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398 A meeting of the 21xecutive Committee of the Federal Reserve Board. was el in the office of the Federal Reserve Board on Friday, April 30, 1926, at 10:45 a.m. PRESENT: Governor CrissinE,Per Mr. Platt Mr. Hamlin Mr. James Mr. lioell, Asst. Secretary Mr. McClelland, Asst. Secretary Letter dated April 29th from the Secretary of the Federal Reserve 138411k Of New York, advising that the board of directors on that day coniclerecl the bank's existing schedule of rates of discount and -carchase 411cl rilLIcle no change therein. No ted. Telegram dated April 28th from the Governor of the Federal Reserve 4. :111e — of Boston, advising that their rates for purchases of barkers acceptances 114 e been changed to conform to the schedule of the Federal Reserve Bank of 14p, as follows: 1 to 15 dki-s 16 to 60 days 61 to 90 days 4 months 5 and 6 months Repurchase Trade bills 3 3 3 3 1/8,0 1/4% 1/2% 1/2,0 3 1/2=A:. 3 1/270 Noted, with approval. Telegram dated April 29th from the Secretary of the Federal Reserve Of Cleveland, advising that the 7xecutive CoLiaittee on that day voted to stablish the following minimum buying rates for bankers acceptances, (isi‘ect ive Aoril 99th: 1 to 15 days 16 to 60 days lia„, 3 1/4,, 399 4/30/26 -2- 61 to 90 days 91 to 120 days 121 to 180 days Repurchase Trade bills MN, Noted, with approval. Telegram dated April 27th from the Chairman of the Federal Reserve Bank Of sala Francisco, advising that the Executive Committee on that day voted to eStablis'h minimum buying rates for bankers acceptances, as follows: 1 to 15 days 16 to 60 days 61 to 90 days Repurchase _ - 3 3 3 3 1/8d ly/4 1/2 1/2 Noted, with approval. Letter dated April 29th from the Chairman of the Federal Reserve Bank or 74_, '"u nmond, with further reference to the shortage at the Baltimore Branch i4 thA - accounts of Teller Thlter M. Snyder; the Chairman advising Mr. Snyder he.z b eel 'indicted by the Grand Jury and. has made a genoraa confession and 0(1 guilty of all the charges. Noted. Letter dated April 27th from the Controller of Administration of the 4" 1 2eserve Bank of Chicago, advising that payment of ,,150 has been to -r. .lom C. Smith, attorney, in payment for services in connection Vi411 f claim with the receiver of the Bank of Lewis, Lewis, Iowa, %ve . 14g items forwarded to that bank in cash letter of :Larch 8, 1924. Approved. Letter dated April 23rd from the Federal 2eserve Agent at San Francisco, -.4'g that the Valley Baak, Phoenix, Arizona, has decided to close its 400 4/30/26 -3.. 13rallat at Winkelman, Arizona, effective May 10th, and to transfer its business to the Hayden branch. Noted. Letter dated April 27th from the Assistant Federal Reserve Agent at Beet°1at advising that under authority previously granted by the Board the illciustrial Trust Company of Providence on April 26th took over the National —"go Bank of Providence and for the time being, is operating it as a braywi. 4 under the name of The Exchange Branch of the Industrial Trust Company. Noted. Letter dated April 26th from the Federal Reserve Agent at Cleveland, 4641-sing that he is scheduled to talk before the Maryland Bankers Association at Atlantic City on May 13th and stating that if agreeable to the Board it Wel be hie Purpose to leave Cleveland May 9th and to remain at Atlantic eitY for ten days. Noted., without objection. Letter dated April 26th from the Manager of the carlination Department clt the t, - .ederal Reserve Bank of Minneapolis, transmitting application of the 5" ' 1 4113 State Bank, Belgrade, Montana, for approval of its action on April th, t 11 taking over the business of the Farmers Bank of Belgrade; the letter !net, 411C t'nat eyanination of the Belgrade State Bark will be made in the Ilear " tl-lre and. particular attention will be given to the transaction of 430rbi,,,„ the .Baserr Farmers Bruilr, following which a recommendation by the Federal e h`gent will be made. Noted,. Letter dated. April 28th from the Chairman of the Federal Reserve • 401 4/30/26 -4-- I N 13allk Of New York, advising of a pending merger of the Albany Trust Company, Albat479 N. Y. by the First National Bank of Albany. Noted. Liem.orandum dated April 29th from the Chief of the Division of Bank °Perations, submitting statements of brokers loans and. borrowings from l'ecleral Reserve banks of individual reporting member banks in New YOAC City 841d Chicago as of April 21st. Ordered. circulated. Letter dated April 26th from the Governor of the Federal Reserve Bank Of Dallas! with reference to an anonymous communication addressed to the Board. '`'"4•1'ging him with engaging in, speculative activities; the Governor atating that while he has purchased one or two local investment stocks he has indulged in. speculation or bought any securities on margin and. has ove4. l'efrained from advising friends as to their investments. Noted. Letter dated April 27th from the Federal Reserve Agent at Chicago, tr ballitting and. commenting upon newspaper clippings .regarding statements tie al Of the Federal Reserve System made by Messrs. Smith '7. Brookhart sala II Oward J. Clark, candidates for the United States Senate in the approach- I Re-pouhi --Lean Primary election in Iowa; the Federal Reserve Agent expressthe a., uPinion that steps should be taken at once to get the right sort of 171°11:11atien into the Iowa papers and, before the people of that State, and tatillg he will be in Washington within a few days to discuss the matter at *eater length, Noted, the letter calling for no farther action, inasmuch as the Board. has consistently taken the position i 402 W3o/26 that it 7,ould not itself nor would it permit any Federal Reserve bank to aiga,s.e in any activity that migat be construed