that the a ellt consult the bank's counsel as to any legal questions which may be 14701_ ved, and called attention to the Board's telegrams of April 6, 1933, 124 4/17/33 -12- 4111 114r0h 30, 1933, regarding reserve requirements of member banks in the /leads of conservators. Approved. Reply on April 13, 1933, approved by four metbers of the Board to 4 telegram dated April 11, 1933, from Deputy Governor Clerk of the Federal " 0 Bank of San Francisco, referring to the Board's telegram of April 1933, regarding the status of State member banks in that district for t46, ylIrPose of loans to such institutions by the Federal reserve bank; DePlItY Governor Clerk stating that several Oregon State banks have been dti‘eated by State supervisory authority to discontinue normal banking tlialcti°118 Placing them in a position similar to banks in the hands of a (11(34311rer; that the Federal reserve bank has before it an application for (1.14a°1111t pram an unlicensed Oregon State member bank, and that as its status le ident4 .Lcal with that of banks for which a conservator has been appointed, it 18 the Federal reserve bank's feeling that it is without authority to *41t the apPlication. The reply stated that,if the member bank referred to 1188 been closed or re uired to discontinue normal banking functions by the8.11Perintendent of Banks under authority of provisions of State law, it W°4141 appear that its status for the purposes in question is similar to .4114t °r a bank in the hands of a receiver or a conservator, and that, if so, the 11°ard feels that the Federal reserve bank is not authorized to discount tc11' O Zake advances to such bank. The reply also stated that as the Board 14 4°t advised of the provisions of the statute in question it cannot 11313 a definite opinion on the question; that it is suggested that the 001b,„ " — 1 for the bank be consulted as to the status of the member bank; and VaN33 -13- tleA,even if the Federal reserve bank has the requisite authority, the question whether credit should be extended to any member bank is one for tile exercise o2 discretion by the Federal reserve bank and, as indicated in the Board's telegram of April 6, 1033, is to be determined, in the light Of all the circumstances in the case. Approved. Telegram dated April 13, 1933, to Governor Calkins of the Federal lieserv _ 0 bank of Jan Francisco, approved by three members of the Board, l'erelbring to a telegram dated April 12, 1933, addressed to the Board's "J. Counsel by 1.a.. Agnew, Counsel for the 2edera1 reserve bank,suggesting t64 -Ghe Federal Reserve Board express opposition to bills now pending in the' 18.1 ifernia legislature which would provide for the staying of all proeeedine;s for the foreclosure of mortgages and deeds of trust until 2ePteinbe-, -c 1935. The reply stated that,after careful consideration, the 130Etz,a cioes not feel that it is advisable for it to take such action. Approved. Letter dated April 14, 1933, from Deputy Governor Urane of the 2ed1 . 1 eral °serve Bank of New York, stating that advice has been received from 3e.IIk for International Settlanents that all of the participating banks bete ' ,-reed to renew the central bank credits to the National Bank of and to the Austrian 1:ationa1 Bank for three months from April 18, 1933 ' on the same terms and conditions as govern the existing credits 0, tile-) in the case of the credit to the Austrian National Bank, the °f interest or the renewal will be the official rate of the Austrian 1°-1 'dank, with a minimum of 5, which is the present official rate of baniz. 126 4/17/33 -14Noted. Telegram dated April 13, 1933, from Deputy Governor Knoke of the 4(leral Reserve Bank of New York, stating that the credit to the Reichsbank it" Pala in full on that date, and letter dated April 13, 1933, from Deputy et(3/rernor Crane transmitting a copy of a letter addressed by him on the same ci"e to the Gavernors of the other Federal reserve banks inclosing for their reec d a copy of the contract letter relating to the proposed renewal of the credit to the Reichsbank for three months from March 4, 1933, which 13rcved unacceptable to the Reichsbank, and stating that in the absence of °t11" Ieas0, the changes suggested by the Bank of France in clause 4 of the contract letter defining more precisely than heretofore the amount of the ead equivalent of the United States dollar in which the credit was eZPressAA --- and signifying that repayment in dollars would only be acceptable ir thA dollar were effectively convertible into gold at the date of reim- btxzee ment, would not seem to have been sufficient cause for rejection of t4e aredit, and that it is more likely that Mr. Schacht, who recently l'el11:4°c1 Presidency of the Reichsbank and who had publicly criticized the 4.1'r€trleraent of the credit felt that he should take the first opportunity to licillidate it. The letter to the Governors further stated that Mr. believed that the interest charge involved in the credit was an Litale ft -ary expense and that more progress could be made in building Ge 'l41111rte domestic and foreign credit position if the credit were out of the 04y. !1/1 Noted. Reply, prepared by the Acting Comptroller of the Currency for the -e of the Secretary of the Treasury, to a letter dated March 28, 127 4/17/33 -15- from the Chairman of the Banking and Currency Committee of the Senate requesting a report on S. J. Res. 2, "to strengthen the security of dePcsits in certain banks and for other purposes". The reply stated that it aPPears to be the intent of the resolution to supplement credit l'Eteilities already available