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A meeting of the Executive Committee of the Federal Reserve Board 17a'a held in the office of the Federal Reserve Board on Thursday, April 30, 1931, at 12:15 p. U6 PHESMIT: Governor Meyer Mr. James Mr. 1.:cCle1land, Assistant Secretary. The Governor referred to a statement made by Governor Harrison of the Pederai Reserve Bank of New York this morning that he expected the directors or his bank at their meeting today would request the Board to 'reduce from 11/V0 to 1;"; the rate fixed by it as the minimum authorized buying rate for the Purchase of bankers' acceptances at that bank, although the bank may not lieee8sarily reduce its effective buying rate which now stands at 1 1/45 on the shorter maturities. The Governor stated that Governor Harrison had requested prompt action bY the Board, that it is impossible to have a quorum of the Board today in '1 " 1 Clf the fact that Mr. Pole is out of town and lir. Hamlin confined to his 4°IllebY illness, and that he expects to leave this afternoon to spend the bEtiat. ee of the week in Chicago. The situation was discussed, however, and the °Ilzaittee felt that, since it was unanimous, it could assume authority, in view "conditions, to reduce the minimum authorized buying rate of the New --- if requested by the directors. On motion, the Assistant Secretary was authorized, upon receipt of advice of action by the New York directors, to reply that the Board approves a minimum authorized buying rate of 1; for the bank. kltere At this point Governor Black of the :Federal Reserve Bank of Atlanta d the room and discussed with the Committee in detail the various tilatters covered in a written report, submitted under date of April 21st, on 4/30/31 -2- recent visit to the Havana Agency. He referred first to a proposed exchange of :H2,370,000 of American c. 13-(1 coin by the Agency with the Cuban Treasury for Cuban gold coin of equal /leigiat and fineness. He stated that the Cuban Government will ship the 4111erican coin to this country in connection with a debt payment, thereby °11.11nating the nuestion which has been in the minds of the Atlanta directors some time of arrangements for the export of the gold to the United States. lie stated further that .500,000 of the Cuban gold coin will be redeemed by the C111)411 Treasury with currency secured in exchange for United States silver which latter will be shipped to the Philadelphia Mint under arrangements ' all dY completed, and that the Cuban Government will agree to repurchase the lice of its gold with currency within six months. He requested approval 01'4 contract for the exchange of the gold which has been authorized by the 15clItive Committee of the Federal Reserve Bank of Atlanta, as outlined in Written report. Following a brief discussion, Governor Black was advised that no objection will be interposed to the arrangenent authorized by the Executive Committee of the Atlanta bank. Governor Black then referred to the action of the Board of Directors ( T 4 '48 bank in voting to reduce from 320,000,000 to J0,000,000 the holdings or e 111"rency at the Agency. He pointed out that10,000,000 has always been ta°1'e than sufficient to take care of normal operations and that :i;20,000,000 1107er been adeouate to meet an emergency such as developed in 1926 and lie referred to the improved transportation facilities between the %Ilta Oa.nk and its branches in this country and the Agency, and stated that 111q.cl5oat to the reduction in the Havana currency stock it is proposed to Ille(ise from :)5,000,000 to 1.0,000,000 the stock of unissued Federal 4/30/31 -3- Reserve notes held at the Jacksonville branch. He stated that he discussed the matter with representatives of all of the important banks operating in Cilba and that they are agreeable to the reduction. After discussion, upon motion, it was voted to interpose no objection to the action taken by the Atlanta directors. Governor Black then left the room. Governor Talley of the federal Reserve Bank of Dallas then joined themeeting and discussed with the Board the recent reorganization of the 11./‘8t State Bank of Roby, Texas, referred to in a letter addressed to the R°ard under date of April 22nd by the Federal Reserve Agent at Dallas. He " "ed that the Federal Reserve Bank is disposed to go along with the new lineament in its plans for the reorganization of the member bank and for 14" reason wired the lioard on April 17th recommending that action looking tovraz, `' the termination of the bank's membership in the Federal Reserve System 4 dererred. At the conclusion of the discussion, upon motion, it was voted, in accordance with a recommendation submitted by Governor Talley, to dismiss the proceedings instituted by the Board on Larch 14th against the First State Bank of Roby, Texas, and to take no further action thereunder. Governor Talley then referred to an application for membership in the Ilatiz daral ,Aeserve System and for 225 shares of stock in the Federal Reserve Of Dallas filed by the Commercial American Bank and Trust Company, .7ePort, Louisiana, which was organized on October 20, 1930, for the purDoEle 0 takinc; over the business of the American National Bank of Shreveport; tile 0 nrd havin voted on April 7th to defer action on the application until ,e co 4dit1on of the applicant bank could be discussed with Governor Talley. 4/30/31 Re -4- submitted a memorandum to the effect that the applicant bank is fully pro- tected in all assets taken over from the former national bark. He reported, however, that he has been informed since the application was filed, that a e°11solidation of the Commercial American Bank and Trust Company with the C°11titlental Trust and Savings Bank of Shreveport, has been contemplated. He stated that because of the condition of the latter institution the Federal ile8erve Bank of Dallas would not approve such a consolidation, that this fact hAe been explained to the management of the Commercial American Bank and Trust eOrnpallY of Shreveport and that it is now proposed, before any consolidation is efrected, to have the Continental Trust and Savings Bank also apply for raellibershiP in the Federal Reserve System, which, if done, will afford an c)))°1"tunity to the Aderal Iteserve bank to secure such adjustments in the '311(lition of the bank as are considered necessary. At the conclusion of the discussion, upon motion, it was voted to approve the application of the Commercial American Bank and Trust Conpany of Shreveport for membershlp in the Federal Reserve System and for 225 shares of stock in the Federal Reserve Bank of Dallas, subject to the . regular conditions of membership set out in the Board's Regulation H. Governor Talley then discussed with the Committee briefly the conion - of the First National Bank of El Paso and stated that he has been re(111°st d by ethe Comptroller of the Currency to proceed to New York for a dis- el4Q -n of the matter with certain interests there, which he is willing to do ir there is no objection on the part of the Federal Reserve Board. The members of the Committee present advised Governor Talley that they saw no objection to his doing so. The meeting adjourned a :10 p. in.
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