The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
1130
ii
A meeting of the Executive Committee of the Federal Reserve Board
"
W
held in
'Jazhington on Wednesday, April 26, 1933, at 11:20 a.m.
PRESENT:
Mr.
Yr.
Mr.
Yr.
Meyer, Governor
Hamlin
Eiller
Jams
Mr.
Ur.
Mr.
11r.
Morrill, Secretary
McClelland, Assistant 3ecrotary
Harrison, Assistant to the Governor
Wyatt, General Counsel.
The Committee
considered and acted upon the following natters:
Peaerai
Telegram
dated April 24, 1933,fromMr. Hoxton, Chairman of the
Reserve Bank of IZichmond, advising of the establishment on that date
°r tie
rellminL' schedule of effective buying rates on bankers' acceptances:
1 to 90 days
91 to 120 days
121 to 180 days
Without objection, noted with approval.
Telegram dated April 25, 1933, to Mr. Newton, Federal Reserve Agent
Ettsan ,,
approved by four nambers of the Board, stating that the
130ard
%lira
aPPreves the supplemental application of the Central Bank of Oakland,
eL 3 for 1,590 shares of stock in the Federal Reserve Bank of San
8co, and that
the telegram supersedes the telegram sent to the Federal
teaezve
€t°ent on April 24, 1933, approving an application filed by the mem-
ber _bank f
or 1,800 shares of Federal reserve bank stock.
Approved.
()1
L:arlorandum dated April 13, 1933, franErs Goldenweiser, Director
sion of _esearch
and Statistics, recomending leave of absence
IA.aa
'P417
'for an additional period of two months from May 1, 1933, for
c4la v"
r, an emplo
yeehe
division; r physician having
in that
181
4/26/33
-24c1171sed that
she will be able to return to work by July 1, 1933, at the
latest.
Approved.
Memorandum dated April 26, 1933, from Mr. Wyatt, reconmending the
el)pointnxnt of Yr. H. Lee Boatwright, Jr., as Assistant Counsel to the
?lidera"
Reserve Board, with basic snlpry at the rate of 34,800 per annum,
erfective
as of the date upon which Mr. Boatwright assumes his duties.
Approved.
M4 Miller, Chaimnan of the Committee on District No. 12, stated
tilet the
conmittee desires to recommend the appointment of Mr. M. W. Smith,
1184111er of the Midland Elevators Company, Idaho Falls, Idaho, as a director
or the Salt Lake
City branch of the Federal Reserve Bank of San Francisco,
45 aUcceed
Mr. G. G. Wright, deceased.
Accordingly, Mr. Smith was appointed a director
of the Salt Lake City branch for the unexpired portion
of the term ending December 31, 1934.
Reply on April 24, 1933, approved by four members of the Board, to
4 letter dated
April 18 from Assistant Federal Reserve Agent Gettemy at
Boato4
'requesting approval of the designation of Messrs. E. J. Stevens,
W, 114
lutg and
Percy E. Hoyle, anployees of the bank, as assistant examiners,
44d or the
continuations for an additional period, of the temporary appoint-
MrR. W. Marr, as assistant examiner, with salary at the rate of
$16C)
lonth.
The reply stated that the Board approves the designation
Qr the three
employees named, end of the continuance for an additional
15611°d or the
temporary appointment of Mr. Marr, and requested advice as to
Whether the
designations of the three employees are temporary or permanent.
41/26/33
Approved.
Reply to a letter dated April 18, 1933, from
La..
Albertson, Secretary
°r the 2edera1 Reserve Bank of Atlanta, referring to the Board's letter of
4111,-') -4y36, and stating that developments during and since the bank
hclicicLY have nade it possible to abolish the position of "special custodian"
14 tile Reconstruction finance Corporation department of the New Orleans
brarl„,.
'4
The reply stated that, in view of the discontinuance of this
1)13s/t10,
-I
—I it would appear that a change in the personnel classification plan
°rthebranch to Provide for the oosition, as recomended in Er. Albertson's
letter
"arch 13, 1933, is no longer necessary, and that,unless advice is
loeeiv
"'`
La0
the contrary, no further action will be taken by the Board.
Approved.