through Government agencies for State nonbanks which find difficulty in obtaining credit during the banking el"ft.cY from correspondent banks; that the resolution would extend to "eta State banks access to the facilities of the Federal Reserve System Without requiring such banks to become members; that it would appear that the Act of nArch 24, 1933, accomplishes, to a large extent, the object for Which the measure under review is intended; and that while the Treasury te(1°.ellizes the merits of that portion of the measure which would leave to the dtacretion of the President the pub lication of loans made by the Reeobetraction Finance Corporation, it does not believe that an actual need row E1.41ets for the other provisions of the resolution, and does not approve its enaetment. Approved. Circular letter dated April 14, 1933, to the Governors of all Fed- "al eserve banks, approved by four members of the Board, stating that l'Ell3"8 received by the Board indicate that member banks which normally 144111.4114 their reserves somewhat in excess of the minimum requirements 0eefla QuallY incur penalties for deficiencies in reserves; that in such )Where the amounts involved are nominal, it is the general practice of thO rederal reserve banks not to assess the penalties; that,while the Board 4 Ac ob " jection to the non-assessment of penalties of nominal amounts in C-1) V17/36 8 e11- -16- cases, it feels that there should be a maximum limit, uniform in all 2e(leral reserve districts, upon the amount which in any case may be assessed 11°t by the federal reserve bank in its discretion, and that the Board 1)re8cribes the followinr' rules for uniform application by each Federal reserve bank: "(a) ',Alen the aggrecate amount of penalties incurred by a member bank in any calendar month is not in excess of such penalties may be assessed or not as the federal reserve bank may determine upon consideration of the circumstances of the case; "(b) flien, for the first time since a bank became a Member, there is a deficiency in its reserves which is subject to a penalty, such penalty may be assessed or not as the f - ederal reserve bank may determine upon consideration Of the circumstances of the case. "(0) Vihen, before the assessment of a Penalty for a ( .1ericiency in the reserves of a member bank, it is placed in receivership or liquidation, such penalty may be assessed or not as the federal reserve bank may determine upon consideration of the circumstances of the case. "(d) In all cases other than those described in (a), (b) and (c), penalties incurred by a member bank for deficiencies in its reserves shall be assessed unless the Federal Aeserve Board, after a review of the facts of the case, authorizes the Federal reserve bank not to make the assessment.” letter also stated that the above rules are not to be considered as in 4"aY affectine, the instructions relative to the non-assessment of 1)ellitief2 ' for deficiencies in reserves, which were contained in the Board's teL, --C"r1441118 of March 30 and pril 3, 1033. Approved. Letter dated April 13, 1933, to the Governors and Chairmen of all Zleaeral reservO banks, approved by three nenbers of the Board, trans- 129 1/17/33 -17raitting for their confidential information a copy of a memorandum and state454 Prelasred by Lir. Smead, Chief of the Division of Bank Operations, under 4te 4111 8, 1933, with regard to the amount of borrowings from Federal l'" " 1117e banks, as of March 31, 1933, by member banks not licensed by the S"IsettlrY of the Treasury to reopen, and the amount of claims of Federal re"e banks, on March 28, 1933, against closed banks. Approved. Lenorandum dated April 11, 1933, from Mi. Smead, Chief of the Division 0t ."411k OPerations, submitting a bill rendered by the Bureau of Engraving and ?41 '4t14g, in the amount of i;247,738, covering the cost of printing Federal resexTe bank notes under the recent emergency legislation; the bill being b4Becl 04 a rate of 07 per thousand sheets for the 2,554,000 sheets delivered (1111111€ /.1a1?ch, tile °Get of the increased cost of 06.50 per thousand sheets as compared with Printing Federal reserve notes being due to the cost of logotypes 14 the Printing of Federal reserve bank notes and addit1onR1 press work, etc. Of The memorandum also stated that under existing orders. the Engraving and Printing has 60,000 additional sheets of Federal re- baIlk notes to print for the Federal Reserve Bank of Atlanta at a cost '11'7,760, DiEdcing the total cost of printing Federal reserve bank notes —5%49e. The payment of the bill submitted by the Bureau Of Engraving and Printing was approved, and the Assistant Secretary was authorized to approve payment, at the same rate for any additional notes which may be authorized to be printed. The Assistant Secretary then presented a letter dated April 7, 1933, 4qQ11. 