as political propaganda. It was decided that Mr. Heath, who is in Washington today, should not be heard by the Board on the subject of his latter. lAatter appmved on initials yesterday, namely, letter to the Deputy Manager c)r the ci earrag House Section of the A.merican Bazikers Association, replying to his letter of April 12th, requesting the views of the Federal Reserve Board on the qil estion of whether Vile minimum no-protest amount should be „1.0 or :;;20 and tile reasons for the adopting the y1.0 figure; Federal Reserve banks genorally the letter stating that the Board agrees with the position of the Federal Reserve ballIzs that their policy with respect to this limit shculd be governed by the Dractiee in effect with commercial banks generally and that the10 minimum be c ontinued unt i1 commercial baraers adopt a policy different from that /1(314 effect - investigation having disclosed that 8673 of connercial banks are the v'10 limit Upon motion, the above letter was formally approved. II Chairman of the Committee on District 45 then reported on tile Za.tter referred to the Committee at the meeting on April 27th, namely. letter (let ed. April 22nd. from the Federal Reserve Asient at Richmond with respect to to the acti°11 of that bank in contracting with Mr. John P. Wilson of Richmond over % plans and specifications with the architect for the Baltimore build- at a f oe of ,a0,000; the Committee reportins3 that the matter of employing 'illeez was submitted to the 13oalti by the bank in 1921 and received approval 4t that Not ed. 403 4/30/26 -6- 1\ James then reported that Honorable Cordell Hull and. Honorable Joseph *i• Byrn.J, members of the House of Representatives from Tennessee had. cap -Led. on him this morning and. inquired with reference to the controversy, which took place some years ago, between the Fourth and First National Bank Ira shville, Tenn. and the Federal :deserve Bank of Atlanta with reference to certain Liberty Bond transactions. Mr. James submitted a proposed letter to a°11gressmo.n Hull advising that the 3oa.rd....1.11 be very ,lad to give him an. °13P°rt1Znity to examine the files on this subject at any time he may care to :10 1 So tut ieouesting that such examination be made in the Board's offices. Upon motion, the proposed letter was approved. Jcznee then read to the Board a letter which he proposed to send to 1:11• John •./. Barton, Chairman of t he American Bankers Association Committee °1111°11"-cash Collections, requesting an ex-Dression of opinion on a proposal tit the Board. should make it optional with each Federal Reserve bank as to cl1se°4tinuinP. the collection of non-cash items at street addresses and of tlIrrlilla‘ such collections over to the member banks or clearing house associatIclas in the bank or branch cities under contract agreement such as rlau be arra , '%ed between the Reserve bank and the member banks of its District, DrQv ' eu-, the member banks of the cities affected by the rulin?; agree to tile al °°11ehrnent of clearing house rules or regulations making an arbitrary itq t° their depositors on out-of-town checks drawn on member banks. Ifoted, without objection. rir• Platt, on behalf of the Board's Pension Committee, stated that aotae Y8 ago. the Chairman of the Senate Committee on Banking and Currency Lai-Le/led him and advised that the Committee was to mt-Jet on the proposed 404 4/30/26 -7- ?elision Bill* Mr. Platt stated he had attended two meetings, accompanied bY different members of the Governors' Pension Committee. The first meeting, Ile stated, was attended by a majority of the members of the Senate Committee 741° had asked a riumber of questions as to how the proposed plan would work • Mr. Platt said the Governors' Committee had prepared a statement giving 4 Q°711Parison of the proposed System plan with the Government Retirement System alici that the members of the Senate Committee had. asked for comparisons with the Pe1321sylva.ni ilroad and United States Steel Corporation plans, In cora- l:411"n with these two plans the System plan is most favorable in that it 131"des that the banks and the employees should each contribute fifty percent, vill"eas the corporations referred to bear almost the entire charges* There was 418° "me discussion as to limiting the find, but the Chairman of the Senate e°133211ittee stated he did not have in. mind, a dollar limit but a pErcentage and. -"toildment was prepared providing as a limit 601/3 of an employee's last ten '88"' 1 81 salary, The Governor then presented letter dated April 29th from the State ZePartna„.„ .444 9 ` Ett transmitting copies of dispatches from the American Ambassador 54110-. Cuba describing the recent run on the branches of the Royal Bank Of Ce4lada and the National City BAnic in Havana, and. the steps which were talc , to meet the emergency* Ordered circulated. R2S OP STANDING C01,21ItifthiSs Ze`teds April 27th, Recommending changes in stock at Federal. Reserve Banks, 28th, as set forth In the Auxiliary Minute Book of this date* Approved. 405 100/26 -8- ZOOIDS OF STA/11)11:G COITT : (Conted) Dated, April 29th, Recommending action on application for f isluciary payers as set forth in the Auxiliary Minute Book of this date. Approved. Dated, 4pril 29th, Recommending action on application for fiduciary powers as set forth in the Auxiliary Minute Book of this date. Ordered. held. 1h6ted, April 28th, Recommending approval of the application of Mr. James E. ICen.iper for remission to serve at the same time as officer and director of the Commerrce Trust Company of Kansas City, Mo. and as director of the First National Bsn.k, Independence, MO• Approved. The meeting adjourned at 12:30 p.m. Asst. Secretary. 4.1)D roved
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