Reply to a letter dated April 20, 1933, from Governor Geery of the
4cleral
Reserve 3ank of :An/lea-polls, stating that the action of the board
clirectors
of the Helena branch and the executive conndttee of the federal
Ile°erve Bank
41t1°11 to
02 7
inneanolis with regard to the Payment of additional compen-
A. A. Hoerr, Cashier of the Helena branch, contemplated such
nt from the date on which jr. Towle, Eanaging Director of the branch,
v/Ets
released to the 2eo1al Agricultural Credit Corporation, rather than
rls°111 ADzil 7,
1933, on which date the executive committee Considered the
114tter.
The reply stated that, accordingly, the Board has approved the
Da.
yrasrit
-- additional compensation at the rate of ,:,100 per month to La..
11°Grzi
ora
4' September 16, 1932, to the date on which Mr. Towle again assumes
hla ,
malla3ing director of the branch.
it
-Neara
The reply also stated that
from the Board's records that the leave of absence of three
-7
eik
)
4/26/33
-414.°11tils Cranted by the executive cormAttee of the bank to L. Towle in
Deceather 1932,
expired on Larch 16, 1933; that it is assumed that leave of
for
an
e.b8orice
additional period has been granted to 1:r. Towle; and that it
17111 b e appreciated if Governor Geery will advise of the action taken in
thi8
re ez.(1,
and when lir. Towle is expected. to return to the branch.
Approved.
LTemerandum dated April 13, 193, from the Committee on Salaries and
14Penaii.
—11res, statin,
,• that, in accordance with the Board's letter of
'c'erabey.,
- 00, 1932 (13-854), the Federal reserve banks have submitted statethe name and annual salary of each employee on Sanuary 1,
933
together with the salary on lanuary 1 of last year or the initial
skiary
if hired. after Ianuary 1, 1932; that these statements have been
3.Cainst the Personnel classification plans on file with the Board;
ri
it is recommended that each Federal reserve bank be advised that
tlie
salaries paid by it as of 3-anuary 1, 1933, as shown on the respective
at8 '
illrnished the i3oard, have been noted with approval and, also, that
tile
renewing. 'natters be called to the attention of the respective Federal
bankz:
(1) At the Federal Reserve Banizef Philadelphia and
C
leveland no deductions are being made from the salaries
additional employees under the share-the-work plans
clapted by the banks, althouct. the Board advised these
u/Etnks that it assumed such deductions would be rnade.
(2) The Cleveland salary list slims a Reconstruction
,
----t-Lce Corporation Department which is not provided for in
1-1.0 bank's personnel classification plan.
(3) The Cleveland bank should submit revised pages of
ita Personnel classific ation plan to provide for the pos ition
""tin assistant Federal reserve agent at its branches.
184
4/26/33
(4) /To percentage reductions were applied by the Federal Reserve Bank of Richmond to the salaries of employees
assigned to the Reconstruction Finance Corporation unit,
although such reductions were applied to salaries of all
Other employees (except special cases) who received in excess of , 720 per annum.
(5) More than 200 employees of the Federal Reserve
Bank of San Francisco were receiving higher salaries on
J'anuarY 1, 1933, than on January 1, 1932, and that as this
number represents approximately 40 of the total number of
enPloyees in the System as a whole receiving higher salaries
°n January 1, 1933, it would appear that the salary policy
of the
during 193L! was somewhat out of line with that
d by other Federal reserve banks.
(6) With a view to obtaining uniformity in titles of
examiners whose appointnents are apl)roved by the Federal
Reserve Board, the personnel classification plPrs of certain
?auks should be revised so that the titles used will be
limited to "chief examiner," "examiner," and "assistant
examiner."
('1) At sone of the banks an employee was transferred
(7)
the year to a position having a lower salary range
than the position occupied by the employee on January 1,
.1:932, with the result that the salary paid on January 1,
is in excess of the maximum salary for the position
occluoied.
(1
Letters to the Chairmen of the various Federal
reserve banks, submitted by the Committee on Salaries
and Expenditures in accordance with, its reconnendations, were approved.
Evt chi
Telegram dated April 25, 1933, ton!. Stevens, Federal Reserve Agent
140proved by four members of the Board, stating that the Board has
L
4Droved
rorrae,
the feci
the application filed by the Farmers State Dank, Belvidere, Illinois,
er8hiP in the Federal Reserve System and for 120 shares of stock of
Reserve Bank of Chicago, subject to the conditions prescribed in
the tele
Approved.