085 ed to the Board by Governor Norris of the Federal Reserve Bank of r_it'01 4/17/33 -18- 11111adelphia in accordance with the Board's request of April 3. The letter, c(Dpies of which had been furnished to the individual members of the Board, olltlined in detail the Present vault facilities of the bank and its need for aclaitional vault space, and requested that the Board grant permission to the bank to4au, ;horize the architect to prepare definitive plans and to obtain bicls ror the construction of a new vault in the bank building with an 4Droxi1nate inside measurement of 3,800 square feet. After discussion, the Secretary was requested to advise Governor I.orris that the Federal Reserve Board will interpose no objection to the Philadelphia bunk authorizing its architect to prepare plans for the proposed new vault and to obtain bids for the installation of the vault on the basis of such plans, it being understood that, when the bids are received, the offer which the board of directors desires to accept will be submitted to the Board for approval, together with a budget of the complete cost of the vault installation including, architects' and enjmeers' fees, etc. At this Point the Secretary of the Treasury joined the meetinL, which e°11tililled. as a meeting of the Federal Reserve Board. The Governor stated that, in accordance with the request of the Board, 3-ohn H. Williams, whom the Federal IZeserve .gent at Hew York proposes to 4PP° as assistant Federal reserve agent at the bank, had cone to '4444inC:ton and cOe ree l "Ieyer had met with the appointive members of the Board, and requested an expression from the members present as to their with regard to the proposed appointment. All of the members present 111(licated that they were willing to approve the appointment at the salary °11tlendea. 131 1/17/33 —10Accordingly, the Secretary was requested to advise the Federal Reserve .Agent at Yew York, in response to his letter of April 3, 1933, that the Board approves the appointment of Lr. Williams as assistant Federal reserve a,_]eilt at the bank and has fixed his salary at the rate of :,122,000 per annum, effective :_ay 1, 1933, without deduction in accordance with the share-the-work plan in effect at the bank. Governor Meyer stated that Tames Simpson, Deputy Chairman of the F eeral Reserve Bank of Chicago, called at his office on Saturday of 4st we Of the and advised that he had not been in Chicago since the dispatch Boara's letter of April 4, 1933, regarding subscriptions by him to Goverrnnent securities thDow-,h the Federal Reserve Bank of Chicago, and tlit he will reply to the letter upon his return to Chicago the early part or this week. serve Reference was made to the question whether the Federal Re- Board should now transmit to the Attorney General the report made bY the "%ara's Division of !:x.amilations and related documents. A discussion indicated the consensus that the matter should not be referred to the DePe'llIllent of Justice until after the receipt of 1.1r. Simnson's reply to the ' 8 letter, when the Board will be in possession of all the information (11111(1 l'eq4ezted by .v it in connection with the matter. The Governor then presented a letter dated April 15, 1933, from '1311,4tor Carter Glass stating that it is understood that the committee, of 17111Q11 "Lr. 'e Goldenweiser was chairman, appointed about three years ago, to thozou:_;h investigation of branch, group, chain and unit banking, report with voluminous exhibits in the latter uart of 1932; and that it 17°41d be e:xtremely valuable to the sub-coLunittee of the Banking and Corrudittee of the Senate which is considerin, the sc,called Glass 132 4/17/33 -20- it a copy of the System Committee's rellort covering at least branch and the causes of bank failures, could be made available. Attention 7148 called to the fact that the members of the loard's staff who have been l'e7ieWillL; the detailed reports prepared by the committee have not had an Q131)°rtunity, because of the Press of other matters, to review all of the Iseports submitted by the committee, and Kr. Goldenweiser stated that three 1LImeo of the report have not yet been put in shape by the committee, and that come of the other volumes are not entirely satisfactory to it. After a discussion, Ir. Goldenweiser was requested to prepare, for the consideration of the Board, a reply to Senator Glass' letter, transmitting, for the use of the sub-committee of the Banking and Currency Conmittee, all the volumes of the committee's report which are in form for transmittal, and stating that other volumes will be forwarded as soon as Possible; particular attention to be called in the letter to the fact that the volumes have not been considered by the members of the Federal Reserve Board. There was then reviewed briefly for the information of the Chair14111 th ° lecislative history of the Glass Bill and his attention was called to the report aabmitted to the Senate Conaittee by the Board on Larch 20, 19, 62 84Ceesting certain changes in the bill. Certain Provisions which it 18 411aerstood may be included in the bill to be reported by the subeorzaittee, includinc provisions relatin,7, to the insurance of bank deposits EltIcl ed the2--°ral Open Larket Committee, were discussed briefly, but no action 7148 tctken. sQraa or Reference was then made to the lists which have been received from the Federal reserve banks in response to the Board's request for 133 4/17/33 -21- the Ilanles and addresses of persons who withdrew gold coin or Gold certifi04tes Which they had not redeposited in a bank on or before Earch 27, 1053. CoPies of the lists were shown to the Chairman, with the understanding that the8e Copies would be sent to his office, and that copies of the lists from the Other Federal reserve banks would be submitted to him as they become Report of Standing Committee dated April 17, 1033, recontuendinc 13431)01ral of the followinc; Clayton. Act application: La% Frank Phillips, for permission to serve at the same as director and officer of the First National Bank in 4:,..;artlesville, Bartlesville, Oklahoma, as director of the I:I-rat National Bank in St. Louis, St. Louis, ILissouri, and as airector of the 3:anufacturers Trust Company of New York, New York. Approved. Thereupon the meeting adjourned. %roved:
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