AT
4
41116/33
-6Reply on April 25, 1930, approved by four members of the Board, to
Etletter dated
April 21 fm hr. Hexton, Federal Reserve Agent at Richmond,
tr
4 4.
Ekusta"tin3 the request of the Lynchburg Trust and Savings Bank, Lynchburg,
for an extension of 30 days in the time within which it may
cille-41*Y
for membership in the Federal Reserve System; the bank having advised
that
.
"18 not ready to act definitely on the conditions of membership imposed
bY the
oard. The reply stated that the Board grants the extension and re,
that tne
Lynchburg Trust and Savings BsTik be advised accordingly.
Approved.
Letter dated April 24, 1933, to the Washington 'National Bank,
Washini,ton, approved by three neybers of the Board, stating that
the Dn,
-41:u has approved the bank's application for pernission to act, when
Act i,
-- con
travention of State or local law, as trustee, executor, administlator
' registrar of stocks and bonds, guardian of estates, assignee,
Zeeive
I comndttee of estates of lunatics, or in any other fiduciary
Nqcity in
which State banks, trust compapies, or other corporations which
in
to t4
erea.
competition with national banks are Permitted to act under the
the State of Washington, the exercise of such rights being subject
e 131'
°visions of the Federal Reserve Act and the regulations of the Fed-
Board,
Approved.
e.t c,
Letter dated April 24, 1930, to hr. Newton, Federal Reserve Agent
kEkbt j'alleisco, approved by four members of the Board, stating that it is
4°"tecl
1.32
'or
the analysis of the report of examination, as of September 21,
the
Commercial Security Bank, Ogden, Utah, that the bank has an
C)11.
-11-00
4/26/33
-7-
investment of ,8,000 in the stock of the Bear Lake State Bank, Paris, Idaho;
that it
aPPears that this investment is contrary to the provisions of one
cf the
it Aq
conditions under which the bank was admitted to membership; and that
ill be appreciated if the agent will advise in detail of the circum-
taxless surrounding the investment and his views as to what action should
be take
n at this time, either by the Board or the Federal reserve agent's
°trice., in connection with the matter.
The letter also requested that the
4get forward
to the Board a copy of a current report of condition of the
rican
Investment Corporation which owns 1,458 1/3 shares of the stock of
tb
c°mmercial Security Bank and such information as may be available with
l'e ard to the
condition of the other banks controlled by the corporation,
V3
a$ advice as to any corrections or other improvements made by the
°cIrlItilercial Security Bank in the features of its condition which were subject to criticism in the report of examination above referred to.
Approved.
Draft of a letter, prepared in the Treasury Department for the
4igtat4re of
the Secretary of the Treasury, to the Chairman of the Committee
o
Banking and Currency of the senate, replying to his request for a report
bY the Treasu_ry
Department on S. 806, "a bill establishing the Bank of the
United c;tates,
owned, operated, and controlled by the Government of the United
tatea; defining
the scope and manner of its operation; defining the powers
:"
'4"
clirsetors;
of the persons charged with its management; creating a board of
and for other purposes."
The reply referred to objectionable
Isestures of
the bill and stated that the Treasury Department is opposed to
its
ellactment.
Approved.
4h6/33
-3The following statement to the press, issued by the Secretary of
the
l
urY on April 25, 1933, was presented for the record:
"Secretry ;Toodin today called attention to the fact
tht urider the provisions of the President's Order of April
forbidding the hoarding of gold coin, gold bullion
and';old certificates, persons who aan gold coin, gold
bullion or gold certificates are required to deliver their
holdings to a
Federal Reserve '3ank, branch or agency, or to
anY nember bank of the Federal Reserve System, on or before
next LIonday, Lay 1st, 1953, except as provided in certain
cases specified in the Order. A fine of 10,000 or ten
Years tmprisonment, or both, nay be imposed as the penalty
for failure to comply with the terms of the Order.
"Gold in reasonable amount, actually required for use
in industry, profession or art, is excepted from the order
to deliver on or before Iday 1st. An exception is also
alloued in the case of gold coin and gold certificates in
an amount
not exceeding ::100 belonging to any one person,
814(1 in the case of gold coins having a recognized special
value to collectors of rare and unusual coins.
. "In a final effort to acquaint the public with the requirements of the President's Order, and the criminal
Penalties provided for violations of the Order, the Treasury
DePartment is forwarding to every post-office and banking
institution a printed notice, in the form of a poster and
intended for public display, setting forth the Executive
°I'aer in Dail. Persons having gold coin, gold bullion or
gold certificates should acquaint themselves with the exact
'terms of the Executive Order.
"To facilitate the identification of gold certificates,
84 distinguished from other currency, the Treasury points
that Gold Certificates may be identified by the words
4°1d Certificate' appearing thereon. In the case of gold
?ertificates of
the small-size currency, which were first
_Issued in 1929, the title 'Gold Certificate' appears on the
l
oace of the certificate, and in the case of gold certificates
Of
tile large-size currency, (the issue of which was discon:inueked
b
in 1929), the title 'old Certificate' appears on the
. The serial number and the Treasury seal on the face of
s GOld Certificate are printed in yellow. while Federal Rorotes and United States I:otes are redeemable in (
,
)old and
be
,r a provision to that effect, they are not 'Gold Certificates'
-"`' are not, therefore, required to be surrendered."
188
4/26/33
-9ILt this point Dassrs. Snead and Goldenweiser joined the meeting.
Governor 1,:eyer stated that he had talked over the telephone this
tier/ling with
Governor Harrison of the Federal Reserve Bank of New York, who
"ed that he felt it would be desirable, in connection with the current
(31111ne by the Treasury Department of 4500,000 000 of Treasury notes, for the
'Y8t%u to increase its
holdincs of Government securities in the open market
"count today by
1;40,000,000 or 450,000,000, so that the increase will appear
ill the weekly statement of condition of Federal reserve banks published tonor-
11, and that it
will be appreciated if the Board will consider the resolution
(IdoPted at the meeting of the Open Ylarket Policy Conference on April 22, 1933,
1111th°11.4ing the executive committee of the conference to arrange with the
Secret
arY of the Treasury from time to time to purchase up to 4,000,000,000
Gcvernment securities to meet Treasury requirements.
Governor Meyer stated that while the resolution appears to contemplate
"
11
Ileas direct from the Treasury to enable it to meet its requirements, Governor
lierrison had stated that it was not the intention of the conference that
1311rehaees should be so limited.
He called attention to the fact that, entirely
eside
J.Isonl this Point, the Treasury offering has been over-subscribed by more
that, ,
1400,000,000 and stated that he had advised Governor Harrison that, in his
°Pinto
a) the Treasury Department does not need the assistance of the Federal Rezlerve
2Yetem at this time; that it would be preferable for the department to
ket the issue
,Athout any assistance from the Federal reserve banks; and
that
'in the present situation, he questions the advisability of purchasing
440,00
0,000 or 450,000,000 as an indication of the attitude of the System
toviard
inereasinf, its holdings of securities. Governor Meyer also stated
that TT
11(ler Secretary of the Treasury Ballantine had discussed the matter
St
htm
and Governor Harrison yesterday and today, and is inclined to
189
4/26/33
-10-
,411)
raver the
suggested purchase, although he appears to have no strong feeling
in the matter, but that, so far as he knew, the Secretary of the Treasury,
110 is still
confined to his home by illness and had talked the matter over
vlith Mr. Ballantine, had expressed no opinion concerning it.
A discussion ensued, at the conclusion of which
the Governor was requested to advise Governor
Harrison that the Board does not think it advisable
to make any change in the System holdings of Government securities this week, and that action on the
resolution of the Open Market Policy Conference has
been deferred.
There was some further discussion of the two other resolutions adopted
bY the„
upon :_arket 2olicy Conference at its meeting on April 22, and it was exill'e3sed as the consensus that the Board should approve the resolution instructthe
executive committee of the conference to work out a system of allotMet of
existing holdings, as well as new purchases of Government securities,
with a
view to arriving at a more equitable relationship of reserve percentages
c3t the Aderal reserve banks, with the understanding that the system, when
vic3rke'l °lit, Will be submitted to the Board for its approval.
In connection with the resolution adopted by the conference looking
a authorization of the executive committee to shift maturities in the
8Ystem
account as conditions in the market or requirements of the Treasury
E1PPear to make that advisable, the suggestion was made that a limitation
be ni
—aced on the length of the maturities of Government securities which
be
placed in the open market account. Some of the members stated that
the,,
1/0111d like to consider this point further.
Accordinly, Governor 1.:eyer was requested to advise
Governor Harrison that action on the last mentioned resolution has been deferred, but that the Board is in agreement
With the proposal embodied in the resolution instructing
the executive committee of the Open Market Policy Conference to work out a new system of allotment, it being understood that the new system will be submitted to the Board before
being made effective.
190
-11The Secretary stated that the proposed letter to the Attorney
General t
rananittinr; the report of the investigation made by the Board's
Divisi n
0 of Examinations in the Fiscal Agency Department of the Federal Re314."7e Bank of Chicago, and related
documents, has been approved by the
al31)13/11tiva members of the T3oard and it is understood that it is to be held
tor ,
Q41Proval by the Secretary of the Treasury upon his return to the office.
It wEv.
ao;reed that this Procedure should be followed.
ReP0rt5 of Standing Connittee dated April 24 and Z5, 1933, reamapproval of the followinG Chan-es in stock at Federal reserve banks:
Ap
'
- e"ions for ORIGLTAL Stock:
District No. a
---114ti°11a1 nank of Tulsa,
Oklahoma.
a,,,,_istrict No. 11.
National Bank in Brenham, Brenham, Texas.
Shares
4,800
4,800
30
Total
30
4,830
60
60
A
le tricEtti
t .7?:111s
. for
- Stock:
ADJITIOLAL
aser,
i°
-11d 1-ati0nal
Bank, Connellsville, Penna.
(Increase
in capital, partly offset by
decrease in surplus)
t
Diztric
1Te.tional
Dixon, Illinois. (Increase in
ellPital, Partly offset by decrease in surplus)
60
Total
60
120
795
795
/L.M1122TDER of Stock:
)
tt! 13
%
-.
itI
)
114 tIj
4.111
and Trust Company, Philadelphia, Penna.
(Declmase in
surplus)
1)14.
liatiPEET.I7B
, Coon Rapids, Iowa. (V.L.Suc.
Pirst State Bank of Coon
Rapids, nonmember)
33
19/
))
4/26133
-12-
3.1eations for MIRE= of Stock: (Cont I
d)
8.
41tric SavinGs
Trust Company, Richmond Heidats,
„ laiesouri.
(Insolvent)
university City Bank and Trust Company, University
City, Lissouri.
(Insolvent)
Shares
„IrAq.I'let No. 10.
rirst
National Bank, North Bend, Nebraska.
(
Insolvent)
4.1rat
National Bank, Knox City, Texas. (V.L.Abs. by
8. 1•ti
1\Tetz
tein
nai
os
StBi,
aan
te cHank of Knox City; nonmember)
Rio Grande, Texas. (V.L.Abs. by
The
r
.
first State Bank and Trust Company of Rio
'
2' aricle nonrember)
72
78
150
42
42
30
15
Llistriet No.
12.
41xstAt 1Tat10181 Bank, Redondo Beach, California. (V.L.
8. by Bank of Anerica. National Trust and
-417111ge Association, San Francisco, California.) 180
at National
Bank, Linnton, Oregon. (V.L.Abs. by
The United States National Bank of Portland,
18
Citieree°11°)
zb°113 National Bank,
Portland, Oregon. (V.L.Abs.
„7 The United States National Bank of Portland,
`'regon..)
240
Total
45
438
1,503
Approved.
Reports of Standing Committee dated April 24 and 25, 1933, recomaPProval of the following Clayton Act applications:
title
VT. S. Hammons, far permission to serve at the same
as
director
and officer of the Portland National Bank of
Po land,1%4
,
LIaine
director of The Mimi Beach First
'mitt°nal
'and as
Bank, LiEuni,Beach, Florida.
.11r. C. B. J'aphet, for permission to serve at the same tine
43-rector of the Harrisburg National Bank of Houston, Texas,
-keze.e. director of the National Bank of Commerce of Houston,
Approved.
192
-13
Thereupon the meeting
djo
ed.
0-1.AA
Secretary..
@FedFRASER